Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 89

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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238 of the Cayman Act and any other
similar statute, (d) be bound by certain other covenants and agreements related to the Air Water Business Combination and (e) be
bound by certain transfer restrictions with respect to the Sponsor Subject Securities, in each case, on the terms and subject to the
conditions set forth in the Sponsor Support Agreement. The Sponsor Support Agreement also provides that Sponsor has agreed
irrevocably to waive its redemption rights in connection with the consummation of the Air Water Business Combination with respect to
any Sponsor Subject Securities they may hold.

Please refer to the Company’s Form 8-K as
filed on August 25, 2025 for the full text of the aforementioned agreements entered into in connection with the Air Water Business Combination
Agreement.

13

INFLECTION POINT ACQUISITION CORP. III

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

Liquidity and Capital Resources

As of September 30, 2025, the Company had cash
and cash equivalents of $1,270,446. The Company intends to use the funds held outside the Trust Account primarily to identify and evaluate
target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar
locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective
target businesses, and structure, negotiate and complete a Business Combination. 

In order to fund working capital deficiencies
or finance transaction costs in connection with a Business Combination, the Sponsor, or certain of our officers and directors or their
affiliates may, but are not obligated to, loan us funds as may be required (“Working Capital Loans”). If the Company completes
a Business Combination, the Company would repay such loaned amounts. In the event that a Business Combination does not close, the Company
may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account
would be used for such repayment. Up to $1,500,000 of such loans may be convertible into Private Placement Units at a price of $10.00
per Unit at the option of the lender. As of September 30, 2025, no such Working Capital Loans were outstanding.

The Company does not believe it will need to raise
additional funds in order to meet the expenditures required for