Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 25

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 25
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 around the times we disclose conversions or sales under the Avondale Purchase Agreement.

We have broad discretion in how we use the proceeds from the Avondale Pre-Paid Purchases, and we may not use them effectively.

We intend to use the net proceeds from the Initial Avondale Pre-Paid Purchase and any future Avondale Pre-Paid Purchases primarily for general corporate purposes, including working capital, product development, and growth initiatives. Our management will have significant flexibility in applying these funds. If we do not apply the funds effectively, or if we invest the proceeds in strategies that fail to yield desired results, we could continue to incur losses without advancing our business sufficiently to achieve profitability. In such case, we might deplete the proceeds and be forced to raise additional capital sooner than expected. Furthermore, the availability of the remaining $15.8 million under the Avondale facility is not guaranteed (as discussed above), so our actual usable proceeds might be limited to the initial $4.0 million net we received and any incremental draws we manage to complete. Stockholders will be relying on the judgment of our management regarding the deployment of these funds. If our management’s decisions with respect to the use of proceeds do not enhance stockholder value, we may experience lower growth, and the market price of our common stock could decline.

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Risks Relating to our Business

You should carefully consider the risks and uncertainties described below, together with the information included elsewhere in this prospectus. The risks and uncertainties described below are those that we have identified as material but are not the only risks and uncertainties facing us. Our business is also subject to general risks and uncertainties that affect many other companies, such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial also may impair our business, including our results of operations, liquidity and financial condition.

Unless the context otherwise requires, all references in this subsection to the “Company,” “we,” “us” or “our” refer to CXApp Inc.

We have a history of operating losses and there is no assurance that we will ever be able to earn sufficient revenue to achieve profitability or raise additional financing to successfully operate our business plan.

We have a history of operating losses and may not earn sufficient revenue to support our