Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 492

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 492
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2024, other payables and accrued liabilities consist of the following:

    June
    30,  2025  
    June 30,
     2024 

    Payroll
    and payable tax payable 
    $174,684  
    $50,554 
  
    Interest
    payable* 
     2,309,106  
     267,945 
  
    Professional
    fee payable 
     168,186  
     59,473 
  
    Accrued
    warranty expenses 
     328,438  
     48,361 
  
    Excise
    tax payable** 
     556,620  
     - 
  
    Others 
     33,925  
     41,892 
  
    Total
    other payables and accrued liabilities 
    $3,570,959  
    $468,225 

*On April 9, 2024, the Company and a vendor entered into a
purchase and financing agreement, pursuant to which the Company is subject to interest of 1.5% per month, or 0.05% per day, on the unpaid
purchase amount, after forty-five (45) days from the date of shipment.

**These
balances were carried from ACAC, and payable by the Company, as a result on 1% excise tax on certain repurchases (including redemptions)
of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations
occurring on or after January 1, 2023 under the Inflation Reduction Act of 2022.

Note 11
— Contract liabilities

Contract
liabilities consist of customer deposits, which is recorded on the consolidated balance sheets when the Company has received consideration,
or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer.

The
following table presents the Company’s contract liabilities balances and changes therein:

    For
                                            the Years Ended  June
                                            30 

    2025  
    2024 
  
    Balance,
    beginning of the period 
    $649,450  
    $27 
  
    Add:
    net increase in current period contract liabilities 
     378  
     649,450 
  
    Less:
    revenue recognized from beginning contract liabilities 
     (649,450) 
     (27