Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 705

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 3
Chunk 705
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 Stock issuable upon conversion of
                                                                                                                                                                        the principal and accrued interest of promissory notes of Old Foxx issued in the Transaction Financing, as defined below) were
                                                                                                                                                                        cancelled and automatically converted into (i) the right to receive, without interest, the applicable portion of 5,000,000 shares of
                                                                                                                                                                        our Common Stock (the “Closing Payment Stock”, 500,000 of which are subject to the Escrow Arrangement noted below), and
                                                                                                                                                                        (ii) the contingent right to receive the applicable portion of the Earnout Shares (as defined below), if, as and when payable in
                                                                                                                                                                        accordance with the earnout provisions of the Business Combination Agreement.

19

Upon
Closing, we were renamed as “Foxx Development Holdings Inc.”, and the Merger Sub was renamed as “Foxx Development Inc.”
(i.e. the Operating Subsidiary).

Pursuant
to the Business Combination Agreement, 500,000 shares of the Closing Payment Stock in aggregate were deposited (the “Escrow
Arrangement”) to a segregated escrow account and would be released to the Original Foxx Shareholders if and only if, prior to or upon
the one-year anniversary of the Business Combination Agreement, the Affordable Connectivity Program (ACP) managed by the U.S. Federal
Communication Commission is reauthorized by the U.S. Congress with funding of no less than $4 billion in total for such reauthorized
period; or otherwise be cancelled and forfeited by the Registrant without consideration.

Additionally,
the Original Foxx Shareholders would be entitled to receive “Earnout Shares”, which refer to 4,200,000 shares of our Common Stock,
subject to the vesting schedule (the “Vesting Schedule”) as follows: 

    ●
    (i)
    in connection with the financial performance for the fiscal year ended
June 30, 2024:

    (A) 700,000 Earnout Shares would be issued to Original Foxx Shareholders
on a pro rata basis if and only if our audited consolidated financial statements for the fiscal year ended June 30, 2024 (“2024
Audited Financial Statements”), prepared in accordance with the Generally Accepted Accounting Principles of the United States (“U.S.
GAAP”) and filed with the SEC on Form 10-K by us after Closing, would reflect our revenue for the fiscal year ended June 30, 2024
(the “2024 Revenue”)