Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1306

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 1306
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, 2026 and ended August 31,
2029. The Company considered this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized
lease expense on a straight-line basis over the lease term for operating lease.

In
June 2024, the Company signed a six years and 11.5 months lease agreement to rent a general office for business operation with a monthly
rent of $3,500, plus varied monthly CAM. The commencement date of this lease is June 15, 2024 and the expiration date is May 31,
2031. The Company considered this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized
lease expense on a straight-line basis over the lease term for operating lease. 

On
July 17, 2024, the Company signed a five-year and one-half month lease agreement to rent a general office and storage space for business
operation with a monthly rent of $10,534, plus varied monthly CAM. The commencement date of this lease is August 15, 2024 and has
no renewal option. The Company considered this lease as an operating lease and recognized right-of-use asset and lease liability. The
Company recognized lease expense on a straight-line basis over the lease term for 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