Company: SZZL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110104
Chunk: 69

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 7,666,667 Class B 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.

12

SIZZLE
ACQUISITION CORP. II

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

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 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 ASC 718. Under ASC 718, share-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 4.28% and a share price of $9.85. The Founder
Shares are classified as Level 3 at the measurement date due to the use of unobservable inputs, and other risk factors. The membership
interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Share-based compensation
would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in
an amount equal to the number of membership interests that ultimately vest