Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 176

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 176
---
2024. On September 18, 2023, the Company entered a month -to-monthrental agreement to rent as dorm for the employee with a monthly rent of $ 3,000. The Company determined that the accounting impact of this lease is immaterial to the Company’s consolidated financial statements for the year ended June 30, 2024 and no operating right -of-useassets and lease liabilities were capitalized as June 30, 2024. In September 2023, the Company signed a three -yearlease agreement to rent a general office and storage space for business operation with a monthly rent of $ 3,096, plus varied monthly CAM. The commencement date of this lease is October 1, 2023 and has no renewal option. On July 17, 2024, the Company extended the lease for another 35 months to be commenced on October 1, 2026 and ended August 31, 2029. The Company considered this lease as an operating lease and recognized right -of-useasset and lease liability. The Company recognized lease expense on a straight -linebasis over the lease term for operating lease. In June 2024, the Company signed a six years and 11.5months lease agreement to rent a general office for business operation with a monthly rent of $ 3,500, plus varied monthly CAM. The commencement date of this lease is June 15, 2024 and the expiration date is May 31, 2031. The Company considered this lease as an operating lease and recognized right -of-useasset and lease liability. The Company recognized lease expense on a straight -linebasis over the lease term for operating lease. F-26

FOXX DEVELOPMENT HOLDINGS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 19 — Leases (cont.)

On July 17, 2024, the Company signed a five-year and one-half month lease agreement to rent a general office and storage space for business operation with a monthly rent of $, plus varied monthly CAM. The commencement date of this lease is August 15, 2024 and has no renewal option. The Company considered this lease as an operating lease and recognized right-of-use asset and lease liability. The Company recognized lease expense on a straight-line basis over the lease term for operating lease.

The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the