Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 33

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 33
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, and (z) 332,614 shares of Common Stock issued to Investor C (see Note 4).

As of December 31, 2024 and
June 30, 2024, the fair and carrying value of the Notes were $0 and $6,000,000, respectively, net of $0 unamortized premium, discount,
or issuance costs; and accrued interest related to the Notes were $0 and $267,945 as of December 31, 2024 and June 30, 2024, respectively.

19

Note 15 — Long-term loan

In February 2023, the
Company purchased and financed a vehicle, for which the lender put a lien on the title and will be taken as collateral in the situation
if the Company is unable to make repayment and default on the loan, with a six-year loan for a total of approximately $137,000. As of
December 31, 2024, the carrying value of the asset that has been pledged as a collateral is $78,502. The monthly payments are $2,694 from
March 2023 to February 2029, with an interest rate of 11.85% per annum.

The obligation is payable
as follows:

    Twelve months ended December 31, 
    Amount 
  
    2025 
    $20,744 
  
    2026 
     23,383 
  
    2027 
     26,358 
  
    2028 
     29,711 
  
    Thereafter 
     5,307 
  
    Total long-term debt payment 
     105,503 
  
    Current portion of long-term debt 
     (20,744)
  
    Long-term debt – non-current portion 
    $84,759 

Interest expense for the
three months ended December 31, 2024 and 2023 for the above loan amounted to $3,271 and $3,814, respectively. Interest expense for
the six months ended December 31, 2024 and 2023 for the above loan amounted to $6,684 and $7,754, respectively.

Note 16 — Shareholders’
deficit

Common Stock 

As of December 31, 2024 and
June 30, 2024, the Company has 50,000,000 authorized shares of common stock, par value $0