Foxx Development Holdings Inc. Segments Disclosure
Note 24 — Segment information
The Company conducts business as a single operating segment which is based upon the Company’s organizational and management structure, as well as information used by the Company’s CODM to allocate resources and other factors. The accounting policies of the segment are the same as those described in Note 3.
The key measure of segment profitability that the CODM uses to allocate resources and assess performance is consolidated net loss, as reported on the consolidated statements of operations. The following table presents the significant revenue and expense categories of the Company’s single operating segment:
| For The Years Ended | ||||||||
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Revenues, net | $ | 65,919,166 | $ | 3,228,559 | ||||
| Less cost of goods sold | 61,144,561 | 3,112,616 | ||||||
| Less significant segment expenses: | ||||||||
| Commission expenses | 598,971 | 30,083 | ||||||
| Marketing consulting expenses | 1,458,879 | 566,084 | ||||||
| Warranty and testing expenses | 871,274 | 146,208 | ||||||
| Marketing and advertising expenses | 368,189 | 129,935 | ||||||
| Other selling and marketing expenses | 107,569 | 51,496 | ||||||
| Payroll and payroll tax expenses | 4,310,049 | 1,134,683 | ||||||
| Professional expenses | 1,953,380 | 718,949 | ||||||
| Insurance expenses | 622,179 | 96,575 | ||||||
| Credit losses | 913,190 | |||||||
| Office expenses | 329,571 | 53,202 | ||||||
| Rent expenses | 260,527 | 63,764 | ||||||
| Travel expenses | 239,999 | 69,712 | ||||||
| Other general and administrative | 178,202 | 92,554 | ||||||
| Other research and development expenses | 1,308,130 | |||||||
| Research and development expenses-related party | 136,752 | 91,168 | ||||||
| Stock-based compensation expenses | 815,678 | |||||||
| Other segment items: | ||||||||
| Interest expense | 4,959,055 | 278,328 | ||||||
| Other expense (income), net | (25,589 | ) | 4,016 | |||||
| Change in fair value of earnout liabilities | (5,688,007 | ) | ||||||
| Provision for income taxes | 76,743 | 19,828 | ||||||
| Segment net loss | $ | (9,020,136 | ) | $ | (3,430,642 | ) | ||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.