Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 119

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 119
---
 Technology is required to be consolidated under ASC 810. As of June 30,
2024, no significant operations nor capital contributions were made to Foxx Technology. As a result, the Company’s consolidated
financial statements did not reflect any operating activities from Foxx Technology. The Company has 51% voting interest of Foxx Technology.
On July 30, 2024, Foxx submitted the application to dissolve Foxx Technology to the Accounting and Corporate Regulatory Authority (ACRA)
of Singapore. On November 4, 2024, ACRA granted Foxx Technology’s application and struck it off from the company register of Singapore.

On March 3, 2025, Foxx Development (Singapore) Pte. Ltd (“Foxx
Singapore”) was incorporated in Singapore. Foxx Singapore is primarily engaged in assembling electronic products, is 100% owned
by the Company.

Note 2 — Going Concern

In assessing the Company’s
ability to continue as a going concern, the Company monitors and analyses its cash on-hand and its operating and capital expenditure commitments.
The Company’s liquidity needs are to meet its working capital requirements, operating expenses, and capital expenditure obligations.

The Company is primarily
engaged in the sales of electronic products and debt financing in the form of convertible notes, loans from bank, third parties, related
parties, and cash generated from operations have been utilized to finance the working capital. The Company’s management has considered
whether there is substantial doubt about its ability to continue as a going concern due to (1) net cash used in operating activities
of approximately $4.7 million for the nine months ended March 31, 2025, (2) net loss of approximately $4.9 million for the nine months
ended March 31, 2025, and (3) accumulated deficit of approximately $16.0 million as of March 31, 2025. 

5

If the Company is unable
to generate sufficient funds to finance the working capital requirements of the Company within the normal operating cycle of a twelve-month
period from the date of the unaudited condensed consolidated financial statements are issued, the Company may have to consider supplementing
its available sources of funds through the following sources:

●Other
available sources of financing from banks in the United States of America and other financial institutions or private lenders;

●Financial
support and credit guarantee commitments from the Company’s related parties; and

●Equity
financing.

The