Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 2171

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 12
Chunk 2171
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    $690,000  
    $431,250 
  
    Warrant Liability - Private Warrants - (2) 
    3 / 2 
    $716,000  
    $447,500 

  (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 as no directly or indirectly observable public warrant list price. 

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, the close price of the Public Warrant price will be used as the fair value as of each relevant date. 

The key
inputs into the Binomial Lattice simulation model for the Private Placement Warrants and Public Warrants were as follows at initial measurement:

    Inputs 
    December 9, 2021 (Initial Measurement) 
  
    Risk-free interest rate 
     1.26%
  
    Expected term (years) 
     5.0 
  
    Expected volatility 
     15.0%
  
    Exercise price 
    $11.50 
  
    Stock price 
    $9.59 

The Company’s
use of a Binomial Lattice simulation model required the use of subjective assumptions: 

●The
risk-free interest rate assumption was based on the five-year U.S. Treasury rate, which was commensurate with the contractual term of
the Warrants, which expire on the earlier of (i) five years after the completion of the initial business combination and (ii) upon