Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 853

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 853
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 ended June 30, 

    2025  
    2024  
    Change  
    Change
    (%) 

    Other income
    (expense) 

    Interest
    expense 
    $(4,959,055) 
    $(278,328) 
    $(4,680,727) 
     1,681.7%
  
    Other
    income (expense), net 
     25,589  
     (4,016) 
     29,605  
     (737.2)%
  
    Change
    in fair value of earnout liabilities 
     5,688,007  
     -  
     5,688,007  
     100.0%
  
    Total
    other income (expense), net 
    $754,541  
    $(282,344) 
    $1,036,885  
     (367.2)%

Total
other income (expense), net increased by approximately $1.0 million, or 367.2%, to approximately $0.8 million of other income for the
year ended June 30, 2025, from approximately $0.3 million of other expenses for the year ended June 30, 2024. The increase was primarily
due to approximately $5.7 million of the change in fair value of earnout liabilities in connection with the Business Combination and
offset by the increase in interest expenses of approximately $4.7 million incurred related to the financing offered by our vendors based
upon the timing of our payment to their accounts payable.

Provision
for Income Taxes

The
provision for income taxes was approximately $77,000 and $20,000 for the years ended June 30, 2025 and 2024, respectively, which
increased by $57,000 or 287.0% as we had non-deductible change in fair value of earnout liabilities of approximately 5.7 million and
capitalized R&D expenses of approximately $2.1 million during the year ended June 30, 2025.

Net
Loss

Net
loss increased by approximately $5.6 million, or 162.9%, to approximately $9.0 million for the year ended June 30, 2025, from approximately
$3.4 million for the year ended June 30, 2024. Such change was mainly