Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 354

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 354
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 Class A ordinary shares issuance costs 
     (15,307,565)
  
    Plus: 

    Accretion of carrying value to redemption value 
     22,140,377 
  
    Class A Ordinary Shares subject to possible redemption 
    $235,222,812 

Warrant Instruments

The Company accounts for the Public Warrants and
Private Warrants issued in connection with the Initial Public Offering and the private placement in accordance with the guidance contained
in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified the warrant instruments
under equity treatment at their assigned values. Equity-classified contracts are initially measured at fair value (or allocated value).
Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

Share-Based Compensation

The Company records share-based compensation in accordance with FASB
ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), to account for its share-based compensation. It
defines a fair value-based method of accounting for an employee share option or similar equity instrument. The Company recognizes all
forms of share-based payments, including share option grants, warrants and restricted share grants, at their fair value on the grant date,
which are based on the estimated number of awards that are ultimately expected to vest. Share-based payments, excluding restricted shares,
are valued using a Monte Carlo simulation. Grants of share-based payment awards issued to non-employees for services rendered have been
recorded at the fair value of the share-based payment, which is the more readily determinable value.

Recent Accounting Standards

Management does not believe that any recently
issued, but not yet effective, accounting standards if currently adopted would have a material effect on the financial statements. 

Note 3 – INITIAL PUBLIC
OFFERING

Pursuant to the Initial Public
Offering, the Company sold 23,000,000 Units, including the full exercise by the underwriters of their over-allotment option in the amount
of 3,000,000 Units at a purchase price of $10.00 per Unit. Each Unit consists of one of the Company’s ordinary shares, $0.0001 par
value, and one-half of one redeemable warrant (the “Public Warrants”). Each whole warrant offered in the Initial Public Offering
is exercisable to purchase one ordinary share. Only whole warrants may be exercised. No fractional shares will be issued upon exercise
of the