Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 33

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 into warrants of the post-Business Combination entity at a price of
$1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. The terms of such Working
Capital Loans, if any, have not been determined and no written agreements exist with respect to such Working Capital Loans. Prior to the
completion of our initial Business Combination, we do not expect to seek loans from parties other than our Sponsor or an affiliate of
our Sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek
access to funds in our Trust Account.

19

We have until July 11, 2026
to consummate a Business Combination. It is uncertain that the Company will be able to consummate a Business Combination by this time.
If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company.
In connection with the Company’s assessment of going concern considerations in accordance with ASU 2014-15, “Disclosures of
Uncertainties about an Entity’s Ability to Continue as a Going Concern,” as of June 30, 2025, management has determined that
the mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going
concern. The financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going
concern. In addition, the Company’s cash balance does not exceed its current budgeted operating requirements, and management has concluded
that this indicates the Company will not have sufficient liquidity to meet its obligations as they become due within one year after the
date these financial statements are issued.

We do not believe we will
need to raise additional funds in order to meet the expenditures required for operating our business. However, if our estimate of the
costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual
amount necessary to do so, we may have insufficient funds available to operate our business prior to our Business Combination. Moreover,
we may need to obtain additional financing either to complete our Business Combination or because we become obligated to redeem a significant
number of our Public Shares upon consummation of our Business Combination, in which case we may issue additional securities or incur debt
in connection with such Business Combination. 

Off-Balance Sheet Arrangements

As of June 30