Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 72

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 1
Chunk 72
---
)  

    Operating expenses 

    Selling expenses 
    $2,790,786  
    $344,583  
    $2,446,203  
     709.9%
  
    General and administrative expense 
     2,898,978  
     849,791  
     2,049,187  
     241.1%
  
    Research and development – related party 
     68,376  
     -  
     68,376  
     100.0%
  
    Research and development 
     678,781  
     -  
     678,781  
     100.0%
  
    Stock-based compensation expenses 
     200,954  
     -  
     200,954  
     100.0%
  
    Total operating expense 
    $6,637,875  
    $1,194,374  
    $5,443,501  
     455.8%

41

The increase in operating
expense was mainly attributed to the following:

Selling Expenses

Selling expenses increased,
approximately $2.4 million, or 709.9%, to approximately $2.8 million for the six months ended December 31, 2024, from approximately
$0.4 million for the six months ended December 31, 2023. The increased selling expenses was mainly attributable to approximately
$1.2 million increase in commission, payroll and payroll related expense as we recruited and hired more salespersons to our team during
the six months ended December 31, 2024, approximately $0.6 million increase in consulting fees, as the Company engaged additional sales
consultant to enhance our sales efforts, approximately $0.3 million increase in warranty expenses due to the increase in sales, and approximately
$0.3 million increase in sampling, testing and certification expenses, 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 six months ended December 31,
2024.

General and Administrative Expenses

General and administrative
expenses increased approximately $2.0 million, or 241.1%, to approximately $2.9 million for the six months ended December 31, 2024
from approximately $0.9 million for the six months ended December 31, 2023