Lionheart III Corp (LION): Business Model Canvas [Dec-2025 Updated]

You're digging into the current operational blueprint for Lionheart III Corp, now a key part of SMX, and frankly, understanding this post-SPAC model is critical for any serious investor. This canvas lays out exactly how they intend to turn that patented chemical 'barcode' technology-promising irrefutable material authentication-into real cash flow, moving beyond the initial $125 million in IPO proceeds. We need to see if the value proposition, which includes access to US public markets, is translating into revenue streams that justify the expected $360 million combined entity valuation announced earlier. Take a look below; I've broken down the key partnerships and cost structure so you can see the near-term risks and opportunities defintely, even if some of the staff cost data is a bit dated from late 2022, showing only $690,000 quarterly.

Lionheart III Corp (LION) - Canvas Business Model: Key Partnerships

You're looking at the foundational relationships that underpinned the structure and execution of Lionheart III Corp (LION), especially around its initial public offering and subsequent business combination. Here's the quick math on those key alliances as reflected in public filings.

The involvement of the Israeli Security Establishment and Nuclear Atomic Agency is tied directly to the technology acquired via the business combination, not a direct partnership with Lionheart III Corp itself, but with the target company, Security Matters Limited (SMX). The technology platform has its origins in that ecosystem.

For deal execution, the legal support was significant, particularly given the cross-jurisdictional nature of the merger with the Australian-listed entity.

The initial capital structure underpinning Lionheart III Corp (LION) involved a substantial raise at the IPO stage, which sets the stage for the capital base these partners interacted with.

• IPO Gross Proceeds: $125 million
• IPO Unit Price: $10.00
• Warrant Exercise Price: $11.50 per share
• Class A Ordinary Shares Outstanding (as of March 21, 2025): 23,000,000
• Class B Ordinary Shares Outstanding (as of March 21, 2025): 7,666,667

Regarding the brand strategy and institutional holdings, the following facts are established from the record of the business combination and subsequent filings.

• Global Brand Strategy Agency: Futerra acted as SMX's global brand strategy agency
• Institutional Holder Example: Magnetar Parties held Public Shares as of March 21, 2025

What this estimate hides is the final fee structure for EF Hutton or the specific post-merger equity stake held by the Lionheart Sponsor, LLC, but the initial capital deployment is clear.

Lionheart III Corp (LION) - Canvas Business Model: Key Activities

You're looking at the key operational drivers for the entity that resulted from the Lionheart III Corp (LION) business combination, which is now operating under the Security Matters Limited (SMX) structure on Nasdaq. The core activities revolve around deploying the chemical-based marking technology.

Commercializing the chemical-based 'barcode' technology.

The primary activity is pushing the chemical-based 'barcode' technology-the system that gives materials a virtual memory of their journey-into the market. This technology is designed to authenticate provenance across supply chains for solids, liquids, and gases. The only concrete revenue-adjacent figure we have tied directly to the technology's early commercialization is from Security Matters Limited's pre-merger filing, which showed total invoices valued at $1.4 million for the full year 2022.

Executing on existing client relationships and expanding verticals.

Execution involves maintaining and growing the relationships established around the core marking and reading platform. While specific 2025 client retention rates aren't public, the strategic focus, as outlined in the combined entity's plans, includes expanding beyond initial use cases. The entity is advancing measures in line with its medium-term plan, Vision2030 2nd STAGE, which centers on strengthening the business portfolio management.

Research and development of advanced material marking and reading technology.

Continuous R&D is necessary to keep the technology ahead. We don't have a specific 2025 R&D spend figure for the combined entity, but the activity itself is critical to maintaining the value proposition that led to the initial expected combined entity value of $360 million when the deal was announced.

Maintaining Nasdaq listing and managing public company compliance.

This is a non-negotiable activity for a company trading on the Nasdaq Capital Market. Compliance requires managing filings, shareholder relations, and meeting listing requirements. As of March 21, 2025, the structure involved 23,000,000 Class A Ordinary Shares and 7,666,667 Class B Ordinary Shares issued and outstanding for the registrant, which dictates certain reporting thresholds you need to track.

