Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 56

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 that affect the reported amounts of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and income and expenses during the periods reported. Making estimates requires
management to exercise significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation
or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate,
could change in the near term due to one or more future confirming events. Accordingly, the actual results could materially differ from
those estimates. We have identified the following critical accounting policies:

36

Net Income (Loss) per Share

The Company’s unaudited consolidated statements
of operations include a presentation of income (loss) per share for ordinary shares outstanding in a manner similar to the two-class
method of income (loss) per share. Net income (loss) per ordinary share, basic and diluted, for redeemable ordinary shares is calculated
by dividing the net income (loss) allocable to redeemable ordinary shares subject to possible redemption, by the weighted average number
of redeemable ordinary shares outstanding since original issuance. Net income (loss) per ordinary share, basic and diluted, for non-redeemable
ordinary shares is calculated by dividing net income (loss) allocable to non-redeemable ordinary shares, by the weighted average number
of non-redeemable ordinary shares outstanding for the periods.

Share-based compensation

The Company records share-based compensation
in accordance with FASB ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), guidance to account for
its share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument.
The Company recognizes all forms of share-based payments at their fair value on the grant date, which are based on the estimated number
of awards that are ultimately expected to vest. Share-based payments are valued using a Probability Weighted Expected Return Method (“PWERM
Model”). Grants of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value
of the share-based payment, which is the more readily determinable value. The grants are amortized on a straight-line basis over the
requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously
recognized compensation cost is reversed in the period related to the termination of service. Share-based compensation expenses are included
in