Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 28

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 28
---
697  
     168,186 
  
    Accrued warranty expenses 
     389,134  
     328,438 
  
    Excise tax payable** 
     556,620  
     556,620 
  
    Others 
     33,390  
     33,925 
  
    Total other payables and accrued liabilities 
    $3,903,643  
    $3,570,959 

  * On April 9, 2024, the Company and a vendor entered into a purchase and financing agreement, pursuant to which the Company is subject to interest of 1.5% per month, or 0.05% per day, on the unpaid purchase amount, after forty-five (45) days from the date of shipment. There is an additional 0.083% per day if after 120 days from the date of shipment. 

  ** These balances were carried from ACAC, and payable by the Company, as a result on 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023 under the Inflation Reduction Act of 2022. 

Note 11 — Contract liabilities

Contract liabilities consist of customer deposits, which are recorded
on the consolidated balance sheets when the Company has received consideration, or has the right to receive consideration, in advance
of transferring the performance obligations under the contract to the customer.

The following table presents
the Company’s contract liabilities balances and changes therein:

    For the Three Months Ended September 30 

    2025  
    2024 
  
    Balance as of the beginning of the period 
    $378  
    $649,450 
  
    Add: net increase in current period contract liabilities 
     367,709  
     143,600 
  
    Less: revenue recognized from beginning contract liabilities 
     (378) 
     (649,450)
  
    Total contract liabilities as of the end of the period 
    $367,709  
    $143,600 

Note 12 — Related party balances
and transactions

Related party balances

Prepaid expenses to a related party

  Name of Related Party  Relationship  Nature  September 30, 2025   June 30, 2025