Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 169

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 169
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5 million increased in accounts receivable due to the increase
of credit sales during the period, (iv) non-cash expenses of approximately $4.1 million, which primarily attributed to the change
in fair value of earnouts, (v) approximately $0.9 million increased in prepaid expenses and other current assets due to our prepaid
rent payment in connection with our warehouse lease to be commenced in February 2025, (vi) approximately $0.6 million increased
in security deposit because we rented more office space, and (vii) approximately $0.3 million decreased in tax payable of ACAC due
to the payment of tax at business combination. The cash outflow was offset by (viii) approximately $22.8 million increased in accounts
payable due to purchase of more inventories with vendors to meet customer demand, (ix) approximately $0.9 million increased in other
payables and accrued liabilities mainly due to accrued professional fees that associated with business expansion, such as consulting fees,
testing fees and legal fees, and (x) approximately $0.1 million increase in contract liabilities due to the increase of sales during the
period.

 Net cash used in operating
activities was approximately $3.1 million for the six months ended December 31, 2023 and was primarily attributable to (i) approximately
$1.2 million net loss, (ii) approximately $1.7 million increased in contract assets due to engagement with new vendors
which required purchase deposits to secure relevant transactions, (iii) approximately $0.2 million increase in accounts receivable due
to the increase of credit sales during the period, and (iv) approximately $0.1 million increased in inventories due to change
in our business strategy where we rented warehouse in the U.S. to store our inventories. The cash outflow was offset by (v) approximately
$0.2 million increased in other payables and accrued liabilities mainly due to accrued professional fees that associated with business
expansion.

Investing activities

Net cash used in investing
activities was approximately $68,000 for the six months ended December 31, 2024, attributable to the purchase of some equipment for warehouse
and an automobile for our business uses.

Net cash used in investing
activities was approximately $6,000 for the six months ended December 31, 2023, attributable to purchase of a