Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 163

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 163
---
 and development expenses-related party 
     22,792  
     45,584  
     91,168  
     45,584 
  
    Stock-based compensation expenses 
     326,588  
     -  
     527,542  
     - 
  
    Other segment items: 

    Interest expense 
     1,553,993  
     77,573  
     3,005,186  
     169,778 
  
    Other expense (income), net 
     2,118  
     (3,440) 
     257  
     (2,995)
  
    Change in fair value of earnout liabilities 
     (1,032,267) 
     -  
     (5,687,989) 
     - 
  
    Provision for income taxes 
     -  
     19,828  
     -  
     19,828 
  
    Segment net loss 
    $(4,084,511) 
    $(886,570) 
    $(4,927,154) 
    $(2,074,011)

Note 25 — Subsequent events

The Company evaluated all
events and transactions that occurred after March 31, 2025 up through the date the Company issued these unaudited condensed consolidated
financial statements.

On April 2, 2025, President
Trump signed the Executive Order, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and
Persistent Annual United States Goods Trade Deficits (“the April 2 EO”), to take action based on the results of certain investigations
related to the causes of the U.S.’s large and persistent annual trade deficits in goods. Subsequent to the April 2 EO, there have
been additional Executive Orders that have, among other actions, effectively suspended the enforcement of certain country-specific tariffs
until July 9, 2025, for all trading partners except for the People’s Republic of China (“PRC”), for which a separate
Executive Order was issued on May 12, 2025 that, among other things, lowered reciprocal tariff rates for PRC imports from 125% to 10%
for a period of 90 days. The Company is currently assessing the potential impact of these actions, however it is reasonably possible
that the impact of these tariffs will result in a