Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 170

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 170
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 computer and furniture.

Financing activities

Net cash provided by financing
activities was approximately $7.9 million for the six months ended December 31, 2024, mainly attributable to approximately $19.7
million proceeds from the reverse recapitalization and $9.0 million proceeds from issuance of convertible promissory notes, proceeds
of approximately $0.1 million from issuance of common stock through exercise of warrant, offset by the payment of redeeming shareholders
in connection with the business combination of approximately $20.5 million, the repayment of short-term loans of approximately $0.3 million
and approximately $0.1 million in payments of deferred transaction costs.

Net cash provided by financing
activities was approximately $1.7 million for the six months ended December 31, 2023, primarily attributable to $2.0 million proceeds
from issuance of convertible promissory notes, offset by approximately $0.2 million in payments of deferred transaction costs and
approximately $0.1 million in the repayment of related party loans.

Off-Balance Sheet Arrangements

As of December 31, 2024,
we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial
condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital
resources that are material to our members.

44

Critical Accounting Estimate

The unaudited condensed consolidated
financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these unaudited
condensed consolidated financial statements and accompanying notes requires us to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Estimates are based
on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which
form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
We have identified certain accounting estimates that are critical to the preparation of the unaudited condensed consolidated financial
statements. Certain accounting estimates are particularly sensitive because of their significance to the unaudited condensed consolidated
financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s
current judgments. We believe that the critical accounting estimates, assumptions, and judgments that have the most significant impact
on our unaud