Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 120

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 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 our balance sheets. The Company recognizes changes in redemption value immediately
as they occur and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each reporting period.

Recent Accounting Standards

In November 2024, the FASB issued Accounting
Standards Update (“ASU”) 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses”, requiring public entities to disclose additional information about
specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal
years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The
Company is currently evaluating the impact of adopting ASU 2024-03.

Management does not believe that any other recently
issued, but not yet effective, accounting standards, if currently adopted, would have a material