Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 24

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 24
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 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 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