Company: KVACU
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043269
Chunk: 102

Company: Keen Vision Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 102
---
31, 2025 and December 31, 2024.

●Cash and investment held in Trust Account

As of March
31, 2025 and December 31, 2024, substantially all of the assets held in the Trust Account were held in money market funds, which are invested
primarily in U.S. Treasury securities. These securities are presented on the unaudited condensed consolidated
balance sheets at fair value at the end of each reporting period. Earnings on these securities are included in dividend income in the
accompanying unaudited condensed consolidated statements of income and comprehensive income
and are automatically reinvested. The fair value for these securities is determined using quoted market prices in active markets. Unrealized
gains and losses for available-for-sale securities are recorded in other comprehensive income and realized gains and losses are reported
in other income.

F-11

KEEN VISION ACQUISITION CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

●Warrant accounting

The Company accounts for warrants as either equity-classified
or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance
in Financial Accounting Standards Board (“FASB”) 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