Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 243

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 243
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 public company, approximately $0.2 million increase in salary and wages as we made more new hires during the three months ended
March 31, 2025, approximately $0.4 million increase in credit losses due to the increasing risk of uncollectable accounts from one customer,
approximately $0.2 million increase in stock-based compensation as we granted restricted stock units in November 2024 to our management
team members under employee incentive plan, and approximately $0.2 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 in 2025.

Research and Development — related
party

Research and development
(“R&D”) expenses from a related party decreased by approximately $23,000, or 50.0%, where the decrease was primarily due
to an R&D project began in 2024. During the three months ended March 31, 2024, a related party completed initiated a 5G development
project pursuant to a R&D agreement between us and the related party, and we recognized a R&D expense approximately of $46,000
accordingly based on the 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,