Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 74

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 74
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 payment to their accounts payable and offset by the change in fair value of earnout
liabilities in connection with the Business Combination.

Provision for income taxes

The provision for income
taxes was $0 and approximately $20,000 for the three months ended March 31, 2025 and 2024, decreased by $20,000 or 100.0% as we had made
full allowance of our deferred tax assets on net operating losses for the three months ended March 31, 2025. Foxx had provision for income
taxes of approximately $20,000 resulted from timing difference between calendar year on income tax return in 2022 and fiscal year of operation
of June 30, for which those operating losses incurred from January 2023 to June 2023 cannot be carried back. At the same time, we had
provided 100% allowance on its deferred tax assets on net operating losses for the three months ended March 31, 2024.

40

Net Loss

Net loss increased by approximately
$3.2 million, or 360.8%, to approximately $4.1 million for the three months ended March 31, 2025, from approximately $0.9 million
for the three months ended March 31, 2024. Such change was mainly due to the reasons discussed above.

Foreign Currency Translation Adjustment

Changes in foreign currency
translation adjustment of approximately $400 are mainly due to the fluctuation of foreign exchange rates between SGD (the functional currency
of our subsidiary) and the USD dollar (reporting currency) for the three months ended March 31, 2025.

Comparison for the nine months ended March
31, 2025 and 2024

    For the Nine Months Ended March 31, 

    2025  
     2024      
    Change  ($)  
    Change (%) 

    (Unaudited)  
     (Unaudited)  

    Revenues, net 
    $51,984,361  
    $1,346,663  
    $50,637,698  
     3,760.2%
  
    Cost of goods sold 
     48,732,206  
     1,286,762  
     47,445,444  
     3,687.2%
  
    Gross profit 
     3,252,155  
     59,