Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 120

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 120
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    2025  
    2024 

    Selling expenses 
    $66,864  
    $- 
  
    General and administrative expenses 
     172,598  
     - 
  
    Research and development expenses 
     57,335  
     - 
  
    Total stock-based compensation expenses 
    $296,797  
    $- 

There was no restricted stock
unit granted for the three months ended September 30, 2024. The following table summarizes the activity for all restricted stock units
granted for the three months ended September 30, 2025:

     Shares   Weight average grant date fair value   Total 
fair value   Weighted average   remaining contractual term (in years)   Unvested at June 30, 2025   693,929   $7.21   $5,001,916    3.36   Granted   -   $-    -    -   Vested   -   $-    -    -   Forfeited   (9,574)  $7.30    (69,891)   -   Unvested at September 30, 2025   684,355   $7.21   $4,932,025    3.11  

21

As of September 30, 2025,
there was $3,819,550 total unrecognized compensation cost related to unvested RSUs granted under the employee incentive plan. The total
cost is expected to be recognized over a remaining period of 3.11 years. 

Earnout Shares

As described in Note 4 -
Reverse recapitalization, the Earnout Shares that are contingently issuable in connection with the Business Combination are subject to
vesting based on the Company’s financial performance during the earnout period. The entitlement of the first batch of the 2,100,000
earnout shares to the Old Foxx Shareholders were forfeited in October 2024 because the Company did not meet the earnout requirements for
the fiscal year ended June 30, 2024 vesting schedule. These 2,100,000 earnout shares are not included or contributing to the value of
the earnout liabilities. The entitlement of the second batch of the 2,100,000