Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1514

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 8
Chunk 1514
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2024 (issuance date), the fair value of the earnout liabilities was $0 and $5,688,007, respectively.
For the year ended June 30, 2025, the Company recognized $5,688,007 of gains related to the change in fair value of earnout liabilities
included in the change in fair value of earnout liabilities in the consolidated statements of operations. (See Note 17 – Fair value
measurement).

F-26

Warrants

In
connection with the reverse recapitalization, each of 12,156,417 ACAC’s issued and outstanding warrants, which consisted of 4,312,500
public warrants, 5,240,000 private warrants and 2,603,917 working capital warrants, was converted automatically into one redeemable warrant
of the Company, exercisable for one share of common stock of the Company at an exercise price of $11.50 per share. All of these warrants
met the criteria for equity classification.

Each
whole Warrant entitles the registered holder to purchase one whole share of the Company’s common stock at a price of
$11.50 per share. Pursuant to the warrant agreement, a warrant holder may exercise its Warrants only for a whole number of shares
of common stock. This means that only a whole Warrant may be exercised at any given time by a warrant holder. No fractional Warrants
will be issued upon separation of the Units and only whole Warrants will trade. The Warrants will expire five years after the
completion of the Company’s initial business combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

The
Company has agreed that as soon as practicable, but in no event later than 30 business days, after the closing of the
initial business combination, it will use its commercially reasonable efforts to file, and within 60 business days following
its initial business combination to have declared effective, a registration statement for the registration, under the Securities Act,
of the shares of common stock issuable upon exercise of the Warrants. The Company will use its commercially reasonable efforts to maintain
the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in
accordance with the provisions of the warrant agreement. No Warrants will be exercisable for cash unless the Company has an effective
and current registration statement covering the common stock