Company: SIMA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043361
Chunk: 59

Company: SIM Acquisition Corp. I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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5,750,000 Class B ordinary shares, par
value $0.0001 per share (the “Founder Shares”). In May 2024, the Company effected a share dividend of 0.33 shares for
each Class B ordinary share outstanding, resulting in the Company’s initial shareholders holding an aggregate of 7,666,667 Founder
Shares. All share and per share data have been restated to reflect this change.

 In April 2024, the Sponsor
transferred 50,000 Founder Shares to each of the Company’s three independent directors for an aggregate of 150,000 Founder Shares,
at a price of $0.003 per share. In May 2024, the Company effected a share dividend of 0.33 shares for each Class B ordinary share
outstanding, resulting in the Company’s directors holding an aggregate of 199,998 Founder Shares, or 66,666 each.

The sale of the Founder Shares
to each of the Company’s three 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 199,998 shares transferred to the Company’s three independent directors was $197,998 or $0.99
per share. The Founder Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation
expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable
accounting literature in this circumstance. As of March 31, 2025, the Company determined that a Business Combination is not considered
probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the
date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number
of Founder Shares times the grant date fair value per share (unless subsequently modified) less the amount initially received for the
purchase of the Founder Shares.

12

Private Placement Warrants

 The Sponsor and Cantor purchased
an aggregate of 6,000,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($6.0 million in the aggregate)
in a private placement that closed simultaneously with the closing of the Initial Public