Company: APXIF
Filing Date: 2025-06-11
Form Type: 10-Q
Source: 0001213900-25-053185
Chunk: 99

Company: APx Acquisition Corp. I
Filing Date: 2025-06-11
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 if such instruments are derivatives or contain features that qualify as embedded derivatives in
accordance with ASC Topic 815, Derivatives and Hedging. For derivative financial instruments that are accounted for as liabilities, the
derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes
in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments
should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified
in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required
within 12 months of the balance sheet date.

Concentration of Credit Risk

Financial instruments
that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times
may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account
and management believes the Company is not exposed to significant risks on such account.

Fair Value of Financial Instruments

The fair value of the
Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,”
approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

The Company applies ASC
820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820
defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s
principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy
established in ASC 820 generally requires entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability
and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’
own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing
the asset or liability and are to be developed based on the best information available in the circumstances.

Level 1-Assets and liabilities
with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as