Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 53

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 53
---
, increases in
tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and geopolitical instability,
such as the military conflicts in Ukraine and the Middle East. The Company cannot at this time predict the likelihood of one or more
of the above events, their duration or magnitude or the extent to which they may negatively impact the Company’s business and its
ability to complete an initial Business Combination.

Liquidity and Capital Sources

As of June 30, 2025 and December
31, 2024, the Company had a cash balance of $346,169 and $697,085 and a working capital surplus of $368,669 and $791,676, respectively.
Further, the Company has incurred and expects to continue to incur significant costs in pursuit of a Business Combination. In connection
with the Company’s assessment of going concern considerations in accordance with ASU 2014-15, “Disclosures of Uncertainties
about an Entity’s Ability to Continue as a Going Concern,” management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not
include any adjustments that may be necessary if the Company is unable to continue as a going concern. It is uncertain that the company
will be able to consummate a Business Combination by July 11, 2026. If a Business Combination is not consummated by this date, there will
be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to
the carrying amounts of assets or liabilities should the Company be required to liquidate after July 11, 2026. In addition, the Company’s cash balance does not exceed its current budgeted operating requirements, and management has concluded
that this indicates the Company will not have sufficient liquidity to meet its obligations as they become due within one year after the
date these financial statements are issued.

Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

Basis of Presentation

The accompanying unaudited
condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of
America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation
S-X of the U.S.