Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 66

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 66
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2024  
    2023  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Other income (expense) 

    Interest expense 
    $(1,042,198) 
    $(52,869) 
    $(989,329) 
     1,871.3%
  
    Other income (expense), net 
     1,861  
     (4,560) 
     6,421  
     (140.8)%
  
    Change in fair value of earnout liabilities 
     4,705,583  
     -  
     4,705,583  
     100.0%
  
    Total other income (expense), net 
    $3,665,246  
    $(57,429) 
    $3,722,675  
     (6,482.2)%

Total other income (expense),
net increased by approximately $3.7 million, or 6,482.2%, to approximately $3.7 million other income for the three months ended December
31, 2024, from approximately $57,000 other expense for the three months ended December 31, 2023. The increase was primarily due to the
change in fair value of earnout liabilities in connection with the Business Combination and offset by the interest expenses incurred related
to the financing offered by one of our vendors based upon the timing of our payment to their accounts payable.

Provision for income taxes

The provision for income
taxes is $0 for each of the three months ended December 31, 2024 and 2023 as we had made full allowance of our deferred tax assets on
net operating losses.

Net Income (Loss)

Net income (loss) decreased
by approximately $2.0 million, or 322.3%, to approximately $1.4 million of net income for the three months ended December 31, 2024,
from approximately $0.6 million of net loss for the three months ended December 31, 2023. Such change was mainly due to the reasons discussed
above.

38

Comparison for the six months ended December
31, 2024 and 2023

    For the Six Months Ended December 31, 

    2024  
    2023  
    Change ($)  
    Change (%)