Company: SIMA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043361
Chunk: 52

Company: SIM Acquisition Corp. I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 for public or
private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt
the new or revised standard. This may make the comparison of the Company’s financial statements with those of another public company
that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used.

Cash

 The Company considers all
short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company has $511,697
in cash and did not have any cash equivalents as of March 31, 2025. As of December 31, 2024, the Company had $697,085 in cash and did
not have any cash equivalents.

Marketable Securities and Cash Held in Trust
Account

At March 31, 2025 and December
31, 2024, the assets held in the Trust Account, amounting to $237,787,030 and $235,322,812, respectively, were held in a money market
fund at Morgan Stanley that consist entirely of United States Treasury securities and meet the conditions under Rule 2a-7 under the Investment
Company Act.

Offering Costs 

 The Company complies with
the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 warrants, using the
residual method by allocating Initial Public Offering proceeds first to the assigned value of the warrants and then to the Class A
ordinary shares. Offering costs allocated to the Class A ordinary shares were charged to temporary equity and offering costs allocated
to the Public Warrants and Private Placement Warrants were charged to shareholders’ deficit as Public Warrants and Private Placement
Warrants after management’s evaluation are accounted for under equity treatment.

8

Concentration of Credit Risk

Financial instruments that
potentially subject the Company to concentrations of credit risk consist