Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 109

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 109
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000) and less than $96,600,000 (excluding $96,600,000); 

    ● 1,400,000 Earnout Shares would be issued to Old Foxx Shareholders on a pro rata basis if and only if the 2025 Foxx Revenue reflected in the 2025 Foxx Audited Financial Statements would be no less than $96,600,000 (including $96,600,000) and less than $115,000,000 (excluding $115,000,000); 

    ● 2,100,000 Earnout Shares would be issued to Old Foxx Shareholders on a pro rata basis if and only if the 2025 Foxx Revenue reflected in the 2025 Foxx Audited Financial Statements would be no less than $115,000,000 (including $115,000,000). 

13

The Earnout Shares in connection with the financial
performance for the fiscal years ended June 30, 2025 and 2024 were forfeited since the Company did not meet the financial performance
threshold.

    (v) All issued and outstanding 12,156,417 ACAC warrants were converted on a one-for-one basis into warrants of the Company, including conversion from (x) 4,312,500 ACAC’s public warrants, (y) 5,240,000 ACAC’s private warrants, and (z) 2,603,923 ACAC’s working capital warrants. 

The following table presents
the number of the Company’s common stock issued and outstanding immediately following the Reverse Recapitalization (as defined below):

    Common 

    Stock 
  
    ACAC’s common stock outstanding prior to Reverse Recapitalization 
     3,971,634 
  
    Less: redemption of ACAC’s common stock 
     (1,744,663)
  
    Common stock issued to underwriter 
     43,125 
  
    Conversion of Old Foxx’s common stock into Foxx’s common stock 
     3,303,333 
  
    Conversion of Old Foxx’s convertible promissory notes into Foxx’s common stock 
     1,696,668 
  
    Total common stock 
     7,270,097 

Old Foxx was determined to
be the accounting acquirer given Old Foxx effectively controlled the combined entity after the Business Combination. The transaction is
accounted for as a reverse recapitalization (“Reverse Recap