Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 456

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 456
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model simulates the underlying economic factors, including the projected revenue that influenced which of these events would occur, when
they were likely to occur, and the specific terms that would be in effect at the time (i.e., stock price, revenue, etc.). Probabilities
were assigned to each variable such as the timing and pricing of events over the term of the instruments based on management projections.
This led to a cash flow simulation over the life of the instrument. A discounted cash flow was completed to determine the value for the
earnout liabilities.

Prior
to the Business Combination, we were a private company and lacked company-specific historical and implied volatility information of its
stock, and as such, the expected revenue volatility was based on historical volatility of industry outlook and the expected revenue volatility
and stock volatility was based on the historical volatility of publicly traded peer companies for a term equal to the remaining expected
term of the earnout period.

ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As
a smaller reporting company, we are not required to make disclosures under this Item.

28

ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 

  INDEX OF FINANCIAL STATEMENTS             Report of CBIZ CPAs P.C., Independent Registered Public Accounting Firm (Firm ID: 199)   F-2         Report of Marcum LLP, Independent Registered Public Accounting Firm (Firm ID: 688)   F-3         Consolidated Balance Sheets as of June 30, 2025 and June 30, 2024   F-4         Consolidated Statements of Operations and Comprehensive Loss for the Years Ended June 30, 2025 and 2024    F-5         Consolidated Statements of Changes in Shareholders’ Deficit for the Years Ended June 30, 2025 and 2024   F-6         Consolidated Statements of Cash Flows for the Years Ended June 30, 2025 and 2024    F-7         Notes to Consolidated Financial Statements    F-8 

F-1

Report of Independent
Registered Public Accounting Firm

To the Stockholders and Board of Directors of

Foxx Development Holdings Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated
balance sheet of Foxx Development Holdings Inc. (the “