Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 254

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 254
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 in the form of convertible promissory note and cash generated
from operations have been utilized to finance working capital requirements.

As of March 31, 2025, we
had cash and cash equivalents of approximately $3.8 million, while we had accumulated deficit of approximately $16.0 million.
During the nine months ended March 31, 2025, we had net loss of approximately $4.7 million and net operating cash outflow of approximately
$4.5 million.

If we are unable to generate
sufficient funds to finance the working capital requirements within the normal operating cycle of a twelve-month period 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 nine months ended March 31, 2025 and 2024.

    For the Nine Months Ended  March 31, 

    2025  
    2024 

    (Unaudited)  
    (Unaudited) 
  
    Net cash used in operating activities 
    $(4,653,662) 
    $(4,250,712)
  
    Net cash used in investing activities 
     (40,236) 
     (7,064)
  
    Net cash provided by financing activities 
     7,894,208  
     2,687,679 
  
    Effect of exchange rate changes 
     2,297  
     - 
  
    Net change in cash and cash equivalents 
    $3,202,607  
    $(1,570,097)

Operating activities

Net cash used in operating
activities was approximately $4.7 million for the nine months ended March 31, 2025 and was primarily attributable to (