Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 645

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 645
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ertainties is difficult to quantify at this time.

F-31

Note 21
— Income taxes 

The
Company’s income tax expenses for years ended June 30, 2025 and 2024 are as follows: 

    For
    the Years Ended June 30, 

    2025  
    2024 
  
    Federal 

    Current 
    $40,254  
    $12,690 
  
    Deferred 
     —  
     — 
  
    State 

    Current 
     36,489  
     7,138 
  
    Deferred 
     —  
     — 
  
    Total
    provision for income taxes 
     76,743  
     19,828 

Income
tax expense for the years ended June 30, 2025 and 2024 varied from the amount computed by applying the statutory income tax rate to income
before taxes. Reconciliations between the expected federal income tax rates using 21% for the years ended June 30, 2025 and 2024 to the
Company’s effective tax rate are as follows:

    For
    the Years Ended  June 30, 

    2025  
    2024 

    Federal statutory
    tax rate 
     21.0% 
     21.0%
  
    State statutory tax rate,
    net of deduction on federal tax return 
     (0.1)% 
     4.2%
  
    Permanent difference 
     (13.5)% 
     (1.7)%
  
    Others 
     (1.1)% 
     0.9%
  
    Change
    in valuation allowance 
     (7.2)% 
     (25.0)%
  
    Effective
    tax rate 
     (0.9)% 
     (0.6)%

The
Company had a cumulative net operating loss carryforward (“NOL”) for federal, state and foreign income tax purpose of approximately
$7.5 million, $2.7 million, and $0.1 million, respectively, as of June 30, 2025. The Company elected 100% allowance on deferred
tax asset for the years ended June 30, 2025 and 2024 and incurred approximately $0.7 million and $0.8