Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 121

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 121
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 contingent assets and liabilities as of the date of the unaudited
condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results
could differ from these estimates.

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.

6

Translation adjustments are included in accumulated other comprehensive
loss. The balance sheet amounts, with the exception of shareholder’s equity (deficit) at March 31, 2025 were translated at SGD 1.34
to one USD, respectively. The average translation rates applied to the unaudited condensed consolidated statements of operations and cash
flows for three and nine months ended March 31, 2025 was SGD 1.33 to one USD. The shareholder’s equity accounts were translated
at their historical rates. Amounts reported on the unaudited condensed consolidated statement of cash flows will not necessarily agree
with changes in the corresponding balances on the unaudited condensed 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