Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 185

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 185
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346,663 
  
    App service commission revenue, net, and others 
     1,661,872  
     - 
  
    Total revenues, net 
    $51,984,361  
    $1,346,663 

Tablet product sales were
insignificant in our operations for the nine months ended March 31, 2025. Revenue from the sales of tablets decreased by approximately
$0.3 million, or 40.3%, to approximately $0.4 million for the nine months ended March 31, 2025 from $0.7 million for the same period in
2024. Revenue from sales of mobile phones increased by approximately $45.9 million, or 6,660.7%, to approximately $46.6 million for
the nine months ended March 31, 2025 from $0.7 million for the same period in 2024 as we rolled out some new mobile phone products beginning
in January 2024 and the sales from three new major wholesale customers who aggregately accounted for 78% of our sales. Revenue from sales
of wearable products and others increased by approximately $3.4 million, or 100.0%, to approximately $3.4 million for the nine months
ended March 31, 2025 from $0 for the same period in 2024 as we rolled out some new wearable products beginning in October 2024. Revenue
from App service commission and others increased by approximately $1.7 million, or 100.0%, to approximately $1.7 million for the
nine months ended March 31, 2025 from $0 for the same period in 2024 as we started to generate income by providing installation of App
service to our partners on our mobile devices and procure the distribution of these devices to the end users beginning in July 2024.

Cost of Goods Sold

Our cost of goods sold mainly
consists of cost of merchandise and freight. Total cost of goods sold increased by approximately $47.4 million, or 3,687.2%, to approximately
$48.7 million for the nine months ended March 31, 2025 as compared to $1.3 million for the nine months ended March 31, 2025. The
increase in cost of goods sold is a direct result of an increase in our revenue, consistent with the acquisition of our three new major
wholesale customers