Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 493

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 493
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 the directors holding an aggregate of 199,998 Founder Shares, or 66,666 each.

The sale of the Founders
Shares to each of the Company’s three independent directors is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation”
(“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon
the grant date. The fair value of the 199,998 shares transferred to the Company’s three independent directors was $197,998 or $0.99
per share. The Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation
expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence under the applicable
accounting literature in this circumstance. As of December 31, 2024, the Company determined that a Business Combination is not considered
probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the
date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number
of Founders Shares times the grant date fair value per share (unless subsequently modified) less the amount initially received for the
purchase of the Founders Shares.

The Sponsor and the Company’s officers and directors agreed,
subject to limited exceptions, not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (i) six months
after the completion of the Business Combination or (ii) the date following the completion of the Business Combination on which the Company
completes a liquidation, merger, share exchange or other similar transaction that results in all of the Company’s shareholders having
the right to exchange their Class A ordinary shares for cash, securities or other property.

F-14

Private Placement Warrants

The Sponsor and Cantor purchased
an aggregate of 6,000,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($6.0 million in the aggregate)
in a private placement that closed simultaneously with the closing of the Initial Public Offering. Each warrant is exercisable to purchase
one Class A ordinary share at $11.50 per share. A portion of the proceeds from the Private Placement Warrants were added to the proceeds
from the Initial Public Offering held in the Trust Account. If the Company does not complete