Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 288

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 3
Chunk 288
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Item 3. Quantitative and Qualitative Disclosures
About Market Risk

Not applicable. 

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and
with the participation of our senior management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act, as of the end of the period covered by this report (the “Evaluation Date”). Based on this evaluation,
our Chief Executive Officer and Chief Financial Officer concluded as of the Evaluation Date that our disclosure controls and procedures
were not effective due to the identified material weaknesses described below

Based on our assessments and those criteria, management determined
that we did not maintain effective internal control over financial reporting as of March 31, 2025 due to the material weaknesses in the
design or operation of internal controls which could adversely affect our ability to record, process, summarize, and report financial
data, which includes:

-lack
of sufficient segregation of duties due to limited resources;

-lack
of adequate design of controls and proper documentation needed in order to demonstrate that controls in place are operating effectively
for significant transaction classes;

-inability
to prepare complete and accurate financial statements in accordance with generally accepted accounting principle (“GAAP) in a timely
manner;

-inefficient
oversight of those charged with governance with respect to complete and accurate finance reporting;

-lack
of appropriate controls surrounding authorized signor access for bank accounts; and

-inappropriate
implementation of controls over the identification of related party transactions.

Changes in Internal Control Over Financial
Reporting

There were no changes in
our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during
the fiscal quarter covered by this report that has materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

49

PART II - OTHER INFORMATION

Item 1. Legal Proceedings 

From time to time, we may
be subject to legal proceedings and claims in the ordinary course of business. Currently, we are not a party to any material legal proceedings
or subject to any material claims. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome,
litigation can have an adverse impact on us because