Company: APXIF
Filing Date: 2025-06-11
Form Type: 10-Q
Source: 0001213900-25-053185
Chunk: 59

Company: APx Acquisition Corp. I
Filing Date: 2025-06-11
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 Offering resigned and withdrew from their role in the Business Combination and thereby
waived their right to the deferred underwriting commissions in the amount of $6,037,500, which the Company has recorded as a gain on settlement
of underwriter fees on the statement of shareholders’ equity for the year ended December 31, 2022 for $5,788,453, which represents
the original amount recorded to accumulated deficit, and the remaining balance representing the original amount recorded to the statement
of operations of $249,047 was recorded for the year ended December 31, 2022. No deferred underwriting commissions remain outstanding
as of March 31, 2025 and December 31, 2024.

Critical Accounting Policies and Estimates

This management’s
discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The preparation of our
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses and the disclosure of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates
and judgments, including those related to fair value of financial instruments and accrued expenses. We base our estimates on historical
experience, known trends and events and various other factors that we believe to be reasonable under the circumstances, the results of
which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions or conditions. The Company has identified the following
as its critical accounting policies:

 39

Warrant Liabilities

The Company accounts
for warrants based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from
Equity” (“ASC 480”), and ASC 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, among other conditions for equity classification. This assessment, which requires the use