Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 72

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 72
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 million increase in consulting fees, as the Company engaged additional sales consultant
to enhance our sales efforts, approximately $0.2 million increase in sampling, testing and certification expenses, 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 $0.2 million increase advertising and marketing, which all directly related with boosting the brand
awareness, adding new product models, and to attract more business opportunities in the electronic devices market during the three months
ended March 31, 2025.

39

General and Administrative Expenses

General and administrative
expenses increased approximately $1.2 million, or 230.2%, to approximately $1.8 million for the three months ended March 31, 2025
from approximately $0.6 million for the three months ended March 31, 2024. The increased general and administrative expense were
mainly attributable to the approximately $0.2 million increase in professional expense on audit, legal and accounting fees as we became
a public company, approximately $0.2 million increase in salary and wages as we made more new hires during the three months ended
March 31, 2025, approximately $0.4 million increase in credit losses due to the increasing risk of uncollectable accounts from one customer,
approximately $0.2 million increase in stock-based compensation as we granted restricted stock units in November 2024 to our management
team members under employee incentive plan, and approximately $0.2 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.

Research and Development — related
party

Research and development
(“R&D”) expenses from a related party decreased by approximately $23,000, or 50.0%, where the decrease was primarily due
to an R&D project began in 2024. During the three months ended March 31, 2024, a related party completed initiated a 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