Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 87

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 87
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) Income Net income decreased by approximately $3.5 million, or 5,995.5%, to approximately $3.4 million of net loss for the year ended June 30, 2024, from approximately $0.1 million net income for the year ended June 30, 2023. Such change was mainly due to the reasons discussed above. Liquidity and Capital Resources In assessing liquidity, we monitor and analyses cash on -handand operating and capital expenditure commitments. Our liquidity needs are to meet working capital requirements, operating expenses, and capital expenditure obligations. Debt financing in the form of convertible promissory note and cash generated from operations have been utilized to finance working capital requirements. As of September 30, 2024, we had cash and cash equivalents of approximately $9.2 million, while we had working capital deficit of approximately $0.4 million and accumulated deficit of approximately $13.3 million. During the three months ended September 30, 2024, we had net loss of approximately $2.2 million and net operating cash outflow of approximately $0.2 million. If we are unable to generate sufficient funds to finance the working capital requirements within the normal operating cycle of a twelve -monthperiod from the date of the unaudited condensed consolidated financial statements are issued, we may have to consider supplementing our available sources of funds through the following sources: •Other available sources of financing from banks, other financial institutions or private lenders; •Financial support and credit guarantee commitments from our related parties; and •Equity financing. Our management has determined that the factors discussed above have raised substantial doubt about our ability to continue as a going concern within one year after the date that the unaudited condensed consolidated financial statements are issued. The unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. The following summarizes the key components of cash flows for the three months ended September 30, 2024 and 2023.

|                                                     |     | For the Three Months Ended 
 September 30,              
 2024                       
 (Unaudited)                |            |   |     | 2023        
 (Unaudited) |            |   |
|:----------------------------------------------------|:----|:---------------------------|-----------:|:--|:----|:------------|:-----------|:--|
| Net cash used in operating activities               |     |