Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 243

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 243
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 Account and instead to hold the
funds in the Trust Account in cash or in an interest bearing demand deposit account at a bank.

We
intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust
Account (excluding deferred underwriting commissions). We may withdraw interest to pay our taxes, if any. Our annual income tax obligations
will depend on the amount of interest and other income earned on the amounts held in the Trust Account. We expect the interest earned
on the amount in the Trust Account will be sufficient to pay our income taxes. To the extent that our equity or debt is used, in whole
or in part, as consideration to complete our initial Business Combination, the remaining proceeds held in the Trust Account will be used
as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

We
have available to us approximately $697,085 of proceeds held outside the Trust Account, as of December 31, 2024. We expect to continue
to use these funds to primarily identify and evaluate target businesses, perform business due diligence on prospective target businesses,
travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review
corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.

In
order to fund working capital deficiencies or finance transaction costs in connection with an intended initial Business Combination, our
Sponsor or an affiliate of our Sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be
required. If we complete our initial Business Combination, we would repay such Working Capital Loans. In the event that our initial Business
Combination does not close, we may use amounts held outside the Trust Account to repay such Working Capital Loans, but no proceeds from
our Trust Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be convertible into warrants of
the post-Business Combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to
the Private Placement Warrants. The terms of such Working Capital Loans, if any, have not been determined and no written agreements exist
with respect to such Working Capital Loans. Prior to the completion of our initial Business Combination, we do not expect to seek loans
from parties other than our Sponsor or an affiliate of