Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 172

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 172
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Adverse judgments or settlements in legal proceedings could materially harm our business, financial condition, operating results, and cash flows.

We may be a party to claims
that arise from time to time in the ordinary course of our business, which may include those related to, for example, contracts, sub-contracts,
protection of confidential information or trade secrets, adversarial proceedings arising from customer bankruptcies, employment of our
workforce and immigration requirements or compliance with any of a wide array of state and federal statutes, rules or regulations that
pertain to different aspects of our business. We may also be required to initiate expensive litigation or other proceedings to protect
our business interests. There is a risk that we will not be successful or otherwise be able to satisfactorily resolve any such claims
or litigation. In addition, litigation and other legal claims are subject to inherent uncertainties. Those uncertainties include, but
are not limited to, litigation costs and attorneys’ fees, unpredictable judicial or jury decisions and the differing laws and judicial
proclivities regarding damage awards among the states in which we operate. Unexpected outcomes in such legal proceedings, or changes in
management’s evaluation or predictions of the likely outcomes of such proceedings (possibly resulting in changes in established
reserves), could have a material adverse effect on our business, financial condition, results of operations and cash flows. Due to recurring
losses and net capital deficiency, our current financial status may increase our default and litigation risks and may make us more financially
vulnerable in the face of threatened litigation.

Any future acquisitions that we may make could disrupt our business, cause dilution to our stockholders and harm our business, financial condition or operating results.

If we are successful in consummating acquisitions, those acquisitions could subject us to a number of risks, including, but not limited to:

    ●
    the purchase price we pay and/or unanticipated costs could significantly deplete our cash reserves or result in dilution to our existing stockholders; 

    ●
    we may find that the acquired company or technologies do not improve our market position as planned; 

    ●
    we may have difficulty integrating the operations and personnel of the acquired company, as the combined operations will place significant demands on our management, technical, financial and other resources; 

    ●
    key personnel and customers of the acquired company may terminate their relationships with the acquired company as a result of the acquisition; 

    ●
    we may experience additional financial and accounting challenges and complexities in areas such as tax