Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 206

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 206
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 ended June 30, 2024 and 2023 and incurred approximately $0.8 million and $1.2 million allowance on deferred tax asset, respectively. The Company’s NOL is limited to 80% of the excess of taxable income on federal level, same apply to the state of Georgia, with no limitation to the state of California. Both Company’s federal and the state of Georgia NOLs will last indefinitely. The state of California NOLs can be carried for 20 years. The valuation allowance increased by approximately $0.8 million from approximately $1.2 million on June 30, 2023 to approximately $2.0 million on June 30, 2024. The Company’s ability to use its federal net operating carryforward may be limited if the Company experiences an “ownership change” as defined in Section 382 (“Section 382”) of the Internal Revenue Code of 1986, as amended. As of June 30, 2024 and 2023, the Company has not performed any Section 382 study.

F-51

FOXX DEVELOPMENT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 19 — Income taxes (cont.) The Company’s deferred tax accounts are comprised of the following as of:

|                                        |     |   |   June 30, 
       2024 |   |     |   |   June 30, 
       2023 |   |
|:---------------------------------------|:----|:--|-----------:|:--|:----|:--|-----------:|:--|
| Deferred tax assets                    |     |   |            |   |     |   |            |   |
| Net operating loss                     |     |   |            |   |     |   |            |   |
| Federal                                |     | $ |  1,758,686 |   |     |   |  1,086,843 |   |
| State                                  |     |   |    212,385 |   |     |   |     34,863 |   |
| Capitalized R&D expense                |     |   |     70,451 |   |     |   |     55,540 |   |
| Accrued warranty expense               |     |   |      7,382 |   |     |   |          — |   |
| Lease liabilities                      |     |   |    109,903 |   |     |