Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 9

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1
Chunk 9
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 with APEC Water Systems (“APEC”), a premier U.S. manufacturer
of water filtration systems. We worked closely with APEC throughout the product development process, bringing expertise in IoT connectivity,
mobile app development, and sensor integration to create the APEC Smart Water Leak Detector (SKU: SMTD-001-1PK).

Target
End-Users

Our
current product lines are tailored to cater to the following types of end-users:

Budget
Conscious/Practical Shopper: These individuals are meticulous researchers who make informed decisions. They seek practical tablets and
smartphones to seamlessly navigate their daily digital activities, including browsing, attending online lectures, messaging, social media
interactions, calls, web browsing, GPS navigation, and photography.

First-Time Tablets
or Smartphone Users: Embodying the essence of social connectivity, these users are driven by a fear of missing out among peers. They
are highly active online, engaging primarily in messaging, photo-sharing, gaming, and staying updated within their social circles. Despite
limited purchasing power, they aspire for visually appealing tablets phones with unique features, typically acquired through initial
jobs or parental support.

Parents
of First-Time Tablets or Smartphone Users: These individuals seek capable yet budget-friendly tablets and smartphones for their
children, understanding the importance of providing essential educational or daily functionalities without straining their finances.
With considerable purchasing power in some instances, they often begin their search online, prioritizing terms such as “best value”
or “affordable”. Influenced significantly by pricing and reviews, they prioritize obtaining the best value proposition for
their children’s needs.

Strategic
Approach to Sales and Distribution

Third
Party Customer-Driven Sales Model

Since inception, we have
been employing the strategy of engaging with distributors who purchase products from us and then market our products to consumers through
the networks of prominent telecommunications carriers across the United States. We have been able to achieve substantial sales by
working with customers who have existing relationships with prominent telecommunications carriers and can efficiently sell our products,
allowing us to build presence in the market. We also entered into multiple master agreements with Mobile Virtual Network Operators (MVNOs),
broadening our reach and delivering sophisticated telecommunications solutions to an extensive consumer base.

Diversified Sales Approach

In prior years, we actively
sought qualification for and participated in national initiatives aimed at enhancing the affordability and accessibility of communication
services for individuals with limited income. As a certified supplier for the FCC’s Lif