Company: SZZL
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075798
Chunk: 20

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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 times the assignment date fair
value per Founder Share (unless subsequently modified) less the amount initially received for the assignment of the membership interests.
As of June 30, 2025, the Company determined that the initial Business Combination is not considered probable and therefore no compensation
expense has been recognized.

The holders of Founder Shares have agreed not
to transfer, assign or sell any of their Founder Shares and any Class A Ordinary Shares issued upon conversion thereof until the
earlier to occur of (i) six months after the completion of the initial Business Combination or (ii) the date on which the
Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination that results
in all of the Company’s shareholders having the right to exchange their Class A Ordinary Shares for cash, securities or other property.
Any permitted transferees will be subject to the same restrictions and other agreements of the holders of the Founder Shares with respect
to any Founder Shares (the “Lock-up”). Notwithstanding the foregoing, if (x) the closing price of the Class A Ordinary
Shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations
and the like) for any 20 trading days within any 30-trading day period commencing after the initial Business Combination
or (y) if the Company consummates a transaction after the initial Business Combination that results in the Company’s shareholders
having the right to exchange their Class A Ordinary Shares for cash, securities or other property, the Founder Shares will be released
from the Lock-up.

IPO Promissory Note

The Sponsor agreed to loan the Company an