Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 36

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 36
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 C (see Note 4).

As of March 31, 2025 and
June 30, 2024, the fair and carrying value of the Notes were $0 and $6,000,000, respectively, net of $0 unamortized premium, discount,
or issuance costs; and accrued interest related to the Notes were $0 and $267,945 as of March 31, 2025 and June 30, 2024, respectively.

Note 15 — Long-term loan

In February 2023, the Company purchased and financed a vehicle,
for which the lender put a lien on the title and will be taken as collateral in the situation if the Company is unable to make repayment
and default on the loan, with a six-year loan for a total of approximately $137,000. As of March 31, 2025, the carrying value of the asset
that has been pledged as a collateral is $78,502. The monthly payments are $2,694 from March 2023 to February 2029, with an
interest rate of 11.85% per annum.

The obligation is payable
as follows:

    Twelve months ended March 31, 
    Amount 
  
    2026 
    $21,375 
  
    2027 
     24,094 
  
    2028 
     27,159 
  
    Thereafter 
     27,920 
  
    Total long-term debt payment 
     100,548 
  
    Current portion of long-term debt 
     (21,375)
  
    Long-term debt – non-current portion 
    $79,173 

Interest expense for the
three months ended March 31, 2025 and 2024 for the above loan amounted to $3,125 and $3,684, respectively. Interest expense for the
nine months ended March 31, 2025 and 2024 for the above loan amounted to $9,809 and $11,438, respectively.

20

Note 16 — Shareholders’
deficit

Common Stock 

As of March 31, 2025 and
June 30, 2024, the Company has 50,000,000 authorized shares of common stock, par value $0.0001 per share. As of March 31, 2025 and
June 30, 2024, there are 6