Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 169

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 169
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 volatile, and we have no current plans to pay dividends. Future equity issuances could dilute existing stockholders. Failure to meet Nasdaq listing standards or changing market conditions could reduce market liquidity or cause delisting. New or evolving regulations may also affect stockholder rights and the value of our common stock.

Risks Related to our Accounting Policies

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    We prepare our consolidated financial statements in accordance with U.S. GAAP, which is subject to interpretation and may change over time. Adjustments in standards or unexpected changes in accounting estimates, goodwill impairments, or restatements of prior-period financial statements could adversely affect our reported results. If our internal control over financial reporting proves ineffective, we may be unable to provide accurate or timely financial information, potentially harming our credibility with investors and regulators.

8

Risks Related to Cybersecurity Threats

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    We operate in an environment prone to security breaches, data corruption, hacking, and other cyber incidents. Our products, services, and corporate systems—along with those of our partners or suppliers—may be vulnerable to increasingly sophisticated cyber threats. A successful breach or service disruption could compromise customer data, impede operations, damage our reputation, result in legal and regulatory liability, and diminish market confidence in our solutions.

Risks Related to our Customers

A delay in the completion of our customers’ budget processes could delay purchases of our products and services and have an adverse effect on our business, operating results and financial condition.

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    Our revenue depends on successfully maintaining existing customer relationships and expanding our customer base. Budget constraints, shifting priorities, or technological changes could lead customers to delay or reduce purchases of our offerings. A few large customers often represent a significant portion of our revenue; losing one of these customers or failing to adequately diversify could materially affect our financial results.

We rely on a limited number of key customers, the importance of which may vary dramatically from year to year, and a loss of one or more of these key customers may adversely affect our operating results.

Our top three customers accounted
for approximately 25% and 22% of our gross revenue during the year ended December 31, 2024 and the period from March 15, 2023 to December
31, 2023, respectively. 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