EFTA01366410.pdf

costs incurred in connection with formation and preparation for the Proposed Offering. These costs, together with the underatiter discount, will be charged to capital upon completion of the Proposed Offering or charged to operations if the Proposed Offering is not completed. Income Tares: The Company follows the asset and liability method of accounting for income taxes under FASB ASC, 740, "Income Taxes." Deferral tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities arc measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when nerv-Issry, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of June 5, 2015. The Company recognizes accrual interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at June 5, 2015. The Company is cunently not aware of any issues under review that could result in significant payments. accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Recent Accounting Pronouncements: The Company complies with the reporting requirements of Financial Accounting Standards Boas. ("FASB") issued Accounting Standards Update ("ASU") No. 2014-10, which eliminated certain financial reporting requirements of companies previously identified as "Development Stage Entities" (Topic 915). The amendments in this ASU simplify accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce date maintenance and, for those entities subject to audit, audit costs by eliminating the requirements for development stage entities to present inception-to-date information in the statements of income, cash flows, and stockholder's equity. Early application of each of the amendments is permitted for any annual reporting periods or interim period for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance (other entities). Upon adoption. entities will no longer present or disclose any information required by Topic 915. For public business entities, those amendments are effective for annual reporting periods beginning after December 15. 2014, and interim periods therein. The Company has incorporated the methodologies prescribed by ASU 2014-10 as reflected in the financial statements contained herein. P-I0 GLOBAL PARTNER ACQUISITION CORP. Notes to Financial Statements NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) In August 2014. the FASB issued ASU 2014-15. Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014- lc). ASU 2014-15 provides guidance on management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company's ability to continue as a going concern within one year fonn the date the financial statements are issued. The amendments in ASU 2014-15 are effective for annual reporting periods ending after December IS. 2016 and for annual and interim periods thereafter. Early adoption is permitted. The Company has adopted the methodologies prescribed by ASU 2014-15, and does not anticipate that the adoption of ASU 2014-15 will have a material effect on its financial position or results of operations. Management does not believe that any other recently issued, but not yet effective, accounting pronouncements. if currently adopted. would have a material effect on the Company's financial statements. NOTE 3—PUBLIC OFFERING Pursuant to the Proposed Offering, the Company intends to offer for sale up to 13,500,000 units at a price of $10.00 per unit (the "Units"). Each Unit consists of one share of the Company's common stock. n000l par value and one redeemable common stock purchase warrant (the "Warrants- ). Under the terms of a proposed warrant httplAnnesee.gov/Archiyes/edam/data/I 643953/000121390015005425/11201582_globalparinechtm(7/27/2015 8:51:37 AM) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0057936 CONFIDENTIAL SONY GM_00204120 EFTA01366410