Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1298

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 1298
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of convertible promissory notes into common stock

On
September 26, 2024, upon the consummation of the business combination, the Company issued an aggregated total of 1,696,668 common stock
to the Old Foxx convertible notes holders (See Note 14).

Equity
incentive plan  

On
September 24, 2024, pursuant to the Equity Incentive Plan (the “EIP”), 1,454,019 shares of common stock, par value $0.0001
per share, of the Company were set aside and reserved for issuance of certain stock option award and certain restricted shares to certain
of the Company’s employees and consultants.

On
November 5, 2024, the Company granted 707,860 restricted stock units (“RSUs”) to its employees, consultants, and independent
directors under its EIP. These shares have a 4-year vesting schedule, of which, 25% will be vested after year 1 with the 1/16th of these
shares will vest each quarter thereafter on the same day of the month as the grant date. The vesting of each RSU is subject to the
employee’s continued employment and the consultant’s continued engagement through applicable vesting dates.

F-25

On
January 22, 2025, the Company granted 19,149 RSUs to one of its independent directors pursuant to the EIP. These shares have a 4-year
vesting schedule, of which, 25% will be vested after year 1 with the 1/16th of these shares will vest each quarter thereafter on the
same day of the month as the grant date. The vesting of each RSU is subject to the director’s continued employment through
applicable vesting date.

On
April 24, 2025, the Company forfeited 33,080 unvested RSUs previously granted to one of its consultants on November 5, 2024, due to termination
of the consultant’s engagement.

The
RSUs are accounted for as equity awards and are measured at fair value based upon the grant date market value of the Company’s
common stock. Compensation expense is recognized on a straight-line basis over the vesting service period of four years. Forfeitures
are accounted for as they occur.

The
following table presents the total stock-based compensation expenses included in each of the respective expense line items for the periods