Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 159

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 159
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 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, many countries
have enacted or plan to enact legislation and other guidance to align their international tax rules with the Organization for Economic
Co-operation and Development’s Base Erosion and Profit Shifting recommendations and action plan that aim to standardize and modernize
global corporate tax policy, including changes to cross-border tax, transfer-pricing documentation rules, and nexus-based tax incentive
practices. Such legislative initiatives may materially negatively impact our financial condition and results of operations generally.

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5.