Company: APXIF
Filing Date: 2025-06-11
Form Type: 10-Q
Source: 0001213900-25-053185
Chunk: 107

Company: APx Acquisition Corp. I
Filing Date: 2025-06-11
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 (in the case of the Founder Shares, only after conversion to our Class A ordinary shares). The holders of
the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such
securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements
filed subsequent to the consummation of a Business Combination and rights to require the Company to register for resale such securities
pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such
registration statements.

Advisory Agreement

On October 17, 2022,
the Company had entered into an engagement letter with EarlyBirdCapital, Inc. (“EBC”) for the provision of M&A advisory
services (the “Advisory Agreement”) which was subsequently amended on August 22, 2023. The Advisory Agreement was amended
to provide that the Company at its option, could elect to pay up to $500,000 of the transaction fee in ordinary shares of the post-business
combination company (in lieu of cash), with such issuance to occur on the six month anniversary of the closing of the business combination,
and valued based on the volume weighted average price of the post business combination company’s ordinary shares for the ten trading
days immediately preceding the six month anniversary of the closing of the business combination.

NOTE 8. WARRANT LIABILITY

The Company accounted
for the 17,575,000 warrants issued in connection with the Initial Public Offering (8,625,000 Public Warrants and 8,950,000 Private Placement
Warrants) in accordance with the guidance contained in ASC 815-40.

Such guidance provides
that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly,
the Company has classified each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance
sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized
in the Company’s statement of operations.

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Public Warrants may only
be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants
will become exercisable on the later of (a) 30 days after the consummation of a Business Combination or (b)