Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 11

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 11
---
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 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 are insufficient to bridge financial and liquidity shortfall, there
would likely be a material adverse effect on the Company and would materially adversely affect its ability to continue as a going concern.

As such, the Company’s
management has determined that the factors discussed above have raised substantial doubt about the Company’s ability to continue
as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued. The unaudited
condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly,
do not include any adjustments that might result from the outcome of this uncertainty.

Note 3 — Basis of presentation
and significant accounting policies

Basis of presentation

The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation
of its financial position and operation results. Interim results are not necessary indicative of results of a full year. The information
in this Quarterly Report on Form 10-Q (the “10-Q”) should be read in conjunction with information in the Annual Report for
the fiscal year ended June 30, 2024 on Form 10-K filed by the Company with the SEC on October 24, 2024.

Principles of consolidation

The unaudited condensed consolidated
financial statements include the financial