Company: NHICW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110027
Chunk: 16

Company: NewHold Investment Corp. III
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 into its equity and debt components.
The Company applies this guidance to allocate Public Offering proceeds from the Public Units between Class A ordinary shares
and warrants, using the residual method by allocating Public Offering proceeds first to assigned value of the warrants and then to the
Class A ordinary shares. Offering costs allocated to the Class A ordinary shares subject to possible redemption are charged
to temporary equity and offering costs allocated to the warrants included in the Public Units and Private Placement Units are charged
to shareholders’ deficit as the warrants included in the Public Units and Private Placement Units after management’s
evaluation are accounted for under equity treatment.

Offering costs amounted to approximately $11,645,000,
consisting of $4,075,000 of upfront discount and expenses to the underwriters, approximately $7,044,000 of deferred underwriting fees
and $526,000 of other offering costs. Approximately $107,000 of such costs was allocated to the Public Warrants and the Private Placement
Units and the remainder, approximately $11,538,000, was allocated to Class A ordinary shares subject to redemption, based on their relative
fair values.

Class A Ordinary Shares Subject to Possible
Redemption

As discussed in Note 3, all of the 20,125,000
public shares sold as part of Units in the Public Offering contain a redemption feature which allows for the redemption of public shares
if the Company holds a shareholder vote or there is a tender offer for shares in connection with a Business Combination. In accordance
with FASB ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of
permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments,
are excluded from the provisions of FASB ASC 480.

All Class A ordinary shares are redeemable and
classified as such on the Company’s condensed balance sheets until such time as a redemption event takes place. As of September
30, 2025, the value of Class A ordinary shares that may be redeemed is equal to approximately $10.30 per share (which is the assumed redemption
price) multiplied by 20,125,000 shares of Class A ordinary shares.

The Company recognizes changes immediately as
they occur and adjusts the carrying value of the securities at the end of each reporting period. Increases or decreases in the carrying
amount of redeemable Class A ordinary shares are affected by adjustments to accumulated deficit. Accordingly, as