Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 128

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 128
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 Court
ordered that the Company provide this notice. The Court has not and will not pass judgment on the amount of the Mootness Fee.

Lease Commitment

On December 20, 2024, the
Company further expanded the July 2024 Lease (see Note 17) to include additional 102,099 square feet from January 1, 2026
to December 31, 2035 with an additional monthly rent of $132,729, which was included in prepaid expenses and other current assets. Additional
$550,000 of security deposits were made as a result of this lease amendment, which was included in the caption “security deposits”
in the accompanying consolidated balance sheets as of September 30, 2025. These leases were not included in the operating right-of-use
assets balance as of September 30, 2025 as the commencement date of the lease was January 1, 2026.

Reference to Note 17 for detailed disclosure
of other entered lease agreements and liabilities. 

Risks and Uncertainties

On April 2, 2025, the President of the United States signed Executive
Order 14257, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual
United States Goods Trade Deficits” (the “Executive Order 14257”), to take action based on the results of certain investigations
related to the causes of the U.S.’s large and persistent annual trade deficits in goods. Subsequent to Executive Order 14257, there
have been additional executive orders that have, among other actions, effectively suspended the enforcement of certain country-specific
tariffs until November 10, 2025. The potential for further changes in trade policies, including new tariffs or changes to existing ones,
introduces uncertainty regarding the Company’s future costs, revenues, collectability of account receivables, carrying value of
inventories, and overall financial performance. The Company monitors these developments closely and will continue to evaluate their potential
impact on its operations, financial condition, and results of operations. The ultimate financial impact of these uncertainties is difficult
to quantify at this time.

26

On July 4, 2025, the One
Big Beautiful Bill Act, Public Law No. 119021 (“OBBBA”), was signed into law by the President of the United States, which
introduced significant and wide-ranging changes to the U.S. tax system. Significant components