Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1039

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 5
Chunk 1039
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— Fair value measurement 

The
Company did not have any assets or liabilities measured at fair value on a recurring basis as of June 30, 2024. The following table
provides information related to the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30,
2025 and September 26, 2024 (issuance date): 

    June 30,
    2025
     
    Carrying
    Value

    Quoted
    Prices in
    Active
    Markets
    (Level 1)

    Significant
    Other
    Observable
    Inputs 
    (Level 2)

    Significant
    
    Other
    Unobservable
    Inputs 
    (Level 3)

    Liabilities:

    Earnout liabilities
     
    $
         -

    $
                   -

    $
                   -

    $
       -

    Total
     
    $
            -

    $
          -

    $
          -

    $
         -

    September
    26, 2024 (issuance date)
     
    Carrying
    Value

    Quoted
    Prices in
    Active
    Markets
    (Level 1)

    Significant
    Other
    Observable
    Inputs 
    (Level 2)

    Significant
    
    Other
    Unobservable
    Inputs 
    (Level 3)

    Liabilities:

    Earnout liabilities
     
    $
    5,688,007

    $
                   -

    $
                   -

    $
    5,688,007

    Total
     
    $
    5,688,007

    $
    -

    $
    -

    $
    5,688,007

The
earnouts based on revenue have been classified within Level 3 of the hierarchy as the fair value is derived using a Monte Carlo simulation
analysis in a risk neutral framework, which uses a combination of observable (Level 2) and unobservable (Level 3) inputs. Key estimates
and assumptions impacting the fair value measurement include the Company’s revenue forecasts as well as the assumptions listed
in tables below. The fair value measurement associated with the earnout liability is highly sensitive to changes in stock price and forecasted
amounts for revenue through June 30, 2025. Any changes