Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 153

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 153
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 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 three months ended September 30, 2025 and 2024.

    For the Three Months Ended  September 30, 

    2025  
    2024 

    (Unaudited)  
    (Unaudited) 
  
    Net cash used in operating activities 
    $(367,763) 
    $(243,459)
  
    Net cash used in investing activities 
     -  
     (35,000)
  
    Net cash provided by (used in) financing activities 
     (6,980) 
     28,283,012 
  
    Effect of exchange rate changes 
     (7,218) 
     - 
  
    Net change in cash and cash equivalents 
    $(390,961) 
    $28,004,553 

39

Operating activities

Net cash used in operating
activities was approximately $0.4 million for the three months ended September 30, 2025 and was primarily attributable to (i) approximately
$2.9 million net loss, (ii) approximately $6.0 million increase in accounts receivable due to the increase of credit sales
during the period, (iii) approximately $0.5 million payment in operating lease liabilities as we commenced our factory and warehouse
lease in July 2025, and (iv) approximately $0.1 million non-cash recovery of credit losses as we collected receivables that had been previously
reserved for under the allowance for credit losses. The cash outflow was offset by (v) non-cash expenses of approximately $1.2 million,
which includes depreciation, amortization of operating right-of-use assets, stock-based