Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 64

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 64
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136,307  
    $1,439,437  
     1,056.0%
  
    General and administrative expense 
     1,937,731  
     546,457  
     1,391,274  
     254.6%
  
    Research and development – related party 
     45,584  
     -  
     45,584  
     100.0%
  
    Research and development 
     671,753  
     -  
     671,753  
     100.0%
  
    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