Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 151

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 151
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 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.

Note 17 — Fair value measurement

The Company did not have
any assets or liabilities measured at fair value on a recurring basis as of June 30, 2024. The following table provides information
related to the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and September 26,
2024 (issuance date):

    March 31, 2025 
    Carrying Value  
    Quoted Prices in Active Markets (Level 1)  
    Significant Other Observable Inputs  (Level 2)  
    Significant  Other Unobservable Inputs  (Level 3) 
  
    Liabilities: 

    Earnout liabilities 
    $         18  
    $           -  
    $             -  
    $            18 
  
    Total 
    $18  
    $-  
    $-  
    $18 

    September 26, 2024 (issuance date) 
    Carrying Value  
    Quoted Prices in Active Markets (Level 1)  
    Significant Other Observable Inputs  (Level 2)  
    Significant  Other Unobservable Inputs  (Level 3) 
  
    Liabilities: 

    Earnout liabilities 
    $5,688,007  
    $               -  
    $               -  
    $5,688,007 
  
    Total 
    $5,688,007  
    $-  
    $-  
    $5,688,007 

The earnouts based on revenue
have been classified within Level 3 of the hierarchy as the fair value is derived using a Monte Carlo simulation analysis in a risk neutral
framework, which uses a combination of observable (Level 2) and un