What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2025-03-31 compared with 2024-04-02 · 462 added, 112 removed, 44 unchanged (93% of the section changed)

1 unchanged sentence

Condition and Results of Operations.

References to the “Company,” “Inflection

Point Acquisition Corp.

II,” “our,” “us” or “we” refer to Inflection Point Acquisition Corp.

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction

with our audited financial statements and the notes related thereto which are included in “ Item 8.

Financial Statements and Supplementary

Data ” of this Annual Report.

Certain information contained in the discussion and analysis set forth below includes forward-looking

Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors,

including those set forth under “ Special Note Regarding Forward-Looking Statements ,” “ Item 1A.

Risk Factors ”

and elsewhere in this Annual Report.

We are a SPAC incorporated in the Cayman Islands

on March 6, 2023, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or other

similar business combination with one or more businesses.

We intend to effectuate our business combination using cash derived from the

proceeds of the IPO and the sale of the Private Placement Warrants, our shares, debt or a combination of cash, our shares and debt.

We expect to continue to incur significant

costs in the pursuit of our acquisition plans.

We cannot assure you that our plans to complete a business combination will be successful.

Unless otherwise noted or the context otherwise

requires, references to the “Company,” “Inflection Point,” “Inflection Point Acquisition Corp.

“our,” “us” or “we” refer to Inflection Point Acquisition Corp.

The following discussion and analysis

of the Company’s financial condition and results of operations should be read in conjunction with our audited financial statements

and the notes related thereto which are included in “Item 8.

Financial Statements and Supplementary Data” of this Annual Report.

The term “USARE OpCo” refers to USA Rare Earth, LLC, and the term “New USARE” refers to USA Rare Earth, Inc.

the consummation of the Business Combination .

The financial information included in this Item

7 is that of Inflection Point prior to the Business Combination because the Business Combination was consummated subsequent to the period

covered by the audited financial statements included in this Annual Report.

Until March 13, 2025, we were a special purpose

acquisition company incorporated in the Cayman Islands on March 6, 2023, formed for the purpose of effecting a merger, share exchange,

asset acquisition, share purchase, reorganization or other similar business combination with one or more businesses.

Our intent was to

effectuate a business combination, including the Business Combination, using cash derived from the proceeds of the IPO and the

sale of the private placement warrants, our shares, debt or a combination of cash, our shares and debt.

We incurred significant costs in the pursuit of

our acquisition plans.

Results of Operations

We have neither engaged in any

operations nor generated any revenues to date.

Our only activities from March 6, 2023 (inception) through December 31, 2023 were

organizational activities, those necessary to prepare for our IPO, described below, and subsequent to the IPO, identifying a target

company for a business combination.

We do not expect to generate any operating revenues until after the completion of our business

We generate non-operating income in the form of dividend income on marketable securities held in the Trust Account.

incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well

as for due diligence expenses.

For the period from March 6, 2023

(inception) through December 31, 2023, we had net income of $6,748,069, which consists of dividend income earned on marketable

securities held in the Trust Account of $7,721,518 and interest income from bank of $11,763, partially offset by formation and

operating costs of $985,212.

Liquidity and Capital Resources

We have neither engaged in any operations nor

generated any revenues through December 31, 2024.

Our only activities from March 6, 2023 (inception) through December 31, 2024 were organizational

activities, those necessary to prepare for our IPO, described below, and subsequent to the IPO, identifying a target company for a business

combination and activities in connection with the Business Combination.

We did not generate any operating revenues from March 6, 2023

(inception) through December 31, 2024.

We generated non-operating income in the form of interest income on cash and cash equivalents and

dividend income on marketable securities held in the trust account established in connection with Inflection Point’s IPO (the “ Trust

We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing

compliance), as well as for due diligence expenses.

For the year ended December 31, 2024, we had net

income of $7,899,035, which consists of dividend income earned on marketable securities held in the Trust Account of $12,019,932, change

in fair value of Forward Purchase Agreement of $435,568 and interest income from bank of $5,755, partially offset by formation and operating

costs of $4,077,377 and loss on issuance of Forward Purchase Agreements of $484,843.

For the period from March 6, 2023 (inception)

through December 31, 2023, we had net income of $6,748,069, which consists of dividend income earned on marketable securities held in

the Trust Account of $7,721,518 and interest income from bank of $11,763, partially offset by formation and operating costs of $985,212.

Business Combination with USARE

August 21, 2024 (the “ Signing Date ”), Inflection Point entered into that certain Business Combination Agreement by

and among Inflection Point, USARE OpCo and Merger Sub (as amended on November 12, 2024 and January 30, 2025), pursuant to which, among

other things and subject to the terms and conditions contained therein, Merger Sub merged with and into USARE OpCo w ith

USARE continuing as the surviving company and a direct wholly owned subsidiary of Inflection Point.

In connection with the Closing of

the Business Combination, Inflection Point changed its name to “USA Rare Earth, Inc.”.

The Domestication

Inflection Point, after obtaining the required

shareholder approvals, completed the Domestication, changing its jurisdiction of incorporation by deregistering as a Cayman Islands exempted

company and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware.

Prior to, but on the same

day as, the Domestication, Inflection Point provided its public shareholders the opportunity to redeem their public shares on the terms

and conditions set forth in the Business Combination Agreement and Inflection Point’s governing documents (the “ Redemption ”).

The Company redeemed 128,140 public shares in the Redemption.

