Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 990

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 5
Chunk 990
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(ii) $9.0 million of proceeds from issuance of convertible promissory notes, and (iii) approximately $0.1 million of proceeds 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.

27

Net
cash provided by financing activities was approximately $3.5 million for the year ended June 30, 2024, mainly attributable to $4.0
million of proceeds from issuance of convertible promissory notes to New Bay in November 2023 and March 2024, offset by
approximately $0.4 million in payments of deferred offering costs, the repayment of related party loans of approximately $0.1
million, and the principal payments of long-term loan of approximately $16,000.

Off-Balance
Sheet Arrangements

As
of June 30, 2025, we had 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 Estimate

The
consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of
these 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 consolidated financial statements. Certain accounting
estimates are particularly sensitive because of their significance to the 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 consolidated financial statements are described
below.

Income
Taxes

We
record deferred tax assets and liabilities based on the net tax effects