Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 75

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 75
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 promissory note and cash generated
from operations have been utilized to finance working capital requirements.

As of December 31, 2024,
we had cash and cash equivalents of approximately $3.9 million, while we had accumulated deficit of approximately $11.9 million.
During the six months ended December 31, 2024, we had net loss of approximately $0.8 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 six months ended December 31, 2024 and 2023.

    For the Six Months Ended  December 31, 

    2024  
    2023 

    (Unaudited)  
    (Unaudited) 
  
    Net cash used in operating activities 
    $(4,475,232) 
    $(3,110,955)
  
    Net cash used in investing activities 
     (68,336) 
     (6,016)
  
    Net cash provided by financing activities 
     7,899,163  
     1,748,124 
  
    Net change in cash and cash equivalents 
    $3,355,595  
    $(1,368,847)

43

Operating activities

Net cash used in operating
activities was approximately $4.5 million for the six months ended December 31, 2024 and was primarily attributable to (i) approximately
$0.8 million net loss, (ii) approximately $