Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 237

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 237
---
’s approval of the Amended Charter, the plaintiff filed a notice of
voluntary dismissal of the Action as moot, which the Court approved by order dated March 4, 2025. Believing that the swift resolution
of this Action was in the best interests of and benefit to the Company, and without admitting the allegations the plaintiff made in the
Complaint, the Company has agreed to pay $85,000 (the “Mootness Fee,” inclusive of a $500 service award to the plaintiff)
to the plaintiff’s counsel to resolve the anticipated application by the plaintiff’s counsel for an award of attorneys’
fees and reimbursement of expenses. The fee was paid by the Company on March 18, 2025. In connection with the March 13, 2025 stipulated
order closing the case, the Court ordered that the Company provide this notice. The Court has not and will not pass judgment on the amount
of the Mootness Fee.

Lease
Commitment

On
July 12, 2024, the Company signed a seven-year lease agreement to rent a manufacturing plant for business operation with a monthly rent
of $65,745, plus varied monthly CAM, for 50,573 square feet. The commencement date of this lease is February 1, 2025 and the termination
date is January 31, 2032. On August 9, 2024, the Company expanded the existing lease to include additional 50,572 square feet from April
1, 2025 to January 31, 2032 with an additional monthly rent of $65,744. These two first-month rents were included in prepaid expenses
and other current assets. On December 20, 2024, the Company revised the commencement date to July 1, 2025 and termination date to December
31, 2035, and further expanded the existing lease to include additional 102,099 square feet from January 1, 2026 to December 31, 2035
with an additional monthly rent of $132,729, which was included in prepaid expenses and other current assets. Additional $550,000 of
security deposits were made as a result of this lease amendment, which was included in the caption “security deposits” in
the accompanying consolidated balance sheets as of June 30, 2025. These leases were not included in the operating right-of-use assets
balance as of June 30, 2025 as the commencement date