Company: SZZL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110104
Chunk: 16

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 the issuance of convertible debt into its equity and debt components. The Company applied this guidance to
allocate Initial Public Offering proceeds from the Public Units between Public Shares and Public Rights, using the residual method by
allocating Initial Public Offering proceeds first to the assigned value of the Public Rights and then to the Public Shares. Offering
costs allocated to the Public Shares were charged to temporary equity, and offering costs allocated to Public Rights and Private Placement
Units were charged to shareholders’ deficit, as the Public Rights, after Management’s evaluation, were accounted for under
equity treatment.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair
Value Measurements and Disclosures.” approximates the carrying amounts represented in the accompanying condensed balance sheets,
primarily due to their short-term nature.

Income
Taxes

The
Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”), which requires an asset
and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed
for differences between the financial statements and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

9

SIZZLE
ACQUISITION CORP. II

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

ASC
740 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be
sustained upon examination by taxing authorities. Management determined that the Cayman Islands is the Company’s major tax jurisdiction.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30,
2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of
any issues under review that could result in significant payments, accruals or material deviation from its position.

The
Company is considered to be a Cayman Islands exempted company with no connection