Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 66

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 66
---
%
  
    Other income, net 
     38,657  
     -  
     38,657  
     100.0%
  
    Change in fair value of earnout liabilities 
     -  
     (49,861) 
     49,861  
     (100.0)%
  
    Total other expense, net 
    $(1,973,248) 
    $(458,856) 
    $(1,514,392) 
     330.0%

Total other expenses, net
increased by approximately $1.5 million, or 330.0%, to approximately $2.0 million for the three months ended September 30, 2025, from
approximately $0.5 million for the three months ended September 30, 2024. The increase was primarily due to the increase of approximately
$1.7 million interest expenses incurred related to the financing offered by our vendors based upon the timing of our payment to their
accounts payable offset by the decrease of approximately $0.1 million interest expenses incurred related to three convertible promissory
notes that were converted into our Common Stock in September 2024.

Provision for income taxes

The provision for income
taxes are $0 for each of the three months ended September 30, 2025 and 2024 as we had made full allowance of our deferred tax assets on
net operating losses.

38

Net Loss

Net loss increased by approximately
$0.6 million, or 26.4%, to approximately $2.9 million of net loss for the three months ended September 30, 2025, from approximately
$2.3 million net loss for the three months ended September 30, 2024. Such change was mainly due to the reasons discussed above.

Foreign Currency Translation Adjustment

Changes in foreign currency
translation adjustment of approximately $7,000 are mainly due to the fluctuation of foreign exchange rates between SGD (the functional
currency of one of our subsidiaries) and the USD dollar (reporting currency) for the three months ended September 30, 2025.

Liquidity and Capital Resources

In assessing liquidity, we
monitor and analyses cash on-hand and operating and capital expenditure commitments. Our liquidity needs are to meet working capital requirements,
operating expenses, and capital expenditure obligations. Debt financing in the form of convertible promissory note and cash generated
from operations have been utilized to