Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 1264

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 1264
---
 of approving the business combination transaction).

Note 5 – RELATED PARTY TRANSACTIONS

Founder Shares

On January 29, 2024, the Sponsor paid $25,000,
or approximately $0.003 per share, to cover certain costs in consideration for 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 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 directors holding an aggregate of 199,998 Founder Shares, or 66,666 each.

The sale of the Founders
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 Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation
expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence under the applicable
accounting literature in this circumstance. As of December 31, 2024, 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 Founders Shares times the grant date fair value per share (unless subsequently modified) less the amount initially received for the
purchase of the Founders Shares.

The Sponsor and the Company’s officers and directors agreed,
subject