Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 102

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 102
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 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.

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 $4.5 million for the six months ended December 31, 2024, (2) net loss of approximately $0.8 million for the six
months ended December 31, 2024, and (3) accumulated deficit of approximately $11.9 million as of December 31, 2024. 

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 Company can make no assurances
that required financings will be available for the amounts needed, or on terms commercially acceptable to the Company, if at all. If one
or all of these events does not occur or subsequent capital raises