Company: APXIF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026189
Chunk: 1531

Company: APx Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1531
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 of operations. The fair
value of the warrants was estimated using a Binomial Lattice model-based approach (see Note 11). 

Derivative Financial Instruments

The Company
evaluates its financial instruments to determine 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. 

F-16

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