Company: FOXX
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006111
Chunk: 26

Company: Foxx Development Holdings Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 26
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 face shortages of inventory, which would result in our inability to properly support our online store. Such a situation could cause us to incur significantly higher costs and lead to longer lead times associated with distributing products to our customers, which could cause us to lose customers. Experiencing any of these issues could have a material adverse effect on our business and harm our reputation. On April24, 2024, President Joe Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). PAFACA identified TikTok as a “foreign adversary controlled application” and required ByteDance Ltd., the ultimate parent company of TikTok headquartered in China, 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, a decision upheld on appeal by the U.S. Supreme Court on January17, 2025. On January19, 2025, TikTok’s mobile app was taken down from the app store on Google’s Android and Apple’s iPhone operating systems and the service of the app was temporarily shut down. However, shortly after then President -electTrump’s announcement of his intent to provide a temporary extension for TikTok to address the divesture requirement, the mobile app was reopened for service on the same date. On January20, 2025, after he was sworn into office, President Trump signed an executive order to grant a 75 -dayextension for TikTok to find a divesture solution that will satisfy the federal government. The order directed the Attorney General not to enforce the law against any U.S. person for any action in violation of the PAFACA from January19, 2025 to the expiry of the order. 11 As of the date of this prospectus, TikTok remain removed from the app stores on Google’s Android and Apple’s iPhone operating systems. In addition, it remained unclear if TikTok would be able to find a divesture solution that will satisfy the federal government’s request, or it will be shut down again after the expiry of the executive