Company: SZZL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044190
Chunk: 53

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 stock 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). Stock-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 share (unless subsequently
modified), less the amount initially received for the assignment of the membership interests. As of March 31, 2025, the Company determined
that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The Company’s Initial Shareholders have agreed not to transfer, assign
or sell any of their Founder Shares and any Class A Ordinary Shares issued upon conversion thereof until the earlier to occur of (i) six
months after the completion of the initial Business Combination or (ii) the date on which the Company completes a liquidation, merger,
share exchange or other similar transaction after the initial Business Combination that results in all of the Company’s shareholders
having the right to exchange their Class A Ordinary Shares for cash, securities or other property. Any permitted transferees will be subject
to the same restrictions and other agreements of the Company’s Initial Shareholders with respect to any Founder Shares (the “Lock-up”).
Notwithstanding the foregoing, if (1) the closing price of the Class A Ordinary Shares equals or exceeds $12.00 per share (as adjusted
for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing after the initial Business Combination or (2) if the Company consummates a transaction after the initial Business
Combination which results in the Company’s shareholders having the right to exchange their shares for cash, securities or other
property, the Founder Shares will be released from the Lock-up.

9

IPO Promissory Note — Related Party

The Sponsor had agreed to loan the Company an
aggregate of up to $500,000 to be used for a portion of the expenses of the Initial Public Offering. The loan was non-interest bearing,
unsecured and due at the earlier of June 30, 2025 or the closing of the Initial Public Offering. As of March 31, 2025 and