Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 209

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 209
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 Stock-based compensation expenses 
     200,954  
     -  
     200,954  
     100.0%
  
    Total operating expense 
    $4,431,766  
    $682,764  
    $3,749,002  
     549.1%

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

Selling Expenses

Selling expenses increased,
approximately $1.4 million, or 1,056.0%, to approximately $1.6 million for the three months ended December 31, 2024, from approximately
$0.2 million for the three months ended December 31, 2023. The increased selling expenses was mainly attributable to approximately
$0.6 million increase in commission, payroll and payroll related expense as we recruited and hired more salespersons to our team during
the three months ended December 31, 2024, approximately $0.3 million increase in consulting fees, as the Company engaged additional sales
consultant to enhance our sales efforts, approximately $0.2 million increase in warranty expenses due to the increase in sales, and approximately
$0.2 million increase in sampling, testing and certification expenses, and 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 December 31, 2024.

General and Administrative Expenses

General and administrative
expenses increased approximately $1.4 million, or 254.6%, to approximately $1.9 million for the three months ended December 31, 2024
from approximately $0.5 million for the three months ended December 31, 2023. The increased general and administrative expense were
mainly attributable to the approximately $0.7 million increase in professional expense on audit, legal and accounting fees as we became
a public company, approximately $0.3 million increase in salary and wages as we made more new hires during the three months ended
December 31, 2024, and approximately $0.4 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