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

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 25
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 competing, products. As a result, our customers may perceive our products as a threat to various product lines currently being distributed or manufactured by them. In addition, our customers may earn higher margins by selling competing products or combinations of competing products. If we are unable to establish successful relationships with our customers, we will need to further develop our own sales and distribution capabilities, which would be expensive and time -consumingand might not be successful. Additionally, if we need to enter into agreements for the distribution of our future products with other third parties, there can be no assurance we will be able to do so on favorable terms, if at all. If we are unable to effectively 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