Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 637

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 637
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ercised   (10,500)   (10,500)  $11.50    -   June 30, 2025   12,145,917    12,145,917   $11.50    4.24  

The
Company accounted for the 12,145,917 Warrants assumed from the merger as equity instruments in accordance with ASC 480, “Distinguishing
Liabilities from Equity” and ASC 815-40, “Derivatives and Hedging: Contracts in Entity’s Own Equity”.

Cancellation
of Common Stock Held in Escrow

On
September 26, 2024 (issuance date), pursuant to the Business Combination Agreement (see Note 4), 500,000 shares were deposited to a segregated
escrow account and would be release to the Old Foxx shareholders if and only if, prior to or upon the one-year anniversary of the Business
Combination Agreement, the Affordable Connectivity Program managed by the U.S. Federal Communication Commission is reauthorized by the
U.S. Congress with funding of no less than $4 billion in total for such reauthorized period; or otherwise be cancelled and forfeited
by the Registrant without consideration.

On
February 18, 2025, these 500,000 shares have been cancelled and forfeited without consideration.

F-27

Note 17
— Fair value measurement 

The
Company did not have any assets or liabilities measured at fair value on a recurring basis as of June 30, 2024. The following table
provides information related to the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30,
2025 and September 26, 2024 (issuance date): 

    June 30,
    2025
     
    Carrying
    Value

    Quoted
    Prices in
    Active
    Markets
    (Level 1)

    Significant
    Other
    Observable
    Inputs 
    (Level 2)

    Significant
    
    Other
    Unobservable
    Inputs 
    (Level 3)

    Liabilities:

    Earnout liabilities
     
    $
         -

    $
                   -

    $
                   -

    $
       -

    Total
     
    $
            -

    $
          -

    $