Company: KVACU
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109170
Chunk: 67

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 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 as equity.

●Ordinary shares subject to possible redemption

The Company accounts for its ordinary shares subject
to possible redemption in accordance with the guidance in ASC 480. Ordinary shares subject to mandatory redemption (if any) are classified
as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature
redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not
solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’
equity. The Company’s ordinary shares feature certain redemption rights that are subject to the occurrence of uncertain future events
and considered to be outside of the Company’s control. Accordingly, as of September 30, 2025 and December 31, 2024, 4,822,346 and 6,404,652 ordinary
shares subject to possible redemption, are presented as temporary equity, outside of the shareholders’ equity section of the Company’s
unaudited condensed consolidated balance sheets, respectively.

●Fair value of financial instruments

ASC Topic 820, Fair Value Measurements
and Disclosures (“ASC 820”) defines fair value, the methods used to measure fair value and the expanded disclosures
about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between the buyer and the seller at the measurement date. ASC 820 establishes a fair value hierarchy for inputs, which represents
the assumptions used by the buyer and seller in pricing the asset or liability.