Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
As previously reported, on
August 31, 2026, Inflection Point Acquisition Corp. VIII (the “Company”) consummated its initial public offering (“IPO”)
of 28,750,000 units (the “Units”), including the issuance of 3,750,000 Units as a result of the underwriters’
exercise of their over-allotment option in full. Each Unit consists of one Class A ordinary share of the Company, par value $0.0001 per
share (the “Class A Ordinary Shares”), and one-third of one redeemable warrant. The Units were sold at a price of $10.00
per Unit, generating gross proceeds to the Company of $287,500,000.
Also as previously reported,
on August 31, 2026, simultaneously with the consummation of the IPO, the Company completed the private sale (the “Private Placement”)
of an aggregate of 8,000,000 private placement warrants (the “Private Placement Warrants”) to Inflection Point Holdings
VIII LLC (the “Sponsor”) and Cohen and Company Capital Markets, a division of Cohen & Company Securities, LLC,
as representative of the underwriters (the “Representative”) at a purchase price of $1.00 per Private Placement Warrant,
generating gross proceeds to the Company of $8,000,000. Of the 8,000,000 Private Placement Warrants, the Sponsor purchased 5,000,000 Private
Placement Warrants and the Representative purchased 3,000,000 Private Placement Warrants.
A total of $287,500,000 of
the proceeds from the IPO and Private Placement, which amount includes up to $13,687,500 of the underwriters’ deferred discount,
was placed in a U.S.-based trust account maintained by Continental Stock Transfer & Trust Company, acting as trustee.
An audited balance sheet as
of August 31, 2026 reflecting receipt of the proceeds upon consummation of the IPO and the Private Placement has been issued by the Company
and is included as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Exhibit 99.1
Inflection Point Acquisition Corp. VIII
INDEX TO FINANCIAL STATEMENT
| |
|
Page |
| Audited Financial Statement of Inflection Point Acquisition Corp. VIII: |
|
|
| Report of Independent Registered Public Accounting Firm |
|
F-2 |
| Balance Sheet as of August 31, 2026 |
|
F-3 |
| Notes to Financial Statement |
|
F-4 |
Report
of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
Inflection Point Acquisition Corp. VIII:
Opinion on the Financial Statement
We have audited the accompanying balance sheet
of Inflection Point Acquisition Corp. VIII (the “Company”) as of August 31, 2026, and the related notes (collectively referred
to as the “financial statement”). In our opinion, the financial statement presents fairly, in all material respects, the financial
position of the Company as of August 31, 2026, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
This financial statement is the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are
a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the "PCAOB") and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statement is free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of
internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess
the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.
/s/ WithumSmith+Brown, PC
We have served as the Company's auditor since
2026.
New York, New York
September 4, 2026
Inflection Point Acquisition Corp. VIII
BALANCE SHEET
AUGUST 31, 2026
| Assets: | |
| |
| Current assets | |
| |
| Cash | |
$ | 2,114,177 | |
| Prepaid expenses | |
| 40,633 | |
| Total Current Assets | |
| 2,154,810 | |
| Cash held in Trust Account | |
| 287,500,000 | |
| Total Assets | |
$ | 289,654,810 | |
| | |
| | |
| Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit: | |
| | |
| Current liabilities | |
| | |
| Accrued expenses | |
$ | 12,739 | |
| Accrued offering costs | |
| 113,395 | |
| Total Current Liabilities | |
| 126,134 | |
| Deferred underwriting fee | |
| 13,687,500 | |
| Total Liabilities | |
$ | 13,813,634 | |
| | |
| | |
| Commitments and Contingencies (Note 6) | |
| | |
| Class A ordinary shares subject to possible redemption, $0.0001 par value; 28,750,000 shares at redemption value of $10.00 per share | |
| 287,500,000 | |
| | |
| | |
| Shareholders’ Deficit | |
| | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding | |
| — | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; none issued or outstanding (excluding 28,750,000 shares subject to possible redemption) | |
| — | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 9,583,333 shares issued and outstanding | |
| 958 | |
| Additional paid-in capital | |
| — | |
| Accumulated deficit | |
| (11,659,782 | ) |
| Total Shareholders’ Deficit | |
| (11,658,824 | ) |
| Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | |
$ | 289,654,810 | |
The accompanying notes are an integral part of
the financial statement.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 1 — Organization and Business
Operations
Inflection Point Acquisition Corp. VIII (the
“Company”) is a special purpose acquisition company incorporated as a Cayman Islands exempted company on May 6, 2026,
for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination
with one or more businesses (the “Business Combination”).
As of August 31, 2026, the Company had not commenced
any operations. All activity for the period from May 6, 2026 (inception) through August 31, 2026 relates to the Company’s formation
and the initial public offering (“Initial Public Offering”), which is described below. The Company will not generate any operating
revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the
form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal
year end.
