Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 37

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 37
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, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. 

On October 3, 2024, the Company’s
shareholders (ACAC’s public shareholders) exercised 10,500 warrants in the amount of $120,750 or $11.50 per share.

The summary of warrants activity
is as follows:

     Warrants  Outstanding   Common Stock Issuable   Weighted  Average  Exercise  Price   Average  Remaining  Contractual  Life   July 1, 2024            $-    -   Granted   12,156,417    12,156,417   $11.50    5.00   Forfeited   -    -   $-    -   Exercised   (10,500)   (10,500)  $11.50    -   June 30, 2025   12,145,917    12,145,917   $11.50    4.24   Granted   -    -   $-    -   Forfeited   -    -   $-    -   Exercised   -    -   $-    -   September 30, 2025   12,145,917    12,145,917   $11.50    3.99  

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.

Cancellation of Common Stock Held in Escrow

On September 26, 2024 (the
Closing Date), 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