Company: CUB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109274
Chunk: 12

Company: Lionheart Holdings
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 not such waiver is enforceable) nor will it apply to any claims under
the Company’s indemnity of the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933,
as amended (the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations,
nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company
believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure investors that the Sponsor
would be able to satisfy those obligations.

6

Liquidity, Capital Resources and Going Concern

As of September 30, 2025,
the Company had $336,455 of cash and working capital surplus of $416,901. The Company uses the funds held outside the Trust Account primarily
to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices,
plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material
agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.

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 will 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 warrants of the post-Business Combination entity at a price of $1.00 per warrant at the option of the lender. These
warrants would be identical to the Private Placement Warrants. As of September 30, 2025 and December 31, 2024, no such Working Capital
Loans were outstanding.

The Company will need to
raise additional capital through loans or additional investments from the Sponsor or its officers, directors or their affiliates. The
Sponsor and the Company’s officers and directors or their affiliates may, but are not obligated to, loan the Company funds, from
time to time, in whatever amount they deem reasonable in