By virtue of the Domestication and subject to

the satisfaction or waiver of the conditions of the Business Combination Agreement, including approval of Inflection Point’s shareholders:

(i) immediately prior to the Domestication, pursuant to the Sponsor Support Agreement (as defined below) each of the then issued and outstanding

Class B ordinary shares of Inflection Point converted automatically, on a one-for-one basis, into one (1) Class A ordinary share, par

value of $0.0001 per share, of Inflection Point (the “ Sponsor Share Conversion ”);

and (ii) in connection with the Domestication,

(x) each then issued and outstanding Class A ordinary share (that was not redeemed pursuant to the Redemption) converted automatically,

on a one-for-one basis, into one (1) share of Common Stock;

(y) each of the then issued and outstanding warrants representing the right

to purchase one Class A ordinary share converted automatically into a New USARE Warrant to acquire one (1) share of Common Stock;

(z) each of the then issued and outstanding units of Inflection Point was cancelled and each holder thereof became entitled to one share

of Common Stock and one-half (1/2) of one New USARE Warrant.

The Merger and Consideration

Subject to, and in accordance with the terms and

conditions of the Business Combination Agreement, immediately prior to the effective time of the Merger (the “ Effective Time ”),

(i) each warrant to purchase Class C convertible preferred units of USARE OpCo (the “ USARE Class C Convertible Preferred Units ”)

or Class C-1 convertible preferred units of USARE OpCo (the “ USARE Class C-1 Convertible Preferred Units ”) was automatically

exercised on a cashless basis in full in accordance with its terms and (ii) immediately thereafter, each then-issued and outstanding USARE

Class C Convertible Preferred Unit and each then-issued and outstanding USARE Class C-1 Convertible Preferred Unit (including each USARE

Class C Convertible Preferred Unit and USARE Class C-1 Convertible Preferred Unit issued upon the automatic exercise described in the

preceding clause (i)) was automatically converted into such number of Class B units of USARE OpCo (the “ USARE Class B Units ”)

into which such USARE Class C Convertible Preferred Unit or USARE Class C-1 Convertible Preferred Unit, as applicable, was convertible

in connection with the Merger pursuant to USARE OpCo’s Sixth Amended and Restated Operating Agreement, as amended (the “ Pre-Closing

USARE OpCo OA ”).

Subject to, and in accordance with the terms and

conditions of the Business Combination Agreement, at the Effective Time:

each unit of USARE OpCo that was owned by Inflection Point, Merger Sub or USARE OpCo (in treasury or otherwise) immediately prior to the Effective Time (each an “ Excluded Unit ”) was cancelled and ceased to exist and no consideration was delivered in exchange therefore;

each incentive unit

(the “ USARE Incentive Units ”) that was issued and outstanding immediately prior to the Effective Time (other than

Excluded Units), by virtue of the occurrence of the Merger, (x) to the extent the holder of such USARE Incentive Unit was

continuously employed by or providing services to USARE OpCo from the Signing Date through the Effective Time, was automatically

deemed to be fully vested, (y) regardless of such employment or service status, was automatically deemed exchanged or converted (on

a cashless basis) into a fraction of one Class A unit of USARE OpCo (the “ USARE Class A Units ”) in accordance

with the terms of such USARE Incentive Unit, the Pre-Closing USARE OpCo OA and the Second Amended and Restated USA Rare Earth, LLC

Incentive Plan and each USARE Class A Unit issued or issuable upon such deemed exchange or conversion was treated as being issued

and outstanding immediately prior to the Effective Time;

each warrant to purchase units of USARE OpCo (excluding the USARE Class A Preferred Investor Warrants (as defined below)) (the “ USARE Warrants ”) that was outstanding and unexercised immediately prior to the Effective Time was, by virtue of the occurrence of the Merger, automatically exercised or deemed exercised on a cashless basis in full in accordance with its terms immediately prior to the Effective Time, and each USARE Class A Unit or USARE Class B Unit issued or issuable upon such exercise was treated as being issued and outstanding immediately prior to the Effective Time;

each USARE Class A Unit that was issued and outstanding immediately prior to the Effective Time (including all USARE Class A Units outstanding or deemed outstanding (a) upon the deemed exchange or conversion of the USARE Incentive Units and (b) upon the deemed exercise of the USARE Warrants, but excluding the Excluded Units) was cancelled and converted into the right to receive a number of shares of Common Stock equal to the Exchange Ratio (as defined below) (the “ Per Unit Base Consideration ”) and the right to receive, subject to the vesting conditions described below, a number of shares of Common Stock equal to the Earn-out Exchange Ratio (as defined below) (the “ Per Unit Earn-out Consideration ”);

each USARE Class B Unit that was issued and outstanding immediately prior to the Effective Time (including all USARE Class B Units outstanding or deemed outstanding upon the deemed exercise of the USARE Warrants, but excluding the Excluded Units) was cancelled and converted into the right to receive the Per Unit Base Consideration and the Per Unit Earn-out Consideration;

each Class A-1 convertible preferred unit of USARE OpCo (the “ USARE Class A-1 Convertible Preferred Units ”) and each Class A-2 convertible preferred unit of USARE OpCo (the “ USARE Class A-2 Convertible Preferred Units ,” and together with the USARE Class A-1 Convertible Preferred Units, the “ USARE Class A Convertible Preferred Units ”) that was issued and outstanding immediately prior to the Effective Time (other than Excluded Units) was cancelled and converted into the right to receive one share of Series A Preferred Stock (as defined below);

each warrant to purchase USARE Class A Units at an initial exercise price of $12.00 per USARE Class A Unit, subject to adjustment, and initially issued to a holder of USARE Class A Convertible Preferred Units (each such warrant, a “ USARE Class A Preferred Investor Warrant ”) was cancelled and converted into the right to receive a Series A Preferred Investor Warrant (as defined below) exercisable for a number of shares of Common Stock equal to the aggregate number of USARE Class A Units that would be issued upon full exercise of such USARE Class A Preferred Investor Warrant

Pursuant to the Business Combination Agreement,

the aggregate consideration paid in, or in connection with, the Merger in respect of the outstanding equity securities of USARE OpCo (excluding

the USARE Class A Convertible Preferred Units and the USARE Class A Preferred Investor Warrants) was 72,747,711 shares of Common Stock

(the “ Aggregate Base Consideration ”).

