Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 286

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 286
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% of
the total equity proceeds, and interest thereon, available for the funding of our initial business combination (net of redemptions),
and (iii) the Market Value of our Class A ordinary shares is below $9.20 per share, the exercise price of the warrants will be adjusted
(to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption
trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price,
and the $10.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to the higher of the Market Value
and the Newly Issued Price. This may make it more difficult for us to consummate an initial business combination with a target business.

37

Our warrants will be accounted for as a warrant liability and
will be recorded at fair value upon issuance with changes in fair value each period reported in earnings, which may have an adverse effect
on the market price of our Class A ordinary shares or may make it more difficult for us to consummate an initial business combination.

Following the consummation of the IPO and the
concurrent issuance of the private placement warrants to APx Sponsor, we account for the 17,575,000 warrants issued in connection with
the IPO (the 8,625,000 warrants included in the units and the 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, we classify each of the warrants as a liability at its fair value as determined by the
company based upon a valuation report obtained from its independent third-party valuation firm. The impact of changes in fair value on
earnings may have an adverse effect on the market price of our Class A ordinary shares. In addition, potential targets may seek a blank
check company that does not have warrants that are accounted for as a warrant liability, which may make it more difficult for us to consummate
an initial business combination with a target business.

In the past, we identified material weaknesses in our internal
control over financial reporting related to errors in warrant liabilities, errors in proper accounting of related party gains, classification
of temporary and permanent equity, classification errors