Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 40

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 40
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 negatively impact our business operations in the United States and our financial condition. Inclusion on the Covered List could result in the loss of required equipment authorizations for some or all of our equipment identified by the FCC as critical to national security. A loss of required equipment authorizations would preclude our ongoing sale of affected devices in the United States and could require us to replace affected component parts for devices imported, marketed, or sold in the United States. This could impose financial burdens and operational challenges that adversely affect our business. We may collaborate with additional business partners outside of the United States and potentially expand into markets beyond the United States, which may incur significant cost and expose us to significant risks. To date, we have not operated or generated any revenue outside of the United States. However, we anticipate diversifying our current supply chain by sourcing components from additional suppliers in Asia. Additionally, we may expand our market presence beyond the United States, aiming to sell our products in other regions such as Latin America. Due to our limited experience with international operations and developing and managing sales and distribution channels in international markets, our international expansion efforts may not be successful. Operating or selling in international markets requires significant resources and management attention and subjects us to intellectual property, regulatory, economic and political risks that are different from those in the United States. As we increase our international sales efforts and explore international operations, we will face increased risks in doing business internationally that could harm our business, including: •the need to establish and protect our brand in international markets; •the need to localize and adapt our solution for specific countries, including translation into foreign languages and associated costs and expenses; •difficulties in staffing and managing foreign operations, particularly hiring and training qualified sales and service personnel; •the need to implement and offer customer care, in various languages; •different pricing environments, longer sales and accounts receivable payment cycles and collections issues; 18 •weaker protection for intellectual property and other legal rights than in the United States and practical difficulties in enforcing intellectual property and other rights outside of the United States; •privacy and data protection laws and regulations that are complex, expensive to comply with and may require that client data be stored and processed in a designated territory; •increased risk of piracy, counterfeiting and other misappropriation of our intellectual property in our locations outside the United States; •new and different sources of competition; •general economic conditions in international markets; •fluctuations in the value of the U.S. dollar and foreign currencies, which may make our solution more