The Aggregate Base Consideration was calculated as (i) the number of shares of

Common Stock equal to the quotient of (a) $800,000,000 divided by (b) the redemption price of $10.99687276.

The “ Exchange Ratio ”

was equal to 0.2043578.

The Exchange Ratio was calculated as the Aggregate Base Consideration divided by the sum (without duplication)

of the aggregate number of (i) USARE Class A Units that were issued and outstanding immediately prior to the Effective Time, (ii) USARE

Class B Units that were issued and outstanding immediately prior to the Effective Time (including all USARE Class B Units issued upon conversion

of all outstanding USARE Class C Convertible Preferred Units and USARE Class C-1 Convertible Preferred Units), (iii) all USARE Class A

Units and USARE Class B Units issuable upon full exercise of all issued and outstanding USARE Warrants (calculated using the treasury

method of accounting on a cashless exercise basis), and (iv) all USARE Class A Units and USARE Class B Units issuable upon full exercise,

exchange or conversion of all issued and outstanding USARE Incentive Units (calculated using the treasury method of accounting on a cashless

exercise basis) (such sum, the “ USARE Fully Diluted Capital ”).

At the Effective Time, the USARE Fully Diluted Capital

was 355,983,292 units, consisting of (i) 207,585,648 Class A common units, (ii) 20,778,672 Class B common units, (iii) 22,274,921 common

units deemed issued upon full exercise, exchange or conversion of all issued and outstanding USARE Incentive Units (calculated using the

treasury method of accounting on a cashless exercise basis), (iv) 96,049,828 Class B common units deemed issued upon conversion of all

outstanding USARE Class C Convertible Preferred Units and USARE Class C-1 Convertible Preferred Units, (v) 7,440,828 Class B common units

deemed issued upon full exercise of all issued and outstanding Class B common warrants (calculated using the treasury method of accounting

on a cashless exercise basis), and (vi) 1,853,395 Class B common units deemed issued upon full exercise of all issued and outstanding

Class C common warrants and Class C-1 common warrants (calculated using the treasury method of accounting on a cashless exercise basis).

The “ Earn-out Exchange

Ratio ” was 0.028091206.

The Earn-out Exchange Ratio was calculated as 10,000,000 shares of Common Stock (the

“ Aggregate Earn-out Consideration ”) divided by the USARE Fully Diluted Capital.

50% of the Aggregate Earn-out

Consideration will vest and be issued if, during the five year period beginning on the first anniversary of the Closing Date, the

closing sale price of one share of Common Stock as reported on the national securities exchange on which such shares are then listed

is greater than or equal to $15.00 for a period of at least twenty out of thirty consecutive days on which shares of Common Stock

are actually traded on the principal securities exchange or securities market on which shares of Common Stock are then traded (each

a “Trading Day”).

The remaining 50% of the Aggregate Earn-out Consideration shall vest and be issued if, during the

period beginning on the first anniversary of the Closing Date and ending on the sixth anniversary of the Closing Date, the closing

sale price of one share of Common Stock as reported on the national securities exchange on which such shares are then listed is

greater than or equal to $20.00 for a period of at least twenty out of thirty consecutive Trading Days.

The Aggregate Earn-out

Consideration may also vest upon a transaction or series of transactions the result of which is (a) the acquisition by any person or

“group” (as defined in the Exchange Act of 1934, as amended (the “ Exchange Act ”)) of persons of

direct or indirect beneficial ownership of securities representing 50% or more of the combined voting power of the then outstanding

securities of New USARE, (b) a merger, consolidation, reorganization or other business combination, however effected, resulting in

any person or “group” (as defined in the Exchange Act) acquiring at least 50% of the combined voting power of the then

outstanding securities of New USARE or the surviving person outstanding immediately after such combination;

or (c) a sale of all or

substantially all of the assets of New USARE (“ Change of Control ”), pursuant to which New USARE or its

shareholders have the right to receive consideration if the implied value per share of Common Stock is equal to or above such price

targets, with the amount of such consideration dependent upon the implied per share value reaching the thresholds discussed above.

Should the implied value per share of Common Stock pursuant to a Change of Control be less than $15.00, then the vesting conditions

discussed above shall no longer apply and no further shares of Common Stock will be issued as Aggregate Earn-out Consideration.

In connection with the Closing:

USARE OpCo and New USARE entered into the A&R Operating Agreement, to, among other things, admit New USARE as the manager of USARE OpCo;

Inflection Point filed with the Secretary of State of the State of Delaware a Certificate of Designations of Preferences, Rights and Limitations of 12% Series A Cumulative Convertible Preferred Stock Series A Preferred Stock (the “ Series A Preferred Stock Certificate of Designation ”) which sets forth the rights, preferences and privileges of the Series A Preferred Stock (as defined below).

Series A Preferred Stock Investment

In connection with the transactions contemplated

by the Business Combination Agreement, on the Signing Date, Inflection Point, USARE OpCo and Inflection Point Fund I, LP (“ Inflection

Point Fund ”), an accredited investor that is an affiliate of Inflection Point and Inflection Point Holdings II LLC (the “ Sponsor ”)

entered into a Securities Purchase Agreement (the “ Series A SPA ”).

