Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 202

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 202
---
, a Singapore-based company (“Grazyna”), entered into a
securities purchase agreement for issuance of promissory notes in the amount of up to $9.0 million with an interest rate of 7% per
annum under the same terms and conditions as provided in the New Bay Notes. A promissory note was issued by Old Foxx to BR (the “Note
4”) in the principal amount of $6 million and promissory notes issued by Old Foxx to Grazyna (the “Note 5”) in the total
principal amount of $3 million on September 12, 2024. 

Immediately prior to the
Closing, all the accrued and unpaid principal and interests on the New Bay Notes, Note 4, and Note 5 were converted into: (x) 212,050
shares of Old Foxx common stock for the New Bay Notes, (y) 200,882 shares of Old Foxx common stock for Note 4, and (z) 100,690 share of
Old Foxx common stock for Note 5, at a price of $30.00 per share. At the Closing, all of the converted shares of Old Foxx common stock
were cancelled in exchange for the holders’ pro rata share of the Closing Payment Shares using the exchange ratio of 3.3033, resulting
in (x) 700,473 shares of our Common Stock issued to New Bay, (y) 663,581 shares of our Common Stock issued to BR Technologies, and (z)
332,614 shares of our Common Stock issued to Grazyna.

33

Key Factors that Affect Operating Results

We believe the key factors
affecting our financial condition and results of operations include the following:

Retention of Key Management Team Members

One of the key differentiating
factors of us is the rich blended nature of our management team. Our management team comprises executives with extensive experience in
electronics industry with IoT services related experiences. The wide array of industry experience captured by our management team allows
us to deliver advanced technology and superior products to our customers. Losing any member of our key executive team could significantly
impact the quality of services and products that we currently offer. Such departures may prompt customers to explore alternative products
or IoT cloud platforms offered by different vendors or service providers.

Investment in technology and talent

We invest significant resources
in outsourcing partnerships and dedicates efforts to research and develop new products, solutions, agent