Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 145

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 145
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 if the Company is unable to make repayment
and default on the loan, with a six-year loan for a total of approximately $137,000. As of March 31, 2025, the carrying value of the asset
that has been pledged as a collateral is $78,502. The monthly payments are $2,694 from March 2023 to February 2029, with an
interest rate of 11.85% per annum.

The obligation is payable
as follows:

    Twelve months ended March 31, 
    Amount 
  
    2026 
    $21,375 
  
    2027 
     24,094 
  
    2028 
     27,159 
  
    Thereafter 
     27,920 
  
    Total long-term debt payment 
     100,548 
  
    Current portion of long-term debt 
     (21,375)
  
    Long-term debt – non-current portion 
    $79,173 

Interest expense for the
three months ended March 31, 2025 and 2024 for the above loan amounted to $3,125 and $3,684, respectively. Interest expense for the
nine months ended March 31, 2025 and 2024 for the above loan amounted to $9,809 and $11,438, respectively.

20

Note 16 — Shareholders’
deficit

Common Stock 

As of March 31, 2025 and
June 30, 2024, the Company has 50,000,000 authorized shares of common stock, par value $0.0001 per share. As of March 31, 2025 and
June 30, 2024, there are 6,780,597 and 3,303,333 shares of common stock outstanding.

Issuance of common stock upon completion of
the Reverse Recapitalization 

On September 26, 2024, upon
the consummation of the business combination, the Company issued an aggregated total of 2,270,096 common stock to ACAC shareholders and
its underwriter.

The following table presents
the number of the Company’s common stock issued upon completion of the Reverse Recapitalization:

    Shares of Common 

    Stock 
  
    ACAC’s common stock outstanding prior to Reverse Recapitalization 
     3,971,634 
  
    Less: redemption of AC