Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 189

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 189
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related party 
     91,168  
     45,584  
     45,584  
     100.0%
  
    Research and development 
     1,550,833  
     -  
     1,550,833  
     100.0%
  
    Total operating expense 
    $10,861,855  
    $1,947,301  
    $8,914,554  
     457.8%

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

Selling Expenses

Selling expenses increased,
approximately $3.9 million, or 779.0%, to approximately $4.4 million for the nine months ended March 31, 2025, from approximately
$0.5 million for the nine months ended March 31, 2024. The increased selling expenses was mainly attributable to approximately $1.8
million increase in commission, payroll and payroll related expense as we recruited and hired more salespersons to our team during the
nine months ended March 31, 2025, approximately $0.9 million increase in consulting fees, as the Company engaged additional sales consultant
to enhance our sales efforts, approximately $0.3 million increase in warranty expenses due to the increase in sales, approximately $0.4
million increase in advertising and marketing expenses to boost sales, 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, consultants and independent
directors under employee incentive plan, and approximately $0.4 million increase in sampling, testing and certification expenses, 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 nine months ended March 31, 2025.

General and Administrative Expenses

General and administrative
expenses increased approximately $3.4 million, or 244.3%, to approximately $4.4 million for the nine months ended March 31, 2025
from approximately $0.5 million for the nine months ended March 31, 2024. The increased general and administrative expense were mainly
attributable to the approximately $1.0 million increase in professional expense on audit, legal and accounting fees as we became a public
company, approximately $0.8 million increase in salary and wages as we made more new