Company: AAPI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001477932-25-008337
Chunk: 48

Company: Apple iSports Group, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 shares of common stock at an initial exercise price of $7.76 per share. The exercise price shall be adjusted on the six- and eighteen-month anniversary to the lower of the initial exercise price or a price equal to 110% of the average of the volume-weighted average price of the Company’s common stock over five trading days preceding each such date. The warrant’s expiration date is the third anniversary from the Effective Date. The Company, from time to time, may submit draw down requests to the investor to purchase shares of the Company’s common stock at a prescribed purchase price. The amount of each draw down request shall not exceed 400% of the average daily trading volume for the 10 trading days immediately preceding a draw down request. The investor shall be obligated to accept the Company’s draw down notice, provided that the investor, in its sole discretion, shall not be obligated to accept more than 50% of the requested draw down amount and shall have the option to purchase up to 200% of the draw down amount requested. The price per share to be paid by the investor shall equal 90% of the average daily closing price during the pricing period for such draw down. Pursuant to the Common Stock Purchase Agreement, the investor is entitled to a commission equal to 2% of the gross proceeds. The Company was not obligated to pay the commission during the three months ended September 30, 2025 and recorded it as a non-operating expense or issuance cost related to equity contract. As of September 30, 2025, there have been no share issuances of the Company’s common stock in connection with the Common Stock Purchase Agreement.  Regarding the warrants, the Company performed an analysis of the related provisions and concluded that the warrants met the guidance for being classified as an equity instrument. As the Company has not received any proceeds from share issuances under the Common Stock Purchase Agreement, the Company recognized the relative fair value of the warrant of $1,740,042 as a non-operating expense or issuance cost related to equity contract upon issuance. The relative fair value of the warrant was determined using the Black-Scholes valuation model. As of September 30, 2025, there have been no warrants exercised or cancelled. On March 6, 2025, the Company entered into a subscription agreement with two unaffiliated third parties pursuant to which the Company received a total of $253,504 in proceeds in exchange for 63,376 shares of Common Stock. The Company issued