Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 158

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 158
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 voluntary dismissal of the
Action as moot, which the Court approved by order dated March 4, 2025. Believing that the swift resolution of the Action was in the best
interests of and benefit to the Company, and without admitting the allegations Plaintiff made in the Complaint, the Company agreed to
pay $85,000 (the “Mootness Fee,” inclusive of a $500 service award to Plaintiff) to Plaintiff’s counsel to resolve the
anticipated application by Plaintiff’s counsel for an award of attorneys’ fees and reimbursement of expenses. The Court has
not and will not pass judgment on the amount of the Mootness Fee.

The results of any future
litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense
and settlement costs, diversion of management resources, and other factors.

Item 1a. Risk Factors

For a discussion of our
risk factors, see Part I, Item 1A. “Risk Factors” of the 2025 10-K. The risks and uncertainties that we face are not limited
to those set forth in the 10-K. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial
may also adversely affect our business and the trading price of our securities. There have been no material changes to the Company’s
risk factors since the filing of the 2025 10-K, except as discussed below:

Implementation of tariffs and changes to
or uncertainties related to tariffs and trade agreements could adversely affect our business.

The U.S. government has recently
imposed tariffs on certain foreign goods from a variety of countries and regions that it perceives as engaging in unfair trade practices
and has raised the possibility of imposing significant additional tariff increases or expanding the tariffs to capture other types of
goods from other countries. For example, on April 2, 2025, the President of the United States signed Executive Order 14257, “Regulating
Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits”
(the “Executive Order 14257”), to take action based on the results of certain investigations related to the causes of the
U.S.’s large and persistent annual trade deficits in goods. In response, many of these foreign governments have imposed retaliatory
tariffs on goods that their countries import from the U.S. or have enacted export restrictions on certain goods produced in their