Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 85

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 85
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 mainly due to accrued professional fees that associated with business expansion, such
as consulting fees, testing fees and legal fees, (xi) approximately $0.5 million increase in stock compensation due to restricted stock
units granted to our employees, consultants and independent director under employee incentive plan, and (xii) approximately $0.5 million
provision for credit losses due to the increasing risk of uncollectable accounts from one customer.

46

Net cash used in operating
activities was approximately $4.3 million for the nine months ended March 31, 2024 and was primarily attributable to (i) approximately
$2.1 million net loss, (ii) approximately $0.2 million increase in accounts receivable due to Foxx began to provide credit term to its
new customers, (iii) approximately $1.7 million increased in prepayment and other current assets due to Foxx engaged with new vendors
which required purchase deposits, (iv) approximately $0.7 million increased in inventories due to Foxx changed its business strategy where
it rented warehouse in the U.S. to store its inventories, (v) approximately $19,000 in repayment of other payable to a related party in
connection with their consulting fees, (vi) approximately $19,000 in payment of operating lease liability, and (vii) approximately $16,000
decreased in income taxes payable. The cash outflow was offset by (viii) non-cash expenses of approximately $50,000, which includes depreciation,
amortization of operating right-of-use asset, (ix) approximately $0.1 million increased in customer deposits and (x) approximately $0.3
million increased in other payables and accrued liabilities.

Investing activities

Net cash used in investing
activities was approximately $40,000 for the nine months ended March 31, 2025, attributable to approximately $68,000 purchase of some
equipment for warehouse and an automobile for our business uses and offset by approximately $28,000 proceeds from sale of the automobile.

Net cash used in investing
activities was approximately $7,000 for the nine months ended March 31, 2024 attributable to the purchase of office equipment and furniture.

Financing activities

Net cash provided by financing
activities was approximately $7.9 million for the nine months ended March 31, 2025, mainly attributable to approximately $19.7 million
proceeds from the reverse recapitalization and