The registration statement for the Company’s
Initial Public Offering was declared effective on August 27, 2026. On August 31, 2026, the Company consummated the Initial Public Offering
of 28,750,000 units (each, a “Unit” and collectively, the “Units”) at $10.00 per Unit, which includes the
full exercise of the underwriters’ over-allotment option of 3,750,000 Units, generating gross proceeds of $287,500,000. Each Unit
consists of one Class A ordinary share and one-third of one redeemable warrant (the “Public Warrants”). Each whole warrant
entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share.
Simultaneously with the closing of the Initial
Public Offering, the Company consummated the sale of 8,000,000 private placement warrants (the “Private Placement Warrants”),
at a price of $1.00 per Private Placement Warrant in a private placement to Inflection Point Holdings VIII LLC (the “Sponsor”)
and Cohen and Company Capital Markets, a division of Cohen & Company Securities, LLC (“Cohen & Co.”), generating
gross proceeds of $8,000,000. Of those 8,000,000 Private Placement Warrants, the Sponsor purchased 5,000,000 Private Placement Warrants
and Cohen & Co. purchased 3,000,000 Private Placement Warrants.
Transaction costs amounted to $19,545,458, consisting
of $5,000,000 of cash underwriting fee, $13,687,500 of deferred underwriting fee and $857,958 of other offering costs.
Inflection Point Fund I, LP (“IPF”),
an affiliate of the Sponsor and the executive officers, intends to commit an aggregate of $25,000,000 into a private investment in public
equity (“PIPE”) transaction in connection with the initial Business Combination, subject to diligence and approval of IPF’s
investment committee. Any such commitment and purchase will be subject to approval of IPF’s investment committee prior to the closing
of the initial Business Combination. Accordingly, if IPF’s investment committee does not give its approval, IPF will not be obligated
to make such investment. Further, the Company has the right, in its sole discretion, to reduce the amount of or decline such investment.
The Company expects that the terms of any such PIPE transaction will be negotiated with the applicable Business Combination target and
investors (including IPF), at the time a Business Combination agreement is signed. As a result of additional costs in connection with
such anticipated PIPE transaction, the Company is entitled to withdraw a maximum of $1,000,000 of funds from interest earned on the Trust
Account for working capital purposes per year (plus the rollover of unused amounts from prior years).
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 1 — Organization and Business
Operations (cont.)
The Company’s Business Combination must
be with one or more target businesses that together have a fair market value equal to at least 80% of the net assets in the Trust Account
(as defined below) (excluding the deferred underwriting commissions and taxes payable on the interest earned on the Trust Account) at
the time of signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination
if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise
acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment
Company Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able
to successfully effect a Business Combination.
Upon the closing of the Initial Public Offering
on August 31, 2026, an amount of $287,500,000 ($10.00 per Unit) from the net proceeds of the sale of the Units, and a portion of the net
proceeds from the sale of the Private Placement Warrants, was held in a trust account (the “Trust Account”) and may only be
invested in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain
conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S. government treasury obligations.
Except with respect to (a) amounts withdrawn to fund the Company’s working capital requirements, subject to an annual limit
of $1,000,000 (plus the rollover of unused amounts from prior years), and/or (b) to pay for the Company’s taxes (any withdrawals
to pay for the Company’s taxes (which shall exclude any 1% U.S. federal excise tax on stock repurchases under the Inflation
Reduction Act of 2022 that is imposed on the Company, if any) shall not be subject to the $1,000,000 annual limitation described
in the foregoing) (such withdrawals described in clauses (a) and (b), collectively, “Permitted Withdrawals”) interest
earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the proceeds from the Initial
Public Offering and the sale of the Private Placement Warrants will not be released from the Trust Account until the earliest of (i) the
completion of the Company’s initial Business Combination, (ii) the redemption of the Company’s public shares if the Company
is unable to complete the initial Business Combination within 24 months from the closing of the Initial Public Offering or by such
earlier liquidation date as the Company’s board of directors may approve (the “Completion Window”), subject to applicable
law, or (iii) the redemption of the Company’s public shares properly submitted in connection with a shareholder vote to amend
the Company’s amended and restated memorandum and articles of association to (A) modify the substance or timing of the Company’s
obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares
if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any other
material provisions relating to shareholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the
Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of
the Company’s public shareholders.
