Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 132

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 132
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 FASB
issued ASU No. 2023-07, “Segment Reporting (Topic 280)” (“ASU 2023-07” or “Topic 280). The amendments
in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for
all public entities to enable investors to develop more decision useful financial analyses. Topic 280 requires a public entity to report
a measure of segment profit or loss that the chief operating decision maker (CODM) uses to assess segment performance and make decisions
about allocating resources. Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and
depletion expense, to be disclosed under certain circumstances. The amendments in ASU 2023-07 also do not change how a public entity identifies
its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.
The amendments in ASU 2023-07 are effective for years beginning after December 15, 2023 and interim periods within fiscal years beginning
after December 15, 2024, adopted retrospectively. The Company adopted this ASU for the three and nine months ended March 31, 2025 and
there was no material effect on the Company’s unaudited condensed consolidated financial statements.

Except as mentioned above, the Company does not believe other recently
issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s balance sheets,
statements of operations and comprehensive loss, and statements of cash flows.

12

Recently issued accounting pronouncements not
yet adopted

In December 2023, the
FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”),
which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation,
(2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and
(3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also
requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes.
The guidance is effective for annual periods beginning after December 15, 2024. Early adoption