Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 41

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 41
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September 30, 2025 and 2024, $496,020 and $45,793 of cash were used for operating lease liabilities, respectively.    

25

Note 18 — Commitments and contingencies

Contingencies

From time to time, the Company is a party to certain legal proceedings,
as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect
to such matters, individually and in aggregate, are not deemed to be material to the unaudited condensed consolidated financial statements.

On November 22, 2024,
a plaintiff filed Semensato v. Foxx Development Holdings Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class action complaint (“Complaint”)
in Delaware Chancery Court against the Company and certain “Individual Defendants” (“Joy” Yi Hua, Haitao Cui,
“Jeff” Feng Jiang, “Eva” Yiqing Miao and Edmund R. Miller) (“Action”). The lawsuit seeks declaratory
relief under provisions of the Delaware General Corporation Law relating to a waiver of the corporate opportunity doctrine that is contained
in the Company’s Amended and Restated Certificate of Incorporation. The plaintiff seeks a declaration that the waiver provision
is invalid, an injunction against the Company and the Individual Defendants to prevent them from attempting to enforce the waiver, attorneys’
fees, and the costs and disbursements of this action. The Company and each of the Individual Defendants deny any and all wrongdoing alleged
in the Complaint. However, to avoid the cost and distraction of litigation, the directors of the board of the Company (the “Board”)
determined that it was advisable and in the best interests of the Company and its stockholders to amend Article X of the Charter (the
“Amendment”). The Board thus approved and adopted the Second Amended and Restated Certificate of Incorporation of the Company
(the “Amended Charter”), and will direct the Amendment to be submitted to the stockholders of the Company for adoption and
approval at the next annual meeting of stockholders with the Board’s recommendation that the Amendment be approved and adopted by
the stockholders of the Company. 

On March 3, 2025, after the
plaintiff was advised of the Board’s approval of the Amended Charter, the plaintiff filed a notice of voluntary dismissal of the
Action as moot, which the