Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1118

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 6
Chunk 1118
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    other income (expense), net 
    $754,541  
    $(282,344) 
    $1,036,885  
     (367.2)%

Total
other income (expense), net increased by approximately $1.0 million, or 367.2%, to approximately $0.8 million of other income for the
year ended June 30, 2025, from approximately $0.3 million of other expenses for the year ended June 30, 2024. The increase was primarily
due to approximately $5.7 million of the change in fair value of earnout liabilities in connection with the Business Combination and
offset by the increase in interest expenses of approximately $4.7 million incurred related to the financing offered by our vendors based
upon the timing of our payment to their accounts payable.

Provision
for Income Taxes

The
provision for income taxes was approximately $77,000 and $20,000 for the years ended June 30, 2025 and 2024, respectively, which
increased by $57,000 or 287.0% as we had non-deductible change in fair value of earnout liabilities of approximately 5.7 million and
capitalized R&D expenses of approximately $2.1 million during the year ended June 30, 2025.

Net
Loss

Net
loss increased by approximately $5.6 million, or 162.9%, to approximately $9.0 million for the year ended June 30, 2025, from approximately
$3.4 million for the year ended June 30, 2024. Such change was mainly due to the reasons discussed above.

Foreign
Currency Translation Adjustment

Changes
in foreign currency translation adjustment of approximately $5,000 are mainly due to the fluctuation of foreign exchange rates between
SGD (the functional currency of one of our subsidiaries) and the USD dollar (reporting currency) for the year ended June 30, 2025.

Liquidity
and Capital Resources

In
assessing liquidity, we monitor and analyses cash on-hand and operating and capital expenditure commitments. Our liquidity needs are
to meet working capital requirements, operating expenses, and capital expenditure obligations. Debt financing in the form of convertible
promissory note and cash generated from operations have been utilized to finance working capital requirements.

As
of June 30, 2025, we had cash and cash equivalents of approximately $