Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1416

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7A
Chunk 1416
---
 a manufacturing plant for business operation with a monthly rent
of $65,745, plus varied monthly CAM, for 50,573 square feet. The commencement date of this lease is February 1, 2025 and the termination
date is January 31, 2032. On August 9, 2024, the Company expanded the existing lease to include additional 50,572 square feet from April
1, 2025 to January 31, 2032 with an additional monthly rent of $65,744. These two first-month rents were included in prepaid expenses
and other current assets. On December 20, 2024, the Company revised the commencement date to July 1, 2025 and termination date to December
31, 2035, and further expanded the existing lease 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 June 30, 2025. These leases were not included in the operating right-of-use assets
balance as of June 30, 2025 as the commencement date of the lease was on July 1, 2025.

Reference
to Note 19 for detailed disclosure of other entered lease agreements and liabilities. 

Risks
and Uncertainties

On
April 2, 2025, President Trump signed the Executive Order, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that
Contribute to Large and Persistent Annual United States Goods Trade Deficits (“the April 2 EO”), 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 the April 2 EO, 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