Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 92

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 92
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 the underlying economic factors, including the projected revenue that influenced which of these events would occur, when they were likely to occur, and the specific terms that would be in effect at the time (i.e., stock price, revenue, etc.). Probabilities were assigned to each variable such as the timing and pricing of events over the term of the instruments based on management projections. This led to a cash flow simulation over the life of the instrument. A discounted cash flow was completed to determine the value for the earnout liabilities. Prior to the Business Combination, we were a private company and lacked company -specifichistorical and implied volatility information of its stock, and as such, the expected revenue volatility was based on historical volatility of industry outlook and the expected revenue volatility and stock volatility was based on the historical volatility of publicly traded peer companies for a term equal to the remaining expected term of the earnout period. 54 CORPORATE HISTORY AND STRUCTURE Foxx Development Holdings Inc., or the Company, was incorporated as a Delaware corporation under the name “Acri Capital Merger Sub I Inc.” on November 13, 2023, and merged with and into Acri Capital Acquisition Corporation, or ACAC, on September 26, 2024, upon which the Merger Sub changed its name to “Foxx Development Holdings Inc.” Foxx Development Inc., or Old Foxx, was incorporated as a Texas corporation on March 17, 2017 and merged with and into Acri Capital Merger Sub II Inc., or Merger Sub, on September 26, 2024, upon which the Merger Sub changed its name to “Foxx Development Inc.” (the “Operating Subsidiary”). The Company, together with the Operating Subsidiary, is a technology innovation company in the communications sector and operates in various locations across the United States. Foxx currently generates most of its revenue from the sales of tablets and smartphones to major carriers in the United States such as T -Mobile, AT&T, and Verizon. Foxx has been preparing to enter the U.S. IoT markets and launch more smartphones, tablets, wearables, and other high -qualitycommunication terminals, with the aim of growing into a key player both domestically and globally. The Business Combination was consummated on September 26, 2024. As a result of the Business Combination, Old Foxx became a wholly -ownedsubsidiary of the Company. On September 27, 2024, one business day after the Closing, the Common