Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 244

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 244
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    2025  
    2024  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Other expense 

    Interest expense 
    $(1,553,993) 
    $(77,573) 
    $1,476,420  
     1,903.3%
  
    Other income (expense), net 
     (2,118) 
     3,440  
     (5,558) 
     (161.6)%
  
    Change in fair value of earnout liabilities 
     1,032,267  
     -  
     1,032,267  
     100.0%
  
    Total other expense, net 
    $(523,844) 
    $(74,133) 
    $(449,711) 
     606.6%

Total other expense, net
increased by approximately $0.4 million, or 606.6%, to approximately $0.5 for the three months ended March 31, 2025, from approximately
$74,000 for the three months ended March 31, 2024. The increase was primarily due to the interest expenses incurred related to the financing
offered by our vendors based upon the timing of our 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