Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 156

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 8
Chunk 156
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Gross profit percentage of
tablets improved from 12.5% to 21.1% from the three months ended December 31, 2023 to the same period in 2024. This was primarily due
to our change of business strategy as discussed above, which lead to the increase in the unit selling price of electronic products, and
the decrease in the unit purchase price of the purchasing goods.

Gross profit percentage for
mobile phones decreased from 11.0% to 8.2% for the three months ended December 31, 2023, to the same period in 2024. This decline was
primarily due to the increasing sales of new model of mobile phones with lower gross profit percentage during the three months ended December
31, 2024.

36

For the three months ended
December 31, 2024, our gross profit percentage of wearable products was 13.9%. We did not have this kind of products for the three months
ended December 31, 2023.

For the three months ended
December 31, 2024, our gross profit percentage of App service commission was 100.0% because this revenue was commission based revenue
that was earned at a point in time when the revenue is generated from the App, that is when clicks and/or impressions occur at a point
in time when the end users of the mobile devices use the App and we received the App revenue share (service commission) from our partners
without cost of goods. We did not have this kind of service for the three months ended December 31, 2023.

Operating Expenses

Total operating expenses
increased by approximately $3.7 million, or 549.1%, to approximately $4.4 million for the three months ended December 31, 2024 from approximately
$0.7 million for the three months ended December 31, 2023.

Our operating expenses are
summarized as follows:

    For the Three Months ended December 31, 

    2024  
    2023  
    Change ($)  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Operating expenses 

    Selling expenses 
    $1,575,744  
    $136,307  
    $1,439,437  
     1,056.0%
  
    General and administrative expense 
     1,937