Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 14

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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Level 3 measurements). These tiers include:

●Level 1,
defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●Level 2,
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices
for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●Level 3,
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy.
In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input
that is significant to the fair value measurement.

Use of Estimates

The preparation of the condensed
financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of expenses and
deferred offering costs during the reporting period.

Making estimates requires
management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation
or set of circumstances that existed at the date of the condensed financial statements, which management considered in formulating its
estimate, could change in the near term due to one or more future confirming events. Actual results could differ from those estimates.

9

Net Income (Loss) Per Ordinary Share

The Company complies with
the accounting and disclosure requirements of FASB ASC 260, “Earnings Per Share.” The Company has two classes of shares, which
are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two
classes of shares. Net income (loss) per ordinary share is calculated by dividing the net income (loss) by the weighted average number
of ordinary shares outstanding for the respective period. Diluted net income (loss) per share attributable to ordinary shareholders adjusts
the basic net income (loss) per share attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding
for the potentially dilutive impact of outstanding warrants. However, because the warrants are anti-dilutive, diluted income (loss) per
ordinary share is the same as