Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 80

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 80
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 the Nine Months ended March 31, 

    2025  
    2024  
    Change ($)  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Operating expenses 

    Selling expenses 
    $4,393,150  
    $499,802  
    $3,893,348  
     779.0%
  
    General and administrative expense 
     4,826,704  
     1,401,915  
     3,424,789  
     244.3%
  
    Research and development – 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