Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 238

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 238
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 of the lease was on July 1, 2025.

Reference
to Note 19 for detailed disclosure of other entered lease agreements and liabilities. 

Risks
and Uncertainties

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 November 10, 2025. The potential for further changes in trade policies, including new tariffs
or changes to existing ones, introduces uncertainty regarding the Company’s future costs, revenues, collectability of account receivables,
carrying value of inventories, and overall financial performance. The Company monitors these developments closely and will continue to
evaluate their potential impact on its operations, financial condition, and results of operations. The ultimate financial impact of these
uncertainties is difficult to quantify at this time.

F-31

Note 21
— Income taxes 

The
Company’s income tax expenses for years ended June 30, 2025 and 2024 are as follows: 

    For
    the Years Ended June 30, 

    2025  
    2024 
  
    Federal 

    Current 
    $40,254  
    $12,690 
  
    Deferred 
     —  
     — 
  
    State 

    Current 
     36,489  
     7,138 
  
    Deferred 
     —  
     — 
  
    Total
    provision for income taxes 
     76,743  
     19,828 

Income
tax expense for the years ended June 30, 2025 and 2024 varied from the amount computed by applying the statutory income tax rate to income
before taxes. Reconciliations between the expected federal income tax rates using 21% for the years ended June 30, 2025 and 2024 to the
Company’s effective tax rate are as follows:

    For
    the Years Ended  June 30,