Company: NHICW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042195
Chunk: 20

Company: NewHold Investment Corp. III
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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 at least 30 days after the initial business combination or (2) if
the Company consummates a transaction after the initial Business Combination which results in the Company’s shareholders having
the right to exchange their shares for cash, securities or other property, the founder shares will be released from the Lock-up.

On February 19, 2025, the Sponsor transferred
an aggregate of 278,000 Founder Shares to members of the Company’s board of directors, resulting in the Sponsor holding 6,429,663
Founder Shares (see Note 8). The sale of the Founder Shares to the Company’s directors is 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 grant date. The fair value of the 278,000 shares granted to the Company’s members of the board of directors
was $55,600 or $0.20 per share. The Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business
Combination). Compensation expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence
under the applicable accounting literature in this circumstance. As of March 31, 2025, the Company determined that a Business Combination
is not considered probable, and, therefore, no stock-based compensation expense has been recognized. The fair value was determined using
a binomial lattice model, discounted for the probability of a Business Combination and the Public Offering occurring, with a volatility
of 4.0% and a risk-free rate of 4.4.

Promissory Note — Related
Party

The Sponsor agreed to loan the Company an aggregate
of up to $350,000 to be used for a portion of the expenses of the Public Offering. The loan is non-interest bearing, unsecured and due
at the earlier of the closing date of the Public Offering or the date on which the Company determines not to conduct an initial public
offering. As of March 31, 2025, the Company had borrowed approximately $242,000 under the promissory note, all of