Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 29

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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Derivatives and Hedging”. Accordingly, the Company evaluated and classified the rights under equity
treatment at their assigned value.

17

INFLECTION POINT ACQUISITION CORP. III

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

Class A Shares Subject to Possible Redemption

The Public Shares contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a shareholder vote
(A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with a Business Combination
or to redeem 100% of the Public Shares if the Company does not complete an initial business combination within the completion window or
(B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity,
or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance with
ASC 480-10-S99, the Company classifies Public Shares subject to redemption outside of permanent equity as the redemption provisions are
not solely within the control of the Company. The Company recognizes changes in redemption value immediately as they occur and will adjust
the carrying value of redeemable shares to equal the redemption value at the end of each reporting period. Immediately upon the closing
of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption value. The change in the carrying
value of redeemable shares will result in charges against additional paid-in capital (to the extent available) and accumulated deficit.
Accordingly, as of September 30, 2025, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary
equity, outside of the shareholders’ deficit section of the Company’s balance sheet. As of September 30, 2025, the Class A
ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:

    Gross proceeds 
    $ 253,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (7,369,890)
  
    Class A ordinary shares issuance cost 
     (16,778,066)
  
    Plus: 

    Accretion of carrying value to redemption value 
     28,411,914 
  
    Class A Ordinary Shares subject to possible redemption, September 30, 2025 
    $