Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1010

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 5
Chunk 1010
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The
cost and related accumulated depreciation and amortization of assets sold or otherwise retired are eliminated from the accounts and any
gain or loss is included in the statements of operations. Expenditures for maintenance and repairs are charged to earnings as incurred,
while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also
re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful
lives.

Long-lived assets

The
Company reviews the impairment of its long-lived assets on an annual basis and whenever events or changes in circumstances indicate that
the carrying amount of an asset or group of assets may not be fully recoverable. These events or changes in circumstances may include
but are not limited to, a significant deterioration of operating results, a change in the regulatory environment, changes in business
plans, or adverse changes in anticipated future cash flows. If an impairment indicator is present, the Company evaluates the recoverability
by a comparison of the carrying amount of the assets to future undiscounted net cash flows expected to result from the use and eventual
disposition of the assets. If the assets are determined to be impaired, the impairment recognized is the excess of the carrying amount
over the fair value of the assets. Fair value is generally determined by the discounted cash flow method. The discount rate used in any
estimate of discounted cash flows is the rate commensurate with a similar investment of similar risk. As of June 30, 2025 and 2024,
there was no impairment of long-lived assets.

F-11

Deferred
transaction costs

The
Company complies with the requirements of Financial Accounting Standards Board (“FASB”) ASC 340-10-S99-1, “Other
Assets and Deferred Costs — SEC Materials” (“ASC 340-10-S99”) and SEC Staff Accounting Bulletin
Topic 5A, “Expenses of Offering”. Deferred transaction costs consist of underwriting, legal, accounting, and
other professional expenses incurred through the balance sheet date that are directly related to the Business Combination and that will
be charged to shareholders’ equity (deficit) upon the completion of the Business Combination. The Company completed the Business
Combination on September 26, 2024. As of September 26, 2024, and the Company had deferred transaction costs of $893,577 and charged against
shareholders’ deficit (See Note