Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 434

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 434
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 announced that the ACP will stop accepting new applications and enrollments on February 7, 2024,
and will stop funding for enrolled customers starting on April 30, 2024. Temporarily impacted by such a change in ACP, most of our
new customers cut down their sales teams in anticipation of the reduced customer base, which affected the demand for our products
across all channels during the year ended June 30, 2024; and on the other hand, our competitors have stockpiled their products during
the year ended June 30, 2024, due to severely declining sales and they have started lower their sale price on their products which affected
the demand of our products. However, we may continue to target end-users who are eligible for the Lifeline Program, which is administered
by the Universal Service Administrative Company (USAC) and receives funding from the Universal Service Fund, a government program that
receives annual contributions from telecommunications companies or their customers. At the same time, because we have initiated our strategic
shifts to diversify our product offerings, we expect to target customers who are interested in other mobile devices, tablets, and IoT
products. In addition, we began launching our products through TikTok Shop in March 2024 and we expect to grow our sales through this
E-Commerce channel.

For
the year ended June 30, 2025, we experienced a significant increase in the sales of mobile phone
products, as we have added three new major customers. In addition, we
have launched new wearable products, such as smart watches, smart rings, smart glasses, trackers and headsets, and App service commission
revenue during the period which have driven up our sales for the year ended June 30, 2025 as compared to the same period in 2024.

The
Business Combination 

Incorporated
as a Delaware corporation under the name “Acri Capital Merger Sub I Inc.” on November 13, 2023, we entered into the Business
Combination Agreement on February 18, 2024, as amended on May 31, 2024, by and among us, ACAC, Merger Sub, and Old Foxx.

Upon
the Closing of the Business Combination on September 26, 2024, ACAC merged with and into us, with us surviving the Reincorporation Merger,
and (ii) Old Foxx merged with and into Merger Sub, with Merger