Company: SZZL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110104
Chunk: 63

Company: Sizzle Acquisition Corp. II
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 accompanying condensed balance sheets. Gains and losses resulting from the change in fair value of investments held in the
Trust Account are included in income earned on marketable securities held in the Trust Account in the accompanying unaudited condensed
statements of operations.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Offering
Costs Associated with the Initial Public Offering

The
Company complies with the requirements of FASB ASC Topic 340-10-S99, Accounting for Offering Costs”, 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 Initial Public Offering. FASB ASC Topic 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 applied this guidance to
allocate Initial Public Offering proceeds from the Public Units between Public Shares and Public Rights, using the residual method by
allocating Initial Public Offering proceeds first to the assigned value of the Public Rights and then to the Public Shares. Offering
costs allocated to the Public Shares were charged to temporary equity, and offering costs allocated to Public Rights and Private Placement
Units were charged to shareholders’ deficit, as the Public Rights, after Management’s evaluation, were accounted for under
equity treatment.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair
Value Measurements and Disclosures.” approximates the carrying amounts represented in the accompanying condensed balance sheets,
primarily due to their short-term nature.

Income
Taxes

The
Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”), which requires an asset
and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed
for differences between the financial statements and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are