Company: IPCX
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076625
Chunk: 30

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions
about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and
liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices
    in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions
    for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable
    inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities
    and quoted prices for identical assets or liabilities in markets that are not active.

    Level 3:
    Unobservable
    inputs based on assessment of the assumptions that market participants would use in pricing the asset or liability.

The Public Rights have been classified within shareholders’
deficit and will not require remeasurement after issuance. The Public Rights were classified within Level 3 of the fair value hierarchy
at the measurement dates due to the use of unobservable inputs inherent in assumptions related to the market adjustments as noted below.
The following table presents the quantitative information regarding market assumptions used in the valuation of the Public Rights:

    April 28, 2025 
  
    Trade price of Unit 
    $10.00 
  
    Stock price 
    $9.709 
  
    Market adjustment(1) 
     30%
  
    Fair value per share right 
    $0.2913 

(1)Market
adjustment reflects additional factors not fully captured by low volatility selection, which may include likelihood of business combination
occurring, market perception of lack of available or suitable targets, or possible post-acquisition decline of stock price prior to beginning
of the exercise period. The adjustment is determined by comparing traded warrant prices to simulated model outputs.

At June 30, 2025, assets held in the Trust Account
were comprised of $253,957,808 in money market funds which are invested primarily in U.S. Treasury Securities. Through June 30,
2025, the Company did not withdraw any interest earned on the Trust Account to pay for its franchise and income tax obligations.

The following table presents information about
the Company’s assets that are measured at fair value on a recurring basis at June 30,