Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 41

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 41
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 supplier A, which is a third party of the Company, accounted for 100% of the Company’s
total purchases.

For the six months ended
December 31, 2024, one supplier, supplier A, which is a third party of the Company, accounted for 94% of the Company’s total purchases.

For the six months ended
December 31, 2023, one supplier, supplier A, which is a third party of the Company, accounted for 100% of the Company’s total
purchases.

(c) Geographic areas

For the three and six months
ended December 31, 2024 and 2023, all of the Company’s long-lived assets are located in the United States and all of the Company’s
revenues are derived solely from the United States, accordingly, no geographical information is presented.

24

Note 19 — Leases

Short-term
leases  

The Company rented a mailbox
for $450 per month from November 1, 2022 to October 31, 2024. The Company terminated this lease on August 5, 2023.

On August 1, 2023, the
Company entered a twelve-month lease agreement to rent a general office and storage space for its purchased inventory for a monthly rental
fee of $100.

On August 14, 2023,
the Company entered a six-month lease agreement to rent an office for operating purposes with a monthly rental fee of $550.

On September 18, 2023, the Company entered a month-to-month rental
agreement to rent a dorm for the employee with a monthly rent of $3,000.

Long-term
leases  

In September 2023, the
Company signed a three-year lease agreement to rent a general office and storage space for business operation with a monthly rent of $3,096,
plus varied monthly CAM. The commencement date of this lease is October 1, 2023 and has no renewal option. On July 17, 2024,
the Company extended the lease for another 35 months to be commenced on October 1, 2026 and ended August 31, 2029. The Company considered
this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized lease expense on a straight-line
basis over the lease term for operating lease.

In June 2024, the Company
signed a six years and 11.5 months