Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 83

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 83
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In connection with our audit as of and for the
period from May 13, 2021 (inception) through December 31, 2021, we identified a material weakness in our internal control over financial
reporting related to our accounting for warrant liabilities. In addition, in connection with our preparation of the Company’s Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2022, we identified another material weakness related to the classification
of temporary equity versus permanent equity in our financial statements filed with the SEC. While we offered the units in the IPO at
an offering price of $10.00 per unit, we deposited in the Trust Account $10.20 per Class A ordinary share, implying an initial value
of $10.20 per Class A ordinary share. After discussion and evaluation, we have concluded that the value then of each Class A ordinary
share should have been considered $10.20 instead of $10.00.

As a result, we concluded that our disclosure
controls were not effective, as of December 31, 2024, because of 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 in statement of cash flows, accuracy and completeness
of accounts payable and accrued expenses, accrued interest receivable and redemption value of ordinary shares subject to redemption.

A material weakness is a deficiency, or combination
of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement
of our annual or interim financial statements will not be prevented or detected on a timely basis. Effective internal controls are necessary
for us to provide reliable financial reports and prevent fraud. We have and continue to take steps to remediate the material weakness,
but there is no assurance that any remediation efforts will ultimately have the intended effects.

If we identify any new material weaknesses in
the future, any such newly identified material weakness could limit our ability to prevent or detect a misstatement of our accounts or
disclosures that could result in a material misstatement of our annual or interim financial statements. In such case, we may be unable
to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange
listing requirements, investors may lose confidence in our financial reporting and our stock price may decline as a result. We cannot
assure stockholders that the measures we have taken to date