Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 89

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 89
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 those charged with governance with respect to complete and accurate finance reporting;

-lack
of appropriate controls surrounding authorized signor access for bank accounts; and

-inappropriate
implementation of controls over the identification of related party transactions.

Changes in Internal Control Over Financial
Reporting

There were no changes in
our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during
the fiscal quarter covered by this report that has materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

49

PART II - OTHER INFORMATION

Item 1. Legal Proceedings 

From time to time, we may
be subject to legal proceedings and claims in the ordinary course of business. Currently, we are not a party to any material legal proceedings
or subject to any material claims. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome,
litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

On November 22, 2024, Ximena
Semensato (the “Plaintiff”) filed Semensato v. Foxx Development Holdings Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class
action complaint (the “Complaint”) in Delaware Chancery Court (the “Court”) against the Company and certain “Individual
Defendants” (“Joy” Yi Hua, Haitao Cui, “Jeff” Feng Jiang, “Eva” Yiqing Miao and Edmund R. Miller)
(the “Action”). The Action seeks declaratory relief under provisions of the Delaware General Corporation Law relating to a
waiver of the corporate opportunity doctrine that is contained in the Company’s Amended and Restated Certificate of Incorporation.
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 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