Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 41

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 41
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 action and the impact on our business and results of operations cannot be predicted. Recent and future federal legislative, regulatory and executive actions on information and communications technology and services involving national security and foreign ownership restrictions or requirements may substantially limit the scope of our operations, impact our abilities to expand into new products or services, or substantially or severely impact our operations or financial results. In recent years, the U.S. Government has expressed concerns with the security of information and communications technology and services (“ICTS”) sourced from providers in China, Russia, and other jurisdictions. The U.S. Congress and various executive agencies, including the FCC, the Department of Commerce, and the Department of Justice, have enacted, imposed or proposed a series of measures aimed at increasing oversight of certain commercial transactions involving Chinese companies or investments by such companies in the United States. For example, under the authority conferred by Executive Order 13873, issued in May 2019, the Department of Commerce promulgated final rules (the “ICTS Rules”) in January 2021 under 15 C.F.R. Part 7 that broadly empowers that agency (in consultation with other executive agencies) to block, condition, or regulate any “transaction” involving the “acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service” designed, developed, manufactured, or supplied by a Chinese company (i.e., given China’s designation as a “foreign adversary” under Executive Order 13873) that poses “undue risks or unacceptable risks” to U.S. national security. An additional Executive Order, issued January 19, 2021, directs the Commerce Department to adopt rules requiring Infrastructure -as - a-Serviceproviders to collect additional information about their customers and new record -keepingrequirements, and would allow the Department of Commerce to take actions to address “malicious cyber -enabledactivities.” In June 2023, the Department published an amended rule to the ICTS Rules to clarify its ability to regulate transactions involving software, including so -called“connected software applications,” and to further enumerate the criteria that the Department will consider when reviewing such transactions. Further, in December 2024, the Department published an amended rule to formalize the framework and procedures for reviewing ICTS transactions, clarified certain definitions and applications of the ICT Rules, and expanded the scope of certain reviewable transactions by removing certain numerical thresholds. 20 Similarly, in April 2020, the President published Executive Order 13913 to formalize an ad -