Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1044

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 5
Chunk 1044
---
 2024, $175,607 and $33,260 of cash were used for operating lease liabilities, respectively.    

F-30

Note 20
— Commitments and contingencies

Contingencies

From
time to time, the Company is a party to certain legal proceedings, as well as certain asserted and un-asserted claims. Amounts accrued,
as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed
to be material to the consolidated financial statements.

On
November 22, 2024, a plaintiff filed Semensato v. Foxx Development Holdings Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class
action complaint (“Complaint”) in Delaware Chancery Court against the Company and certain “Individual Defendants”
(“Joy” Yi Hua, Haitao Cui, “Jeff” Feng Jiang, “Eva” Yiqing Miao and Edmund R. Miller) (“Action”).
The lawsuit seeks declaratory relief under provisions of the Delaware General Corporation Law relating to a waiver of the corporate opportunity
doctrine that is contained in the Company’s Amended and Restated Certificate of Incorporation. The plaintiff seeks a declaration
that the waiver provision is invalid, an injunction against the Company and the Individual Defendants to prevent them from attempting
to enforce the waiver, attorneys’ fees, and the costs and disbursements of this action. The Company and each of the Individual
Defendants deny any and all wrongdoing alleged in the Complaint. However, to avoid the cost and distraction of litigation, the directors
of the board of the Company (the “Board”) determined that it was advisable and in the best interests of the Company and its
stockholders to amend Article X of the Charter (the “Amendment”). The Board thus approved and adopted the Second Amended
and Restated Certificate of Incorporation of the Company (the “Amended Charter”), and will direct the Amendment to be submitted
to the stockholders of the Company for adoption and approval at the next annual meeting of stockholders with the Board’s recommendation
that the Amendment be approved and adopted by the stockholders of the Company. 

On
March 3, 2025, after the plaintiff was advised of the Board’s approval of the Amended Charter, the plaintiff filed a notice of
voluntary dismissal of the Action as moot, which the Court approved by order dated March