Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 42

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 42
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 lease agreement to rent a general office for business operation with a monthly rent of $3,500, plus
varied monthly CAM. The commencement date of this lease is June 15, 2024 and the expiration date is May 31, 2031. The Company considered
this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized lease expense on a straight-line
basis over the lease term for operating lease. 

On July 17, 2024, the Company
signed a five-year and one-half month lease agreement to rent a general office and storage space for business operation with a monthly
rent of $10,534, plus varied monthly CAM. The commencement date of this lease is August 15, 2024 and has no renewal option. The Company
considered this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized lease expense
on a straight-line basis over the lease term for operating lease. 

On July 12, 2024, the Company
signed and further amended a ten-year lease agreement to rent a 101,145 square feet warehouse for business operation, which will be commenced
on July 1, 2025. On December 20, 2024, the Company further expanded the existing lease to include additional 102,099 square feet with
a commencement date of January 1, 2026 (See Note 20 for details).

The ROU assets and lease
liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using
incremental borrowing rate as the effective interest rate, with a weighted average rate of 4.06%.

As of December 31, 2024 and
June 30, 2024, the weighted-average remaining operating lease term of its existing leases is approximately 5.00 year and 5.68 year.

25

The
following table sets forth the Company’s minimum long-term lease   payments
in future periods as of December 31, 2024, which represents
the operating lease liabilities on the accompanying balance sheet:

    Operating lease payments 
  
    For the six months ending June 30, 2025 
    $121,043 
  
    For the twelve months ending June 30, 2026 
     251,566 
  
    For the twelve months ending June 30, 2027 
     260,