Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 422

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 422
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The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the extent available)
and accumulated deficit. Accordingly, at July 11, 2024, Class A ordinary shares subject to possible redemption are presented at redemption
value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet. The Company recognizes
changes in redemption value immediately as they occur and adjusts the carrying value of redeemable shares to equal the redemption value
at the end of each reporting period. Increases or decreases in the carrying amount of redeemable shares are affected by charges against
additional paid in Capital (to the extent available) and accumulated deficit.

F-12

At December 31, 2024, the Class A ordinary shares
subject to redemption reflected in the balance sheet are reconciled in the following table:

    Gross Proceeds 
    $230,000,000 
  
    Less: 

    Proceeds allocated to Public Warrants 
     (1,610,000)
  
    Class A ordinary shares issuance costs 
     (15,307,565)
  
    Plus: 

    Accretion of carrying value to redemption value 
     22,140,377 
  
    Class A Ordinary Shares subject to possible redemption 
    $235,222,812 

Warrant Instruments

The Company accounts for the Public Warrants and
Private Warrants issued in connection with the Initial Public Offering and the private placement in accordance with the guidance contained
in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified the warrant instruments
under equity treatment at their assigned values. Equity-classified contracts are initially measured at fair value (or allocated value).
Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity.

Share-Based Compensation

The Company records share-based compensation in accordance with FASB
ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), 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, including share option grants, warrants and restricted share grants, 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, excluding restricted shares,
are valued using a Monte Carlo simulation. Grants of share-based payment