Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 201

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 2
Chunk 201
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 September 30, 2024, attributable to the purchase of an automobile for
our business uses.

Financing activities

Net cash provided by financing
activities was approximately $7,000 for the three months ended September 30, 2025, mainly attributable to the principal payments of long-term
loan of approximately $7,000.

Net cash provided by financing
activities was approximately $28.3 million for the three months ended September 30, 2024, mainly attributable to approximately $19.7
million proceeds from the reverse recapitalization and $9.0 million proceeds from issuance of convertible promissory notes, offset
by the repayment of short-term loans of approximately $0.3 million and approximately $0.1 million in payments of deferred transaction
costs.

40

Off-Balance Sheet Arrangements

As of September 30, 2025,
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.

Critical Accounting Estimates

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 unaudited condensed consolidated financial statements are described below.

Income Taxes

We record deferred tax assets and liabilities based on the net tax
effects of tax credits, operating loss carryforwards, and temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes compared to the