Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1395

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7A
Chunk 1395
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,333 
  
    Conversion
    of Old Foxx’s convertible promissory notes into Foxx’s common stock 
     1,696,668 
  
    Total
    common stock 
     7,270,097 

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 historical
cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination are those of Old Foxx and Old
Foxx’s operations are the only ongoing operations of the Company.

In
connection with the Reverse Recapitalization, the Company raised approximately $19.7 million of proceeds, presented as cash flows
from financing activities, which included the contribution of approximately $21.6 million of funds held in ACAC’s trust account,
approximately $0.3 million of cash held in ACAC’s operating cash account, and payments of approximately $2.2 million
in transaction costs incurred by ACAC.

The
following table reconcile the elements of the Reverse Recapitalization to the consolidated statements of cash flows and the changes in
shareholders’ deficit:

    September 26, 

    2024 
  
    Funds
    held in ACAC’s trust account 
    $21,627,541 
  
    Funds held
    in ACAC’s operating cash account 
     298,643 
  
    Less:
    payments of transaction costs incurred by ACAC 
     (2,215,896)
  
    Proceeds
    from the Reverse Recapitalization 
     19,710,288 
  
    Less:
    non-cash net deficit assumed from ACAC 
     (21,810,926)
  
    Net
    distributions from issuance of Common Stock upon the Reverse Recapitalization 
    $(2,100,638)

F-19

The
shares and corresponding capital amounts and all per share data related to Old Foxx’s