Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1285

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 1285
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 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures
about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU
2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December
15, 2027, with early adoption permitted. The Company is currently evaluating the impact of these standards will have on it financial
statements.

In
July 2025, the FASB issued ASU 2025-05 Financial Instruments – Credit Losses (Subtopic 326) (“ASU 2025-05”), simplifies
the Current Expected Credit Loss (CECL) model for accounts receivable and contract assets by offering a practical expedient
to use current conditions for forecasts and an accounting policy election to consider post-balance sheet collections, allowing for early
adoption for financial statements not yet issued. The guidance is effective for annual reporting periods beginning after December 15,
2025, but early adoption is permitted. The Company is currently evaluating the impact of these standards will have on it financial statements.

Note 4
— Reverse recapitalization

Upon
the consummation of the Business Combination, the following transactions were completed, based on the Company’s capitalization
as of September 26, 2024 (issuance date):

    (i) All 70,721 shares of Class A common stock of ACAC (“ACAC public shares”), net of redemption of 1,744,663 ACAC public shares at $11.75 per share, and all 2,156,250 shares of Class B common stock of ACAC (“ACAC private shares”), were converted on a one-for-one basis into the Company’s Common Stock. 

    (ii) 43,125 shares of the Company’s Common Stock were issued to ACAC’s underwriter, EF Hutton LLC, in connection with the Business Combination. 

    (iii) All issued and outstanding shares of Original Foxx Common Stock were cancelled in exchange for the rights for Original Foxx Shareholders, including the holders of Old Foxx’s convertible promissory notes upon the conversion of the convertible promissory notes and their interests into Original Foxx Common Stock immediately prior to Closing (see Note 14), to receive such stockholder’s pro rata share of 5,000,000