Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 73

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 73
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 other types of
goods from other countries. For example, on April 2, 2025, the President of the United States signed Executive Order 14257, “Regulating
Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits”
(the “Executive Order 14257”), to take action based on the results of certain investigations related to the causes of the
U.S.’s large and persistent annual trade deficits in goods. In response, many of these foreign governments have imposed retaliatory
tariffs on goods that their countries import from the U.S. or have enacted export restrictions on certain goods produced in their country.
Uncertainties with respect to tariffs, trade agreements or any potential trade wars could negatively affect the global economy and demand
for our products and could have a material adverse effect on our financial condition, results of operations and cash flows. Changes in
tariffs and trade barriers could also result in adverse changes in the cost of sourcing and manufacturing our products, which could lead
to increased costs that we may not be able to effectively pass on to customers, each of which could materially adversely affect our operating
margins, results of operations and cash flows.

43

The enactment of legislation implementing
changes in taxation of international business activities, the adoption of other corporate tax reform policies, or changes in tax legislation
or policies could impact our future financial position and results of operations.

Corporate
tax reform, base-erosion efforts and tax transparency continue to be high priorities in many tax jurisdictions where we intend to have
business operations. As a result, policies regarding corporate income and other taxes in numerous jurisdictions are under heightened scrutiny
and tax reform legislation is being proposed or enacted in a number of jurisdictions. Recently, in July 2025, the U.S. government enacted
The One Big Beautiful Bill Act, Public Law No. 119021 (the “OBBBA”) which includes a broad range of tax reform provisions
that may affect our financial results. The OBBBA includes, among other provisions, the allowance of immediate expensing of qualifying
domestic research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act of
2017. 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. 

In addition,