Company: SZZL
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075798
Chunk: 61

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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ZLE ACQUISITION CORP. II

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Note 5. Related Party Transactions

Founder Shares

On July 16, 2024, the Sponsor made a capital
contribution of $25,000, or approximately $0.003 per share, through payments of offering costs and expenses on the Company’s behalf,
for which the Company issued 7,666,667 of the Company’s Class B ordinary shares, par value $0.0001 per share (the “Class
B Ordinary Shares”, and together with the Class A Ordinary Shares, the “Ordinary Shares”) to the Sponsor (such shares,
the “Founder Shares”). Up to 1,000,000 of the Founder Shares were to be surrendered by the Sponsor for no consideration depending
on the extent to which the Over-Allotment Option was exercised. On April 3, 2025, the underwriters exercised the Over-Allotment Option
in full as part of the closing of the Initial Public Offering. As such, those 1,000,000 Founder Shares are no longer subject to forfeiture.

On March 27, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 140,000 Founder Shares to the three independent directors of the Company in exchange for their
services as independent directors through the Company’s initial Business Combination. The Founder Shares, represented by such membership
interests, will remain with the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial
Business Combination. The membership interest assignment of the Founder Shares to the holders of such interests are in the scope of FASB
ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated
with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 140,000 Founder Shares represented
by such membership interests assigned to the holders of such interests on March 27, 2025, was $206,780 or $1.477 per Founder Share. The
Company established the initial fair value of the Founder Shares on March 27, 2025, the date of the grant agreement, using a calculation
prepared by a third-party valuation team which takes into consideration the market adjustment of 15.0%, a risk free rate of