Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 60

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 60
---
 December 31, 2024, there were no unrecognized tax benefits and no amounts accrued for interest and penalties.
The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation
from its position.

10

The Company is considered
to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes
or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero
for the periods presented.

Class A Ordinary Shares Subject to
Possible Redemption

The Public Shares contain
a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there
is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance with FASB ASC
480-10-S99, the Company classifies Public Shares subject to redemption outside of permanent equity as the redemption provisions are not
solely within the control of the Company. The Public Shares sold as part of the Units in the Initial Public Offering were issued with
other freestanding instruments (i.e., Public Warrants) and as such, the initial carrying value of the Public Shares are classified as
temporary equity and the allocated proceeds are determined in accordance with FASB ASC 470-20. The Company recognizes changes in redemption
value immediately as it occurs and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each
reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book
value to redemption amount value. The change in the carrying value of redeemable shares will result in charges against additional paid-in
capital (to the extent available) and accumulated deficit. Accordingly, at July 11, 2024, Class A ordinary shares subject to possible
redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s
condensed balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value
of redeemable shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount
of redeemable shares are affected by charges against additional paid in capital (to the extent available) and accumulated deficit.

At September 30, 2025
and December 31, 2024, the Class A ordinary