Company: FOXX
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-043597
Chunk: 77

Company: Foxx Development Holdings Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 77
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 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 $47.4 million, or 3,687.2%, to approximately
$48.7 million for the nine months ended March 31, 2025 as compared to $1.3 million for the nine months ended March 31, 2025. 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 as discussed above for the nine 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 Nine Months Ended 

    March 31,  2025  
    March 31,  2024 

    (Unaudited)  
    (Unaudited) 
  
    Tablet products 
    $312,704  
    $482,608 
  
    Mobile phone products 
     45,450,285  
     804,154 
  
    Wearable products and others 
     2,948,619  
     - 
  
    Other service cost 
     20,598  
     - 
  
    Total cost of goods sold 
    $48,732,206  
    $1,286,762 

Our cost of goods sold for
tables decreased by approximately $0.2 million, or 35.2%, to approximately $0.3 million for the nine months ended March 31, 2025 from
$0.5 million for the same period in 2024. Cost of goods sold for mobile phone products increased by approximately $44.7 million,
or 5,551.9%, to approximately $45.5 million for the nine months ended March 31, 2025 from $0.8 million for the same period in 2024,
which is consistent with the direct result of an increase in our revenue. Cost of goods sold for wearable products and others increased
by approximately $2.9 million, or 100.0%, to approximately $2.9 million for the nine months ended March 31, 2025 from $0 for