Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 43

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 43
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 ones,
introduces uncertainty regarding the Company’s future costs, revenues, collectability of account receivables, carrying value of
inventories, and overall financial performance. The Company monitors these developments closely and will continue to evaluate their potential
impact on its operations, financial condition, and results of operations. The ultimate financial impact of these uncertainties is difficult
to quantify at this time.

26

On July 4, 2025, the One
Big Beautiful Bill Act, Public Law No. 119021 (“OBBBA”), was signed into law by the President of the United States, which
introduced significant and wide-ranging changes to the U.S. tax system. Significant components include restoration of 100% accelerated
tax depreciation on qualifying property including expansion to cover qualified production property. Another major aspect of the changes
includes the return to immediate expensing of domestic research and experimental expenditures (“R&E”) which in some cases
may include retroactive application back to 2021 for businesses with gross receipts of less than $31 million or accelerated tax deductions
of R&E that was previously capitalized for larger businesses.  The legislation also reinstates EBITDA-based interest deductions
for tax purposes and makes several business tax incentives permanent.  Less favorable business provisions including limitations on
tax deductions for charitable contributions were also adopted.

The Company is currently assessing the potential impact of this legislation
on its future financial position, results of operations, and cash flow. In accordance with U.S. GAAP, the effects will be recognized in
the period of enactment.

Note 19 — Income taxes 

As of September 30, 2025
and June 30, 2025, the Company’s deferred tax asset had a full valuation allowance recorded against it. The effective tax rate for
each of the three months ended September 30, 2025 and 2024 was 0%. The effective tax rate differs from the statutory tax rate of 21%
primarily due to the valuation allowance on the deferred tax assets

Note 20 — Disaggregated information
of revenues

Disaggregated information
of revenues by product type is as follows:

    For the Three Months Ended 

    September 30, 

    2025  
    2024 

    (Unaudited)  
    (Unaudited) 
  
    Tablet products 
    $50,471  
    $4,755 
  
    Mobile phone products 
     17,644