Company: IPCX
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111009
Chunk: 30

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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257,263,958 

Share-based compensation

The Company records share-based compensation in
accordance with FASB ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), guidance to account for its
share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument.
The Company recognizes all forms of share-based payments at their fair value on the grant date, which are based on the estimated number
of awards that are ultimately expected to vest. Share-based payments are valued using a Probability Weighted Expected Return Method. Grants
of share-based payment awards issued to non-employees for services rendered have been recorded at the fair value of the share-based payment,
which is the more readily determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which
is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed
in the period related to the termination of service. Share-based compensation expenses are included in costs and operating expenses depending
on the nature of the services provided in the statements of operations.

18

INFLECTION POINT ACQUISITION CORP. III

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

Net Income (Loss) per Ordinary Share

Net income per share is computed by dividing net
income by the weighted average number of ordinary shares outstanding for the period. The calculation of diluted income per share does
not consider the effect of the rights issued in connection with the Initial Public Offering and rights issued as components of the Private
Placement Units (the “Private Placement Rights” and together with the Public Rights, the “Rights”) since the exercise
of the Rights are contingent upon the occurrence of future events and the inclusion of such Rights would be anti-dilutive.

The Company’s unaudited condensed consolidated
statements of operations include a presentation of income (loss) per share for ordinary shares in a manner similar to the two-class method
of income (loss) per share. Net income (loss) per ordinary share, basic and diluted, for redeemable ordinary shares is calculated by dividing
the net (loss) income allocable to redeemable ordinary shares subject to possible redemption, by the weighted average number of redeemable
ordinary shares outstanding since original issuance. Net income (loss) per ordinary share, basic and diluted, for