Company: NHICW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110027
Chunk: 70

Company: NewHold Investment Corp. III
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the grant date. The fair value of the 278,000 shares granted to the Company’s members of the board of directors
was $55,600 or $0.20 per share. The Founder Shares were granted subject to a performance condition (i.e., the occurrence of a Business
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 September 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.

14

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 September 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. 

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 nine months ended September 30,
2025, respectively, $120,000 and $280,000 was charged to operations and no amounts were outstanding at September 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