Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 984

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 5
Chunk 984
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     136,752  
     91,168  
     45,584  
     50.0%
  
    Research
    and development 
     2,083,897  
     -  
     2,083,897  
     100.0%
  
    Total
    operating expense 
    $14,472,539  
    $3,244,413  
    $11,228,126  
     346.1%

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

Selling
Expenses

Selling expenses increased approximately $4.1 million, or 381.4%,
to approximately $5.2 million for the year ended June 30, 2025, from approximately $1.1 million for the year ended June 30, 2024.
The increased selling expenses was mainly attributable to (i) approximately $2.0 million increase in commission, payroll and payroll related
expense as we recruited and hired more salespersons to our team during the year ended June 30, 2025, (ii) approximately $0.9 million increase
in consulting fees, as the Company engaged additional sales consultant to enhance our sales efforts, (iii) approximately $0.4 million
increase in sampling, testing and certification expenses, (iv) approximately $0.2 million increase in stock-based compensation as we granted
restricted stock units in November 2024 to our sales team members under the Incentive Plan, (v) approximately $0.3 million increase in
warranty expenses which is in line with sales growth, and (vi) approximately $0.3 million increase advertising and marketing, which all
directly related with boosting the brand awareness, adding new product models, and attracting more business opportunities in the electronic
devices market during the year ended June 30, 2025.

General
and Administrative Expenses

General and administrative expenses increased approximately $5.0 million,
or 240.4%, to approximately $7.1 million for the year ended June 30, 2025 from approximately $2.1 million for the year ended June
30, 2024. The increased general and administrative expense were mainly attributable to (i) the approximately $1.3 million increase in
professional expense on audit, legal and accounting fees as we became a public company, (ii) approximately $1.2 million increase
in salary