Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 57

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 57
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Immediately prior to the Closing,
all the accrued and unpaid principal and interests on the New Bay Notes, Note 4, and Note 5 were converted into: (x) 212,050 shares of
Old Foxx common stock for the New Bay Notes, (y) 200,882 shares of Old Foxx common stock for Note 4, and (z) 100,690 share of Old Foxx
common stock for Note 5, at a price of $30.00 per share. At the Closing, all of the converted shares of Old Foxx common stock were cancelled
in exchange for the holders’ pro rata share of the Closing Payment Shares using the exchange ratio of 3.3033, resulting in (x) 700,473
shares of our Common Stock issued to New Bay, (y) 663,581 shares of our Common Stock issued to BR Technologies, and (z) 332,614 shares
of our Common Stock issued to Grazyna.

Key Factors that Affect Operating Results

We believe the key factors
affecting our financial condition and results of operations include the following:

Retention of Key Management Team Members

One of the key differentiating factors of us is the rich blended nature
of our management team. Our management team comprises executives with extensive experience in electronics industry with IoT services related
experience. The wide array of industry experience captured by our management team allows us to deliver advanced technology and superior
products to our customers. Losing any member of our key executive team could significantly impact on the quality of services and products
that we currently offer. Such departures may prompt customers to explore alternative products or IoT cloud platforms offered by different
vendors or service providers.

Investment in technology and talent

We invest significant resources
in outsourcing partnerships and dedicate efforts to research and develop new products, solutions, agent platforms, and related services.
This commitment is essential to uphold our competitiveness in the industry, especially in the realm of IoT services. Advancing technology
and enhancing capabilities are pivotal for enterprise growth, necessitating continual progress in electronic product technologies, novel
services, and expanded capabilities.

To maintain and expand our
customer base, we must sustain a culture of innovation that aligns with the industry’s evolution. This entails continuously introducing
cutting-edge technologies to the market. Our current focus in research and development revolves around bolstering comprehensive communication,
storage, and energy solutions, as well as advancing 5G technology. This includes areas such as baseband development,