Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 71

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 71
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 that is when clicks and/or impressions
occur at a point in time when the end users of the mobile devices use the App and we received the App revenue share (service commission)
from our partners without cost of goods. We did not have this kind of service for the three months ended March 31, 2024.

Operating Expenses

Total operating expenses
increased by approximately $3.4 million, or 461.0%, to approximately $4.2 million for the three months ended March 31, 2025 from approximately
$0.8 million for the three months ended March 31, 2025.

Our operating expenses are
summarized as follows:

    For the Three Months ended March 31, 

    2025  
    2024  
    Change ($)  
    Change (%) 

    (Unaudited)  
    (Unaudited)  

    Operating expenses 

    Selling expenses 
    $1,551,369  
    $155,219  
    $1,396,150  
     899.5%
  
    General and administrative expense 
     1,823,287  
     552,124  
     1,271,163  
     230.2%
  
    Research and development – related party 
     22,792  
     45,584  
     (22,792) 
     (50.0)%
  
    Research and development 
     826,532  
     -  
     826,532  
     100.0%
  
    Total operating expense 
    $4,223,980  
    $752,927  
    $3,471,053  
     461.0%

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

Selling Expenses

Selling expenses increased,
approximately $1.4 million, or 899.5%, to approximately $1.6 million for the three months ended March 31, 2025, from approximately
$0.2 million for the three months ended March 31, 2024. 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 March 31, 2025, approximately $0.3