Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 173

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 173
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 principle (“GAAP) in a timely manner;

-inefficient oversight of those charged with governance with respect to complete and accurate finance reporting;

-lack of appropriate controls surrounding authorized signor access for bank accounts; and

-inappropriate implementation of controls over the identification of related party transactions.

Changes in Internal Control Over Financial
Reporting

There were no changes in
our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during
the fiscal quarter covered by this report that has materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

46

PART II - OTHER INFORMATION

Item 1. Legal Proceedings 

From time to time, we may
be subject to legal proceedings and claims in the ordinary course of business. Currently, we are not a party to any material legal proceedings
or subject to any material claims. 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.

On November 22, 2024, a plaintiff filed Semensato
v. Foxx Development Holdings Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class action lawsuit in Delaware Chancery Court against the
Company and certain “Individual Defendants” (“Joy” Yi Hua, Haitao Cui, “Jeff” Feng Jiang, “Eva”
Yiqing Miao and Edmund R. Miller). The lawsuit 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 plaintiff seeks a declaration that the waiver provision is invalid, an injunction against the Company and the Individual Defendants
to prevent them from attempting to enforce the waiver, attorneys’ fees, and the costs and disbursements of this action. The Company
denies the claims and intends to vigorously defend the action.

Item 1a. Risk Factors

For a discussion of our risk factors, see Part I, Item 1A. “Risk
Factors” of the 2024 10-K, as well as the Company’s final prospectus (File No. 333-284186), dated January 23, 2025 (the “Warrant
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