Company: APXIF
Filing Date: 2025-06-11
Form Type: 10-Q
Source: 0001213900-25-053185
Chunk: 42

Company: APx Acquisition Corp. I
Filing Date: 2025-06-11
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 the close price of the Public Warrant price will be used as the fair value as of each relevant date.

The key inputs into the
Binomial Lattice simulation model for the Private Placement Warrants and Public Warrants were as follows at initial measurement:

    Inputs 
    December 9,
2021 
(Initial Measurement) 
  
    Risk-free interest rate 
     1.26%
  
    Expected term (years) 
     5.0 
  
    Expected volatility 
     15.0%
  
    Exercise price 
    $11.50 
  
    Stock price 
    $9.59 

The Company’s use
of a Binomial Lattice simulation model required the use of subjective assumptions:

●The risk-free interest rate assumption was based on the five-year
U.S. Treasury rate, which was commensurate with the contractual term of the Warrants, which expire on the earlier of (i) five years
after the completion of the initial business combination and (ii) upon redemption or liquidation. An increase in the risk-free interest
rate, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa.

    ●
    
    The expected term was determined to be five years, in-line with
a typical equity investor assumed holding period

    ●
    The expected volatility assumption was based on the implied volatility from a set of comparable publicly-traded warrants as determined based on the size and proximity of business combinations by similar special purpose acquisition companies. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. 

    ●
    The fair value of the Units, which each consist of one Class A ordinary share and one-half of one Public Warrant, represents the closing price on the measurement date as observed from the ticker APXIU.

 29

Subsequent Measurement

The Warrants are measured
at fair value on a recurring basis. At the subsequent measurement dates of March 31, 2025 and December 31, 2024, the Warrants were fair
valued using the Binomial Lattice Simulation Method.

The key inputs into the Binomial Lattice simulation model for the Warrants
are as follows at subsequent measurement:

    Inputs 
    March 31, 2025  
    December 31, 2024 
  
    Risk-free interest rate 
     3.99% 
     4.