Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 40

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 40
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6 (See
Note 18).

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 5.43%.

As of September 30, 2025
and June 30, 2025, the weighted-average remaining operating lease term of its existing leases is approximately 9.88 years and 4.51 years, respectively.

The following table sets
forth the Company’s minimum long-term lease   payments in future periods as of September 30, 2025, which represents the
operating lease liabilities on the accompanying balance sheet:

    Operating lease payments 
  
    For the nine months ending June 30, 2026 
    $1,643,263 
  
    For the twelve months ending June 30, 2027 
     2,526,270 
  
    For the twelve months ending June 30, 2028 
     2,627,563 
  
    For the twelve months ending June 30, 2029 
     2,734,028 
  
    For the twelve months ending June 30, 2030 
     2,641,300 
  
    Thereafter 
     16,021,056 
  
    Total lease payments 
     28,193,480 
  
    Less: discount 
     (6,831,369)
  
    Present value of operating lease liabilities 
     21,362,111 
  
    Operating lease liabilities, current portion 
     (1,148,518)
  
    Operating lease liabilities, non-current portion 
    $20,213,593 

Operating lease expenses
consist of the following:

    Operating lease cost 
    Classification 
    For the  Three Months Ended September 30, 2025  
    For the  Three Months Ended September 30, 2024 

    (Unaudited)  
    (Unaudited) 
  
    Lease expenses 
    General, and administrative 
    $725,132  
    $51,384 
  
    Lease expenses – short term 
    General, and administrative 
     3,630  
     4,350 
  
    Total operating lease cost 
      
    $728,762  
    $55,734 

For the three months ended