Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 70

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 70
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 of customers and suppliers, inspection of facilities, as applicable, as well as a review of financial, operational,
legal and other information about the target and its industry that is made available to us. If we determine to move forward with a particular
target, we will proceed to structure and negotiate the terms of the Business Combination transaction.

The time required to select
and evaluate a target business and to structure and complete our initial Business Combination, and the costs associated with this process,
are not currently ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of,
and negotiation with, a prospective target business with which our initial Business Combination is not ultimately completed will result
in our incurring losses and will reduce the funds available for us to use to complete another Business Combination.

Lack of Business Diversification

For an indefinite period of
time after the completion of our initial Business Combination, the prospects for our success may depend entirely on the future performance
of a single business. Unlike other entities that have the resources to complete Business Combinations with multiple entities in one or
several industries, it is probable that we will not have the resources to diversify our operations and mitigate the risks of being in
a single line of business. By completing our initial Business Combination with only a single entity, our lack of diversification may:

●subject
us to negative economic, competitive and regulatory developments, any or all of which may have a substantial adverse impact on the particular
industry in which we operate after our initial Business Combination, and

●cause us to depend on the marketing and sale
of a single product or limited number of products or services.

Limited Ability to Evaluate the Target’s
Management Team

Although we closely scrutinize
the management of a prospective target business when evaluating the desirability of effecting our initial Business Combination with that
business, our assessment of the target business’s management may not prove to be correct. In addition, the future management may
not have the necessary skills, qualifications or abilities to manage a public company. Furthermore, the future role of members of our
Management Team, if any, in the target business cannot presently be stated with any certainty. The determination as to whether any of
the members of our Management Team will remain with the combined company will be made at the time of our initial Business Combination.
While it is possible that one or more of our directors will remain associated in some capacity with us following our initial Business
Combination, it is unlikely that any of them will