Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 293

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1B
Chunk 293
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iff”)
filed Semensato v. Foxx Development Holdings Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class action complaint (the “Complaint”)
in Delaware Chancery Court (the “Court”) against the Company and certain “Individual Defendants” (“Joy”
Yi Hua, Haitao Cui, “Jeff” Feng Jiang, “Eva” Yiqing Miao and Edmund R. Miller) (the “Action”). The
Plaintiff seeks declaratory relief under provisions of the Delaware General Corporation Law relating to a waiver of the corporate opportunity
doctrine that is contained in the Company’s Amended and Restated Certificate of Incorporation. The Company and each of the Individual
Defendants denied any and all wrongdoing alleged in the Complaint. However, to avoid the cost and distraction of litigation, the directors
of the board of the Company determined that it was advisable and in the best interests of the Company and its stockholders to amend Article
X of the Charter (the “Amendment”). The Board approved and adopted the Second Amended and Restated Certificate of Incorporation
of the Company (the “Amended Charter”), and was planning for the Amendment to be submitted to the stockholders of the Company
for adoption and approval at the next annual meeting of stockholders with the Board’s recommendation that the Amendment be approved
and adopted by the stockholders of the Company.

On March 3, 2025, after the Plaintiff was advised of the Board’s
approval of the Amended Charter, the Plaintiff filed a notice of voluntary dismissal of the Action as moot, which the Court approved by
order dated March 4, 2025. Believing that the swift resolution of the Action was in the best interests of and benefit to the Company,
and without admitting the allegations Plaintiff made in the Complaint, the Company agreed to pay $85,000 (the “Mootness Fee,”
inclusive of a $500 service award to Plaintiff) to Plaintiff’s counsel to resolve the anticipated application by Plaintiff’s
counsel for an award of attorneys’ fees and reimbursement of expenses. The Court has not and will not pass judgment on the amount
of the Mootness Fee.

The
results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact
on us because of defense and settlement costs, diversion of management resources, and other factors.

ITEM
4. MINE SAFETY DIS