Company: KVACU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109170
Chunk: 18

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 the Trust Account were held in money market funds, which are invested
primarily in U.S. Treasury securities. These securities are presented on the unaudited condensed consolidated balance sheets at fair value
at the end of each reporting period. Earnings on these securities are included in dividend income in the accompanying unaudited condensed
consolidated statements of income and comprehensive income and are automatically reinvested. The fair value for these securities is determined
using quoted market prices in active markets. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive
income and realized gains and losses are reported in other income. 

●Warrant accounting

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in Financial Accounting Standards Board (“FASB”) ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”)
and ASC Topic 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial
instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements
for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether
the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control,
among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the
time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all
of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance.
Warrants that meet the requirement for equity classification are recorded at their fair value at the time of issuance and are not revalued
at each reporting date. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are
required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes
in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the unaudited condensed consolidated statements
of income.

11

As the warrants issued upon the Initial Public Offering and private placements meet the criteria for equity classification under ASC 480,
therefore, the warrants are classified