Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 167

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 167
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Unaudited)  
    (Unaudited)  

    Other income (expense) 

    Interest expense 
    $(1,451,193) 
    $(92,205) 
    $(1,358,988) 
     1,473.9%
  
    Other income (expense), net 
     1,861  
     (445) 
     2,306  
     (518.2)%
  
    Change in fair value of earnout liabilities 
     4,655,722  
     -  
     4,655,722  
     100.0%
  
    Total other expense, net 
    $3,206,390  
    $(92,650) 
    $3,299,040  
     (3,560.8)%

42

Total other income (expense),
net increased by approximately $3.3 million, or 3,560.8%, to approximately $3.2 million other income for the six months ended December
31, 2024, from approximately $93,000 other expense for the six months ended December 31, 2023. The increase was primarily due to the change
in fair value of earnout liabilities in connection with the Business Combination and offset by the interest expenses incurred related
to the financing offered by one of our vendors based upon the timing of our payment to their accounts payable.

Provision for income taxes

The provision for income
taxes are $0 for each of the six months ended December 31, 2024 and 2023 as we had made full allowance of our deferred tax assets on net
operating losses.

Net Loss

Net loss decreased by approximately
$0.4 million, or 29.0%, to approximately $0.8 million for the six months ended December 31, 2024, from approximately $1.2 million
for the six months ended December 31, 2023. Such change was mainly due to the reasons discussed above.

Liquidity and Capital Resources

In assessing liquidity, we
monitor and analyses cash on-hand and operating and capital expenditure commitments. Our liquidity needs are to meet working capital requirements,
operating expenses, and capital expenditure obligations. Debt financing in the form of convertible promissory note and cash generated
from operations have been utilized to finance working capital requirements.

As of December 31, 2024,
we had cash and cash