Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 57

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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 costs and operating expenses depending on the nature of the services provided in the statements of operations.

Class A Shares Subject to Possible Redemption

We account for our Public Shares subject to possible
redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities
from Equity.” Public Shares subject to possible redemption are classified as a liability instrument and are measured at fair value.
Our Public Shares subject to possible redemption feature certain redemption rights that are considered to be outside of our control and
subject to occurrence of uncertain future events. Accordingly, the Public Shares subject to possible redemption are presented as temporary
equity, outside of the stockholders’ equity section of our balance sheets. 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.

Recent Accounting Standards

In November 2024, the FASB issued Accounting
Standards Update (“ASU”) 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses”, requiring public entities to disclose additional information about
specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal
years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The
Company is currently evaluating the impact of adopting ASU 2024-03.

Management does not believe that any other recently
issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed consolidated
financial statements.

37

Item 3. Quantitative and Qualitative Disclosures
About Market Risk

Not required for smaller reporting companies.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed
to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions
(together, the “Certifying Officers”), as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation
of our management, including our Certifying Officers,