Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 107

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 107
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CL) model for accounts
receivable and contract assets by offering a practical expedient to use current conditions for forecasts and an accounting policy election
to consider post-balance sheet collections, allowing for early adoption for financial statements not yet issued. The guidance is effective
for annual reporting periods beginning after December 15, 2025, but early adoption is permitted. The Company is currently evaluating the
impact these standards will have on its financial statements.

12

Note 4 — Reverse recapitalization

Upon the consummation of
the Business Combination, the following transactions were completed, based on the Company’s capitalization as of September 26, 2024
(the “Closing Date”):

    (i) All 70,721 shares of Class A common stock of ACAC (“ACAC public shares”), net of redemption of 1,744,663 ACAC public shares at $11.75 per share, and all 2,156,250 shares of Class B common stock of ACAC (“ACAC private shares”), were converted on a one-for-one basis into the Company’s Common Stock. 

    (ii) 43,125 shares of the Company’s Common Stock were issued to ACAC’s underwriter, EF Hutton LLC, in connection with the Business Combination. 

    (iii) All issued and outstanding shares of Old Foxx Common Stock were cancelled in exchange for the rights for Old Foxx Shareholders, including the holders of Old Foxx’s convertible promissory notes upon the conversion of the convertible promissory notes and their interests into Old Foxx Common Stock immediately prior to Closing (see Note 13), to receive such stockholder’s pro rata share of 5,000,000 shares (“Closing Payment Shares”) of the Company’s Common Stock, including: (x) 1,696,668 shares of Foxx’s $0.0001 par value common stock were issued to Old Foxx’s convertible promissory notes holders in connection with the Business Combination (see Note 13); (y) 1,000,000 outstanding shares of Old Foxx Common Stock issued to Old Foxx Shareholders (other than holders of the convertible notes) were cancelled in exchange for the right by the Old Foxx Shareholders to receive a pro rata share of 3,303,333 shares of the Company’s Common Stock at the exchange ratio of 3.3033. 

    (iv) 4,200,000 shares