Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1522

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 8
Chunk 1522
---
 waiver of the corporate opportunity
doctrine that is contained in the Company’s Amended and Restated Certificate of Incorporation. The plaintiff seeks a declaration
that the waiver provision is invalid, an injunction against the Company and the Individual Defendants to prevent them from attempting
to enforce the waiver, attorneys’ fees, and the costs and disbursements of this action. The Company and each of the Individual
Defendants deny any and all wrongdoing alleged in the Complaint. However, to avoid the cost and distraction of litigation, the directors
of the board of the Company (the “Board”) determined that it was advisable and in the best interests of the Company and its
stockholders to amend Article X of the Charter (the “Amendment”). The Board thus approved and adopted the Second Amended
and Restated Certificate of Incorporation of the Company (the “Amended Charter”), and will direct the Amendment to be submitted
to the stockholders of the Company for adoption and approval at the next annual meeting of stockholders with the Board’s recommendation
that the Amendment be approved and adopted by the stockholders of the Company. 

On
March 3, 2025, after the plaintiff was advised of the Board’s approval of the Amended Charter, the plaintiff filed a notice of
voluntary dismissal of the Action as moot, which the Court approved by order dated March 4, 2025. Believing that the swift resolution
of this Action was in the best interests of and benefit to the Company, and without admitting the allegations the plaintiff made in the
Complaint, the Company has agreed to pay $85,000 (the “Mootness Fee,” inclusive of a $500 service award to the plaintiff)
to the plaintiff’s counsel to resolve the anticipated application by the plaintiff’s counsel for an award of attorneys’
fees and reimbursement of expenses. The fee was paid by the Company on March 18, 2025. In connection with the March 13, 2025 stipulated
order closing the case, the Court ordered that the Company provide this notice. The Court has not and will not pass judgment on the amount
of the Mootness Fee.

Lease
Commitment

On
July 12, 2024, the Company signed a seven-year lease agreement to rent a manufacturing plant for business operation with a monthly rent
of $65,745, plus varied monthly CAM, for 50,573 square feet. The commencement date of this lease is February 1,