Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 205

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 205
---
 determined that the accounting impact of this lease is immaterial to the Company’s consolidated financial statements for the year ended June 30, 2024 and no operating right -of -useassets and lease liabilities were capitalized as June 30, 2024. On September 18, 2023, the Company entered a month -to -monthrental agreement to rent as dorm for the employee with a monthly rent of $3,000. The Company determined that the accounting impact of this lease is immaterial to the Company’s consolidated financial statements for the year ended June 30, 2024 and no operating right -of -useassets and lease liabilities were capitalized as June 30, 2024. In September 2023, the Company signed a three -yearlease agreement to rent a general office and storage space for business operation with a monthly rent of $3,096, plus varied monthly CAM. The commencement date of this lease is October 1, 2023 and has no renewal option. The Company considered this lease as an operating lease and recognized right -of -useasset and lease liability. The Company recognized lease expense on a straight -linebasis over the lease term for operating lease. On July 17, 2024, the Company extended the lease for another 35 months to be commenced on October 1, 2026 and ended August 31, 2029. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using incremental borrowing rate as the effective interest rate, with a weighted average rate of 4.34%. As of June 30, 2024, the weighted -averageremaining operating lease term of its existing leases is approximately 5.68 year. The following table sets forth the Company’s minimum lease payments in future periods as of June 30, 2024:

|                                                  |     | Operating lease 
 payments        |         |   |
|:-------------------------------------------------|:----|:----------------|--------:|:--|
| For the year ending June 30, 2024                |     | $               |  88,417 |   |
| For the year ending June 30, 2025                |     |                 |  95,854 |   |
| For the year ending June 30, 2026                |     |                 |  65,601 |   |
| For the year ending June 30,