Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 627

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 627
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 financing agreement, pursuant to which the Company is subject to interest of 1.5% per month, or 0.05% per day, on the unpaid
purchase amount, after forty-five (45) days from the date of shipment.

**These
balances were carried from ACAC, and payable by the Company, as a result on 1% excise tax on certain repurchases (including redemptions)
of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations
occurring on or after January 1, 2023 under the Inflation Reduction Act of 2022.

Note 11
— Contract liabilities

Contract
liabilities consist of customer deposits, which is recorded on the consolidated balance sheets when the Company has received consideration,
or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer.

The
following table presents the Company’s contract liabilities balances and changes therein:

    For
                                            the Years Ended  June
                                            30 

    2025  
    2024 
  
    Balance,
    beginning of the period 
    $649,450  
    $27 
  
    Add:
    net increase in current period contract liabilities 
     378  
     649,450 
  
    Less:
    revenue recognized from beginning contract liabilities 
     (649,450) 
     (27)
  
    Total
    contract liabilities 
    $378  
    $649,450 

Note 12
— Related party balances and transactions

Related
party balances

Amount
due from a related party

  Name of Related Party  Relationship  Nature  June 30, 2025   June 30, 2024   Azure Horizon LLC (“Azure”)  Owned by an immediate family member of the Company’s 10% or more shareholder  Paid on behalf fees  $   -   $140  

Prepaid
expenses to a related party

  Name of Related Party   Relationship   Nature   June 30, 2025     June 30, 2024                           Azure Horizon LLC (“Azure”)   Owned by an immediate family member of the Company’s 10% or more shareholder   Prepaid service fees   $ 8,000     $       -                              

F-22

Other
payable — related party

Other