Pursuant to the Series A SPA, Inflection Point Fund

agreed, among other things, to purchase, at Closing, shares of New USARE’s 12% Series A Cumulative Convertible Preferred Stock,

par value $0.0001 per share, having the rights, preferences and privileges set forth in the Series A Preferred Stock Certificate of Designation

(such stock the “ Series A Preferred Stock ”) and a warrant to purchase a number of shares of Common Stock equal to the

amount of shares into which such shares of Common Stock underlying the Series A Preferred Stock are initially convertible (a “ Series

A Preferred Investor Warrant ”), for an aggregate purchase price of $9,117,648 (the “ Series A Preferred Stock Investment ”).

Each share of Series A Preferred Stock has a stated value of $12.00 (the “ Stated Value ”).

Subsequently, on February

3, 2025, Inflection Point Fund pre-funded the Series A Preferred Stock Investment by purchasing an aggregate of 833,333 additional USARE

Class A-2 Convertible Preferred Units and a USARE Class A Preferred Investor Warrant exercisable for an aggregate of 833,333 USARE Class

A Units for an aggregate purchase price of approximately $8.5 million as part of an additional investment into USARE Class A-2 Convertible

Preferred Units.

Pursuant to a termination agreement, dated as of January 31, 2025, by and among Inflection Point, USARE and Inflection

Point Fund (the “ Series A SPA Termination Agreement ”), upon the pre-funding of the Series A Preferred Stock Investment,

the Series A SPA was terminated.

In addition, pursuant to a Securities

Purchase Agreement, dated as of August 21, 2024, as amended on January 22, 2025, by and among Inflection Point, Michael Blitzer (the

Company’s Chairman and then-Chief Executive Officer) and USARE OpCo, Inflection Point agreed to issue at Closing, a number of

shares of Series A Preferred Stock equal to the number of Blitzer Conversion Preferred Shares (as defined in the Proxy

Statement/Prospectus) of Series A Preferred Stock to Mr.

Blitzer exchange for his forgiveness of 50% of the then-outstanding balance

of the convertible promissory note issued to him by the Company on August 13, 2024 (the “ Convertible Promissory

This Securities Purchase was Agreement was in substantially the form of the Series A SPA, subject to appropriate

changes to reflect that (i) the consideration to be paid by Mr.

Blitzer was his forgiveness of 50% of the then-outstanding balance

of the Convertible Promissory Note and (ii) Mr.

Blitzer did not receive a Series A Preferred Investor Warrant for such

On March 11, 2025, Inflection Point and USARE

OpCo entered into additional securities purchase agreements with Inflection Point Fund and another accredited investor,

Alto Opportunity Master Fund, SPC – Segregated Master Portfolio B (together with Inflection Point Fund, the “ Additional

Series A Cumulative Convertible Preferred Stock Investors ”), pursuant to which the Additional Series A Cumulative Convertible

Preferred Stock Investors agreed to purchase an aggregate of (i) 784,314 shares of Series A Preferred Stock and (ii) Series A Preferred

Investor Warrants exercisable for an aggregate of 784,314 shares of Common Stock, subject to adjustment, for an aggregate purchase price

of $8.0 million.

This transaction closed as part of the Business Combination on March 13, 2025.

Sponsor Support Agreement

Concurrently with the execution of the Business

Combination Agreement, the Sponsor, Inflection Point and USARE OpCo entered into a sponsor support agreement (the “ Sponsor Support

Agreement ”), pursuant to which, among other things, the Sponsor agreed to (i) vote to adopt and approve the Business Combination

Agreement and the other documents contemplated therein and the transactions contemplated therein and (ii) forfeit 60,000 New USARE Warrants

for every $1,000,000 by which (x) the gross proceeds at the Closing from the Trust Account (after giving effect to the Redemption plus

(y) the gross proceeds from the Class A Preferred Unit Investment (as defined in the UASRE Business Combination Agreement), the Series

A Preferred Stock Investment and any PIPE Investment (as defined in the Business Combination Agreement) are below $50,000,000, up to a

maximum of 1,500,000 New USARE Warrants forfeited.

On January 31, 2025, the Sponsor, Inflection Point and USARE OpCo entered into an amendment

to the Sponsor Support Agreement to eliminate the potential forfeiture of New USARE Warrants by the Sponsor.

Member Support Agreement

Concurrently with the execution of the Business

Combination Agreement, Inflection Point entered into a member support agreement (the “ Member Support Agreement ”) with

USARE OpCo and certain members of USARE OpCo (the “ Supporting USARE Members ”) pursuant to which each such Supporting

USARE Members agreed to, among other things, support and vote in favor of the Business Combination Agreement, and the transactions contemplated

therein (including the Merger).

Fee Reduction Agreement

Pursuant to that certain underwriting agreement

between Inflection Point and Cantor Fitzgerald & Co., as representative of the several underwriters (“ CF&CO ”),

dated May 24, 2023 (as it may be amended from time to time, the “ Underwriting Agreement ”), Inflection Point previously

agreed to pay to CF&CO an aggregate cash amount of $13,100,000 as “deferred underwriting commissions” (the “ Original

Deferred Fee ”) upon the consummation of an initial business combination, as contemplated by the final prospectus of Inflection

Point, filed with the SEC (File No.

333- 271128), and dated May 24, 2024.

