Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 111

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 111
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 $7,382,699 
  
    Less: allowance for credit losses 
     (635,895) 
     (595,907)
  
    Accounts receivable, net 
    $12,768,345  
    $6,786,792 

For the three months ended
September 30, 2025 and 2024, the Company recognized $39,988 and $0 on provision for allowance on credit losses, respectively.

Movement of allowance for
credit losses consisted of the following for the periods ended indicated:

    For the Three Months Ended September 30,

    2025

    2024

    Balance as of the beginning of the period
     
    $
    595,907

    $
    -

    Addition

    39,988

    -

    Balance as of the end of the period
     
    $
    635,895

    $
               -

Note 6 — Inventories

As of September 30, 2025
and June 30, 2025, inventories consist of the following:

    September 30,  2025  
    June 30,  2025 

    Finished goods 
    $11,456,708  
    $12,686,739 
  
    Total inventories 
    $11,456,708  
    $12,686,739 

For the three months ended September 30, 2025 and 2024, the impairment
for inventories amounted to $484,315 and $0, respectively.

Note 7 — Contract assets

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

    For the Three Months Ended
 September 30 

    2025  
    2024 
  
    Balance as of the beginning of the period 
    $454,842  
    $1,200 
  
    Add: net increase in current period contract asset 
     171,378  
     177,004 
  
    Less: inventory recognized from beginning contract asset 
     (361,092) 
     158,754 
  
    Total contract assets as of the end of the period 
    $265,128  
    $336,958 

15

Note 8 — Prepaid expenses and
other