Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 82

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 82
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, 2025. The increase
is also attributable to approximately $0.1 million increase in stock-based compensation as we granted restricted stock units in November
2024 to our R&D team members under employee incentive plan.

Other income (expense), net

Our other income (expense),
net is summarized as follows:

    For the Nine Months ended March 31, 

    2025  
    2024  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Other income (expense) 

    Interest expense 
    $(3,005,186) 
    $(169,778) 
    $2,835,408  
     1,670.1%
  
    Other (expense) income, net 
     (257) 
     2,995  
     (3,252) 
     (108.6)%
  
    Change in fair value of earnout liabilities 
     5,687,989  
     -  
     5,687,989  
     100.0%
  
    Total other expense, net 
    $2,682,546  
    $(166,783) 
    $2,849,329  
     1,708.4%

Total other income (expense),
net increased by approximately $2.9 million, or 1,708.4%, to approximately $2.7 million other income for the nine months ended March 31,
2025, from approximately $0.2 million other expense for the nine months ended March 31, 2024. 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 our vendors based upon the timing of our payment to their accounts payable.

Provision for income taxes

The provision for income
taxes are $0 and approximately $20,000 for the nine months ended March 31, 2025 and 2024, decreased by $20,000 or 100.0% as we had made
full allowance of our deferred tax assets on net operating losses for the nine months ended March 31, 2025. Foxx had provision for income
taxes of approximately $20,000 resulted from timing difference between calendar year on income tax return in 2022 and fiscal year of