Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 133

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 133
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 is permitted for annual consolidated
financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective
basis, but retrospective application is permitted. The Company continuously evaluates the potential impact of adopting this new guidance
on the unaudited condensed consolidated financial statements and related disclosures and does not believe it will have a material impact
on the presentation of the unaudited condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of
Income Statement Expenses, which requires public business entities (“PBEs”) to disclose disaggregated information about
specific natural expense categories underlying certain income statement expense line items that are considered “relevant”
because they include one or more of the five natural expense categories discussed further below. Such disclosures must be made on an annual
and interim basis in a tabular format in the footnotes to the financial statements. The ASU requires entities to disaggregate any relevant
expense caption presented on the face of the income statement within continuing operations into the following required natural expense
categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization,
and (5) DD&A recognized as part of oil- and gas-producing activities or other depletion expenses. An entity’s share of earnings
or losses from investments accounted for under the equity method is not a relevant expense caption that requires disaggregation. Further,
certain other expenses and gains or losses that must be disclosed under existing U.S. GAAP, and that are recorded in a relevant expense
caption, must be presented in the same tabular disclosure on an annual and, when applicable, interim basis. In addition, ASU 2024-03 requires
PBEs to disclose selling expenses on an annual and interim basis. If interim financial statements are condensed and, therefore, the expense
captions presented on the face of the income statements differ from interim to annual periods, there could be different expense captions
in interim and annual reporting periods. The ASU does not change the expense captions an entity presents on the face of the income statement;
rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial
statements. The effective date for PBEs is for annual reporting periods beginning after December 15, 2026 and interim reporting periods
beginning after December 15, 202