Here's a quick look at the share structure that drives compliance obligations:

Securing new contracts for supply chain authentication and traceability.

The success of the business model hinges on converting technology interest into binding, revenue-generating contracts. This activity is the direct path to increasing the top line beyond the initial 2022 invoice value. The management team is focused on strategic initiatives to enhance the value of its portfolio companies, which directly translates to securing these new agreements.

Key focus areas for contract securing include:

• Identifying and evaluating potential merger targets (the original SPAC mandate, now value-add for the merged entity).
• Implementing strategic initiatives for operational improvements.
• Driving long-term capital appreciation through active management.

If onboarding new clients takes longer than the projected cycle, cash burn from compliance and R&D definitely rises.

Finance: draft 13-week cash view by Friday.

Lionheart III Corp (LION) - Canvas Business Model: Key Resources

You're looking at the core assets backing the combined entity that resulted from the Lionheart III Corp (LION) SPAC transaction, which is now trading as Security Matters (SMX). Honestly, the most concrete starting point we have is the capital raised to execute this combination.

The initial capital foundation for Lionheart III Corp was the $125 million in gross proceeds from its initial public offering (IPO) that closed on November 8, 2021. To be fair, the trust account held a slightly higher figure, $126,250,000, after accounting for the simultaneous Private Placement that closed on the same date. That cash was the fuel for the merger with Security Matters Limited.

As of the latest structural filing on March 21, 2025, the capital structure shows the scale of the public entity. We saw 23,000,000 Class A Ordinary Shares and 7,666,667 Class B Ordinary Shares issued and outstanding. That's the current equity base you need to factor in for any valuation work you're doing now.

The real value, though, sits in the intellectual property inherited from Security Matters. This isn't just software; it's a physical-digital security layer. The key resources here are:

• Patented chemical-based 'barcode' marking technology.
• Proprietary 'reader' hardware for material authentication.
• Blockchain technology for secure data storage and transparency.

The management team itself is a resource, bringing the SPAC expertise from Lionheart Capital, LLC, which is crucial for navigating the public markets post-merger. Anyway, here's a quick look at the hard numbers we have on the books related to the technology's commercialization efforts, though this data is from before the full 2025 fiscal close:

The chemical marking system is designed for B2B, 'white-label' deployment, serving market leaders across several key verticals. This diversification of application is a major intangible asset. The main sectors of activity identified for the underlying technology included:

• Circular economy initiatives
• Plastics & rubber authentication
• Gold and precious stones tracking
• Fashion sustainability center applications
• Electronics supply chain integrity
• Minerals and agriculture provenance

What this estimate hides is the current R&D spend and the actual deployment rate of the proprietary readers in late 2025, which is what drives future revenue streams. Still, the combination of patented IP, the physical reader, and the immutable blockchain ledger forms a defensible moat around their authentication service.

Finance: draft 13-week cash view by Friday.

Lionheart III Corp (LION) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for Lionheart III Corp (LION) following its business combination with Security Matters, which is now trading as SMX. The value proposition centers on providing verifiable digital identity for physical assets, a critical need in today's global trade environment.

The initial public offering (IPO) by Lionheart III Corp itself provided a key value proposition for the eventual target: access to US public markets. The IPO raised $125 million in gross proceeds by selling 11,500,000 units at $10.00 per unit in November 2021. This structure also included warrants exercisable at $11.50 per share, representing potential future capital enhancement.

The merger itself was announced with an expected combined entity valuation of $360 million at announcement, though the transaction later valued Security Matters at US$200 million and anticipated proceeds of up to approximately $116 million, assuming minimal redemptions from Lionheart's public stockholders.

Here's a breakdown of the core value propositions:

• Irrevocable, permanent marking for product and material authentication.
• Enabling supply chain transparency for circular economy participation.
• Access to US public markets via the de-SPAC transaction.
• High-level security and traceability for materials in all states of matter.
• Expected combined entity valuation of $360 million at announcement.

