Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 720

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 3
Chunk 720
---
5.

Net
Loss

Net
loss increased by approximately $5.6 million, or 162.9%, to approximately $9.0 million for the year ended June 30, 2025, from approximately
$3.4 million for the year ended June 30, 2024. Such change was mainly due to the reasons discussed above.

Foreign
Currency Translation Adjustment

Changes
in foreign currency translation adjustment of approximately $5,000 are mainly due to the fluctuation of foreign exchange rates between
SGD (the functional currency of one of our subsidiaries) and the USD dollar (reporting currency) for the year ended June 30, 2025.

Liquidity
and Capital Resources

In
assessing liquidity, we monitor and analyses cash on-hand and operating and capital expenditure commitments. Our liquidity needs are
to meet working capital requirements, operating expenses, and capital expenditure obligations. Debt financing in the form of convertible
promissory note and cash generated from operations have been utilized to finance working capital requirements.

As
of June 30, 2025, we had cash and cash equivalents of approximately $1.9 million, while we had accumulated deficit of approximately
$20.0 million. During the year ended June 30, 2025, we had net loss of approximately $9.0 million and net operating cash outflow
of approximately $6.6 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 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.

26

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 consolidated financial statements are issued. The 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 year ended June 30, 2025 and 2024.

    For
    the Years Ended  June 30,