Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 433

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 433
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Tok Shop, which we began
our E-Commerce operations in March 2024. We also provide an App Service by installing applications from App developer partners onto its
mobile devices and facilitating the distribution of these devices to end users.

We
have generated most of our revenue from the sales of tablets and smartphones. We expect to enter the U.S. IoT markets and potentially
the private label Mobile Virtual Network Operator (“MVNO”) market, with the aim of growing into a key player both domestically
and globally. We have been preparing to enter these markets by adding additional features and providing related services that enable
Foxx-branded devices to have IoT and MVNO capabilities.

We
manage inventory and meet market demand through our build-to-order business model. After customers place purchase orders in bulks with
us, we place purchase orders with suppliers to manufacture the products that meet customers’ products specifications and budget
requirements. Prior to 2023, we have relied on limited suppliers for the manufacturing of mobile phone and tablet products and on limited
customers for the distribution of these products. We selectively concentrated our resources on our tablet and mobile phone products because
such products held the strongest market potential and revenue generation capability at the time when remote work and online classes became
more prevalent.

18

Beginning
in 2023, we adjusted our business strategy to avoid reliance on limited suppliers and customers and to diversify suppliers and customers
to mitigate the concentration and reliance risk. We have added new product models across each product line to target a broader range
of customers. As of the date hereof, we have reached out to a total of eighteen wholesale customers to expand our operations in the market
and expects to secure purchase orders from these new customers. At the same time, to meet the various product demands of current and
prospective customers, we have connected with suppliers who can provide manufacturing support when we secure purchase orders from our
customers. In addition, we plan to further expand our product offerings and to launch an IoT platform to manage all end-products sold,
and began setting up a service team for our business to business (B2B) model in the artificial IoT department. Through the efforts of
expanding product offerings and reaching to broader customer base, we will be able to move away from relying on limited customers and
suppliers. 

In
addition, on February 8, 2024, the U.S. Federal Communication Commission stopped accepting new enrollment in the Affordable
Connectivity Program (ACP) and