Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 28

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 28
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 board of directors and management and significantly
increases our costs and expenses. Furthermore, if any issues in complying with those requirements are identified (for example, if the
auditors identify a material weakness or significant deficiency in our internal control over financial reporting), we could incur additional
costs rectifying those issues, and the existence of those issues could adversely affect our reputation or investor perceptions of it.
In addition, as a public company we incur substantial costs to obtain director and officer liability insurance policies. These factors
could make it more difficult for us to attract and retain qualified members of our board of directors, particularly to serve on our audit
committee.

We are required to ensure that we have the ability to prepare financial statements on a timely basis that fully comply with all SEC reporting requirements and maintain effective internal controls over financial reporting. The additional demands associated with being a public company may disrupt regular operations of our business by diverting the attention of some of our senior management team away from revenue producing activities to management and administrative oversight, adversely affecting our ability to attract and complete business opportunities and increasing the difficulty in both retaining professionals and managing and growing our businesses. In addition, failure to comply with any laws or regulations applicable to us as a public company may result in legal proceedings and/or regulatory investigations and may cause reputational damage. Any of these effects could harm our business, financial condition and results of operations.

21

If we fail to meet the continued listing standards of Nasdaq, our common stock may be delisted, which could have a material adverse effect on the liquidity and market price of our common stock and expose the Company to litigation.

Our common stock is currently traded on the Nasdaq Capital Market. The Nasdaq Stock Market LLC (“Nasdaq”) has requirements that a company must meet in order to remain listed. For example, on April 18, 2024 and May 22, 2024, the Company received a notice from Nasdaq notifying the Company that, because the Company was delinquent in filing its 2023 Form 10-K and 10-Q, for the quarter ended March 31, 2024, respectively, the Company no longer complied with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires companies with securities listed on Nasdaq to timely file all required periodic reports with the SEC.

In accordance with Nasdaq’s listing rules, the Company had 60 calendar days after each notice to submit a plan of compliance to Nasdaq addressing how the Company intended to regain compliance