The Company will provide the Company’s
public shareholders with the opportunity to redeem all or a portion of their public shares in connection with the completion of the initial
Business Combination either (i) in connection with a general meeting called to approve the initial Business Combination or (ii) without
a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a proposed initial
Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public shareholders will be
entitled to redeem their shares at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account
calculated as of two business days prior to the consummation of the initial Business Combination, including interest earned on the
funds held in the Trust Account and not previously released to the Company for Permitted Withdrawals, divided by the number of then outstanding
public shares, subject to the limitations. The amount in the Trust Account is initially anticipated to be $10.00 per public share.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 1 — Organization and Business
Operations (cont.)
The ordinary shares subject to redemption were
recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with
Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480,
“Distinguishing Liabilities from Equity.”
The Company will have only the duration of the
Completion Window to complete the initial Business Combination. However, if the Company is unable to complete its initial Business Combination
within the Completion Window, the Company will as promptly as reasonably possible but not more than ten business days thereafter,
redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including
interest earned on the funds held in the Trust Account and not previously released to the Company for Permitted Withdrawals (less up to
$100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will constitute
full and complete payment for the public shares and completely extinguish public shareholders’ rights as shareholders (including
the right to receive further liquidation or other distributions, if any), subject to the Company’s obligations under Cayman Islands
law to provide for claims of creditors and subject to the other requirements of applicable law.
The Sponsor, officers and directors entered into
a letter agreement with the Company, pursuant to which they agreed to (i) waive their redemption rights with respect to their founder
shares and public shares in connection with the completion of the initial Business Combination or an earlier redemption in connection
with the commencement of the procedures to consummate the initial Business Combination if the Company determines it is desirable to facilitate
the completion of the initial Business Combination; (ii) waive their redemption rights with respect to their founder shares and public
shares in connection with a shareholder vote to approve an amendment to the Company’s amended and restated memorandum and articles
of association; (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares
if the Company fails to complete the initial Business Combination within the Completion Window, although they will be entitled to liquidating
distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial Business
Combination within the Completion Window and to liquidating distributions from assets outside the Trust Account; and (iv) vote any
founder shares held by them and any public shares purchased during or after the Initial Public Offering (including in open market and
privately-negotiated transactions) in favor of the initial Business Combination.
The Company’s Sponsor has agreed that it
will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company
(except for the Company’s independent auditors), or a prospective target business with which the Company has entered into a written
letter of intent, confidentiality or other similar agreement or Business Combination agreement (except for the Company’s independent
auditors), reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per public share and (ii) the
actual amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00
per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any
claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account
(whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of
the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended
(the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor
has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company
believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor would
be able to satisfy those obligations.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 1 — Organization and Business
Operations (cont.)
Liquidity and Capital Resources
The Company’s liquidity needs up to August
31, 2026 had been satisfied through the loan under an unsecured promissory note from the Sponsor of up to $300,000 (Note 5). As of August
31, 2026, the Company had $2,114,177 in cash and had a working capital of $2,028,676.
In order to finance transaction costs in connection
with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may,
but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes
a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the
Company may use amounts held outside the Trust Account to repay the Working Capital Loans but no proceeds from the Trust Account would
be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into private placement warrants
of the post Business Combination entity at a price of $1.00 per private placement warrant at the option of the lender. The warrants would
be identical to the Private Placement Warrants. As of August 31, 2026, no such Working Capital Loans were outstanding.
In connection with the Company’s assessment
of going concern considerations in accordance with FASB ASC Topic 205-40, “Presentation of Financial Statements - Going Concern,”
the Company does not believe it will need to raise additional funds in order to meet the expenditures required for operating its business.
However, if the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business
Combination are less than the actual amount necessary to do so, the Company may have insufficient funds available to operate its business
prior to the initial Business Combination. The Company has the Completion Window to complete the initial Business Combination. Management
has determined that the Company has sufficient funds to finance the working capital needs of the Company within one year from the date
of issuance of the financial statement.
Note 2 — Significant Accounting
Policies
Basis of Presentation
The accompanying financial statement is presented
in conformity with accounting principles generally accepted in the United States of America (the “GAAP”) and pursuant
to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 2 — Significant Accounting
Policies (cont.)
Emerging Growth Company Status
The Company is an “emerging growth company,”
as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012 (the
“JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other
public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic
reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and
shareholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS
Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
(that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered
under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that
a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies
but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means
that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging
growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison
of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth
company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used.
Use of Estimates
The preparation of the financial statement in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statement.
Cash and Cash Equivalents
The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had $2,114,177 in cash and no
cash equivalents as of August 31, 2026.
Cash Held in Trust Account
As of August 31, 2026, the assets held in the
Trust Account, amounting to $287,500,000, are held in cash.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 2 — Significant Accounting
Policies (cont.)
Concentration of Credit Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.
