Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1137

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 6
Chunk 1137
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 of Things (“AIOT”), is 100% owned by the Company. Nexus IQ had
no significant operations as of June 30, 2025.

Note 2
— Going Concern

In
assessing the Company’s ability to continue as a going concern, the Company monitors and analyses its cash on-hand and its operating
and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses,
and capital expenditure obligations.

The
Company is primarily engaged in the sales of electronic products and debt financing in the form of convertible notes, loans from bank,
third parties, related parties, and cash generated from operations have been utilized to finance the working capital. The Company’s
management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) net cash
used in operating activities of approximately $6.6 million for the year ended June 30, 2025, (2) net loss of approximately $9.0
million for the year ended June 30, 2025, and (3) accumulated deficit of approximately $20.0 million as of June 30, 2025. 

F-8

If
the Company is unable to generate sufficient funds to finance the working capital requirements of the Company within the normal operating
cycle of a twelve-month period from the date of the consolidated financial statements are issued, the Company may have to consider supplementing
its available sources of funds through the following sources:

●Other
available sources of financing from banks in the United States of America and other financial institutions or private lenders;

●Financial
support and credit guarantee commitments from the Company’s related parties; and

●Equity
financing.

The
Company can make no assurances that required financings will be available for the amounts needed, or on terms commercially acceptable
to the Company, if at all. If one or all of these events does not occur or subsequent capital raises are insufficient to bridge financial
and liquidity shortfall, there would likely be a material adverse effect on the Company and would materially adversely affect its ability
to continue as a going concern.

As
such, the Company’s management has determined that the factors discussed above have raised substantial doubt about the Company’s
ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. The consolidated
financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not