Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 573

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 573
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 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.

20

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 ACAC are recognized at historical cost (which is expected to be consistent with carrying value),
with no goodwill or other intangible assets recorded upon execution of the Business Combination.

Transaction
Financing

In
consideration of market conditions, pursuant to the Business Combination Agreement, the parties agreed to use commercially best efforts
to secure financing to pay transaction expense and working capital of Foxx, including without limitation, a PIPE financing, private financing,
redemption waiver, convertible debt, forward purchase agreement, backstop, or equity line of credit (collectively, the “Transaction
Financing”).

On June 21, 2023, Old Foxx entered into a securities purchase agreement
(the “Convertible Note Agreement 1”) with New Bay Capital Limited, a Hong Kong registered company (“New Bay”),
and issued a promissory note (“Note 1”) to New Bay in the principal amount of $2 million with an interest rate of 7%