Solely in connection with the Business Combination, Inflection

Point, CF&CO and USARE OpCo entered into that certain fee reduction agreement, dated as of August 20, 2024 (the “ Fee Reduction

Agreement ”), pursuant to which, upon consummation of the Business Combination, CF&CO accepted, in lieu of such Original

Deferred Fee:

(i) either (at Inflection Point’s option) (A) a cash fee of $4,000,000 or (B) (1) a cash fee of $2,000,000 plus (2)

400,000 shares of Common Stock, plus (ii) 2.0% of the amount by which the Total Capital Raised (as defined in the Fee Reduction Agreement)

exceeded $50,000,000.

Additionally, solely if Inflection Point elected to pay the all-cash fee discussed above, CF&CO would forfeit

1,650,000 private placement warrants.

In connection with the Closing of the Business Combination, Inflection Point elected to pay, and

paid the all-cash fee discussed above, and CF&CO forfeited 1,650,000 warrants.

Amendment No.

1 to Business Combination Agreement

On November 12, 2024, Inflection Point and USARE

OpCo entered into that certain Amendment No.

1 to the Business Combination Agreement (the “ BCA Amendment ”).

(i) amends Section 2.02(b) and Section 2.03(b)(iii)

to provide that in connection with the Business Combination, each USARE Class A Preferred Investor Warrant shall be cancelled and converted

into the right to receive a Domesticated Purchaser Series A Preferred Investor Warrant (as defined in the Business Combination Agreement)

exercisable for a number of shares of Common Stock of New USARE equal to the aggregate number of Class A units of USARE OpCo that would

be issued upon full exercise of such USARE Class A Preferred Investor Warrant;

(ii) amends Article X to define the term “Expiration

Time” with respect to the Member Support Agreement (as defined in the Business Combination Agreement) to mean the earlier of the

Closing or the termination of the Business Combination Agreement.

Amendment No.

2 to the Business Combination

On January 30, 2025, Inflection Point and USARE

OpCo entered into that certain Amendment No.

2 to the Business Combination Agreement to, among other matters, set out the directors of

the New USARE, address certain other governance matters and modify certain document delivery conditions.

Forward Purchase Agreements

On March 11, 2025, Inflection Point and USARE

OpCo entered into (i) a forward purchase agreement with Harraden Circle Investors LP, Harraden Circle Special Opportunities LP and Harraden

Circle Strategic Investments LP (collectively, “ Harraden ,” and such agreement, the “ Harraden Forward Purchase

Agreement ”), (ii) a forward purchase agreement with Newtyn TE Partners, LP and Newtyn Partners, LP (collectively, “ Newtyn ,”

and such agreement, the “ Newtyn Forward Purchase Agreement ”), and (iii) a forward purchase agreement with L1 Capital

Global Opportunities Master Fund (“ L1 ,” and such agreement, the “ L1 Forward Purchase Agreement ,”

and together with the Harraden Forward Purchase Agreement and the Newtyn Forward Purchase Agreement, the “ Forward Purchase Agreements ”),

each for over-the-counter Equity Prepaid Forward Transactions (each, a “ Forward Purchase Transaction ” and, together,

the “ Forward Purchase Transactions ”).

Each Forward Purchase Agreement amended, restated and superseded in its entirety

a separate forward purchase agreements with each of the sellers, dated March 10, 2025, which had identical terms to those described herein,

except that the Reset Price (as defined in the Forward Purchase Agreements) was not subject to the floor price described below.

of the Forward Purchase Agreements, each of Harraden, Newtyn and L1 are referred to, individually, as a “ Seller ” and,

collectively, as the “ Sellers ”).

For purposes of the Forward Purchase Agreements, Inflection Point and USARE OpCo are

referred to as the “Counterparty” prior to and after the Business Combination, respectively.

Pursuant to the terms of the Forward Purchase

Agreements, (i) Harraden agreed to hold up to 892,825 public shares, (ii) Newtyn agreed to hold up to 700,000 public shares, and (iii)

L1 agreed to hold up to 297,669 public shares in connection with the Closing.

For purposes of the Forward Purchase Agreements, the public

shares held by each Seller are referred to as such Seller’s “ FPA Shares .

” Each Seller, acting separately

and solely for its own account, was permitted, if necessary, to (i) reverse its previous election to redeem its public shares in connection

with the Business Combination pursuant to the redemption rights set forth in Inflection Point’s amended and restated memorandum

and articles of association or (ii) purchase public shares through a broker in the open market from holders of public shares (other than

Inflection Point), including from holders who previously elected to redeem their public shares in connection with the Business Combination

pursuant to the redemption rights set forth in Inflection Point’s amended and restated memorandum and articles of association.

aggregate number of shares subject to each Forward Purchase Agreement (the “ Number of Shares ”) was the aggregate number

of FPA Shares as notified to Counterparty by the applicable Seller, but in no event more than such Seller’s number of FPA Shares

set forth above.

Each Seller notified the Counterparty that it would subject the maximum Number of Shares to their respective Forward

Purchase Agreements.

The Number of Shares was subject to reduction following the full or partial optional early termination of the Forward

Purchase Agreements as described below.

Each Forward Purchase Agreement provides that

no later than the earlier of (a) one business day after the Closing and (b) the date any assets from Inflection Point’s trust account

are disbursed in connection with the Business Combination, the Seller under such Forward Purchase Agreement was paid directly, out of

the funds held in Inflection Point’s trust account, an amount (the “ Prepayment Amount ”) equal to the product

of (i) the Number of Shares and (ii) an amount (the “ Initial Price ”) equal to the redemption price per share payable

to investors who elected to redeem in connection with the Business Combination.

From time to time on any day the Nasdaq is open

for trading following the date of the Closing (any such date, an “ OET Date ”), each Seller may, in its absolute discretion,

elect to sell any and all FPA Shares it owns.