Offering Costs Associated with the Initial
Public Offering
The Company complies with the requirements of
the FASB ASC Topic 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs
consist principally of professional and registration fees that are related to the Initial Public Offering. FASB ASC Topic 470-20,
“Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into
its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Units between
Class A ordinary shares and warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned
value of the warrants and then to the Class A ordinary shares. Upon the closing of the Initial Public Offering on August 31, 2026,
offering costs allocated to the Class A ordinary shares subject to possible redemption were charged to temporary equity and offering
costs allocated to the Public Warrants and Private Placement Warrants were charged to shareholders’ deficit as Public and Private
Placement Warrants after management’s evaluation are accounted for under equity treatment.
Fair Value of Financial Instruments
The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,”
approximates the carrying amounts represented in the balance sheet, primarily due to its short-term nature except for warrants (Note 8).
Warrant Instruments
The Company accounts for the Public Warrants and
Private Placement Warrants issued in connection with the Initial Public Offering and the private placement in accordance with the guidance
contained in FASB ASC Topic 815. Accordingly, the Company evaluated and classified the warrant instruments under equity treatment
at their assigned values. As of August 31, 2026, there are 9,583,333 Public Warrants and 8,000,000 Private Placement Warrants issued and
outstanding.
Income Taxes
The Company follows the asset and liability method
of accounting for income taxes under FASB ASC Topic 740, “Income Taxes.” Deferred tax assets and liabilities are recognized
for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date.
Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 2 — Significant Accounting
Policies (cont.)
FASB ASC Topic 740 prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be
taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination
by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of August 31, 2026,
there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues
under review that could result in significant payments, accruals or material deviation from its position. The Company’s management
does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.
The Company is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.
Class A Ordinary Shares Subject to Possible
Redemption
The public shares contain a redemption feature
which allows for the redemption of such public shares in connection with the Company’s liquidation, or if there is a shareholder
vote or tender offer in connection with the Company’s initial Business Combination. In accordance with FASB ASC Topic 480-10-S99,
the Company classifies public shares subject to redemption outside of permanent equity as the redemption provisions are not solely within
the control of the Company. The Company will recognize 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. 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, as of
August 31, 2026, 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. As of August 31, 2026, the Class A ordinary shares subject
to possible redemption reflected in the balance sheet are reconciled in the following table:
| Gross proceeds | |
$ | 287,500,000 | |
| Less: | |
| | |
| Proceeds allocated to Public Warrants | |
| (4,715,958 | ) |
| Class A ordinary shares issuance cost | |
| (19,202,001 | ) |
| Plus: | |
| | |
| Remeasurement of carrying value to redemption value | |
| 23,917,959 | |
| Class A ordinary shares subject to possible redemption, August 31, 2026 | |
$ | 287,500,000 | |
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 2 — Significant Accounting
Policies (cont.)
Share-based Compensation
The Company records share-based compensation in
accordance with FASB ASC Topic 718, “Compensation—Stock Compensation” (“ASC 718”), guidance to account for
its share-based compensation. It applies 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 by multiplying the marketable value per Founder Share
by the probability of successful closing of an initial Business Combination. 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.
Recent Accounting Pronouncements
Management does not believe that any recently
issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statement.
Note 3 — Initial Public Offering
Pursuant to the Initial Public Offering on August
31, 2026, the Company sold 28,750,000 Units at a purchase price of $10.00 per Unit, which includes the full exercise of the underwriters’
over-allotment option of 3,750,000 Units, generating gross proceeds of $287,500,000. Each Unit consists of one Class A ordinary share
and one-third of one redeemable Public Warrant. Each whole Public Warrant will entitle the holder to purchase one Class A ordinary
share at a price of $11.50 per share, subject to adjustment. Each Public Warrant will become exercisable 30 days after the completion
of the initial Business Combination and will expire five years after the completion of the initial Business Combination, or earlier
upon redemption or liquidation.
Warrants — As of August
31, 2026, there are 9,583,333 Public Warrants and 8,000,000 Private Placement Warrants issued and outstanding. Each whole warrant entitles
the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment as discussed herein. The
warrants cannot be exercised until 30 days after the completion of the initial Business Combination, and will expire at 5:00 p.m.,
New York City time, five years after the completion of the initial Business Combination or earlier upon redemption or liquidation.
The Company will not be obligated to deliver
any Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless
a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the warrants is then effective
and a prospectus relating thereto is current. No warrant will be exercisable and the Company will not be obligated to issue a Class A
ordinary share upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In the
event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such
warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will the Company
be required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the
purchaser of a Unit containing such warrant will have paid the full purchase price for the Unit solely for the Class A ordinary
share underlying such Unit.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 3 — Initial Public Offering
(cont.)
