Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 131

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 131
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 net loss per share calculation, as the effect of
their inclusion would be anti-dilutive or the share equivalents were contingently issuable as of each period presented:

    For the Three Months Ended  September 30, 

    2025  
    2024 

    (Unaudited)  
    (Unaudited) 
  
    Earnout Shares* 
     -  
     2,100,000 
  
    Warrants ** 
     12,145,917  
     12,156,423 
  
    RSUs** 
     684,355  
     - 
  
    Total 
     12,830,272  
     14,256,423 

  * As described in Note 4 - Reverse recapitalization, the Earnout Shares that are contingently issuable in connection with the Business Combination are subject to vesting based on the Company’s financial performance during the earnout period. The Earnout Shares are excluded from the calculation of basic and diluted weighted-average number of common shares outstanding until vested. 

  ** The Company’s outstanding warrants and RSUs were excluded from the computation of diluted EPS because it has anti-dilutive effect as the company had a net loss during the periods presented. 

Note 22 — Segment information

The Company conducts business
as a single operating segment which is based upon the Company’s organizational and management structure, as well as information
used by the Company’s CODM to allocate resources and other factors. The accounting policies of the segment are the same as those
described in Note 3.

28

The key measure of segment
profitability that the CODM uses to allocate resources and assess performance is consolidated net loss, as reported in the consolidated
statements of operations. The following table presents the significant revenue and expense categories of the Company’s single operating
segment: 

    For The Three Months Ended 

    September 30,  
    September 30, 

    2025  
    2024 
  
    Revenues, net 
    $20,223,301  
    $23,112,052 
  
    Less cost of goods sold 
     17,478,734  
     22,713,876 
  
    Less significant segment expenses: 

    Commission expenses 
     53,237  
     303,486 
  
    Marketing consulting expenses 
     194,427