Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 73

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 73
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 progression of the R&D project. During the three months ended March 31, 2025, the related party completed
additional 20% of the remaining 5G development project, and we recognized a R&D expense approximately of $23,000. We expect to finish
our development of the 5G products in 2025.

Research and Development 

R&D expenses increased
by approximately $0.8 million, or 100.0%, from $0 for the three months ended March 31, 2024 to $0.8 million for the same period in 2025.
The increase is due to hiring more employees and engaging third parties to provide development services for new products during the three
months ended March 31, 2025. The increase is also attributable to approximately $0.1 million increase in stock-based compensation as we
granted restricted stock units in November 2024 to our R&D team members under employee incentive plan.

Other expense, net

Our other expense, net is
summarized as follows:

    For the Three Months ended March 31, 

    2025  
    2024  
    Change  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Other expense 

    Interest expense 
    $(1,553,993) 
    $(77,573) 
    $1,476,420  
     1,903.3%
  
    Other income (expense), net 
     (2,118) 
     3,440  
     (5,558) 
     (161.6)%
  
    Change in fair value of earnout liabilities 
     1,032,267  
     -  
     1,032,267  
     100.0%
  
    Total other expense, net 
    $(523,844) 
    $(74,133) 
    $(449,711) 
     606.6%

Total other expense, net
increased by approximately $0.4 million, or 606.6%, to approximately $0.5 for the three months ended March 31, 2025, from approximately
$74,000 for the three months ended March 31, 2024. The increase was primarily due to the interest expenses incurred related to the financing
offered by our vendors based upon the timing of our