Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 25

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 25
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 issuance of Common Stock upon the Reverse Recapitalization 
    $(2,100,638)

The shares and corresponding
capital amounts and all per share data related to Old Foxx’s outstanding common stock prior to the Reverse Recapitalization have
been retroactively adjusted using the Exchange Ratio of 3.3033.

14

Note 5 — Accounts receivable,
net

As of September 30, 2025
and June 30, 2025, accounts receivable consist of the following:

    September 30,
 2025  
    June 30,  2025 

    Accounts receivable 
    $13,404,239  
    $7,382,699 
  
    Less: allowance for credit losses 
     (635,895) 
     (595,907)
  
    Accounts receivable, net 
    $12,768,345  
    $6,786,792 

For the three months ended
September 30, 2025 and 2024, the Company recognized $39,988 and $0 on provision for allowance on credit losses, respectively.

Movement of allowance for
credit losses consisted of the following for the periods ended indicated:

    For the Three Months Ended September 30,

    2025

    2024

    Balance as of the beginning of the period
     
    $
    595,907

    $
    -

    Addition

    39,988

    -

    Balance as of the end of the period
     
    $
    635,895

    $
               -

Note 6 — Inventories

As of September 30, 2025
and June 30, 2025, inventories consist of the following:

    September 30,  2025  
    June 30,  2025 

    Finished goods 
    $11,456,708  
    $12,686,739 
  
    Total inventories 
    $11,456,708  
    $12,686,739 

For the three months ended September 30, 2025 and 2024, the impairment
for inventories amounted to $484,315 and $0, respectively.

Note 7 — Contract assets

The following table presents
the Company’s contract assets balances