Company: IPCX
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076625
Chunk: 102

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 102
---
 statements
of operations include a presentation of income (loss) per share for ordinary shares outstanding in a manner similar to the two-class
method of income (loss) per share. Net income (loss) per ordinary share, basic and diluted, for redeemable ordinary shares is calculated
by dividing the net income (loss) allocable to redeemable ordinary shares subject to possible redemption, by the weighted average number
of redeemable ordinary shares outstanding since original issuance. Net income (loss) per ordinary share, basic and diluted, for non-redeemable
ordinary shares is calculated by dividing net income (loss) allocable to non-redeemable ordinary shares, by the weighted average number
of non-redeemable ordinary shares outstanding for the periods.

Share-based compensation

The Company records share-based compensation in accordance with FASB ASC Topic 718, “Compensation-Share
Compensation” (“ASC 718”), guidance 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 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
are valued using a Probability Weighted Expected Return Method (“PWERM Model”). 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. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If
an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the
termination of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature of the
services provided in the statements of operations.

Class A Shares Subject to Possible Redemption

We account for our Public Shares subject
to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing
Liabilities from Equity.” Public Shares subject to possible redemption are classified as a liability instrument and are measured
at fair value. Our Public Shares subject to possible redemption feature certain redemption rights that are considered to be outside of
our control and subject to occurrence of uncertain future events. Accordingly, the Public Shares subject to possible redemption are presented
as temporary equity, outside of the stockholders’ equity section of