Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 119

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 119
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 the Company’s employees
and consultants. The EIP has a 4-year vesting schedule, of which, 25% will be vested after year 1 with the 1/16th of these shares will
vest each quarter thereafter on the same day of the month as the grant date. The vesting of each RSU is subject to the employee’s
continued employment and the consultant’s continued engagement through applicable vesting dates.

On November 5, 2024, the
Company granted 707,860 restricted stock units (“RSUs”) to its employees, consultants, and independent directors under its
EIP. These shares have a 4-year vesting schedule of which 25% will be vested after year 1 with the 1/16th of these shares will vest each
quarter thereafter on the same day of the month as the grant date. The vesting of each RSU is subject to the employee’s continued
employment and the consultant’s continued engagement through applicable vesting dates.

On January 22, 2025, the Company granted 19,149 RSUs to one of its
independent directors pursuant to the EIP. These shares have a 4-year vesting schedule, of which 25% will be vested after year 1 with
the 1/16th of these shares will vest each quarter thereafter on the same day of the month as the grant date. The vesting of each
RSU is subject to the director’s continued employment through applicable vesting date.

On April 24, 2025, the Company
cancelled 33,080 unvested RSUs previously granted to one of its consultants on November 5, 2024, due to termination of the consultant’s
engagement.

On July 31, 2025, the Company
cancelled 9,574 unvested RSUs previously granted to one of its employees on November 5, 2024, due to termination of the employment.

The RSUs are accounted for
as equity awards and are measured at fair value based upon the grant date market value of the Company’s common stock. Compensation
expense is recognized on a straight-line basis over the vesting service period of four years. Forfeitures are accounted for as they
occur.

The following table presents
the total stock-based compensation expenses included in each of the respective expense line items for the periods presented: 

    For the Three Months Ended 

    September 30,