Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 55

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 55
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,000);

provided, however, that the
Earnout Shares would be issued and delivered pursuant to one paragraph from (ii)(A) to (ii)(C) above only once.

On October 24, 2024, upon
the filing of the 2024 Audited Financial Statements as part of the Annual Report of the Company on Form 10-K filed with the SEC (the “2024
10-K”), any Earnout Shares that the Old Foxx shareholders would be entitled to receive under the Vesting Schedule were automatically
forfeited, as the Company did not meet any of the vesting conditions for the fiscal year ended June 30, 2024 within the Vesting Schedule.

In addition to the foregoing,
pursuant to that certain amendment to the Underwriting Agreement, by and between EF Hutton LLC and ACAC, dated February 20, 2024, 43,125
shares of our Common Stock were issued to EF Hutton LLC at the Closing.

Public Listing

The ACAC securities previously
traded on Nasdaq were delisted without any action needed to be taken on the part of the holders of such securities and are no longer traded
on Nasdaq following the Closing. On September 27, 2024, one business day after the Closing, our Common Stock and Warrant became listed
on the Nasdaq Capital Market (“Nasdaq”) under trading symbols “FOXX” and “FOXXW,” respectively.

32

Accounting Treatment

While the legal acquirer
in the Business Combination was ACAC, for financial accounting and reporting purposes under U.S. GAAP, Old Foxx was the accounting acquirer,
and the Business Combination was accounted for as a “reverse recapitalization.” A reverse recapitalization (i.e., a capital
transaction involving the issuance of stock by ACAC for the stock of Old Foxx) does not result in a new basis of accounting, and the unaudited
condensed consolidated financial statements of the combined company represent the continuation of the unaudited condensed consolidated
financial statements of Old Foxx in many respects. Accordingly, the assets, liabilities and results of operations of Old Foxx became the
historical financial statements of the combined company, and ACAC’s assets, liabilities, and results of operations were consolidated
with Old Foxx beginning from the Closing on September 26, 2024. Operations prior to the Business Combination are presented as those of
Old Foxx. The net assets of AC