Company: NHICW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076495
Chunk: 14

Company: NewHold Investment Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A — “Expenses of Offering.” Deferred offering
costs consist principally of professional and registration fees that are related to the Public Offering. Financial Accounting Standards
Board (“FASB”) FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds
from the issuance of convertible debt 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 June 30, 2025,
the value of Class A ordinary