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

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 10
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 Development Inc.” and became the Delaware subsidiary of the Company.

On August 29, 2023, Foxx Technology Pte Ltd, a Singapore private
company (“Foxx Technology”), was incorporated in Singapore, with Old Foxx holding 51% of the equity interests in Foxx
Technology. Foxx Technology operates in the field of the manufacture of wireless communications equipment, and the wholesale of handphones,
handphone peripheral equipment and other telecommunications equipment. Since the Company owns the majority controlling financial interest
in Foxx Technology, according to Accounting Standards Codification (“ASC”) 810-10-15-10 “Consolidation”,
all majority-owned subsidiaries shall be consolidated. Foxx Technology is required to be 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.

On March 3, 2025, Foxx Development (Singapore) Pte. Ltd (“Foxx
Singapore”) was incorporated in Singapore. Foxx Singapore is primarily engaged in assembling electronic products, is 100% owned
by the Company.

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 $4.7 million for the nine months ended March 31, 2025, (2) net loss of approximately $4.9 million for the nine months
ended March 31, 2025, and (