Company: XXC
Filing Date: 2025-09-18
Form Type: F-1/A
Source: 0001213900-25-089077
Chunk: 313

Company: XINXU COPPER INDUSTRY TECHNOLOGY Ltd
Filing Date: 2025-09-18
Form: F-1/A
Chunk 313
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 such as supplementary materials, warehouse utilities, and repair and maintenance costs. Government Grant Government grants are compensations for the purpose of giving immediate financial support to the Company according to the government’s policy. The government evaluates the Company’s eligibility for the grants on a consistent basis and then makes the payment. Therefore, there are no restrictions on the grants. Government grants are recognized when received and all the conditions for their receipt have been met. The grants received were $833,414 and $189,308 for the six months ended December 31, 2024 and 2023, respectively, which were included in other income. Research and Development Costs Research and development activities are directed toward the development of new products as well as improvements in existing processes. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred. F-43 XINXU COPPER INDUSTRY TECHNOLOGY LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (cont.) Shipping and Handling Costs Shipping and handling costs are expensed when incurred and are included in selling and marketing expense. Shipping and handling costs were $69,358 and $17,344 for the six months ended December 31, 2024 and 2023, respectively, which were included in selling and marketing expenses. Advertising Costs Advertising costs are expensed as incurred in accordance with ASC 720 -35, “Other Expenses -AdvertisingCosts”. There was no advertising costs for six months ended December 31, 2024 and 2023. Income Taxes The Company accounts for income taxes using the asset and liability method whereby it calculates deferred tax assets or liabilities for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits by applying enacted tax rates applicable to the years in which those temporary differences are expected to be reversed or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as non -currentamounts. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two -stepprocess whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained