Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 62

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 with respect to their founder shares if the Company fails to complete the Business Combination within
the Completion Window, although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares
they hold if the Company fails to complete the Business Combination within the Completion Window and to liquidating distributions from
assets outside the Trust Account; and (iv) vote any founder shares held by them and any public shares purchased during or after the Initial
Public Offering (including in open market and privately negotiated transactions) in favor of the Business Combination (except that any
public shares such parties may purchase in compliance with the requirements of Rule 14e-5 under the Exchange Act would not be voted in
favor 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 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