Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 886

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 886
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 accounting treatment.

Upon
completion of the Business Combination, all of ACAC’s outstanding public and private warrants (See Note 16) were replaced by the
Company’s public and private warrants. The Company treated such warrants replacement as a warrant modification and no incremental
fair value was recognized for the year ended June 30, 2025.

Basic
and diluted loss per share

Basic
EPS is measured as net loss divided by the weighted average common shares outstanding for the period.

Diluted
net loss per share attributable to common stockholders adjusts basic loss per share for the potentially dilutive impact of non-participating
shares of common stock. Dilutive equivalent shares are excluded from the computation of diluted loss per share if their effects would
be anti-dilutive. Common stock issuable upon the conversion of the stock options, the RSUs (defined in Note 16) and warrants are using
the treasury stock method. Common stock issuable in connection with the Company’s convertible promissory notes are using the if-converted
method.  

F-16

Related
parties

The
Company identifies related parties, and accounts for, and discloses related party transactions in accordance with ASC 850, Related
Party Disclosures, and other relevant ASC standards.

Parties,
which can be a corporation or individual, are considered to be related if they have the ability, directly or indirectly, to control the
Company or exercise significant influence over the Company in making financial and operating decisions. Entities are also considered
to be related if they are subject to common control or common significant influence.

Transactions
involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations
can be substantiated.

Recently
adopted accounting standards

The
Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews
new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS
Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying
with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.