The technology underpinning the value proposition is a hidden chemical-based "barcode" designed to give materials a memory of their origination and history. This directly supports the circular economy by facilitating recycling, reuse, and authentication multiple times.

The financial performance of the underlying technology business, Security Matters, before the merger showed early commercial traction, which is a key indicator of the value being brought to the public market. For the full year 2022, the company generated total invoices valued at $1.4 million. Furthermore, the business demonstrated operational efficiency improvements by reducing its quarterly staff costs from about $857,000 in the third quarter of 2022 to $690,000 in the fourth quarter of 2022. As of the Trailing Twelve Months (TTM) ending June 2025, the Operating Profit Margin stood at 1.9%, a significant shift from the negative margins seen in earlier periods like FY 2023, which reported an Operating Income of -19.94 million USD.

The value proposition of high-level security and traceability is essential for regulatory compliance in 2025. For instance, in gold markets, unified verification is needed to withstand scrutiny, and plastics processors require recovery data compatible with national policy frameworks. The company's recent capital structure update in December 2025 further reinforces its ability to execute this, securing a $111.5 million Equity Purchase Agreement, including discretionary access to up to $100 million in capital, with no required share issuance until at least the first quarter of 2026.

Here's how the financial structure supports the value proposition delivery:

The ability to provide verifiable data across supply chain tiers-from raw material sources to final product-is the tangible benefit derived from the de-SPAC listing and the technology integration. This visibility helps companies meet increasing regulatory pressures, such as those related to environmental and labor practices, which are critical for maintaining consumer trust and brand reputation in 2025.

Finance: draft 13-week cash view by Friday.

Lionheart III Corp (LION) - Canvas Business Model: Customer Relationships

You're looking at the relationships for the entity that resulted from the Lionheart III Corp (LION) SPAC combination, which is now Security Matters Limited (SMX) trading on Nasdaq. The customer relationship structure reflects the operational business of SMX, which focuses on materials tracking technology.

Direct sales and long-term contracts with large enterprises

The operational scale of the acquired business, Security Matters Limited, before the March 2023 combination showed initial commercial activity. For instance, Security Matters filed that it generated total invoices valued at $1.4 million in the full year 2022. This figure reflects the early stage of securing enterprise adoption for its chemical-based marking technology.

Dedicated account management for complex supply chain integration

The integration of the materials marking technology into complex supply chains necessitates a high-touch relationship model. While specific 2025 metrics for dedicated account managers are not public, the operational focus implies a structure supporting large-scale integration projects. The historical cost structure of the underlying business showed quarterly staff costs reduced from approximately $857,000 in the third quarter of 2022 to $690,000 in the fourth quarter of 2022, indicating management of operational overhead during the pre-merger phase.

Investor relations for public shareholders (post-merger structure)

Post-combination, investor relations is a key function for the Nasdaq-listed entity. The structure involves managing communication with a defined base of public and affiliate shareholders. As of March 21, 2025, the share structure included 23,000,000 Class A Ordinary Shares and 7,666,667 Class B Ordinary Shares of the registrant issued and outstanding. The market value of the outstanding Units, excluding affiliates, was computed at $229,770,000 based on the closing price on June 28, 2024.

Strategic relationships with industry associations and regulators

The relationship with regulators is a documented aspect of the corporate history, given the SEC investigation into the predecessor SPAC's business combination transaction, which concluded in December 2025 with no recommendation for enforcement action against the Company, its CEO, John H. Ruiz, or its officers. The Company devoted significant resources to providing regulators with data, documents, and access to personnel during the investigation period, which began on August 11, 2022.

• SEC investigation initiated: August 11, 2022.
• SEC investigation concluded: December 7, 2025.

This level of regulatory interaction shapes ongoing compliance and disclosure relationships.

Lionheart III Corp (LION) - Canvas Business Model: Channels

You're looking at how the company, now trading as SMX (Security Matters) PLC, gets its value proposition-supply chain authentication and traceability-out to its customers and investors as of late 2025. The channels are a mix of direct enterprise engagement and public market visibility.