Under the terms of the warrant agreement, the
Company has agreed that, as soon as practicable, but in no event later than 20 business days, after the closing of its Business Combination,
it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement for the
Initial Public Offering or a new registration statement covering the registration under the Securities Act of the Class A
ordinary shares issuable upon exercise of the warrants and thereafter will use its commercially reasonable efforts to cause the same to
become effective within 60 business days following the Company’s initial Business Combination and to maintain a current prospectus
relating to the Class A ordinary shares issuable upon exercise of the warrants until the expiration of the warrants in accordance
with the provisions of the warrant agreement. If a registration statement covering the Class A ordinary shares issuable upon exercise
of the warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business Combination,
warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have
failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of
the Securities Act or another exemption. Notwithstanding the above, if the Class A ordinary shares are at the time of any exercise
of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under
Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their
warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event
the Company so elects, the Company will not be required to file or maintain in effect a registration statement, and in the event the Company
does not so elect, the Company will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky
laws to the extent an exemption is not available.
If the holders exercise their Public Warrants
on a cashless basis, they would pay the warrant exercise price by surrendering the warrants for that number of Class A ordinary shares
equal to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants,
multiplied by the excess of the “fair market value” of the Class A ordinary shares over the exercise price of the warrants
by (y) the fair market value. The “fair market value” is the average reported closing price of the Class A ordinary
shares for the 10 trading days ending on the third trading day prior to the date on which the notice of exercise is received
by the warrant agent or on which the notice of redemption is sent to the holders of warrants, as applicable.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 3 — Initial Public Offering
(cont.)
Redemption of Warrants When the Price per Class A
Ordinary Share Equals or Exceeds $18.00: The Company may redeem the outstanding warrants:
| ● | in whole and not in part; |
| ● | at a price of $0.01 per warrant; |
| ● | upon a minimum of 30 days’ prior written notice
of redemption (the “30-day redemption period”); and |
| ● | if, and only if, the last reported sale price (the “closing
price”) of the Class A ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day
period commencing at least 150 days after completion of the Company’s initial Business Combination and ending on the third trading
day prior to the date on which the Company sends to the notice of redemption to the warrant holders. |
Additionally, if the number of outstanding Class A
ordinary shares is increased by a share capitalization payable in Class A ordinary shares, or by a subdivision of ordinary shares
or other similar event, then, on the effective date of such share capitalization, subdivision or similar event, the number of Class A
ordinary shares issuable on exercise of each warrant will be increased in proportion to such increase in the outstanding ordinary shares.
A rights offering made to all or substantially all holders of ordinary shares entitling holders to purchase Class A ordinary shares
at a price less than the fair market value will be deemed a share capitalization of a number of Class A ordinary shares equal to
the product of (i) the number of Class A ordinary shares actually sold in such rights offering (or issuable under any other
equity securities sold in such rights offering that are convertible into or exercisable for Class A ordinary shares) and (ii) the
quotient of (x) the price per Class A ordinary share paid in such rights offering and (y) the fair market value. For these
purposes (i) if the rights offering is for securities convertible into or exercisable for Class A ordinary shares, in determining
the price payable for Class A ordinary shares, there will be taken into account any consideration received for such rights, as well
as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of
Class A ordinary shares as reported during the ten (10) trading day period ending on the trading day prior to the first
date on which the Class A ordinary shares trade on the applicable exchange or in the applicable market, regular way, without the
right to receive such rights.
Note 4 — Private Placement
Simultaneously with the closing of the Initial
Public Offering on August 31, 2026, the Sponsor and Cohen & Co. purchased an aggregate of 8,000,000 Private Placement Warrants
at a price of $1.00 per Private Placement Warrant, generating gross proceeds of $8,000,000. Of those 8,000,000 Private Placement Warrants,
the Sponsor purchased 5,000,000 Private Placement Warrants and Cohen & Co. purchased 3,000,000 Private Placement Warrants. Each
whole Private Placement Warrant will entitle the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject
to adjustment. Each Private Placement Warrant will become exercisable 30 days after the completion of the initial Business Combination
and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 4 — Private Placement
(cont.)
The Private Placement Warrants will be identical
to the Public Warrants sold in the Initial Public Offering except that, so long as they are held by the Sponsor, Cohen & Co.
or their permitted transferees, the Private Placement Warrants (i) may not (including the Class A ordinary shares issuable upon
exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders
until 30 days after the completion of the initial Business Combination, (ii) will be entitled to registration rights and (iii) with
respect to Private Placement Warrants held by Cohen & Co. and/or its designees, will not be exercisable more than five years
from the commencement of sales in the Initial Public Offering in accordance with FINRA Rule 5110(g)(8).
