Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 65

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 65
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.7%, to approximately $2.4 million for the three months ended September 30,
2025 from approximately $1.0 million for the three months ended September 30, 2024. The increased general and administrative expense
were mainly attributable to the approximately $0.5 million increase in professional expense on audit and accounting fees as we became
a public company, approximately $0.2 million increase in salary and wages as we made more new hires after we became a public company,
and approximately $0.7 million increase in rent due to the new factory and warehouse lease that commenced in July 2025.

Research and Development — related
party

Research and
development (“R&D”) expenses from a related party decreased by approximately $23,000, or 100.0%, where the decrease
was primarily due to an R&D project which commenced in 2024 and was completed in June 2025. During the three months ended
September 30, 2024, a related party completed additional 10% of the remaining 5G development project pursuant to a R&D agreement
between us and the related party, and we recognized a R&D expense approximately of $23,000 accordingly based on the progression
of the R&D project. We did not have this expense for the same period in 2025.

Research and Development 

R&D expenses increased
by approximately $0.3 million, or 4,260.2%, from $7,000 for the three months ended September 30, 2024 to $0.3 million for the same period
in 2025. The increase is due to hiring of more employees and engaging third parties to provide development services for new products
after we became a public company. The increase is also attributable to approximately $57,000 increase in stock-based compensation as
we granted restricted stock units in November 2024 to our R&D team members under the Incentive Plan. 

Other expense, net

Our other expense, net is
summarized as follows:

    For the Three Months ended September 30, 

    2025  
    2024  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Other expense 

    Interest expense 
    $(2,011,905) 
    $(408,995) 
    $(1,602,910) 
     391.9