Company: IPCX
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076625
Chunk: 61

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 government securities, the investments are classified as trading securities, which are presented at fair value. Gains
and losses resulting from the change in fair value of these securities are included in income from investments held in the Trust Account
in the accompanying unaudited condensed statement of operations. The estimated fair values of investments held in the Trust Account are
determined using available market information. At June 30, 2025, the assets held in the Trust Account of $253,957,808 were held
in money market funds.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit 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. As of June 30, 2025 and December 31,
2024, there was $1,259,466 and $0 that exceeded the Federal Deposit Insurance Corporation coverage limit of $250,000.

Offering Costs

The Company complies with the requirements of
the 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 rights,
using the residual method by allocating Initial Public Offering proceeds first to assigned value of the rights and then to the Class
A ordinary shares. Offering costs allocated to the Class A ordinary shares subject to possible redemption were charged to temporary equity
and offering costs allocated to the rights and Private Placement Units were charged to shareholder’s deficit as the rights and
Private Placement Units, were accounted for under equity treatment based on the equity classification of the underlying financial instruments.

Income Taxes

The Company accounts for income taxes under ASC 740,
“Income Taxes” (“ASC 740”), which prescribes a recognition threshold and measurement process for financial
statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized,
a tax position must be more-likely-than-not to