Note 5 — Related Party Transactions
Founder Shares
On May 7, 2026, the Sponsor made a capital
contribution of $25,000, or approximately $0.003 per share, to cover certain of the Company’s expenses, for which the Company issued
8,433,333 founders shares to the Sponsor. Subsequently, on July 13, 2026, the Company issued an additional 1,150,000 founder shares to
the Sponsor, resulting in the Sponsor holding an aggregate of 9,583,333 founder shares. All share and per share data has been retroactively
presented. Up to 1,250,000 of the founder shares were to be surrendered by the Sponsor for no consideration depending on the extent to
which the underwriters’ over-allotment was exercised. On August 31, 2026, the underwriters exercised their over-allotment option
in full as part of the closing of the Initial Public Offering. As such, the 1,250,000 founder shares are no longer subject to forfeiture.
In
July and August of 2026, the Sponsor granted membership interests in the Sponsor equivalent to an aggregate of 925,000 founder shares
and 500,000 Private Placement Warrants to the Company’s officers and independent directors. These issuances were made in exchange
for an aggregate purchase price of $7,413 and services to be provided to the Company. The membership interests in founder shares and Private
Placement Warrants granted to the Company’s officers and independent directors are within the scope of FASB ASC Topic 718. Under
FASB ASC Topic 718, share-based compensation associated with equity-classified awards is measured at fair value on the assignment date.
On August 31, 2026, the 925,000 founder shares have an aggregate fair value of $937,025, or $1.013 per share, and the 500,000 Private
Placement Warrants have an aggregate fair value of $248,850, or approximately $0.49 per Private Placement Warrant. The membership interests
in founder shares and Private Placement Warrants have no service restrictions,
thus, the total fair value of $1,178,462, net of consideration received, was recorded as compensation expense on August 31, 2026. The
Company determined the fair value of the founder shares based on a valuation prepared by an independent third-party valuation firm using
the Probability-Weighted Expected Return Method, which considered the following market assumptions; (i) underlying share price of $9.836,
(ii) likelihood of Initial Public Offering of 100%, (iii) likelihood of Business Combination 10.7%, (iv) net proceeds after concessions
of $1.053, (v) discount for lack of marketability (DLOM) of 3.8%, and (vi) probability-weighted payoff, net of DLOM of $1.013. The Company
established the fair value of Private Placement Warrants using a calculation prepared by a third party valuation team, which were valued
the same as the Public Warrants which are described in Note 8.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 5 — Related Party Transactions
(cont.)
The Company’s initial shareholders have
agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary shares issued upon conversion thereof
until the earlier to occur of (i) 180 days after the completion of the initial Business Combination or (ii) the date on
which the Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination
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. Any permitted transferees will be subject to the same restrictions and other agreements of the Company’s initial
shareholders with respect to any founder shares (the “Lock-up”). Notwithstanding the foregoing, if (1) the closing price
of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after
the initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results
in the Company’s shareholders having the right to exchange their shares for cash, securities or other property, the founder shares
will be released from the Lock-up.
The Sponsor, officers and directors entered into
a letter agreement with the Company, pursuant to which they will agree to (i) waive their redemption rights with respect to their
founder shares and public shares in connection with the completion of the initial Business Combination or an earlier redemption in connection
with the commencement of the procedures to consummate the initial Business Combination if the Company determines it is desirable to facilitate
the completion of the initial Business Combination; (ii) waive their redemption rights with respect to their founder shares and public
shares in connection with a shareholder vote to approve an amendment to the Company’s amended and restated memorandum and articles
of association (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the
initial Business Combination or to redeem 100% of the public shares if the Company has not consummated an initial Business Combination
within the Completion Window or (B) with respect to any other material provisions relating to shareholders’ rights or pre-initial
Business Combination activity; (iii) waive their rights to liquidating distributions from the Trust Account with respect to their
founder shares if the Company fails to complete the initial Business Combination within the Completion Window, although they will be entitled
to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial
Business Combination within the Completion Window and to liquidating distributions from assets outside the Trust Account; and (iv) vote
any founder shares held by them and any public shares purchased during or after the Initial Public Offering (including in open market
and privately-negotiated transactions) in favor of the initial Business Combination.
Promissory Note — Related Party
On May 7, 2026, the Sponsor had agreed to
loan the Company an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering. The loan was
non-interest bearing, unsecured and due at the earlier of December 31, 2026 or the closing of the Initial Public Offering. The Company
had borrowed $193,476 under the promissory note and repaid the amount in full at closing of the Initial Public Offering. Borrowings under
the promissory note are no longer available.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 5 — Related Party Transactions
(cont.)
