Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 84

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 84
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 this uncertainty.

The following summarizes
the key components of cash flows for the nine months ended March 31, 2025 and 2024.

    For the Nine Months Ended  March 31, 

    2025  
    2024 

    (Unaudited)  
    (Unaudited) 
  
    Net cash used in operating activities 
    $(4,653,662) 
    $(4,250,712)
  
    Net cash used in investing activities 
     (40,236) 
     (7,064)
  
    Net cash provided by financing activities 
     7,894,208  
     2,687,679 
  
    Effect of exchange rate changes 
     2,297  
     - 
  
    Net change in cash and cash equivalents 
    $3,202,607  
    $(1,570,097)

Operating activities

Net cash used in operating
activities was approximately $4.7 million for the nine months ended March 31, 2025 and was primarily attributable to (i) approximately
$4.9 million net loss, (ii) approximately $14.9 million increased in inventories because we stored more inventories to meet
the demand of our anticipated sales orders, (iii) approximately $7.4 million increased in accounts receivable due to the increase
of credit sales during the period, (iv) non-cash expenses of approximately $5.7 million, which primarily attributed to the change
in fair value of earnouts, (v) approximately $1.0 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 $1.1 million increased
in security deposit because we rented more office and warehouse space, (vii) approximately $0.3 million decreased in tax payable
of ACAC due to the payment of tax at business combination, and (viii) approximately $0.4 million decrease in contract liabilities due
to purchase of more inventories with vendors to meet customer demand. The cash outflow was offset by (ix) approximately $28.0 million
increased in accounts payable due to purchase of more inventories with vendors to meet customer demand, (x) approximately $2.0 million
increased in other payables and accrued liabilities