Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 150

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 150
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 General and administrative expense 
     2,428,673  
     961,247  
     1,467,426  
     152.7%
  
    Research and development – related party 
     -  
     22,792  
     (22,792) 
     (100.0)%
  
    Research and development 
     306,432  
     7,028  
     299,404  
     4,260.2%
  
    Total operating expense 
    $3,636,761  
    $2,206,109  
    $1,430,652  
     64.8%

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

Selling Expenses

Selling expenses decreased approximately $0.3 million, or 25.8%,
to approximately $0.9 million for the three months ended September 30, 2025, from approximately $1.2 million for the three months
ended September 30, 2024. The decreased selling expenses was mainly attributable to approximately $0.4 million decrease in commission,
payroll and payroll related expenses and approximately $0.1 million decrease in consulting fees during the three months ended September
30, 2025, as we reduced salespersons and consultants to cut expenses and improve profitability to improve cost efficiency. The decrease
was offset by 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 $0.1 million increase in sampling, testing and certification expenses.

37

General and Administrative Expenses

General and administrative
expenses increased approximately $1.4 million, or 152.7%, to approximately $2.4 million for the three months ended September 30,
2025 from approximately $1.0 million for the three months ended September 30, 2024. The increased general and administrative expense
were mainly attributable to the approximately $0.5 million increase in professional expense on audit and accounting fees as we became
a public company, approximately $0.2 million increase in salary and wages as we made more new hires after we became a public company,
and approximately $0.7 million increase in rent due to the new factory and warehouse lease that commenced in July 2025.

Research and Development — related
party

Research and