Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 7

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 7
---
 of operating right-of-use assets and lease liabilities 
    $-  
    $121,655 
  
    Conversion of convertible promissory notes into common stock 
    $-  
    $15,408,685 
  
    Reverse recapitalization transaction costs net against additional-paid in capital 
    $-  
    $893,577 
  
    Deferred transaction costs included in other payables and accrued liabilities 
    $-  
    $300,000 
  
    Initial recognition of earnout liabilities 
    $-  
    $5,688,007 

The accompanying notes are an integral
part of these unaudited condensed consolidated financial statements.

4

FOXX DEVELOPMENT HOLDINGS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Nature of business
and organization

Foxx Development Holdings
Inc. (“Foxx” or the “Company”) was incorporated on November 13, 2023 under the name “Acri Capital Merger
Sub I Inc.” On February 18, 2024, the Company entered into a business combination agreement (as amended on May 31, 2024, the “Business
Combination Agreement”), by and among the Company, Acri Capital Acquisition Corporation, a Delaware corporation and our parent company
at the time (“ACAC”), Acri Capital Merger Sub II Inc., a Delaware corporation and our wholly-owned subsidiary at the time
(“Merger Sub”), and Foxx Development Inc. (“Old Foxx”), a Texas corporation incorporated on March 17, 2017
primarily engaged in the sales of electronic products, pursuant to which (i) ACAC merged with and into the Company, with the Company as
the surviving Delaware corporation (the “Reincorporation Merger”), and (ii) Old Foxx merged with and into Merger Sub, with
Merger Sub surviving as a wholly-owned Delaware subsidiary of the Company (the “Acquisition Merger”). The Reincorporation
Merger, the Acquisition Merger, and other transactions contemplated under the Business Combination Agreement, are collectively referred
to as the “Business Combination” (See Note 4).

Following the consummation
of the Business Combination (the “Closing”) on September 26, 2024, the Company was renamed as “Foxx Development Holdings
Inc.” and became a publicly traded company. The Merger Sub was renamed as “Fo