Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 567

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 567
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symbols “FOXX” and “FOXXW,” respectively.

Together
with our Subsidiary, we are a technology innovation firm specializing in the communications sector. Since our establishment in 2017,
we have expanded our presence to include various locations throughout the United States, such as San Francisco, CA, Dallas, TX,
Atlanta, GA, Los Angeles, CA, Miami, FL, and New York, NY. This expansion enables us to provide sales, retail, distribution,
and after-sales support services while simultaneously driving innovation through active research and development efforts aimed at pioneering
new customization standards and services.

Our business model involves
providing comprehensive hardware and software specifications to original design manufacturers. Once the products are developed, we engage
with third-party agencies to secure necessary testing and certifications, including Equipment Authorizations from the FCC and certifications
from the Global Mobile Suppliers Association. We currently offer a range of Foxx-branded products, including tablets, smartphones, wearables,
and expects to launch other high-quality communication terminals. Our products are generally priced competitively after considering various
factors such as product costs, research and development investments, regulatory compliance, testing expenses, and shipping costs. Our
customers are primarily distributors who sell Foxx-branded products in the U.S. public channels and to major carriers in the United States
such as T-Mobile, AT&T, and Verizon. Our customers also included individual E-Commerce customers from TikTok 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