Company: SZZL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044190
Chunk: 48

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 transition period difficult or impossible because of the potential differences in accounting
standards used.  

Use of Estimates

The preparation of the unaudited condensed financial
statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported
amounts of expenses during the reporting period.

Making estimates requires Management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the unaudited condensed financial statements, which Management considered in formulating its estimate, could
change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those
estimates.

Cash and Cash Equivalents

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash and cash equivalents
as of March 31, 2025 and December 31, 2024.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows. As of March 31, 2025, the Company has
not experienced losses on these accounts and Management believes the Company is not exposed to significant risks on such accounts.

7

Deferred Offering Costs

The Company complies with the requirements of the ASC 340-10-S99 and SEC
Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs consist principally of professional and registration
fees that are related to the Initial Public Offering. FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses
the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance
to allocate Initial Public Offering proceeds from the Units between Class A Ordinary Shares and Rights, using the residual method by allocating
Initial Public Offering proceeds first to the assigned value of the Rights and then to the Class A Ordinary Shares. Subsequently, in conjunction
with the Initial Public Offering, costs allocated to