Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 150

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 150
---
,
but it will be required to use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to
the extent an exemption is not available.

The Company may call the
Warrants for redemption, in whole and not in part, at a price of $0.01 per Warrant:

●in
whole and not in part;

●upon
not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each Warrant
holder; and

●if,
and only if, the reported last sale price of the common stock equals or exceeds $16.50 per share (as adjusted for stock splits, stock
dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three business
days before the Company sends the notice of redemption to the warrant holders.

On October 3, 2024, the Company’s
shareholders (ACAC’s public shareholders) exercised 10,500 warrants in the amount of $120,750 or $11.50 per share.

The summary of warrants activity
is as follows:

     Warrants  Outstanding   Common Stock Issuable   Weighted  Average  Exercise  Price   Average  Remaining  Contractual  Life   June 30, 2024   -    -   $-    -   Granted   12,156,417    12,156,417   $11.50    5.00   Forfeited   -    -   $-    -   Exercised   (10,500)   (10,500)  $11.50    -   March 31, 2025   12,145,917    12,145,917   $11.50    4.49  

The Company accounted for
the 12,145,917 Warrants assumed from the merger as equity instruments in accordance with ASC 480, “Distinguishing Liabilities
from Equity” and ASC 815-40, “Derivatives and Hedging: Contracts in Entity’s Own Equity”.

23

Cancellation of Common Stock Held in Escrow

On September 26, 2024, pursuant to the Business Combination Agreement
(see Note 4), 500,000