Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 64

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 64
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.6 million for the three months ended September 30, 2025, from approximately
$2.2 million for the three months ended September 30, 2024.

Our operating expenses are
summarized as follows:

    For the Three Months ended September 30, 

    2025  
    2024  
    Change ($)  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Operating expenses 

    Selling expenses 
    $901,656  
    $1,215,042  
    $(313,386) 
     (25.8)%
  
    General and administrative expense 
     2,428,673  
     961,247  
     1,467,426  
     152.7%
  
    Research and development – related party 
     -  
     22,792  
     (22,792) 
     (100.0)%
  
    Research and development 
     306,432  
     7,028  
     299,404  
     4,260.2%
  
    Total operating expense 
    $3,636,761  
    $2,206,109  
    $1,430,652  
     64.8%

The increase in operating
expenses was mainly attributed to the following:

Selling Expenses

Selling expenses decreased approximately $0.3 million, or 25.8%,
to approximately $0.9 million for the three months ended September 30, 2025, from approximately $1.2 million for the three months
ended September 30, 2024. The decreased selling expenses was mainly attributable to approximately $0.4 million decrease in commission,
payroll and payroll related expenses and approximately $0.1 million decrease in consulting fees during the three months ended September
30, 2025, as we reduced salespersons and consultants to cut expenses and improve profitability to improve cost efficiency. The decrease
was offset by approximately $0.1 million increase in stock-based compensation as we granted restricted stock units in November 2024 to
our sales team members under employee incentive plan and approximately $0.1 million increase in sampling, testing and certification expenses.

37

General and Administrative Expenses

General and administrative
expenses increased approximately $1.4 million, or 152