Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 68

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 68
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 three months ended March 31, 2025, increased
by approximately $1.6 million, or 100.0%, to approximately $1.6 million for the three 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 and the sales from one new wholesale customer
who aggregately accounted for 13% of our sales. Revenue from App service commission and others increased by approximately $0.7 million,
or 100.0%, to approximately $0.7 million for the three 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 $10.1 million, or 1,838.3%, to approximately
$10.7 million for the three months ended March 31, 2025 as compared to $0.6 million for the three months ended March 31, 2024. 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 and new product line as discussed above for the three months ended March 31, 2025 as compared to the same period in
2024.

Our cost of goods sold from
their revenue categories are summarized as follows:

    For the Three Months Ended 

    March 31,  2025  
    March 31,  2024 

    (Unaudited)  
    (Unaudited) 
  
    Tablet products 
    $175,135  
    $- 
  
    Mobile phone products 
     9,117,657  
     553,518 
  
    Wearable products 
     1,415,375  
     - 
  
    Other service cost 
     20,598  
     - 
  
    Total cost of goods sold 
    $10,728,765  
    $553,518 

37

Our cost of goods sold for
tables increased by approximately $0.2 million, or