Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1253

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 1253
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 expenses and other current assets,
and security deposit, (vi) approximately $33,000 in payment of operating lease liability, and (vii) approximately $16,000 decrease in
income taxes payable. The cash outflow was offset by (i) non-cash expenses of approximately $0.3 million, which includes depreciation,
accrued interest expenses from incurred from convertible notes, and amortization of operating right-of-use assets, (ii) approximately
$1.4 million increase in accounts payable due to purchase of more inventories with vendors to meet customer demand, (iii) approximately
$0.6 million increase in contract liabilities due to a higher number of sales orders that had not yet been fulfilled but with advance
payments made by customers to us to reserve products, and (iv) approximately $0.2 million increase 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.

Investing
Activities

Net cash used in
investing activities was approximately $40,000 for the year ended June 30, 2025, attributable to approximately $68,000 purchase of
some equipment for our warehouse uses and an automobile for our business uses, and offset by approximately $28,000 proceeds from
sale of the automobile.

Net
cash used in investing activities was approximately $9,000 for the year ended June 30, 2024 attributable to the purchase of office equipment
and furniture.

Financing
Activities

Net cash provided by financing activities was approximately $7.9 million
for the year ended June 30, 2025, mainly attributable to (i) approximately $19.7 million of proceeds from the reverse recapitalization,
(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