Company: CUB
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042278
Chunk: 72

Company: Lionheart Holdings
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 Company’s
financial assets and liabilities reflects Management’s estimate of amounts that the Company would have received in connection with
the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants
at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the
use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities
based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

    Level 3:
    Unobservable inputs based on the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability.

Level 1 assets include investments
in money market funds that invest solely in U.S. government securities. At March 31, 2025, assets held in the Trust Account were comprised
of $238,782,364 in money market funds, which were invested primarily in U.S. government securities. At December 31, 2024, assets held
in the Trust Account were comprised of $236,335,105 in money market funds, which were invested primarily in U.S. government securities.

At issuance, the Public Warrants
were valued using a Monte Carlo model. The Public Warrants have been classified within shareholders’ deficit and will not require
remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the valuation
of the Public Warrants:

    June 20, 2024 
  
    Market price of Public Warrants 
    $9.96 
  
    Term (years) 
     6.53 
  
    Risk-free rate 
     4.25%
  
    Volatility 
     7.2%

17

NOTE 9. SEGMENT INFORMATION

ASC 280 establishes standards
for companies to report in their financial statement