Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 668

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 4
Chunk 668
---
 31, 2023, was $300 thousand.

The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash. However, any loss incurred or lack of access to such funds could have a significant impact on the Company’s financial condition, results of operations, and cash flows.

Our top three customers accounted for approximately 24% and 22% of our gross revenue during the years ended December 31, 2024 and the period March 15, 2023 to December 31, 2023 (Successor). One customer accounted for 10% of our gross revenue in 2024, and a separate customer accounted for 12% of our gross revenue in 2023; however, each of these customers may or may not continue to be a significant contributor to revenue in 2023. The loss of a significant amount of business from one of our major customers would materially and adversely affect our results of operations until such time, if ever, as we are able to replace the lost business. Significant customers or projects in any one period may not continue to be significant customers or projects in other periods. To the extent that we are dependent on any single customer, we are subject to the risks faced by that customer to the extent that such risks impede the customer’s ability to stay in business and make timely payments to us. 

Furthermore, as of December 31, 2024, the Company had a concentration
of credit risk with respect to accounts receivable. Three customers represented a significant portion of the Company’s total outstanding
accounts receivable balance. Three customers represented a approximately 82% of the Company’s total outstanding accounts receivable
balance.

The Company continually monitors
the creditworthiness of its customers and maintains an allowance for doubtful accounts based on historical experience and specific customer
information. The Company does not require collateral from its customers. Management does not believe the concentration of credit risk
represents a significant risk of loss based on current knowledge and collection history.

    F-38

NOTE 16 – Segment Information

The Company has determined that it operates as a single operating segment.
The Company offers a vertical software-as-a-service (or SaaS) platform for the enterprise. The flagship product, the CXAI Platform (pronounced
“Sky”), provides a comprehensive suite of tools designed to empower employees and enable organizations to create smarter workplaces.
The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM allocates resources and