Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 110

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 110
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italization”), which is equivalent to the issuance of common stock
by Old Foxx for the net monetary assets of ACAC, accompanied by a recapitalization. Old Foxx is determined as the accounting acquirer
and the historical financial statements of Old Foxx became the Company’s historical financial statements, with retrospective adjustments
to give effect of the Reverse Recapitalization. The net assets of ACAC were recognized as of Closing date at historical cost, with no
goodwill or other intangible assets recorded. Operations prior to the Business Combination are those of Old Foxx and Old Foxx’s
operations are the only ongoing operations of the Company.

In connection with the Reverse
Recapitalization, the Company raised approximately $19.7 million of proceeds, presented as cash flows from financing activities,
which included the contribution of approximately $21.6 million of funds held in ACAC’s trust account, approximately $0.3 million
of cash held in ACAC’s operating cash account, and payments of approximately $2.2 million in transaction costs incurred by
ACAC.

The following table reconciles
the elements of the Reverse Recapitalization to the consolidated statements of cash flows and the changes in stockholders’ deficit:

    September 26, 

    2024 
  
    Funds held in ACAC’s trust account 
    $21,627,541 
  
    Funds held in ACAC’s operating cash account 
     298,643 
  
    Less: payments of transaction costs incurred by ACAC 
     (2,215,896)
  
    Proceeds from the Reverse Recapitalization 
     19,710,288 
  
    Less: non-cash net deficit assumed from ACAC 
     (21,810,926)
  
    Net distributions from issuance of Common Stock upon the Reverse Recapitalization 
    $(2,100,638)

The shares and corresponding
capital amounts and all per share data related to Old Foxx’s outstanding common stock prior to the Reverse Recapitalization have
been retroactively adjusted using the Exchange Ratio of 3.3033.

14

Note 5 — Accounts receivable,
net

As of September 30, 2025
and June 30, 2025, accounts receivable consist of the following:

    September 30,
 2025  
    June 30,  2025 

    Accounts receivable 
    $13,404,239