Company: FOXX
Filing Date: 2025-01-10
Form Type: S-1
Source: 0001213900-25-002199
Chunk: 28

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-10
Form: S-1
Chunk 28
---
 to divest its control of TikTok by January19, 2025; otherwise, PAFACA would it make it illegal on January19, 2025 for U.S. persons to provide services to distribute, maintain or update TikTok or provide internet hosting services for TikTok in the United States. TikTok and its affiliated companies and certain creators who use TikTok brought a constitutional challenge against the federal government before the U.S. Court of Appeals for the D.C. Circuit in May 2024. The D.C. Circuit rejected the challenge on December6, 2024. The plaintiffs appealed the decision to the U.S. Supreme Court, which has scheduled an oral argument to review the constitutionality of PAFACA. As of the date of this prospectus, the Supreme Court has not made a decision in the case. In the case that the challenge was unsuccessful, or if the January19, 2025 deadline was not stayed by judicial decisions, TikTok could be removed from the application stores on iOS, Android and other mobile operating systems. As a result, TikTok’s current 11 users may not be able to update the application, as a result of which the functionalities of TikTok will deteriorate over time. New users would not be able to download or access the application, and existing users may choose to stop using the application or opt to use other social media platforms. As a result, our TikTok store may be forced to shut down, and our e -commercebusiness may suffer. As we expand our operations into international markets, we encounter risks linked to sourcing components globally from suppliers and engaging with third-party consultants. Additionally, as we continue to grow, we may further extend our reach by selling our products internationally. We currently collaborate with partners across the globe, and we will continue to expand our operations in the global marketplace. International sales growth stands as a key element of our growth strategy. However, we acknowledge the risks inherent in our international operations, including, but not limited to: •Foreign currency exchange rates; •Economic or governmental instability in foreign markets in which we operate or in those countries from which we source our merchandise; •Unexpected changes in laws, regulatory requirements, taxes or trade laws; •Increases in the cost of transporting goods globally; •Acts of war, terrorist attacks, outbreaks of contagious disease and other events over which we have no control; and •Changes in foreign or domestic legal and regulatory requirements resulting in the imposition of new or more onerous trade restrictions, tariffs, duties, taxes