Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 177

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 177
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 administrative |                |            |         4,350 |     |            |         3,955 |
| Total operating lease cost  |                      |                             |                | $          |        55,734 |     | $          |         3,955 |

Note 20 — Commitments and contingencies Contingencies From time to time, the Company is a party to certain legal proceedings, as well as certain asserted and un -assertedclaims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements.

F-27

FOXX DEVELOPMENT HOLDINGS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 20 — Commitments and contingencies (cont.) Lease Commitment On July 12, 2024, the Company signed a seven -yearlease agreement to rent a warehouse for business operation with a monthly rent of $ 65,745, plus varied monthly CAM, for 50,573square feet. The commencement date of this lease is February 1, 2025 and the termination date is January 31, 2032. On August 9, 2024, the Company expanded the existing lease to include additional 50,572square feet from April 1, 2025 to January 31, 2032 with an additional monthly rent of $ 65,744. Reference to Note 19 for detailed disclosure of other entered lease agreements. Note 21 — Income taxes As of September 30, 2024 and June 30, 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it. The effective tax rate for each of the three months ended September 30, 2024 and 2023 was 0%. The effective tax rate differs from the statutory tax rate of 21% primarily due to the valuation allowance on the deferred tax assets.

Note 22 — Disaggregated information of revenues

|                       |     | For the Three Months Ended 
 September 30,              
 2024                       
 (Unaudited)                |            |     | 2023        
 (Unaudited) |   |
|:----------------------|:----|:---------------------------|-----------:|:----|:------------|:--|
| Tablet products       |     | $                          |      4,755 |     | $           | — |