Company: SIMA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043361
Chunk: 11

Company: SIM Acquisition Corp. I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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085 in cash and did
not have any cash equivalents.

Marketable Securities and Cash Held in Trust
Account

At March 31, 2025 and December
31, 2024, the assets held in the Trust Account, amounting to $237,787,030 and $235,322,812, respectively, were held in a money market
fund at Morgan Stanley that consist entirely of United States Treasury securities and meet the conditions under Rule 2a-7 under the Investment
Company Act.

Offering Costs 

 The Company complies with
the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 Initial Public Offering. 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 Initial Public Offering proceeds from the Units between Class A ordinary shares and warrants, using the
residual method by allocating Initial Public Offering proceeds first to the assigned value of the warrants and then to the Class A
ordinary shares. Offering costs allocated to the Class A ordinary shares were charged to temporary equity and offering costs allocated
to the Public Warrants and Private Placement Warrants were charged to shareholders’ deficit as Public Warrants and Private Placement
Warrants after management’s evaluation are accounted for under equity treatment.

8

Concentration of Credit Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation maximum 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.

Financial Instruments

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

Fair Value Measurements

Fair value is defined as the
price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants
at the measurement date. GAAP establishes a three