Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 34

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 34
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, 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, 

    2025  
    2024 

    Selling expenses 
    $66,864  
    $- 
  
    General and administrative expenses 
     172,598  
     - 
  
    Research and development expenses 
     57,335  
     - 
  
    Total stock-based compensation expenses 
    $296,797  
    $- 

There was no restricted stock
unit granted for the three months ended September 30, 2024. The following table summarizes the activity for all restricted stock units
granted for the three months ended September 30, 2025:

     Shares   Weight average grant date fair value   Total 
fair value   Weighted average   remaining contractual term (in years)   Unvested at June 30, 2025   693,929   $7.21   $5,001,916    3.36   Granted   -   $-    -    -   Vested   -   $-    -    -   Forfeited   (9,574)  $7.30    (69,891)   -   Unvested at September 30, 2025   684,355   $7.21   $4,932,025    3.11  

21

As of September 30, 2025,
there was $3,819,550 total unrecognized compensation cost related to unvested RSUs granted under the employee incentive plan. The total
cost is expected to be recognized over a remaining period of 3.11 years. 

Earnout Shares

As described in Note