Company: SZZL
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044190
Chunk: 12

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 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 period presented. 

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments
are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and
Hedging.” For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded
at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the condensed
statement of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities
or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheets as current
or non-current based on whether or not net cash settlement or conversion of the instrument could be required within 12 months of
the balance sheet date. The underwriters’ Over-Allotment Option is deemed to be a freestanding financial instrument indexed on the
contingently redeemable shares and will be accounted for as a liability pursuant to ASC 480 if not fully exercised at the time of
the Initial Public Offering. 

Rights

The Company accounted for the Public and Private
Placement Rights issued in connection with the Initial Public Offering and the Private Placement in accordance with the guidance contained
in FASB ASC Topic 815, “Derivatives and Hedging.” Accordingly, the Company evaluated and classified the Rights under equity
treatment at their assigned values.

Net Loss per Ordinary Share

Net loss per Ordinary Share is computed by dividing
net loss by the weighted average number of Ordinary Shares outstanding during the period, excluding Ordinary Shares subject to forfeiture.
Weighted average shares were reduced for the effect of an aggregate of 1,000,000 Class B Ordinary Shares that are subject to forfeiture
if the Over-Allotment Option is not exercised by the underwriters (see Note 7). As of March 31, 2025 and December 31, 2024, the Company
did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into Ordinary Shares and then
share in the earnings of the Company. As a result, diluted loss per ordinary share is the same as basic loss per ordinary share for the
period presented.

Share-Based Compensation

The Company records share-based compensation in
accordance