Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 181

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 181
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, are collectively referred to as the “Business Combination”. Following the consummation of the Business Combination (the “Closing”) on September 26, 2024, Purchaser was renamed as “Foxx Development Holdings Inc.”, and became a publicly traded company. The Merger Sub was renamed as “Foxx Development Inc.” and became the Delaware subsidiary of Purchaser. See Note 22 for more details. Note 2 — Going Concern In assessing the Company’s ability to continue as a going concern, the Company monitors and analyses its cash on -handand 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 $ 4.7million for the year ended June 30, 2024; (2) accumulated deficit of approximately $ 11.0million as of June 30, 2024; (3) the working capital deficit of approximately $ 4.6million as of June 30, 2024, and (4) three convertible promissory notes with a total principal amount of $ 6.0million as of June 30, 2024 and the related interests were automatically converted into the right to receive, without interest, the applicable portion of 5,000,000shares of the common stock of the Company (the “Common Stock”), par value $ 0.0001per share (the “Closing Payment Stock” as defined in Note 22) following consummation of the Business Combination on September 26, 2024. 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 -monthperiod 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 lender; F-35 FOXX DEVELOPMENT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 2 — Going Concern (cont.) •Financial support and credit