Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 502

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 502
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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    -   June 30, 2025   12,145,917    12,145,917   $11.50    4.24  

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”.

Cancellation
of Common Stock Held in Escrow

On
September 26, 2024 (issuance date), pursuant to the Business Combination Agreement (see Note 4), 500,000 shares were deposited to a segregated
escrow account and would be release to the Old Foxx shareholders if and only if, prior to or upon the one-year anniversary of the Business
Combination Agreement, the Affordable Connectivity Program managed by the U.S. Federal Communication Commission is reauthorized by the
U.S. Congress with funding of no less than $4 billion in total for such reauthorized period; or otherwise be cancelled and forfeited
by the Registrant without consideration.

On
February 18, 2025, these 500,000 shares have been cancelled and forfeited without consideration.

F-27

Note 17
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