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Foxx Development Holdings Inc. (FOXX-3.38%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a significant increase in revenues to $17,480,231 from $832,827 in the same quarter the previous year. This increase is attributed to sales from three new wholesale customers and the launch of wearable electronic products.
Cost of goods sold for the quarter was $15,289,565, representing 88% of sales, compared to 88% in the same quarter of the previous year. The cost ratio remained consistent despite the increase in sales volume.
The company reported a gross profit of $2,190,666 for the quarter, compared to $99,583 in the previous year, with the increase attributed to higher sales volume.
Selling, general, and administrative expenses increased to $4,431,766 from $682,764, primarily due to increased commission, payroll, consulting fees, and other administrative costs associated with business expansion.
Net income for the quarter was $1,424,146, compared to a net loss of $640,610 in the previous year. The improvement is attributed to increased sales and a gain from changes in the fair value of earnout liabilities.
Cash used in operating activities was $4,475,232, while cash provided by financing activities was $7,899,163, primarily from proceeds of the reverse recapitalization and issuance of convertible promissory notes.
Foxx had a working capital of $1,323,903 as of December 31, 2024. The company acknowledges its dependence on additional financing to meet future obligations and continue operations.
The filing also details various financial agreements, including convertible promissory notes and earnout liabilities related to the business combination.
Foxx does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to limited resources and inadequate design of controls.
Foxx continues to focus on expanding its product offerings and diversifying its customer base to mitigate reliance on limited customers and suppliers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Foxx Development Holdings Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.