FOXX Foxx Development Holdings Inc.

“lack of implementation of controls in determining an appropriate incremental borrowing rate for leases to ensure consistent application of a formal methodology aligned with the requirements of ASC 842.”

“Lack of appropriate design of controls over the completeness and accuracy of App services revenue;”

“Inappropriate implementation of controls over the identification of related party transactions;”

“Inability to prepare complete and accurate financial statements in accordance with GAAP in a timely manner;”

“Lack of adequate design of controls and proper documentation needed in order to demonstrate that controls in place are operating effectively for significant transaction classes;”

“financial data, which includes: - Lack of sufficient segregation of duties due to limited resources;”

“management determined that we did not maintain effective internal control over financial reporting as of June 30, 2026 due to the material weaknesses in the design or operation of internal controls which could adversely affect our ability to record, process, summarize, and report financial data”

“our chief executive officer and chief financial officer concluded that, during the period covered by this report, our disclosure controls and procedures were not effective due to the identified material weakness described below.”