Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 191

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 191
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,778) 
    $2,835,408  
     1,670.1%
  
    Other (expense) income, net 
     (257) 
     2,995  
     (3,252) 
     (108.6)%
  
    Change in fair value of earnout liabilities 
     5,687,989  
     -  
     5,687,989  
     100.0%
  
    Total other expense, net 
    $2,682,546  
    $(166,783) 
    $2,849,329  
     1,708.4%

Total other income (expense),
net increased by approximately $2.9 million, or 1,708.4%, to approximately $2.7 million other income for the nine months ended March 31,
2025, from approximately $0.2 million other expense for the nine months ended March 31, 2024. The increase was primarily due to the change
in fair value of earnout liabilities in connection with the Business Combination and offset by the interest expenses 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 are $0 and approximately $20,000 for the nine months ended March 31, 2025 and 2024, decreased by $20,000 or 100.0% as we had made
full allowance of our deferred tax assets on net operating losses for the nine months ended March 31, 2025. Foxx had provision for income
taxes of approximately $20,000 resulted from timing difference between calendar year on income tax return in 2022 and fiscal year of operation
of June 30, for which those operating losses incurred from January 2023 to June 2023 cannot be carried back. At the same time, we had
provided 100% allowance on its deferred tax assets on net operating losses for the nine months ended March 31, 2024.

Net Loss

Net loss increased by approximately
$2.8 million, or 137.6%, to approximately $2.1 million for the nine months ended March 31, 2025, from approximately $4.9 million
for the nine months ended March 31, 2024. Such change was mainly due to the reasons discussed above.

Foreign Currency Translation