The primary route to market involves direct engagement with large-scale industrial and commodity players. This isn't a broad consumer play; it's about embedding technology into complex supply chains. To date in 2025, this direct channel has resulted in securing six strategic partnerships covering key geographies like Singapore, Spain, France, Dubai, and the United States. These agreements focus on manufacturing, circular-economy systems, industrial verification, logistics integrity, and raw-material authenticity. The technology is positioned to serve industries including gold and precious metals, luxury fashion (handbags and footwear), semiconductors, electronic components, and agricultural commodities like coffee and natural rubber. Honestly, the focus on high-value, high-risk sectors like precious metals suggests a high-touch, direct sales approach is necessary.

The public market channel is critical for capital formation and general awareness, which supports the direct sales effort. The company's ordinary shares trade on the Nasdaq Global Market under the ticker SMX. You can see the daily activity clearly in the trading data.

Public disclosure and investor engagement are managed through standard regulatory filings and targeted industry events. These serve to validate the technology and attract institutional interest, which is key given the recent capital raise structure.

• Investor Presentations are distributed, with the latest available being the April 2025 Company presentation.
• The company utilizes the SEC filing process, with a recent 6-K filing on August 5, 2025, detailing financing.
• Technology demonstrations are actively used, such as the presentation at the DMCC Precious Metals Conference in Dubai on Nov. 24-25, 2025.
• Investor Relations contact is listed as Ashley@Lheartcapital.com.

For the enterprise clients, the technology is being assessed for use in high-volume corridors, for example, the system has been assessed by Brink's (NYSE:BCO) for improving auditability in the Gulf Cooperation Council (GCC) region. That's a concrete example of a channel validation point. Finance: review the cash runway impact from the August 2025 financing by end of week.

Lionheart III Corp (LION) - Canvas Business Model: Customer Segments

You're looking at the customer base for the entity that resulted from the business combination involving Lionheart III Corp and Security Matters (SMX), which is now trading as SMX. Honestly, the data available for late 2025 is heavily skewed toward the public market side, which makes sense given the SPAC origin.

The customer segments are distinct, spanning enterprise adoption of traceability technology and the capital markets that finance the combined entity.

Global enterprises focused on supply chain transparency and ESG.

While I don't have a count of active global enterprise clients as of late 2025, the financial structure suggests the scale of capital available to support these relationships. The Trust Account, which held the capital from the initial public offering before the business combination, stood at $243,788,499 as of September 30, 2025. The combined entity posted a net income of $6,778,619 for the nine months ended September 30, 2025. This capital base is what fuels the sales and implementation efforts targeting these large corporations.

Companies in high-value or regulated industries (e.g., textiles, pharma).

The technology's focus, particularly in areas like gold supply chain verification for ESG compliance, points directly at high-value sectors. The former Lion Corporation (a related but separate entity mentioned in filings) reported net sales of ¥304,945 million for the nine months ended September 30, 2025, indicating the broader market's scale in related sectors. The core operating income for that entity was ¥22,320 million for the same period.

Institutional and retail public market investors in SMX shares.

This segment is the most quantifiable from the available filings. The structure of the public float as of early 2025 gives you a clear picture of the shareholder base before the full impact of the operating business was reflected in the stock structure.

Here are the key figures related to the public share structure:

The implied pre-money valuation of the target business in the merger was approximately $288 million.

Governments and regulatory bodies requiring material traceability.

This segment is served indirectly through the enterprise clients who must comply with regulations. The technology's Israeli Security Establishment origin suggests a foundation built for high-assurance environments, which aligns with governmental needs for material provenance. The expected post-transaction cash balance, assuming no redemptions, was around $116 million (US). That cash is critical for scaling the platform to meet national-level traceability requirements.

The core value proposition for this segment involves:

• Enabling credible and transparent ESG reporting capabilities.
• Providing end-to-end traceability from raw materials to recycling.
• Delivering assurance based on science and technology, not paper.

Finance: draft 13-week cash view by Friday.

Lionheart III Corp (LION) - Canvas Business Model: Cost Structure

You're looking at the cost base for Lionheart III Corp (LION) while it remains a Special Purpose Acquisition Company (SPAC) awaiting its initial business combination. The cost structure is dominated by the expenses required to maintain public listing status and pursue an acquisition, rather than costs associated with a revenue-generating operation.

