Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 50

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 50
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 business and results of operations may be adversely affected. 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. We also could be exposed to the risks of open -sourceAI algorithms if third -partyservice providers or any counterparties, whether or not known to us, also use the same open -sourceAI algorithms in their business activities. We will not be in a position to control the use of such technology in third -partyproducts or services. Use by third -partyservice providers could give rise to issues pertaining to competition, data privacy, data protection, and intellectual property considerations. Regulations related to “conflict minerals” require us to incur additional expenses and could limit the supply and increase the cost of certain metals used in manufacturing our products. We are subject to the requirements under the Dodd -FrankWall Street Reform and Consumer Protection Act of 2010 (the “Dodd -FrankAct”) that require us to determine and disclose whether our products contain “conflict minerals.” The rules require disclosure related to sourcing of certain minerals that are necessary to the functionality or production of products we manufacture or contract to be manufactured. Our products contain some of the specified minerals. As a result, we may incur additional expenses in connection with complying with the rules, including with respect to any due diligence that is required under the rules. In addition, compliance with the rules could adversely affect the sourcing, supply and pricing of materials used in our products. There may only be a limited number of suppliers offering “conflict free” conflict minerals, and we cannot be certain that we will be able to obtain necessary “conflict free” minerals from such suppliers in sufficient quantities or at competitive prices. We may not be able to sufficiently verify the origins of the relevant minerals used in certain components of our products through the due diligence procedures that we implement, which could harm our reputation. 24 Risks Related to Our Financial Performance We may not be able to raise or it may only be available on terms unfavorable to us or our stockholders,