Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 189

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 2
Chunk 189
---
 financial condition and results of operations include the following:

Retention of Key Management Team Members

One of the key differentiating factors of us is the rich blended nature
of our management team. Our management team comprises executives with extensive experience in electronics industry with IoT services related
experience. The wide array of industry experience captured by our management team allows us to deliver advanced technology and superior
products to our customers. Losing any member of our key executive team could significantly impact on the quality of services and products
that we currently offer. Such departures may prompt customers to explore alternative products or IoT cloud platforms offered by different
vendors or service providers.

Investment in technology and talent

We invest significant resources
in outsourcing partnerships and dedicate efforts to research and develop new products, solutions, agent platforms, and related services.
This commitment is essential to uphold our competitiveness in the industry, especially in the realm of IoT services. Advancing technology
and enhancing capabilities are pivotal for enterprise growth, necessitating continual progress in electronic product technologies, novel
services, and expanded capabilities.

To maintain and expand our
customer base, we must sustain a culture of innovation that aligns with the industry’s evolution. This entails continuously introducing
cutting-edge technologies to the market. Our current focus in research and development revolves around bolstering comprehensive communication,
storage, and energy solutions, as well as advancing 5G technology. This includes areas such as baseband development, Radio Frequency (RF)
layout optimization, Session Initiation Protocol (SIP) integration, and rigorous system testing.

Our ability to expand our products and services
and diversify customer base

Currently, our main revenue stream originates from the sale of tablets
and mobile phones. As brand recognition and acceptance grow, we anticipate a surge in user adoption of our wireless services and intelligent
products. Our capacity to broaden our products portfolio, offer new services and attract a more diversified customer base could significantly
influence our future operating results.

34

Results of Operations

Comparison for the three months ended September
30, 2025 and 2024

    For the Three Months September 30, 

    2025  
    2024  
    Change ($)  
    Change (%) 

    (Unaudited)  
    (Unaudited)  

    Revenues, net 
    $20,223,301  
     23,112,052  
     (2,888,751) 
     (12.5)%
  
    Cost of