Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 158

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 158
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 and wages as we made more new hires during the three months ended
December 31, 2024, and approximately $0.4 million increase in other general and administrative miscellaneous expenses, such as insurance,
rent expense, travel expense, and office expense due to increased expenses in the increased of our operations. We anticipate a continued
rise in our G&A as we persist in executing our business expansion plan and integrating IoT-enabled devices alongside our cloud platform
to streamline operations in 2025.

37

Research and Development — related
party

Research and development
(“R&D”) expenses from a related party increased by approximately $46,000, or 100.0%, where the increase was primarily
due to an R&D project began in 2024. During the three months ended December 31, 2024, a related party completed additional 20% 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 $46,000 accordingly based on the progression of the R&D project. We expect our R&D expenses will continue to
go up as we will need to development our IoT and MVNO capabilities products and to finish our development of the 5G products in 2025.

Research and Development 

R&D expenses increased
by approximately $0.7 million, or 100.0%, from $0 for the three months ended December 31, 2023 to $0.7 million for the same period in
2024. The increase is due to hiring more employees and engaging third parties to provide development services for new products during
the three months ended December 31, 2024.

Stock-based compensation expenses

Stock-based compensation
expenses increased by approximately $0.2 million, or 100.0%, from $0 for the three months ended December 31, 2023 to $0.2 million for
the same period in 2024. The increase is due to restricted stock units granted to our employees, consultants and independent directors
under employee incentive plan during the three months ended December 31, 2024.

Other income (expense), net

Our other income (expense),
net is summarized as follows:

    For the Three Months ended December 31, 

    2024  
    2023  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)