Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 42

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 42
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50    -   March 31, 2025   12,145,917    12,145,917   $11.50    4.49  

The Company accounted for
the 12,145,917 Warrants assumed from the merger as equity instruments in accordance with ASC 480, “Distinguishing Liabilities
from Equity” and ASC 815-40, “Derivatives and Hedging: Contracts in Entity’s Own Equity”.

23

Cancellation of Common Stock Held in Escrow

On September 26, 2024, pursuant to the Business Combination Agreement
(see Note 4), 500,000 shares were deposited to a segregated escrow account and would be release to the Old Foxx shareholders if and only
if, prior to or upon the one-year anniversary of the Business Combination Agreement, the Affordable Connectivity Program 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.

On February 18, 2025, these
500,000 shares have been cancelled and forfeited without consideration.

Note 17 — Fair value measurement

The Company did not have
any assets or liabilities measured at fair value on a recurring basis as of June 30, 2024. The following table provides information
related to the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and September 26,
2024 (issuance date):

    March 31, 2025 
    Carrying Value  
    Quoted Prices in Active Markets (Level 1)  
    Significant Other Observable Inputs  (Level 2)  
    Significant  Other Unobservable Inputs  (Level 3) 
  
    Liabilities: 

    Earnout liabilities 
    $         18  
    $           -  
    $             -  
    $            18 
  
    Total 
    $18  
    $-  
    $-  
    $18 

    September 26, 2024 (issuance date) 
    Carrying Value  
    Quoted Prices in Active Markets (Level 1)  
    Significant Other Observable Inputs  (Level 2)  
    Significant