Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 776

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 3
Chunk 776
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 operating lease. 

On
July 12, 2024, the Company signed and further amended a ten-year lease agreement to rent a 101,145 square feet factory and 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 4.07%.

As
of June 30, 2025 and 2024, the weighted-average remaining operating lease term of its existing leases is approximately 4.51 year and
5.68 year.

The
following table sets forth the Company’s minimum long-term lease   payments in future periods as of June 30, 2025, which
represents the operating lease liabilities on the accompanying balance sheet:

    Operating lease
    payments  
  
    For
    the twelve months ending June 30, 2026 
    $251,566 
  
    For
    the twelve months ending June 30, 2027 
     260,287 
  
    For
    the twelve months ending June 30, 2028 
     270,941 
  
    For
    the twelve months ending June 30, 2029 
     283,141 
  
    For
    the twelve months ending June 30, 2030 
     92,377 
  
    Thereafter 
     50,437 
  
    Total
    lease payments 
     1,208,749 
  
    Less:
    discount 
     (107,397)
  
    Present
    value of operating lease liabilities 
     1,101,352 
  
    Operating
    lease liabilities, current portion 
     (211,525)
  
    Operating
    lease liabilities, non-current portion 
    $889,827 

Operating
lease expenses consist of the following:

    Operating
    lease cost 
    Classification 
    For
    the  Year Ended June 30, 2025  
    For
    the  Year Ended June 30, 2024 

    Lease