Any such sale shall automatically terminate such Seller’s Forward Purchaser Transaction

in whole or in part with respect to any such number of sold shares.

Seller shall, on any day of such OET Date, give written notice to

the Counterparty of such termination and specify the number of sold FPA Shares (such quantity, the “ Terminated Shares ”).

As of each OET Date, the Counterparty shall be entitled from Seller, and the Seller shall pay to the Counterparty, an amount equal to

the product of (a) the then in effect Reset Price (as defined in the Forward Purchase Agreement and subject to a floor of $4.00) and (b)

the number of Terminated Shares.

Each Forward Purchase Agreement’s maturity

date is the date 90 days after the Closing (the “ Maturity Date ”).

Upon the occurrence of the Maturity Date, in exchange

for delivery of the then Number of Shares under each Forward Purchase Transaction, the Counterparty shall pay each Seller an amount (the

“ Maturity Consideration ”) equal to (i) the number of FPA Shares less the number of Terminated Shares multiplied by

(ii) the Initial Price.

The Seller will retain the Maturity Consideration from the Prepayment Amount paid by the Counterparty to the Seller.

Each of the Forward Purchase Agreements could

be terminated by any of the parties thereto if any of the following events occur:

(a) it being, or, as a consequence of a change in law,

regulation or interpretation, it becomes or will become, unlawful for the Seller to perform any of its obligations contemplated by a Forward

Purchase Agreement, or (b) upon the occurrence of any Material Adverse Change (as defined in the Forward Purchase Agreements) of the Counterparty.

Upon any termination that occurs following the Closing due to clauses (a) or (b) above, Counterparty shall be obligated to promptly accept

for redemption all of Seller’s shares in exchange for the Initial Price.

Closing of the Business Combination

The Business Combination closed on March 13, 2025.

For additional information regarding the USARE Business Combination see the Company’s Current Report on Form 8-K (File No.

filed by New USARE on March 19, 2025, and the Proxy Statement/Prospectus.

Liquidity, Capital Resources and Going Concern

Until the consummation of the IPO, our only source

of liquidity was an initial purchase of shares of Class B ordinary shares, par value $0.0001 per share, by the Sponsor and loans

from the Sponsor.

of liquidity was an initial purchase of shares of Class B ordinary shares, par value $0.0001 per share, by the Sponsor and loans from

On May 30, 2023, we consummated the IPO of 25,000,000

25,000,000 Units, which included the partial exercise by the underwriters of their over-allotment option in the amount of 3,000,000 Units,

at $10.00 per Unit, generating gross proceeds of $250,000,000.

Units, which included the partial exercise by the underwriters of their over-allotment option in the amount of 3,000,000 Units, at $10.00

per Unit, generating gross proceeds of $250,000,000.

Simultaneously with the closing of the IPO, we consummated the sale of 7,650,000

7,650,000 Private Placement Warrants to the Sponsor and Cantor Fitzgerald & Co., the representative of the underwriters of the IPO,

at a price of $1.00 per Private Placement Warrant, generating gross proceeds of $7,650,000.

private placement warrants to the Sponsor and CF&CO, the representative of the underwriters of the IPO, at a price of $1.00 per private

placement warrant, generating gross proceeds of $7,650,000.

Following the IPO and the private placements,

2 unchanged sentences

$4,400,000 of cash underwriting discount, $13,100,000 of deferred underwriting fees, and $861,877 of other offering costs.

For the period from March 6, 2023

(inception) through December 31, 2023, cash used in operating activities was $948,006.

Net income of $6,748,069 was affected by

dividend income earned on marketable securities held in the Trust Account of $7,721,518 and formation costs paid by the Sponsor in

exchange for issuance of Class B Ordinary shares of $5,845.

Changes in operating assets and liabilities provided $19,598 of cash for

operating activities.

For the year ended December 31, 2024, cash used

in operating activities was $1,398,564.

Net income of $7,899,035 was affected by dividend income earned on marketable securities held

in the Trust Account of $12,019,932, change in fair value of Forward Purchase Agreement of $435,568 and loss on issuance of Forward Purchase

Agreements of $484,843.

Changes in operating assets and liabilities used $2,673,058 of cash for operating activities.

As of December 31, 2024, we had marketable securities

held in the Trust Account of $258,971,518 consisting of investments in money market funds.

We may withdraw interest from the Trust Account

to pay taxes, if any.

We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest

earned on the Trust Account (less deferred underwriting commissions and taxes payable), to complete our initial business combination.

To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our initial business combination,

the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses,

make other acquisitions and pursue our growth strategies.

held in the Trust Account of $24,075,435 consisting of U.S.

government treasury obligations with maturity of 185 days or less or interests

in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S.

treasury obligations.

We were permitted withdraw interest from the Trust Account to pay taxes, if any.

We intended to use substantially

all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less deferred underwriting

commissions and taxes payable), to complete our initial business combination.

As of December 31, 2024, we had cash of $2,101.

We intend to use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence

on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their

representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and

complete a business combination, to pay for directors and officers liability insurance premiums and to pay an aggregate of $27,083 per

month to The Venture Collective LLC (“ TVC ”), an affiliate of one of our directors, Nicholas Shekerdemian, for the services

of Peter Ondishin, Chief Financial Officer, and Kevin Shannon, Chief of Staff.

