Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 48

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 48
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 research and development objectives using alternative non -infringingsource technology or practices, which could require significant effort and expense; •disrupting our research and development processes if we are forced to cease offering certain services; •requiring us to waive certain intellectual property rights associated with use of open source software, or contributions to third -partyopen source projects; and •requiring us to satisfy indemnification obligations. We have integrated, and may continue to integrate in the future, open -sourceAI algorithms in certain tools and features available on our platform. AI technology presents various operational, compliance, and reputational risks and if any such risks were to materialize, our business and results of operations may be adversely affected. We have integrated open -sourceAI algorithms in many aspects of research and development of new modules. We may continue to integrate open -sourceAI algorithms in the research and development of new product or service offerings. Given that AI is a rapidly developing technology that is in its early stages of business use, it presents a number of operational, compliance and reputational risks. AI algorithms are currently known to sometimes produce unexpected results and behave in unpredictable ways that can generate irrelevant results, which, if incorporated into our research and development, these open -sourcecomponents may result in unexpected outcomes that may not support our research and development objectives. Similarly, the data set could contain copyrighted material resulting in infringing output. We expect that there will continue to be new laws or regulations concerning the use of AI technology, which might be burdensome for us to comply with and may limit our ability to offer or enhance our existing tools and features or new offerings based on AI technology. Further, the use of AI technology involves complexities and requires specialized expertise. We may not be able to attract and retain top talent to support our AI technology initiatives. If any of the operational, compliance or reputational risks were to materialize, our business and results of operations may be adversely affected. 24 We may be subject to risks associated with AI and open-source AI algorithms. Recent technological advances in AI and open -sourceAI algorithms may pose risks to us. Our use of open -sourceAI algorithms could give rise to legal or regulatory action, create liabilities, or materially harm our business. While we aim to use open -sourceAI algorithms responsibly and attempt to mitigate ethical and legal issues presented by its use, we may ultimately be unsuccessful in identifying or resolving issues before they arise. Further, as the technology is rapidly evolving, costs and obligations could be imposed on us to comply with new regulations