Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 172

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 172
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2024 (issuance date) |     | Carrying 
 Value    |           |     | Quoted    
 Prices in 
 Active    
 Markets   
 (Level 1) |   |     | Significant 
 Other       
 Observable  
 Inputs      
 (Level 2)   |   |     | Significant  
 Other        
 Unobservable 
 Inputs       
 (Level 3)    |           |
|:-----------------------------------|:----|:---------|----------:|:----|:----------|:--|:----|:------------|:--|:----|:-------------|----------:|
| Liabilities:                       |     |          |           |     |           |   |     |             |   |     |              |           |
| Earnout liabilities                |     | $        | 5,688,007 |     | $         | — |     | $           | — |     | $            | 5,688,007 |
| Total                              |     | $        | 5,688,007 |     | $         | — |     | $           | — |     | $            | 5,688,007 |

F-24

FOXX DEVELOPMENT HOLDINGS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 17 — Fair value measurement (cont.) The earnouts based on revenue have been classified within Level 3 of the hierarchy as the fair value is derived using a Monte Carlo simulation analysis in a risk neutral framework, which uses a combination of observable (Level 2) and unobservable (Level 3) inputs. Key estimates and assumptions impacting the fair value measurement include the Company’s revenue forecasts as well as the assumptions listed in tables below. The fair value measurement associated with the earnout liability is highly sensitive to changes in stock price and forecasted amounts for revenue through June 2025. Any changes to stock price and forecasted revenues through June 2025 will result in remeasurement of the earnout liability and could result in material gains or losses being recognized in the statement of operations. The Company estimated the fair value per share of the underlying common stock based, in part, on the results of third -partyvaluations and additional factors deemed relevant. The risk -freeinterest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the earnouts. Prior to the Business Combination, the Company was a private company and lacked company -specifich