Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 61

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 61
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3 as we started to generate income by providing
installation of App service to our partners on our mobile devices and procure the distribution of these devices to the end users beginning
in July 2024.

Cost of Goods Sold

Our cost of goods sold mainly
consists of cost of merchandise and freight. Total cost of goods sold increased by approximately $14.6 million, or 1,985.2%, to approximately
$15.3 million for the three months ended December 31, 2024 as compared to $0.7 million for the three months ended December 31, 2023.
The increase in cost of goods sold is a direct result of an increase in our revenue, consistent with the acquisition of our two new wholesale
customers and new product line as discussed above for the three months ended December 31, 2024 as compared to the same period in 2023.

Our cost of goods sold from
their revenue categories are summarized as follows:

    For the Three Months Ended 

    December 31,  2024  
    December 31,  2023 

    (Unaudited)  
    (Unaudited) 
  
    Tablet products 
    $132,899  
    $482,608 
  
    Mobile phone products 
     13,623,422  
     250,636 
  
    Wearable products 
     1,533,244  
     - 
  
    Total cost of goods sold 
    $15,289,565  
    $733,244 

35

Our cost of goods sold for
tables decreased by approximately $0.4 million, or 72.5%, to approximately $0.1 million for the three months ended December 31, 2024 from
$0.5 million for the same period in 2023. Cost of goods sold for mobile phone products increased by approximately $13.4 million,
or 5,335.5%, to approximately $13.6 million for the three months ended December 31, 2024 from $0.3 million for the same period in
2023, which is consistent with the direct result of an increase in our revenue. Cost of goods sold for wearable products increased by
approximately $1.5 million, or 100.0%, to approximately $1.5 million for the three months ended December 31, 2024 from $0 for
the