Company: APXIF
Filing Date: 2025-06-11
Form Type: 10-Q
Source: 0001213900-25-053185
Chunk: 41

Company: APx Acquisition Corp. I
Filing Date: 2025-06-11
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks
to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs
(internal assumptions about how market participants would price assets and liabilities).

The following table presents
information about the Company’s assets and liabilities that are measured at fair value at March 31, 2025 and December 31, 2024,
and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

    Level 
    March 31, 
2025  
    December 31,
 2024 
  
    Assets: 

    Investments held in Trust Account - (1) 
    1 
    $6,311,873  
    $6,208,367 
  
    Liabilities: 

    Warrant Liability - Public Warrants – (2) 
    3 
    $2,328,750  
    $690,000 
  
    Warrant Liability - Private Warrants – (2) 
    3 
    $2,416,500  
    $716,000 

  (1) The fair value of the investments held in Trust Account approximates the carrying amount primarily due to the short-term nature.  (2) Due to the suspension of trading of the public warrants in November 2024 the public and private warrants have been assessed as Level 3 as of December 31, 2024 and March 31, 2025 as no directly or indirectly observable public warrant list price.  

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Warrants

The Warrants are accounted for as liabilities
in accordance with ASC 815-40 and are presented within warrant liabilities on the Balance Sheet. The warrant liabilities are measured
at fair value at inception and on a recurring basis, with changes in fair value presented within the statements of operations.

Initial Measurement

The Warrants were valued
using a Binomial Lattice model-based approach, which is considered to be a Level 3 fair value measurement. The Binomial Lattice simulation
model’s primary unobservable input utilized in determining the fair value of the Warrants is the expected volatility of the ordinary
shares. The expected volatility as of the Initial Public Offering date was derived from observable public warrant pricing on comparable
‘blank-check’ companies without an identified target. For periods subsequent to the detachment of the Public Warrants from
the Units,