Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 23

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 ordinary shares or equity-linked securities are issued or deemed issued in connection
with the initial Business Combination, the number of Class A ordinary shares issuable upon conversion of all Founder Shares will
equal, in the aggregate, 25% of the total number of Class A ordinary shares outstanding after such conversion (after giving effect
to any redemptions of Class A ordinary shares by Public Shareholders), including the total number of Class A ordinary shares
issued, or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by
the Company in connection with or in relation to the consummation of the initial Business Combination, excluding any Class A ordinary
shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, or to be issued, to any seller
in the initial Business Combination and any Private Placement Warrants issued to the Sponsor, officers or directors upon conversion of
Working Capital Loans; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis.

The sale of the Founder Shares
to each of the Company’s three independent directors is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation”
(“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon
the grant date. The fair value of the 199,998 shares granted 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 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 share-based compensation expense has been recognized. Share-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.
On September 4, 2025, Jannine Grasso resigned as a director of the Board of the Company, and as a member of the audit and compensation
committees of the Board, effective immediately. In connection