Company: IPCX
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076625
Chunk: 38

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 that are ultimately expected to vest. Share-based payments
are valued using a Probability Weighted Expected Return Method (“PWERM Model”). 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.

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 financial statements.

Item 3. Quantitative and Qualitative Disclosures
About Market Risk

Not required for smaller reporting companies.

Item