Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 96

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 96
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 the Board of Directors, or to cast a majority of votes at the meetings of directors.

Use of estimates and assumptions

The preparation of unaudited condensed consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of 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.

6

Foreign currency translation and transactions

The reporting currency of
the Company is the U.S. dollar. The functional currency for the 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 stockholders’ equity (deficit)
at September 30, 2025, were translated at SGD 1.29 to USD 1.00. The average translation rates applied to the unaudited condensed consolidated
statements of operations and cash flows for the three months ended September 30, 2025, were SGD 1.28 to USD 1.00. The stockholders’
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 reviews financial information presented on a consolidated basis, accompanied