Company: NHICW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076495
Chunk: 21

Company: NewHold Investment Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
Combination). Compensation expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence
under the applicable accounting literature in this circumstance. As of June 30, 2025, the Company determined that a Business Combination
is not considered probable, and, therefore, no stock-based compensation expense has been recognized. The fair value was determined using
a binomial lattice model, discounted for the probability of a Business Combination and the Public Offering occurring, with a volatility
of 4.0% and a risk-free rate of 4.4.

Promissory Note — Related
Party

The Sponsor agreed to loan the Company an aggregate
of up to $350,000 to be used for a portion of the expenses of the Public Offering. The loan is non-interest bearing, unsecured and due
at the earlier of the closing date of the Public Offering or the date on which the Company determines not to conduct an initial public
offering. As of June 30, 2025, the Company had borrowed approximately $242,000 under the promissory note, all of which was paid at closing
on March 3, 2025 and, as such, is no longer available.

13

Administrative Services Agreement

Commencing on the effective date of the
Public Offering, February 27, 2025, the Company has entered into an agreement with the Sponsor or an affiliate to pay an aggregate
of $40,000 per month for office space, utilities, and secretarial and administrative support. During the three and six months ended
June 30, 2025, respectively, $120,000 and $160,000 was charged to operations and no amounts were outstanding at June 30, 2025. 

Working Capital Loans

In order to finance transaction costs in connection
with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may,
but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes
a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the
Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds from
the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible
into private placement units of the post