Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 221

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 221
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 $0.6 million increased
in security deposit because we rented more office space, and (vii) approximately $0.3 million decreased in tax payable of ACAC due
to the payment of tax at business combination. The cash outflow was offset by (viii) approximately $22.8 million increased in accounts
payable due to purchase of more inventories with vendors to meet customer demand, (ix) approximately $0.9 million increased in other
payables and accrued liabilities mainly due to accrued professional fees that associated with business expansion, such as consulting fees,
testing fees and legal fees, and (x) approximately $0.1 million increase in contract liabilities due to the increase of sales during the
period.

 Net cash used in operating
activities was approximately $3.1 million for the six months ended December 31, 2023 and was primarily attributable to (i) approximately
$1.2 million net loss, (ii) approximately $1.7 million increased in contract assets due to engagement with new vendors
which required purchase deposits to secure relevant transactions, (iii) approximately $0.2 million increase in accounts receivable due
to the increase of credit sales during the period, and (iv) approximately $0.1 million increased in inventories due to change
in our business strategy where we rented warehouse in the U.S. to store our inventories. The cash outflow was offset by (v) approximately
$0.2 million increased in other payables and accrued liabilities mainly due to accrued professional fees that associated with business
expansion.

Investing activities

Net cash used in investing
activities was approximately $68,000 for the six months ended December 31, 2024, attributable to the purchase of some equipment for warehouse
and an automobile for our business uses.

Net cash used in investing
activities was approximately $6,000 for the six months ended December 31, 2023, attributable to purchase of a 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 redeem