Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 49

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 49
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 basis, to pay monetary damages, to make generally available the source code for our proprietary technology, or to waive certain intellectual property rights, any of which could harm our business. Responding to any infringement or other enforcement claim, regardless of its validity, could harm our business, results of operations, and financial condition, by, among other things: •resulting in time -consumingand costly litigation; •diverting management’s time and attention from developing our business; •requiring us to pay monetary damages or enter into royalty and licensing agreements that we would not normally find acceptable; 23 •requiring us to redesign certain components of our 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