Company: KVACU
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043269
Chunk: 122

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 122
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 are classified as temporary equity. At all other times, ordinary shares are
classified as shareholders’ equity. Our ordinary shares feature certain redemption rights that are subject to the occurrence
of uncertain future events and considered to be outside of our control. Accordingly, as of March 31, 2025 and December 31, 2024,
6,404,652 and 6,404,652 ordinary shares subject to possible redemption, are presented as temporary equity, outside of the
shareholders’ equity section of the unaudited condensed consolidated balance sheets.

Warrant accounting

We account 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 FASB ASC 480, Distinguishing Liabilities from Equity and ASC 815, Derivatives and Hedging. 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 our 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.
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.

The warrants issued upon the Initial Public Offering
and private placements meet the criteria for equity classification under ASC 480.

Net income (loss) per share

The Company calculates net income (loss) per share
in accordance with ASC Topic 260, Earnings per Share. In order to determine the net income (loss) attributable to both the redeemable
shares and non-redeemable shares, the Company first considered the undistributed income (loss) allocable to both the redeem