Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 583

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 2
Chunk 583
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 to our team during the year ended June 30, 2025, (ii) approximately $0.9 million increase
in consulting fees, as the Company engaged additional sales consultant to enhance our sales efforts, (iii) approximately $0.4 million
increase in sampling, testing and certification expenses, (iv) approximately $0.2 million increase in stock-based compensation as we granted
restricted stock units in November 2024 to our sales team members under the Incentive Plan, (v) approximately $0.3 million increase in
warranty expenses which is in line with sales growth, and (vi) approximately $0.3 million increase advertising and marketing, which all
directly related with boosting the brand awareness, adding new product models, and attracting more business opportunities in the electronic
devices market during the year ended June 30, 2025.

General
and Administrative Expenses

General and administrative expenses increased approximately $5.0 million,
or 240.4%, to approximately $7.1 million for the year ended June 30, 2025 from approximately $2.1 million for the year ended June
30, 2024. The increased general and administrative expense were mainly attributable to (i) the approximately $1.3 million increase in
professional expense on audit, legal and accounting fees as we became a public company, (ii) approximately $1.2 million increase
in salary and wages as we made more new hires during the year ended June 30, 2025, (iii) approximately $0.9 million increase in credit
losses due to the increasing risk of uncollectable accounts from a few of our customers, (iv) approximately $0.4 million increase in stock-based
compensation as we granted restricted stock units in November 2024 to our management team members under the Incentive Plan, and (v) approximately
$1.2 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
2026.

Research
and Development — related party

Research
and development (“R&D”) expenses from a related party increased by approximately $46,000, or 50.0%, where the increase
was primarily due to an