Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 242

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 242
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 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 million increase in consulting fees, as the Company engaged additional sales consultant
to enhance our sales efforts, approximately $0.2 million increase in sampling, testing and certification expenses, approximately $0.1
million increase in stock-based compensation as we granted restricted stock units in November 2024 to our sales team members under employee
incentive plan, and approximately $0.2 million increase advertising and marketing, which all directly related with boosting the brand
awareness, adding new product models, and to attract more business opportunities in the electronic devices market during the three months
ended March 31, 2025.

39

General and Administrative Expenses

General and administrative
expenses increased approximately $1.2 million, or 230.2%, to approximately $1.8 million for the three months ended March 31, 2025
from approximately $0.6 million for the three months ended March 31, 2024. The increased general and administrative expense were
mainly attributable to the approximately $0.2 million increase in professional expense on audit, legal and accounting fees as we became
a