v3.26.1
Fair Value Measurement
 6 Months Ended
Jun. 30, 2026
Fair Value Measurement [Abstract]  
FAIR VALUE MEASUREMENT

NOTE 8. FAIR VALUE MEASUREMENT

 

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

 

 

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

 

 

●

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

 

 

●

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

 

At June 30, 2026, substantially all of the assets held in the Trust Account were held in a money market fund and in U.S. Treasury Bills. At December 31, 2025, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills and are presented at fair value on the condensed balance sheets.

 

The following tables present information about the Company’s assets that are measured at fair value on a recurring basis at June 30, 2026 and December 31, 2025 and indicate the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

 

 

 

Level

 

 

June 30,
2026

 

Assets:

 

 

 

 

 

 

Investments held in Trust Account

 

1

 

 

$

239,776,741

 

 

 

 

Level

 

 

December 31,
2025

 

Assets:

 

 

 

 

 

 

U.S. Treasury Bills

 

1

 

 

$

235,632,380

 

 


14


 

CAL REDWOOD ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2026

(Unaudited)