Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 175

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 175
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FOXX DEVELOPMENT HOLDINGS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 19 — Leases (cont.) On July 17, 2024, the Company signed a five -yearand one -halfmonth lease agreement to rent a general office and storage space for business operation with a monthly rent of $10,534, plus varied monthly CAM. The commencement date of this lease is August 15, 2024 and has no renewal option. The Company considered this lease as an operating lease and recognized right -of -useasset and lease liability. The Company recognized lease expense on a straight -linebasis over the lease term for operating lease. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using incremental borrowing rate as the effective interest rate, with a weighted average rate of 4.06% in July 2024 and 4.34% in June 2024. As of September 30, 2024 and June 30, 2024, the weighted -averageremaining operating lease term of its existing leases is approximately 5.25 year and 5.68 year. The following table sets forth the Company’s minimum lease payments in future periods as of September 30, 2024:

|                                                  |     | Operating lease 
 payments        |           |   |
|:-------------------------------------------------|:----|:----------------|----------:|:--|
| For the nine months ending June 30, 2025         |     | $               |   165,248 |   |
| For the twelve months ending June 30, 2026       |     |                 |   251,566 |   |
| For the twelve months ending June 30, 2027       |     |                 |   260,287 |   |
| For the twelve months ending June 30, 2028       |     |                 |   270,941 |   |
| For the twelve months ending June 30, 2029       |     |                 |   321,967 |   |
| Thereafter                                       |     |                 |   103,986 |   |
| Total lease payments                             |     |                 | 1,373,995 |   |
| Less: discount                                   |     |                 |  (142,829 | ) |
| Present value of operating lease liabilities