Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 25

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 25
---
 requires
PBEs to disclose selling expenses on an annual and interim basis. If interim financial statements are condensed and, therefore, the expense
captions presented on the face of the income statements differ from interim to annual periods, there could be different expense captions
in interim and annual reporting periods. The ASU does not change the expense captions an entity presents on the face of the income statement;
rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial
statements. The effective date for PBEs is for annual reporting periods beginning after December 15, 2026 and interim reporting periods
beginning after December 15, 2027. Early adoption is permitted. The Company continuously evaluates the potential impact of adopting this
new guidance on the unaudited condensed consolidated financial statements and related disclosures and does not believe it will have a
material impact on the presentation of the unaudited condensed consolidated financial statements.

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:

(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 stockholders, 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 14), 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