Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 27

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 27
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 execute our e-commerce business, our reputation and operating results may be harmed. Our customers currently include individual e -commercecustomers from TikTok Shop. We began our e -commerceoperations in March 2024. The success of our e -commercebusiness depends on our investment in e -commerceplatforms, consumer preferences, buying trends relating to e -commerce, and our ability to both maintain the continuous operation of our online store and provide a shopping experience that will generate orders and return visits to our online store. We are also vulnerable to certain additional risks and uncertainties associated with our e -commercebusiness, including: changes in required technology interfaces; website downtime and other technical failures; costs and technical issues associated with website software, systems and technology investments and upgrades; data and system security; system failures, disruptions and breaches and the costs to address and remedy such failures, disruptions or breaches; computer viruses; and changes in and compliance with applicable federal and state regulations. In addition, our efforts to remain competitive with technology trends, including the use of new or improved technology, creative user interfaces and other e -commercemarketing tools such as paid search and mobile applications, among others, may increase our costs and may not increase sales or attract consumers. Our failure to successfully respond to these risks and uncertainties might adversely affect the sales of our e -commercebusiness, as well as damage our reputation and brands. In addition, the success of our e -commercebusiness and the satisfaction of our customers depends on their timely receipt of our products and their ability to pick up their desired products. The efficient delivery and/or pick up of our products requires that we have adequate capacity to support the current level of e -commerceoperations and any anticipated increased levels that may occur as a result of the growth of our e -commercebusiness. If we encounter difficulties with our e -commercesupport team, we could face shortages of inventory, which would result in our inability to properly support our online store. Such a situation could cause us to incur significantly higher costs and lead to longer lead times associated with distributing products to our customers, which could cause us to lose customers. Experiencing any of these issues could have a material adverse effect on our business and harm our reputation. On April24, 2024, President Joe Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). PAFACA identified TikTok as a “foreign adversary controlled application” and required ByteDance Ltd., the ultimate parent company of TikTok headquartered in China,