Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 64

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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199,998 shares transferred to the Company’s three independent directors was $197,998 or $0.99
per share. The Founder Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation
expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable
accounting literature in this circumstance. As of September 30, 2025, the Company determined that a Business Combination is not considered
probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the
date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number
of Founder Shares times the grant date fair value per share (unless subsequently modified) less the amount initially received for the
purchase of the Founder Shares.

12

Private Placement Warrants

The Sponsor and Cantor purchased
an aggregate of 6,000,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($6.0 million in the aggregate)
in a private placement that closed simultaneously with the closing of the Initial Public Offering. Each warrant is exercisable to purchase
one Class A ordinary share at $11.50 per share. A portion of the proceeds from the Private Placement Warrants was added to the proceeds
from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination
Period, the Private Placement Warrants will expire worthless.

The Sponsor and the Company’s
officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants
until 30 days after the completion of the Business Combination.

Promissory Note – Related Party

On March 8, 2024, the Sponsor
agreed to loan the Company up to $300,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the
“Note”). This loan was non-interest bearing and payable on the earlier of December 31, 2024 or the completion of the Initial
Public Offering. As of July 11, 2024, the Note was repaid in full at the closing of the Initial Public Offering and the note is no longer
accessible.

Working Capital Loans

In addition, in order to finance
transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the