Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 35

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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5, the Sponsor sold membership interests
equivalent to an aggregate of 340,000 Class B ordinary shares to four independent director nominees for approximately $0.003 per share.
The sale of the Founders Shares to the Company’s independent directors is in the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the grant date. The fair value of the 340,000 shares granted to the Company’s independent directors was $775,892
or approximately $2.29 per share. Also, in April 2025, the Sponsor sold membership interests equivalent to an aggregate of 791,382 Class
B ordinary shares to three officers for approximately $0.003 per share. The fair value of the 791,382 shares granted to the Company’s
officers was $1,805,962 or approximately $2.29 per share. Such amount has been recorded as compensation expense on April 2, 2025, the
date the shares were granted, as there are no service restrictions. The valuation was derived using PWERM model in which the expected
share price at the initial Business Combination close is $9.709, the likelihood of the Initial Public Offering was 80%, the likelihood
of a Business Combination was 30% and the applied Discount for Lack of Marketability (DLOM) was 1.8%.

The Sponsor has agreed not to transfer, assign
or sell any of the Founder Shares and any Class A ordinary shares issuable upon conversion thereof until the earlier to occur of:
(i) 180 days after the completion of the initial Business Combination or (ii) the date on which the Company completes a
liquidation, merger, share exchange or other similar transaction after the initial Business Combination that results in all of the shareholders
having the right to exchange their Class A ordinary shares for cash, securities or other property.

22

INFLECTION POINT ACQUISITION CORP. III

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

Promissory Note — Related Party

On October 10, 2024, an affiliate of the
Sponsor, Inflection Point Fund I, LP, had agreed to loan the Company up to $300,000 to be used for a portion of the