Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 73

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1
Chunk 73
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 asset group and include the associated lease payments
in the undiscounted future pre-tax cash flows. For the years ended June 30, 2025 and 2024, the Company did not recognize impairment loss
against its right-of-use assets.

For
a lease with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset
not to recognize lease assets and lease liability. For the lease that with lease term of one year or shorter, the Company has elected
to not recognize right-of-use asset and lease liability.

Income
taxes

The
Company accounts for income taxes in accordance with FASB ASC Topic 740, “Income Taxes”. Under the asset and liability
method as required by this accounting standard, deferred income tax assets and liabilities are recognized for the expected future tax
consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision
for income taxes consists of taxes currently due plus deferred taxes.

The
charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It
is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred
taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of assessable
tax. Deferred tax liabilities are recognized for all future taxable temporary differences. Deferred tax assets are recognized to the
extent that it is probable that taxable income will be available against which deductible temporary differences can be utilized. Deferred
tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled.

F-15

Deferred
taxes are charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Net
deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some
portion or all of the net deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws
of the relevant taxing authorities.

An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to