Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 2535

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2535
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Stock Compensation” (“ASC 718”). Under
ASC 718, share- based compensation associated with equity-classified awards is measured at fair value upon the grant date. The Founders
Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Share-based compensation would
be recognized at the date a Business Combination is considered probable (i.e., upon occurrence of a Business Combination) in an amount
equal to the number of Founders Shares that ultimately vest multiplied by the grant date fair value per share (unless subsequently modified)
less the amount initially received for the purchase of the Founders Shares. As of December 31, 2024 and 2023, the Company determined that
a Business Combination is not considered probable and, therefore, no share-based compensation expense has been recognized. 

The fair
value at the grant date of the 40,000 Founder Shares transferred to the Company’s directors was approximately $203,000 or $5.08
per share. Upon consummation of an initial business combination, the Company will recognize approximately $203,000 in compensation expense.

Net Income Per Ordinary Share

The Company
complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income per share is
computed by dividing net income by the weighted-average number of ordinary shares outstanding during the periods. The Company has not
considered the effect of the warrants sold in the Initial Public Offering and the Private Placement to purchase an aggregate of 17,575,000
of the Company’s Class A ordinary shares in the calculation of diluted income per share.

The Company
has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Income and losses are shared
pro rata between the two classes of shares. The Company applies the two-class method in calculating earnings per share. The contractual
formula utilized to calculate the redemption amount approximates fair value. The Class feature to redeem at fair value means that there
is effectively only one class of stock. Changes in fair value are not considered a dividend for the purposes of the numerator in the earnings
per share calculation. Net income per ordinary share is computed by dividing the pro rata net income between the redeemable shares and
the non-redeemable shares by the weighted average number of ordinary shares outstanding for each of the periods. The calculation of diluted
income per ordinary stock does not consider the effect of the warrants issued in connection with the IPO since