On March 28, 2024, we entered into the Amendment to the

Services and Indemnification Agreement, pursuant to which, the Monthly Fee paid to TVC, effective as of January 1, 2024, was reduced from

$27,083.33 to (i) $17,708.33 for the period from January 1, 2024 to January 31, 2024 and (ii) $24,091 for the period starting February

Prior to the Business Combination, our intent was to use the funds held outside the Trust Account primarily to identify and evaluate

target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar

locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective

target businesses, structure, negotiate and complete a business combination, to pay for directors and officers liability insurance premiums

and to pay an aggregate of $27,083 per month (the “ Monthly Fee ”) to The Venture Collective LLC (“ TVC ”),

an affiliate of one of our directors, Nicholas Shekerdemian, for the services of Peter Ondishin, Chief Financial Officer, and Kevin Shannon,

Chief of Staff.

On March 28, 2024, we entered into the Amendment to the Services and Indemnification Agreement, pursuant to which, the

Monthly Fee paid to TVC, effective as of January 1, 2024, was reduced from $27,083 to (i) $17,708 for the period from January 1, 2024

to January 31, 2024 and (ii) $24,091 for the period starting February 1, 2024.

On August 9, 2024, the Company entered into the Amendment

to the Services and Indemnification Agreement pursuant to which, the Monthly Fee paid to TVC, effective as of April 1, 2024, was reduced

from $24,091 to $18,882 for the period starting April 1, 2024.

The Monthly Fee was further reduced from $18,882 to $14,746 for the period

starting September 1, 2024.

On November 8, 2024, the Company entered into the Third Amendment to the Services and Indemnification Agreement

pursuant to which, the Monthly Fee paid to TVC, effective as of November 1, 2024, was reduced from $14,746 to $7,373 for the period starting

October 1, 2024.

Upon completion of the Business Combination, the Company ceased paying the Monthly Fee.

ended December 31, 2024 and for the period from March 6, 2023 (inception) through December 31, 2023, the Company incurred $204,541 and

$196,806 for these services, respectively.

In order to finance working capital or to finance

transaction costs in connection with an intended initial 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

an initial business combination, the Company would repay the working capital loans (the “Working Capital Loans).

In the event that

the initial business combination does not close, the Company may use a portion of the working capital 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 the 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.

Such warrants would be identical to the Private Placement Warrants.

believe that amounts not held in trust is not sufficient to pay the costs and expenses to which such proceeds are allocated that are

payable prior to the closing of our initial business combination.

However, if our 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, we may

have insufficient funds available to operate our business prior to our initial business combination.

Moreover, we may need to obtain

additional financing either to complete our business combination or because we become obligated to redeem a significant number of our

Public Shares upon completion of our business combination, in which case we may issue additional securities or incur debt in connection

with such business combination.

We may need to raise additional capital through

loans or additional investments from our Sponsor, shareholders, officers, directors, or third parties.

Our officers, directors and our

Sponsor may, but are not obligated to, loan us funds as may be required.

Accordingly, we may not be able to obtain additional financing.

If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include,

but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses.

the Company’s officers and directors was permitted, but not obligated to, loan the Company funds as may be required (the “ Working

Capital Loans ”).

In the event that the initial Business Combination did not close, the Company was permitted to use a portion

of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds from the Trust Account would

have been used to repay the Working Capital Loans.

Up to $1,500,000 of the Working Capital Loans was 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.

Such warrants

would have been identical to the private placement warrants.

On August 13, 2024, to document existing and future

Working Capital Loans, the Company issued the Convertible Promissory Note to Michael Blitzer, the Company’s Chairman and then-Chief Executive Officer,

pursuant to which the Company was permitted to borrow up to $2,500,000 from Mr.

Blitzer, related to ongoing expenses reasonably related to the business

of the Company and the consummation of an initial business combination.

All unpaid principal under the Convertible Promissory

Note was due and payable in full on the earlier of (i) August 21, 2025, or such later date by which the Company must consummate a Business

Combination pursuant to its governing documents (as may be amended by a shareholder vote) and (ii) the effective date of an initial business combination,

unless accelerated upon the occurrence of an event of default as set forth in the Convertible Promissory Note.

Blitzer had the option,

at any time on or prior to the repayment of amounts owed under the Convertible Promissory Note, to convert up to $1,500,000 outstanding

under the Convertible Promissory Note into warrants to purchase Class A ordinary shares at a conversion price of $1.00 per warrant, with

each warrant entitling the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to the same adjustments

applicable to the private placement warrants.

As of December 31, 2024, we had an outstanding borrowing of $1,200,000 under the Convertible

Promissory Note.

Pursuant to a Securities Purchase Agreement, dated

as of August 21, 2024, as amended on January 22, 2025, by and among Inflection Point, Michael Blitzer and USARE OpCo, Inflection Point

agreed to issue at Closing, a number of shares of Series A Preferred Stock equal to the number of Blitzer Conversion Preferred Shares

(as defined in below) to Mr.

Blitzer exchange for his forgiveness of 50% of the then-outstanding balance of the

Convertible Promissory Note.

In addition, pursuant to a Securities Purchase Agreement, dated as of August 21, 2024, by and between USARE

Blitzer, USARE OpCo issued 122,549 USARE Class A-2 Convertible Preferred Units and a warrant to purchase up to 31,250 USARE

Class A Units in exchange for Mr.

Blitzer’s promise to forgive, at the closing of the Proposed Business Combination, the other 50%

of the then-outstanding balance of the Convertible Promissory Note.

Such amounts were forgiven upon the Closing for the consideration

described above.

As of December 31, 2024, we believed that amounts

not held in trust were not sufficient to pay the costs and expenses that are payable prior to the

closing of our initial business combination.

Our costs were primarily expected to be incurred in connection with identifying a target

business, undertaking in-depth due diligence and negotiating a business combination.

As of December 31, 2024, our officers, directors

and our Sponsor were permitted, but not obligated to, loan us funds as may be required.

