Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 166

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 166
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,
however, that the Earnout Shares would be issued and delivered pursuant to one paragraph from (ii)(A) to (ii)(C) above only once.

On October 24, 2024, upon
the filing of the 2024 Audited Financial Statements as part of the Annual Report of the Company on Form 10-K filed with the SEC (the “2024
10-K”), any Earnout Shares that the Original Foxx Shareholders may be entitled to receive under the Vesting Schedule were automatically
forfeited, as the Company did not meet any of the vesting conditions for the fiscal year ended June 30, 2024 as provided in the Vesting
Schedule. The Earnout Shares in connection with the fiscal year ended June 30, 2025 were also forfeited automatically as the Company did
not meet any of the vesting conditions for the fiscal year ended June 30, 2025 as provided in the Vesting Schedule.

In
addition to the foregoing, pursuant to that certain amendment to the Underwriting Agreement, by and between EF Hutton LLC and ACAC, dated
February 20, 2024, 43,125 shares of our Common Stock were issued 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