Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 518

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 518
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 assurance that we have detected all
our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions.

Management’s
Annual Report on Internal Control over Financial Reporting

As
required by SEC rules and regulations implementing Section 404 of the Sarbanes-Oxley Act, our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting
purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that:

(1)pertain
                                            to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
                                            transactions and dispositions of the assets of our company,

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    (2)
    provide reasonable assurance
    that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts
    and expenditures are being made only in accordance with authorizations of our management and directors, and

    (3)
    provide reasonable assurance
    regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material
    effect on the financial statements.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect errors or misstatements in our financial
statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate. Management assessed
the effectiveness of our internal control over financial reporting at June 30, 2025. In making these assessments, management used the
criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated
Framework (2013). Based on our assessments and those criteria, management determined that we did not maintain effective internal control
over financial reporting as of June 30, 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;