Company: KVACU
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001213900-25-074277
Chunk: 106

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 106
---
B”) ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”)
and ASC Topic 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial
instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements
for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether
the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control,
among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the
time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants 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.
Warrants that meet the requirement for equity classification are recorded at their fair value at the time of issuance and are not revalued
at each reporting date. 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.

23

As the warrants issued upon the Initial
Public Offering and private placements meet the criteria for equity classification under ASC 480, therefore, the warrants are
classified as equity. , therefore, the warrants are classified as equity.

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 accret