Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 90

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 90
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 due to provision of credit term to our new customers during the year, (iii) approximately $1.7million increased in contract assets due to engagement with new vendors which required purchase deposits to secure relevant transactions, (iv) approximately $1.8million increased in inventories due to change in our business strategy where we rented warehouse in the U.S. to store our inventories, (v) approximately $63,000 increased in prepaid expenses and other current assets, and security deposit, (vi) approximately $33,000 in payment of operating lease liability, and (vii) approximately $16,000 decreased in income taxes payable. The cash outflow was offset by (viii) non -cashexpenses of approximately $0.3million, which includes depreciation, accrued interest expenses from incurred from convertible notes, and amortization of operating right -of-useassets, (ix) approximately $1.4million increased in accounts payable due to purchase of more inventories with vendors to meet customer demand, (x) approximately $0.6million increased 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, (xi) approximately $0.2million 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. Net cash provided by operating activities was approximately $30,000 for the year ended June30, 2023 and was primarily attributable to (i) approximately $0.1million net income, (ii) approximately $0.6million decreased in prepayment and other current assets as we have utilized prepaid purchase orders during the period. The inflow was offset by (iii) approximately $0.6million decreased in customer deposit as we have fulfilled more of our sales orders during the period and (iv) approximately $0.1million decreased in accounts payable to a related party as we made full repayment to our related party vendor. Investing activities Net cash used in investing activities was approximately $35,000 for the three months ended September 30, 2024, attributable to the purchase of an automobile for our business uses. Net cash used in investing activities was approximately $4,000 for the three months ended September 30, 2023, attributable to purchase of a computer and furniture. 51 Net cash used in investing activities was approximately $9,000 for the year ended June30, 2024, attributable to the purchase