Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 35

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 35
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 of the Company’s common stock. Compensation expense
is recognized on a straight-line basis over the vesting service period of four years. Stock-based compensation expenses amounted
to $200,954 for the three and six months ended December 31, 2024.

The following table summarizes
the activity for all restricted stock units granted:

     Shares   Weight average grant date fair value   Total fair value   Weighted average  remaining contractual  term (in years)   Unvested at July 1, 2024   -   $-   $-    -   Granted   -    -    -        Vested   -    -    -        Forfeited   -    -    -        Unvested at September 30, 2024   -    -    -    -   Granted   707,860    7.30    5,167,378    4.00   Vested   -    -    -        Forfeited   -    -    -        Unvested at December 31, 2024   707,860   $7.30   $5,167,348    3.85  

As of December 31, 2024, there was $4,966,424
total unrecognized compensation cost related to unvested RSUs granted under the employee incentive plan. The total cost is expected to
be recognized over a remaining period of 3.85 years. 

Earnout Shares

As described in Note 4 -
Reverse recapitalization, the Earnout Shares that are contingently issuable in connection with the Business Combination are subject to
vesting based on the Company’s financial performance during the earnout period. The entitlement of 2,100,000 earnout shares to the
Old Foxx shareholders were forfeited in October 2024 because the Company did not meet the earnout requirements for the fiscal year ended
June 30, 2024 vesting schedule. These 2,100,000 earnout shares are not included or contributing to the value of the earnout liabilities.

As of December 31, 2024,
the Company’s