Company: FOXX
Filing Date: 2025-10-15
Form Type: 10-K
Source: 0001213900-25-098953
Chunk: 850

Company: Foxx Development Holdings Inc.
Filing Date: 2025-10-15
Form: 10-K
Item: Item 4
Chunk 850
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 ended June 30, 2024, to the same period in
2025. This was primarily due to the increasing sales of new phone models with higher gross profit margins.

For
the year ended June 30, 2025, our gross profit percentage of wearable products was 11.7%. We did not have this kind of products for the
year ended June 30, 2024.

For
the year ended June 30, 2025, our gross profit percentage of App service commission and others was 100.0%. This high margin was primarily
attributable to the nature of App service commission revenue, which was commission based revenue that was earned at a point in time when
the revenue is generated from the App, that is when clicks and/or impressions, activation of Apps, and installation of additional Apps
occur at a point in time when the end users of the mobile devices interact with those Apps. We earned the App revenue share (service
commission) from our partners without incurring any direct cost, as the pre-installation expenses were included in the research and development
expenses prior to installation, and any labor costs with minimal time spent were immaterial to be allocated to cost of revenue. We did
not have this kind of service for the year ended June 30, 2024.

For
the year ended June 30, 2025, our gross profit percentage of other services was 52.9%. We did not have the other logistic and warehouse
management services for the year ended June 30, 2024. 

24

Operating
Expenses

Total
operating expenses increased by approximately $11.3 million, or 346.1%, to approximately $14.5 million for the year ended June 30, 2025
from approximately $3.2 million for the year ended June 30, 2024.

Our
operating expenses are summarized as follows:

    For
    the Years ended June 30, 

    2025  
    2024  
    Change
    ($)  
    Change
    (%) 

    Operating
    expenses 

    Selling
    expenses 
    $5,183,464  
    $1,076,761  
    $4,106,703  
     381.4%
  
    General
    and administrative expense 
     7,068,426  
     2,076,484  
     4