Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 111

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1
Chunk 111
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 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; 

    -
    inappropriate implementation
    of controls over the identification of related party transactions; and

    -
    lack of appropriate design of controls over the completeness and accuracy of App services revenue.

Following
the identification of the material weakness, we plan to take remedial measures including:

    -
    hiring more qualified accounting
    personnel with relevant GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to
    set up a financial and system control framework;

    -
    implementing regular and
    continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel; and

    -
    establishing internal audit
    function by engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley Act compliance requirements and improvement
    of overall internal control.

The Company had previously
reported, as of June 30, 2024, that it had identified the following material weaknesses in its internal control over financial reporting:

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

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

During the year ended June 30, 2025, the Company has implemented corrective action and placed into operation
controls to address the material weakness described above. These actions included the establishment of an Audit Committee to oversee the
completeness and accuracy of financial reporting, the addition of a
layer of review to the financial reporting process, and the enhancement of controls over access to bank accounts. Based on the corrective
actions, and testing completed for the year ended June 30, 2025, management has concluded that certain of the material weaknesses noted
above that existed as of June 30, 2024 has been remediated.

This
Annual Report on Form 10-K does not include an attestation report of internal controls from our independent registered public accounting
firm due to our status as an emerging growth company under the JOBS Act.

Changes
in Internal Control over Financial Reporting

There
have been no changes in our internal