Company: SZZL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110104
Chunk: 22

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 is no longer
serving the Company prior to the initial Business Combination. The membership interest assignment of the Founder Shares to the holders
of such interests are in the scope of ASC 718. Under ASC 718, share-based compensation associated with equity-classified awards is measured
at fair value upon the assignment date. The total fair value of the 140,000 Founder Shares represented by such membership interests assigned
to the holders of such interests on March 27, 2025, was $206,780 or $1.477 per Founder Share. The Company established the initial fair
value of the Founder Shares on March 27, 2025, the date of the grant agreement, using a calculation prepared by a third-party valuation
team which takes into consideration the market adjustment of 15.0%, a risk-free rate of 4.28% and a share price of $9.85. The Founder
Shares are classified as Level 3 at the measurement date due to the use of unobservable inputs, and other risk factors. The membership
interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Share-based compensation
would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in
an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per Founder Share (unless
subsequently modified) less the amount initially received for the assignment of the membership interests. As of September 30, 2025, the
Company determined that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The
Founder Shares are designated as Class B Ordinary Shares and, except as described below, are identical to the Public Shares and holders
of Founder Shares have the same shareholder rights as Public Shareholders, except (i) the Founder Shares are subject to certain transfer
restrictions, as described in more detail below; (ii) the Founder Shares are entitled to registration rights; (iii) the Sponsor and the
Company’s officers and directors have entered into the Letter Agreement with the Company, pursuant to which they have agreed to
many limitations on the Founder Shares (see Note 1); (iv) the Founder Shares are automatically convertible into Class A Ordinary Shares
in connection with the consummation of the initial Business Combination or earlier at the option of the holder on a one-for-one basis,
subject to adjustment as described herein and in the Amended and Restated