Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 123

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 123
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 $-    -   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   Granted   -    -   $-    -   Forfeited   -    -   $-    -   Exercised   -    -   $-    -   September 30, 2025   12,145,917    12,145,917   $11.50    3.99  

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 (the
Closing 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.

23

Note 16 — Concentrations of
risks

(a) Major customers

For the three months ended
September 30, 2025, three customers, customer A, customer B and customer C, which are the third parties of the Company, accounted for
66%, 13% and 10%, respectively, of the Company’s