Services and Indemnification Agreement
Commencing on August 27, 2026, the date the securities
of the Company are first listed on Nasdaq, the Company entered into an agreement pursuant to which it will pay an aggregate of $83,333.33
per month to Inflection Point Asset Management LLC (“IPAM” or “Inflection Point Asset Management”), an affiliate
of the Sponsor and executive officers, for office space and administrative services provided to members of the management team. The Company
will cease paying these monthly fees upon the completion of the Company’s initial Business Combination or its liquidation. Any such
payments prior to the initial Business Combination will be made from (i) funds held outside the Trust Account or (ii) funds
released to the Company as Permitted Withdrawals. In addition, the Company agrees, pursuant to the services and indemnification agreement
with the Sponsor and IPAM relating to the monthly payment for office space and administrative services provided to members of the management
team described above, that the Company will indemnify the Sponsor and IPAM from any claims arising out of or relating to the Initial Public
Offering or the Company’s operations or conduct of the Company’s business or any claim against the Sponsor and/or IPAM alleging
any expressed or implied management or endorsement by the Sponsor and/or IPAM of any of the Company’s activities or any express
or implied association between the Sponsor and/or IPAM, on the one hand, and the Company or any of its other affiliates, on the other
hand, which agreement provides that the indemnified parties cannot access the funds held in the Trust Account. As of August 31, 2026,
the Company incurred and accrued $11,111 in administrative services fees which were included in accrued expenses in the accompanying balance
sheet.
Related Party Loans
In order to finance transaction costs in connection
with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may,
but are not obligated to, loan the Company funds as may be required. If the Company completes a Business Combination, the Company would
repay the Working Capital Loans. In the event that a Business Combination does not close, the Company may use amounts held outside the
Trust Account to repay the Working Capital Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans.
Up to $1,500,000 of such Working Capital Loans may be convertible into private placement warrants of the post Business Combination entity
at a price of $1.00 per private placement warrant at the option of the lender. The warrants would be identical to the Private Placement
Warrants. As of August 31, 2026, no such Working Capital Loans were outstanding.
Note 6 — Commitments and Contingencies
Registration Rights
The holders of the founder shares, Private Placement
Warrants and the Class A ordinary shares underlying such Private Placement Warrants and Private Placement Warrants that may be issued
upon conversion of the Working Capital Loans have registration rights to require the Company to register a sale of any of the Company’s
securities held by them and any other securities of the Company acquired by them prior to the consummation of the initial Business Combination
pursuant to a registration rights agreement signed on the effective date of the Initial Public Offering. The holders of these securities
are entitled to make up to three demands, excluding short-form demands, that the Company registers such securities. In addition, the
holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion
of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 6 — Commitments and Contingencies
(cont.)
Underwriters Agreement
The Company granted the underwriters a 45-day
option from the date of the Initial Public Offering to purchase up to an additional 3,750,000 Units to cover over-allotments,
if any. On August 31, 2026, simultaneously with the closing of the Initial Public Offering, the underwriters elected to fully exercise
their over-allotment option to purchase an additional 3,750,000 Units at a price of $10.00 per Unit.
The underwriters were entitled to a cash underwriting
discount of $5,000,000 (2.0% of the gross proceeds of the Units offered in the Initial Public Offering, excluding any proceeds from
Units sold pursuant to the underwriters’ over-allotment option), which was paid to the underwriters upon the closing of the
Initial Public Offering. In addition, the underwriters are entitled to a deferred underwriting discount of $13,687,500 which shall be
payable solely on amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection with the
consummation of an initial Business Combination.
Risks and Uncertainties
The United States and global markets are
experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict, the
Israel-Hamas conflict and the conflicts between the United States and Israel and Iran, as well as recent developments to U.S. tariff
policies. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”) deployed additional
military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced
various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain
financial institutions from the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) payment system. Certain
countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine
and to Israel, increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia, the Israel-Hamas conflict,
the conflict between the United States and Israel and Iran and the resulting measures that have been taken, and could be taken in
the future, by NATO, the United States, the United Kingdom, the European Union, Israel and its neighboring states and other countries
have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact
of the ongoing conflicts are highly unpredictable, they could lead to market disruptions, including significant volatility in commodity
prices, credit and capital markets, as well as supply chain interruptions and increased cyber-attacks against U.S. companies. Additionally,
any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity
in capital markets.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 6 — Commitments and Contingencies
(cont.)
Any of the above mentioned factors, or any other
negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine,
the Israel-Hamas conflict, the conflict between the United States and Israel and Iran and subsequent sanctions or related actions,
could adversely affect the Company’s search for an initial Business Combination and any target business with which the Company may
ultimately consummate an initial Business Combination.
Note 7 — Shareholders’
Deficit
Preference Shares — The
Company is authorized to issue a total of 5,000,000 preference shares at a par value of $0.0001 each. As of August 31, 2026, there were
no preference shares issued or outstanding.
