Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 618

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 618
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 accordance with ASC 850, Related
Party Disclosures, and other relevant ASC standards.

Parties,
which can be a corporation or individual, are considered to be related if they have the ability, directly or indirectly, to control the
Company or exercise significant influence over the Company in making financial and operating decisions. Entities are also considered
to be related if they are subject to common control or common significant influence.

Transactions
involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive,
free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related
party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations
can be substantiated.

Recently
adopted accounting standards

The
Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews
new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS
Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying
with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In
November 2023, the 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 retrospect