Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 198

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1A
Chunk 198
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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 include any
adjustments that might result from the outcome of this uncertainty.

Note 3
— Basis of presentation and significant accounting policies

Basis
of presentation

The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange
Commission (“SEC”). In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered
necessary for a fair presentation of its financial position and operation results.

Principles
of consolidation

The
consolidated financial statements include the financial statements of the Company and its subsidiaries. All transactions and balances
among the Company and its subsidiaries have been eliminated upon consolidation.

A
subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power
to govern the financial and operating policies, to appoint or remove the majority of the members of the Board of Directors, or to cast
a majority of votes at the meeting of directors.

Use
of estimates and assumptions

The
preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the
consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could
differ from these estimates.

Fair
value measurement

The
accounting standard regarding the fair value of financial instruments and related fair value measurements defines financial instruments