Company: KVACU
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043269
Chunk: 140

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 140
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 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 redeemable ordinary
shares and non-redeemable ordinary shares and the undistributed income (loss) is calculated using the total net income (loss) less any
dividends paid. The Company then allocated the undistributed income (loss) ratably based on the weighted average number of shares outstanding
between the redeemable and non-redeemable ordinary shares. Any remeasurement of the accretion to the redemption value of the ordinary
shares subject to possible redemption was considered to be dividends paid to the public stockholders. Accretion associated with the redeemable
shares of ordinary share is excluded from earnings per share as the redemption value approximates fair value. As of March 31, 2025 and
December 31, 2024, the Company has not considered the effect of the warrants sold in the Initial Public Offering and private warrants
to purchase an aggregate of 15,628,575 and 15,628,575 shares, respectively, in the calculation of diluted net income (loss) per share,
since the exercise of the warrants is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive
and the Company did not have any other dilutive securities and other contracts that could, potentially, be exercised or converted into
ordinary shares and then share in the earnings of the Company.

5

Item 3. Quantitative and Qualitative Disclosures
about Market Risk

We are a smaller reporting
company and are not required to provide the information otherwise required