Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 1271

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 7
Chunk 1271
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 balance sheets at face value or cost, which approximates
the fair value because of the short period of time between the origination of such instruments and their expected realization and their
current market rates of interest.

Foreign
currency translation and transactions

The
reporting currency of the Company is the U.S. dollar. The functional currency for our holding company is the U.S. dollar (“USD”).
In Singapore, the Company conducts its business in the local currency, Singapore dollar (“SGD”), as its functional currency.
Assets and liabilities are translated at the unified exchange rate as quoted by the Federal Reserve System at the end of the period.
The statements of operations and cash flows are translated at the average translation rates during the reporting periods and the equity
accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive
loss. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the
functional currency are included in the results of operations as incurred.

Translation
adjustments are included in accumulated other comprehensive loss. The balance sheet amounts, with the exception of shareholder’s
equity (deficit) at June 30, 2025 were translated at SGD 1.27 to USD 1.00. The average translation rates applied to the consolidated
statements of operations and cash flows for year ended June 30, 2025 was SGD 1.32 to USD 1.00. The shareholder’s equity accounts
were translated at their historical rates. Amounts reported on the consolidated statement of cash flows will not necessarily agree with
changes in the corresponding balances on the consolidated balance sheets. 

Segments

The
Company uses the management approach in determining reportable operating segments. The management approach considers the internal reporting
used by the chief operating decision maker (“CODM”), which is the Company’s Chief Executive Officer and his direct
reports, for making operating decisions about the allocation of resources and the assessment of performance in determining the Company’s
reportable operating segments. The Company’s CODM review financial information presented on a consolidated basis, accompanied by
disaggregated information about revenues, cost of revenues, and gross profit by business lines (electronic products revenues and App
service commission revenue) for purposes of allocating resources and evaluating financial performance. There are no segment managers
who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. In addition,
all of the Company’s revenues are derived solely from the U.S