Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 60

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 1
Chunk 60
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 2025. Revenue from the sales of tablets increased by approximately
$46,000, or 961.4%, to approximately $51,000 for the three months ended September 30, 2025 from $5,000 for the same period in 2024. Revenue
from sales of phones decreased by approximately $5.2 million, or 22.8%, to approximately $17.7 million for the three months ended
September 30, 2025 from $22.9 million for the same period in 2024 as the consumers’ spending power was weakened and the mobile phone replacement rate was lowered. Previously, consumers tended to replace
their phones every six months, whereas now many keep the same device for over a year. Revenue from sales of wearable products and
others increased by approximately $2.1 million, or 100.0%, to approximately $2.1 million for the three months ended September 30,
2025 from $0 for the three months ended September 30, 2024, as we rolled out some new wearable products beginning in October 2024. Revenue
from App service commission increased by approximately $0.2 million, or 76.3%, to approximately $0.4 million for the three months
ended September 30, 2025 from $0.2 million for the three months ended September 30, 2024, as we engaged more partners and generate more
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. Revenue from other services increased by approximately $2,000, or 100.0%, to approximately $2,000 for the three months
ended September 30, 2025 from $0 for the three months ended September 30, 2024, as we started to generate income by providing other logistic
and warehouse management services in April 2025.

35

Cost of Goods Sold

Our cost of goods sold mainly consists of cost of merchandise and freight.
Total cost of goods sold decreased by approximately $5.2 million, or 23.0%, to approximately $17.5 million for the three months
ended September 30, 2025 as compared to $22.7 million for the three months ended September 30, 2024. The decrease in cost of goods sold
is a direct result of an decrease in our revenue, consistent with the decrease in mobile phone production costs