Class A Ordinary Shares — The
Company is authorized to issue a total of 500,000,000 Class A ordinary shares at a par value of $0.0001 each. As of August 31, 2026,
there were no Class A ordinary shares issued or outstanding, excluding the 28,750,000 shares subject to possible redemption.
Class B Ordinary Shares — The
Company is authorized to issue a total of 50,000,000 Class B ordinary shares at a par value of $0.0001 each. As of August 31, 2026,
there were 9,583,333 Class B ordinary shares issued and outstanding to the Sponsor. The Sponsor’s Class B ordinary shares
included an aggregate of up to 1,250,000 shares subject to forfeiture if the over-allotment option was not exercised by the underwriters
in full. On August 31, 2026, the underwriters exercised their over-allotment option in full as part of the closing of the Initial Public
Offering. As such, the 1,250,000 founder shares are no longer subject to forfeiture.
Prior to the closing of the initial Business Combination,
only holders of the Class B ordinary shares will be entitled to vote on continuing the Company in a jurisdiction outside the Cayman
Islands (including any special resolution required to amend the constitutional documents of the Company or to adopt new constitutional
documents of the Company, in each case, as a result of the Company approving a transfer by way of continuation in a jurisdiction outside
the Cayman Islands). On any other matters submitted to a vote of the Company’s shareholders prior to or in connection with the completion
of the initial Business Combination, holders of the Class B ordinary shares and holders of the Class A ordinary shares will
vote together as a single class, except as required by law.
The Class B ordinary shares will automatically
convert into Class A ordinary shares immediately prior to, concurrently with or immediately following the consummation of the initial
Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment for share subdivisions, share
capitalizations, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that
additional Class A ordinary shares or equity-linked securities are issued or deemed issued in connection with the initial Business
Combination, the number of Class A ordinary shares issuable upon conversion of all founder shares will equal, in the aggregate,
25% of the sum of (i) the total number of ordinary shares issued and outstanding after such conversion (after giving effect to any
redemptions of Class A ordinary shares by public shareholders), plus (ii) the sum of the total number of Class A ordinary
shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued,
by the Company in connection with or in relation to the consummation of the initial Business Combination, excluding any Class A
ordinary shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, deemed issued, or
to be issued, to any seller in the initial Business Combination and any Private Placement equivalent shares issued to the Sponsor, members
of the management team or any of their affiliates upon conversion of the Working Capital Loans; provided that such conversion of founder
shares will never occur on a less than one-for-one basis.
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 7 — Shareholders’
Deficit (cont.)
Holders of record of the Company’s Class A
ordinary shares and Class B ordinary shares are entitled to one vote for each share held on all matters to be voted on by shareholders.
Note 8 — Fair Value Measurements
Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
| ● | Level
1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
| ● | Level
2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices
for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
| ● | Level
3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy.
In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input
that is significant to the fair value measurement. |
The fair values of the Public Warrants issued
in the Initial Public Offering and the Private Placement Warrants granted to the Company’s officers and independent directors are
$4,715,958 (or $0.4921 per Public Warrant) and $248,850 (or approximately $0.49 per Private Placement Warrant), respectively, both of
which were determined using a Monte Carlo Simulation Model. These warrants have been classified within shareholders’ deficit and
will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions
used in the Level 3 valuation of the Public Warrants and Private Placement Warrants:
| | |
August 31,
2026 | |
| Underlying stock price | |
$ | 9.836 | |
| Volatility | |
| 10.5 | % |
| Risk-free rate | |
| 4.37 | % |
| Warrant term (years) | |
| 2.54 | |
Inflection Point Acquisition Corp. VIII
NOTES TO FINANCIAL STATEMENT
AUGUST 31, 2026
Note 9 — Segment Information
FASB ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which
it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by
the Company’s chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance.
The Company’s CODM has been identified as
the Chief Financial Officer, who reviews the assets, operating results and financial metrics for the Company as a whole to make decisions
about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one reportable
segment.
The CODM assesses performance for the single segment
and decides how to allocate resources. The measure of segment assets is reported on the balance sheet as total assets. When evaluating
the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics, which include
the following:
| | |
August 31, 2026 | |
| Cash | |
$ | 2,114,177 | |
| Cash held in Trust Account | |
$ | 287,500,000 | |
The CODM reviews the position of total assets
to assess if the Company has sufficient resources available to discharge its liabilities. The CODM is provided with details of cash and
liquid resources available with the Company. The CODM will review the interest that will be earned and accrued on cash held in Trust
Account to measure and monitor shareholder value and determine the most effective strategy of investment with the Trust Account funds
while maintaining compliance with the trust agreement.
Note 10 — Subsequent Events
The Company evaluated subsequent events and transactions that occurred
after the balance sheet date through September 4, 2026, the date that the financial statement was issued. Based upon this review, the
Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statement.
