Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 26

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 26
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 and changes therein:

    For the Three Months Ended
 September 30 

    2025  
    2024 
  
    Balance as of the beginning of the period 
    $454,842  
    $1,200 
  
    Add: net increase in current period contract asset 
     171,378  
     177,004 
  
    Less: inventory recognized from beginning contract asset 
     (361,092) 
     158,754 
  
    Total contract assets as of the end of the period 
    $265,128  
    $336,958 

15

Note 8 — Prepaid expenses and
other current assets

As of September 30, 2025
and June 30, 2025, prepaid expenses and other current assets consist of the following:

    September 30,  2025  
    June 30,  2025 

    Other receivables(1) 
    $230,276  
    $177,814 
  
    Prepaid rent 
     178,673  
     355,677 
  
    Prepaid research and development fees 
     165,828  
     198,328 
  
    Prepaid insurance and subscriptions 
     49,712  
     153,659 
  
    Prepaid professional fee 
     78,590  
     96,839 
  
    Prepayment to be refunded(2) 
     616,116  
     1,116,116 
  
    Advances to a third party 
     19,500  
     19,500 
  
    Other prepaid expenses 
     7,003  
     37,161 
  
    Less: allowance for credit losses (1) (2) 
     (173,018) 
     (317,282)
  
    Total prepaid expenses and other current assets 
    $1,172,680  
    $1,837,812 

  (1) This represents receivables from payments made on behalf of a vendor and other fees and freight claim receivables. $29,053 allowance for credit losses was recorded for the balances due to aging of the receivables. 

  (2) This represents prepayment to be refunded resulting from the cancellation of purchase orders. $143,965 allowance for credit losses was recorded for the balances due to aging of the pre