Company: CUB
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001013762-25-001006
Chunk: 608

Company: Lionheart Holdings
Filing Date: 2025-03-21
Form: 10-K
Item: Item 5
Chunk 608
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 of the Warrants and then to the Public Shares. Offering
costs allocated to the Public Shares were charged to temporary equity and offering costs allocated to the Public Warrants and Private
Placement Warrants were charged to shareholders’ deficit.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair
Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet, primarily due to its short-term
nature.

Class
A Ordinary Shares Subject to Possible Redemption

The
Public Shares contain a redemption feature that allows for the redemption of such Public Shares in connection with the Company’s
liquidation, or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In
accordance with FASB ASC Topic 480-10-S99,“Distinguishing Liabilities from Equity”, the Company classifies Public Shares
subject to redemption outside of permanent equity as the redemption provisions are not solely within the control of the Company. The
Public Shares were issued with other freestanding instruments (i.e., the Public Warrants) and as such, the initial carrying value of
the Public Shares classified as temporary equity are the allocated proceeds determined in accordance with ASC 470-20. The Company recognizes
changes in redemption value immediately as it occurs and will adjust the carrying value of redeemable shares to equal the redemption
value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion
from initial book value to redemption amount value. The change in the carrying value of redeemable Public Shares will result in charges
against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of December 31, 2024, Class A Ordinary
Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the accompanying balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the
carrying value of redeemable Class A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or
decreases in the carrying amount of redeemable Class A Ordinary Shares are affected by charges against additional paid-in capital and
accumulated deficit.

F-10

LIONHEART
HOLDINGS

NOTES
TO FINANCIAL STATEMENT

DECEMBER
31, 202