Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1525

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 8
Chunk 1525
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 to 80% of the excess of taxable income on federal level, and no limitation
on the state level. The Company’s federal NOL and state NOL of approximately $1.4 million will last indefinitely. The
state NOL of approximately $1.2 million can be carried for 20 years. The valuation allowance increased by approximately $0.7 million from
approximately $2.0 million on June 30, 2024 to approximately $2.7 million on June 30, 2025.

The
utilization of the Company’s net operating losses may be subject to a U.S. federal limitation due to the “change in ownership
provisions” under Section 382 of the Internal Revenue Code and other similar limitations in various state jurisdictions. Such limitations
may result in a reduction of the amount of net operating loss carryforwards in future years and possibly the expiration of certain net
operating loss carryforwards before their utilization.  

The
Company’s deferred tax accounts are comprised of the following as of:

    June
                                            30,
                                                                  2025  
    June
    30,
    2024 
  
    Deferred
    tax assets 

    Net operating
    loss 
    $1,721,161  
    $1,971,071 
  
    Capitalized R&D expense 
     516,994  
     70,451 
  
    Accrued warranty expense 
     70,385  
     7,382 
  
    Lease liabilities 
     236,020  
     109,903 
  
    Allowance for credit losses 
     195,696  
     - 
  
    Stock-based compensation expenses 
     166,847  
     - 
  
    Less:  valuation
    allowance 
     (2,678,143) 
     (2,034,319)
  
    Total deferred tax assets 
     228,960  
     124,488 

    Deferred
    tax liabilities: 

    Depreciation of property and
    equipment 
    $(1,066) 
    $(14,371)
  
    Right of use assets 
     (227,894) 
     (110,117)
  
    Total deferred tax liability 
     (228,960) 
     (124,488)
  
    Total deferred tax accounts,
    net 
    $-