Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 136

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 136
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 rata basis if and only if the 2025 Foxx Revenue reflected in the 2025
Foxx Audited Financial Statements would be no less than $96,600,000 (including $96,600,000) and less than $115,000,000 (excluding $115,000,000);

●2,100,000
Earnout Shares would be issued to Old Foxx stockholders on a pro rata basis if and only if the 2025 Foxx Revenue reflected in the 2025
Foxx Audited Financial Statements would be no less than $115,000,000 (including $115,000,000).

    (v) All issued and outstanding 12,156,417 ACAC warrants were converted on a one-for-one basis into warrants of the Company, including conversion from (x) 4,312,500 ACAC’s public warrants, (y) 5,240,000 ACAC’s private warrants, and (z) 2,603,923 ACAC’s working capital warrants. 

The following table presents
the number of the Company’s common stock issued and outstanding immediately following the Reverse Recapitalization (as defined below):

    Common 

    Stock 
  
    ACAC’s common stock outstanding prior to Reverse Recapitalization 
     3,971,634 
  
    Less: redemption of ACAC’s common stock 
     (1,744,663)
  
    Common stock issued to underwriter 
     43,125 
  
    Conversion of Old Foxx’s common stock into Foxx’s common stock 
     3,303,333 
  
    Conversion of Old Foxx’s convertible promissory notes into Foxx’s common stock 
     1,696,668 
  
    Total common stock 
     7,270,097 

14

Old Foxx was determined to
be the accounting acquirer given Old Foxx effectively controlled the combined entity after the Business Combination. The transaction is
accounted for as a reverse recapitalization (“Reverse Recapitalization”), which is equivalent to the issuance of common stock
by Old Foxx for the net monetary assets of ACAC, accompanied by a recapitalization. Old Foxx is determined as the accounting acquirer
and the historical financial statements of Old Foxx became the Company’s historical financial statements, with retrospective adjustments
to give effect of the Reverse Recapitalization. The net assets of ACAC were recognized as of the closing date at