Company: CUB
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109274
Chunk: 18

Company: Lionheart Holdings
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 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.

ASC 740 prescribes a recognition
threshold and a measurement attribute for the financial statement 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 and December 31, 2024,
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 an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes
or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero
for the periods presented. 

9

Net Income per Ordinary Share

The Company complies with
accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income per Ordinary Share is computed
by dividing net income by the weighted average number of Ordinary Shares outstanding for the period. Accretion associated with the redeemable
Class A Ordinary Shares is excluded from income per Ordinary Share as the redemption value approximates fair value.

The calculation of diluted
net income does not consider the effect of the Public Warrants (including the full exercise of the Over-Allotment Option) and the Private
Placement Warrants to purchase an aggregate of 6,000,000 Class A Ordinary Shares in the calculation of diluted income per share, because
in the calculation of diluted income per share, their exercise is contingent upon future events. As a result, diluted net income per Ordinary
Share is the same as basic net income per Ordinary Share for the three and nine months ended September 30, 2025 and for three months ended
September 30, 2024 and the period from February 21, 2024 (inception) through September 30, 2024. All accretions associated with the redeemable
Class A Ordinary Shares are excluded