Accordingly, we may not be able to obtain additional

If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could

include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead

We cannot provide any assurance that new financing will be available to us on commercially acceptable terms, if at all.

These conditions

raise substantial doubt about our ability to continue as a going concern for a reasonable period of time which is considered to be one

year from the date of the issuance of the financial statements, or, if earlier, the date that we will be required to cease all operations,

except for the purpose of winding up, if a business combination is not consummated.

The financial statements do not include any adjustments

relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should we be unable to

continue as a going concern.

conditions raise substantial doubt about our ability to continue as a going concern for a reasonable period of time which is considered

to be one year from the date of the issuance of the financial statements, or, if earlier, the date that we would have been required to

cease all operations, except for the purpose of winding up, if a business combination was not consummated.

The financial statements do

not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary

should we be unable to continue as a going concern.

On March 13, 2025, Inflection Point consummated

the Business Combination with USARE OpCo and substantially all of the assets and the business of the combined company are held and

operated by New USARE and its subsidiaries.

New USARE has generated no revenues since inception, continues to incur losses from operations,

and has an accumulated deficit.

Following the Closing, New USARE’s ability to continue as a going concern is dependent upon its

ability to raise capital, to implement its business plan, generate sufficient revenues, and to control operating expenses.

28, 2025, New USARE had cash of approximately $23.4 million.

Off-Balance Sheet Arrangements

7 unchanged sentences

Contractual obligations

We do not have any long-term debt, capital lease

As of December 31, 2024, we did not have any long-term debt, capital lease

obligations, operating lease obligations or long-term liabilities, other than an agreement to pay an aggregate of $27,083 per month to

1 unchanged sentence

We began incurring such fees on May

24, 2023, and will continue to incur these fees monthly until the earlier of the completion of a business combination or our liquidation.

On March 28, 2024, we entered into the Amendment to the Services and Indemnification Agreement pursuant to which, the Monthly Fee paid

to TVC, effective as of January 1, 2024, was reduced from $27,083.33 to (i) $17,708.33 for the period from January 1, 2024 to January

31, 2024 and (ii) $24,091 for the period starting February 1, 2024.

Upon completion of a business combination or its liquidation, we will

cease paying the Monthly Fee.

The underwriters are entitled to a deferred underwriting

24, 2023, and no longer incur these fees monthly as of the consummation of the Business Combination.

On March 28, 2024, Inflection Point

entered into the Amendment to the Services and Indemnification Agreement pursuant to which, the Monthly Fee paid to TVC, effective as

of January 1, 2024, was reduced from $27,083 to (i) $17,708 for the period from January 1, 2024 to January 31, 2024 and (ii) $24,091 for

the period starting February 1, 2024.

On August 9, 2024, Inflection Point entered into the Amendment to the Services and Indemnification

Agreement pursuant to which, the Monthly Fee paid to TVC, effective as of April 1, 2024, was reduced from $24,091 to $18,882 for the period

starting April 1, 2024.

The Monthly Fee was further reduced from $18,882 to $14,746 for the period starting September 1, 2024.

8, 2024, Inflection Point entered into the Third Amendment to the Services and Indemnification Agreement pursuant to which, the Monthly

Fee paid to TVC, effective as of November 1, 2024, was reduced from $14,746 to $7,373 for the period starting October 1, 2024.

Upon consummation

of the Business Combination, the Company ceased paying the Monthly Fee.

The underwriters were entitled to a deferred underwriting

commission of 5.0% on the base deal and an additional 7.0% on the Units sold pursuant to the underwriters’ option to purchase additional

Units, or $13,100,000 in the aggregate, of the gross proceeds of the IPO held in the Trust Account upon the completion of the Company’s

Units, or $13,100,000 in the aggregate, of the gross proceeds of the IPO held in the Trust Account upon the completion of Inflection Point’s

initial business combination subject to the terms of the underwriting commission.

Pursuant to the Fee Reduction Agreement, solely

in connection with the Business Combination, upon consummation of the Business Combination, CF&CO accepted, in lieu of such Original

Deferred Fee:

(i) either (at Inflection Point’s option) (A) a cash fee of $4,000,000 or (B) (1) a cash fee of $2,000,000 plus (2)

400,000 shares of Common Stock, plus (ii) 2.0% of the amount by which the Total Capital Raised (as defined in the Fee Reduction Agreement)

exceeded $50,000,000.

Additionally, solely if Inflection Point elected to pay the all-cash fee discussed above, CF&CO agreed to forfeit

1,650,000 private placement warrants.

We elected to pay the all-cash fee discussed above and such payment was made and such private placement

warrants were forfeited in connection with the Closing of the Business Combination.

Critical Accounting Policies

10 unchanged sentences

if the over-allotment option was not exercised by the underwriters.

At December 31, 2023, the Company did not have any dilutive securities

and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company.

At December 31, 2024 and 2023, Inflection Point did not have any dilutive

securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings

of Inflection Point.

As a result, diluted income per share is the same as basic income per share for the periods presented.

Recent Accounting Standards

In November 2023, the FASB issued ASU 2023-07,

Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments in this ASU require disclosures, on an annual

and interim basis, of significant segment expenses that are regularly provided to the chief operating officer decision maker (“ CODM ”),

as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

The ASU requires that

a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment

profit or loss in assessing segment performance and deciding how to allocate resources.

Public entities will be required to provide all

annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide

all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280.

This ASU is effective for fiscal

years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption

Management does not believe that any recently

issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial

Quantitative and Qualitative Disclosures about Market

We are a smaller reporting company as

defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on Inflection Point’s financial

Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined

by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis