Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 476

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 1C
Chunk 476
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 2025, there were no other outstanding convertible instruments.

Revenue
recognition

The
Company recognizes revenue to depict the transfer of promised goods or services (that is, an asset) to customers in an amount that reflects
the consideration to which the Company expects to receive in exchange for those goods or services. An asset is transferred when the customer
obtains control of that asset. It also requires the Company to identify contractual performance obligations and determine whether revenue
should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer.

To
achieve that core principle, the Company applies the five steps defined under ASC 606 “Revenue from Contracts with Customers”:
(i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine
the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize
revenue when (or as) the entity satisfies a performance obligation.

The Company’s main business is selling electronic products to
1) wholesale customers and 2) individual E-Commerce customers, and the Company’s revenue also came from 3) the App service commission
from providing installation of applications on the Company’s mobile devices and revenue share from clicks and impressions.

F-12

Wholesale
Customers

The
Company recognizes a contract with a customer when the contract is committed in writing, the rights of parties, including payment terms,
are identified, the contract has commercial substance, and collectability is probable.

A
performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of accounting
in ASC 606. A contract’s transaction price is allocated to each performance obligation identified in the arrangement based on the
relative standalone selling price of each distinct good or service in the contract and recognized as revenue when, or as, the performance
obligation is satisfied. For all the Company’s wholesale contracts, the Company has identified one performance obligation, which
is primarily satisfied at a point in time upon delivery of products based on terms stated in the contracts, either on Free on Board (“FOB”)
shipping point or destination, depending on the specified contract. The Company’s customers generally either pay the order in full
balance prior to shipment or in partial payments with credit terms of 30 to 90 days after shipment depends on the specified contract.
No sales