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Foxx Development Holdings Inc. (FOXXW0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, reporting revenues of $23,112,052, primarily from sales of mobile phone products, with two new wholesale customers accounting for 88% of sales.
Cost of goods sold for the quarter was $22,713,876, resulting in a gross profit of $398,176, representing a gross profit margin of 1.7%.
Selling expenses increased to $1,215,042 from $208,276 in the previous year, attributed to increased commissions, payroll, and consulting fees.
General and administrative expenses rose to $961,247 from $303,334, mainly due to increased payroll and professional fees.
Research and development expenses for the quarter were $29,820, with $22,792 attributed to related party transactions.
Net loss for the quarter was $2,266,789, compared to a net loss of $546,831 in the same period the previous year.
Cash provided by financing activities was $28,283,012, primarily from proceeds of a reverse recapitalization and issuance of convertible promissory notes.
Foxx Development Holdings Inc. reported a working capital deficit of approximately $0.4 million as of September 30, 2024.
The filing also discusses the company's business combination with Acri Capital Acquisition Corporation, resulting in a reverse recapitalization.
The company has identified substantial doubt about its ability to continue as a going concern due to its financial position and operating results.
Foxx Development Holdings Inc. plans to expand its product offerings and customer base, targeting the IoT and MVNO markets to drive future growth.
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. Warrant quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.