Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 2

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1
Chunk 2
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 Shares) was converted automatically into one (1) share of common stock of the Registrant, par value $0.0001 per
    share (the “Common Stock”), and (ii) each issued and outstanding ACAC warrant was converted automatically into one (1)
    redeemable warrant of the Registrant, exercisable for one (1) share of the Registrant’s Common Stock at an exercise price of
    $11.50 per share (the “Warrant”).

    ●
    At the Closing on
    September 26, 2024, by virtue of the Acquisition Merger and the Business Combination Agreement, and without any action on the part
    of any party to the Business Combination Agreement or affiliate or security thereof, the issued and outstanding shares of common
    stock of Foxx (“Original Foxx Common Stock”) held by then exiting holders of Original Foxx Common Stock (the
    “Original Foxx Shareholders”) immediately prior to the Closing (including shares of Original Foxx Common Stock issuable
    upon conversion of the principal and accrued interest of promissory notes of Foxx issued in the Transaction Financing, as defined
    below) were cancelled and automatically converted into (i) the right to receive, without interest, the applicable portion of
    5,000,000 shares of the Registrant’s Common Stock (the “Closing Payment Stock”, 500,000 of which are subject to
    the Escrow Arrangement noted below), and (ii) the contingent right to receive the applicable portion of the Earnout Shares (as
    defined below), if, as and when payable in accordance with the earnout provisions of the Business Combination Agreement.

1

Pursuant
to the Business Combination Agreement, 500,000 shares of the Closing Payment Stock in aggregate will be deposited (the “Escrow
Arrangement”) to a segregated escrow account and released to the Original Foxx Shareholders if and only if, prior to or upon the one-year anniversary
of the Business Combination Agreement, the Affordable Connectivity Program (ACP) 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.

Additionally,
the Original Foxx Shareholders may be entitled to receive “Earnout Shares”, which refer to 4,200,000 shares of the Registr