Company: FOXX
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014221
Chunk: 208

Company: Foxx Development Holdings Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Item 2
Chunk 208
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 11.0% to 8.2% for the three months ended December 31, 2023, to the same period in 2024. This decline was
primarily due to the increasing sales of new model of mobile phones with lower gross profit percentage during the three months ended December
31, 2024.

36

For the three months ended
December 31, 2024, our gross profit percentage of wearable products was 13.9%. We did not have this kind of products for the three months
ended December 31, 2023.

For the three months ended
December 31, 2024, our gross profit percentage of App service commission was 100.0% because this revenue 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 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 December 31, 2023.

Operating Expenses

Total operating expenses
increased by approximately $3.7 million, or 549.1%, to approximately $4.4 million for the three months ended December 31, 2024 from approximately
$0.7 million for the three months ended December 31, 2023.

Our operating expenses are
summarized as follows:

    For the Three Months ended December 31, 

    2024  
    2023  
    Change ($)  
    Change  (%) 

    (Unaudited)  
    (Unaudited)  

    Operating expenses 

    Selling expenses 
    $1,575,744  
    $136,307  
    $1,439,437  
     1,056.0%
  
    General and administrative expense 
     1,937,731  
     546,457  
     1,391,274  
     254.6%
  
    Research and development – related party 
     45,584  
     -  
     45,584  
     100.0%
  
    Research and development 
     671,753  
     -  
     671,753  
     100.0%