For the three months ended September 30, 2025, the reported Operating Costs were $196,049. Over the nine months ending September 30, 2025, cash used in operating activities totaled -$479,562. These figures capture the core administrative and compliance burn rate before a merger closes.

Key Cost Components

Here's a breakdown of the required cost elements, using the latest available figures or relevant context for Lionheart III Corp (LION) as of late 2025.

• Significant R&D expenditure for technology advancement: Specific, attributable R&D expenditure for Lionheart III Corp (LION) as a SPAC is not separately itemized in the latest public filings; costs are generally captured within broader operating expenses.
• Compensation for the management team and board of directors: Direct 2025 compensation for Lionheart III Corp (LION) management isn't explicitly detailed, but related entity data suggests a range. For instance, the average annual salary at Lionheart Strategic Management LLC is estimated at $107,600, with a typical range of $94,568 to $121,732 annually.
• Public company compliance and legal costs post-merger: These costs are embedded in the general operating expenses. The company noted in prior filings that compliance with evolving laws and regulations has increased costs.
• Sales and marketing costs to acquire enterprise clients: As Lionheart III Corp (LION) has generated USD 0 in operating revenue as of Q3 2025, dedicated sales and marketing costs for client acquisition are not a primary cost driver; efforts are focused on deal sourcing.
• Staff costs, which were reduced to about $690,000 quarterly in late 2022: This figure relates to the target company, Security Matters Limited (SMX), which reduced its quarterly staff costs from about $857,000 in Q3 2022 to $690,000 in Q4 2022.

It's important to note that the operational costs for the SPAC are primarily fixed overhead until a business combination is consummated. If onboarding takes 14+ days, churn risk rises, though for a SPAC, the risk is more about deal failure than customer churn.

Cost Structure Snapshot (Proxy & Historical Data)

The primary financial activity supporting the company's existence is interest income on the Trust Account, which was $2,528,262 for the three months ended September 30, 2025. This income offsets the operating burn, but the burn itself is the cost structure you're asking about.

Lionheart III Corp (LION) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Lionheart III Corp, which, as of late 2025, is operating under the structure established after its business combination with Security Matters Limited (SMX), with the combined entity now trading under the SMX ticker for shares and SMXWW for warrants. The revenue profile is currently dominated by non-operating income.

Licensing fees and service revenue from the marking and reading technology, which is the core business of the combined entity, showed no operating revenue as of the third quarter of fiscal year 2025. Specifically, operating revenue for the nine months ended September 30, 2025, was reported as USD 0.

Revenue from executing on existing client contracts is best benchmarked by historical data from the acquired entity, Security Matters. This included total invoices valued at $1.4 million for the full year 2022.

Potential future capital from the exercise of outstanding warrants is a contingent stream. The original Lionheart III Corp warrants (LIONW) were automatically adjusted to become exercisable in respect of SMX shares under the new symbol SMXWW following the March 8, 2023, closing of the business combination. No specific capital inflow from warrant exercises for late 2025 is available in the latest filings.

Interest income generated from the remaining trust account capital, a feature of the pre-merger SPAC model that persists until the full deployment of funds, is a significant current income source. As of September 30, 2025, the Trust Account held $243,788,499.

Here are the key financial figures related to these revenue components as of the third quarter of 2025:

The interest income stream is detailed further:

• Interest income on marketable securities held in the Trust Account for the three months ended September 30, 2025, totaled $2,528,262.
• For the nine months ended September 30, 2025, this interest income reached $7,453,394.
• The Trust Account balance of $243,788,499 as of September 30, 2025, included $13,788,499 attributable to interest income.

The historical contract revenue provides context for the technology's commercialization efforts:

• Total invoices for Security Matters in the full year 2022 amounted to $1.4 million.
• This historical figure contrasts with the current USD 0 operating revenue reported for the nine months ending September 30, 2025.

Finance: draft 13-week cash view by Friday.