Company: CUB
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042278
Chunk: 13

Company: Lionheart Holdings
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 Shares were charged to temporary equity and offering costs allocated to the Public Warrants and Private Placement Warrants
were charged to shareholders’ deficit.

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 balance sheet, primarily due to its short-term nature.

Class A Ordinary Shares Subject to Possible
Redemption

The Public Shares contain
a redemption feature that allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there
is a shareholder vote or tender offer in connection with the initial Business Combination. In accordance with FASB ASC Topic 480-10-S99,“Distinguishing
Liabilities from Equity”, the Company classifies Public Shares subject to redemption outside of permanent equity as the redemption
provisions are not solely within the control of the Company. The Public Shares were issued with other freestanding instruments (i.e.,
the Public Warrants) and as such, the initial carrying value of the Public Shares classified as temporary equity are the allocated proceeds
determined in accordance with ASC 470-20. The Company recognizes changes in redemption value immediately as it occurs and will adjust
the carrying value of redeemable shares to equal the redemption value at the end of each reporting period. Immediately upon the closing
of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in
the carrying value of redeemable Public Shares will result in charges against additional paid-in capital (to the extent available) and
accumulated deficit. Accordingly, as of March 31, 2025 and December 31, 2024, Class A Ordinary Shares subject to possible redemption are
presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the accompanying condensed balance
sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class
A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of
redeemable Class A Ordinary Shares are affected by charges against additional paid-in capital and accumulated deficit.

9

As of March 31, 2025 and December
31, 2024, the Class A Ordinary Shares subject to redemption reflected in the accompanying condensed balance sheets are reconciled in the
following table:

    Gross Proceed