Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 59

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 59
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 Financial Statements for the year ended December 31, 2023.

Management implemented enhancements to its internal control over financial reporting, which included refinements and enhancements to the controls related to goodwill valuation. The Company implemented these enhancements to the design of its controls starting in the fourth quarter of 2023. Management implemented additional enhancements to internal controls starting the fourth quarter of 2024.

Refer to Item 9.A. Controls and Procedures of the in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 that was filed with the SEC on April 7, 2025 for further information.

Remediation measures are time-consuming on the Company’s financial and operational resources. In order to improve the effectiveness of its internal control over financial reporting, the Company will need to continue to expend resources, including accounting-related costs and management oversight.

We cannot provide assurance that the measures we have taken to date and may take in the future will prevent or avoid potential future material weaknesses. The effectiveness of our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the possibility of human error and the risk of fraud. If we are unable to remediate the material weaknesses or identify additional material weakness in the future, our ability to record, process and report financial information accurately, and to prepare financial statements within the time periods required by the SEC, could be adversely affected which, in turn, may adversely affect our reputation and business and the market price of the Company’s Class A common stock. In addition, any such failures could result in litigation or regulatory actions by the SEC or other regulatory authorities, loss of investor confidence, delisting of our securities and harm to our reputation and financial condition, or diversion of financial and management resources from the operation of our business.

<div align='center'>39</div>

<div align='center'>USE OF PROCEEDS</div>

All of the shares of common
stock registered hereunder will be sold by the Selling Securityholders for their own accounts, and we will not receive any proceeds from
those sales. Because these investors acquired their shares at prices well below the current market price, their resale may increase the
public float and exert downward pressure on our trading price.

The Selling Securityholders
will pay any underwriting discounts, selling commissions, stock transfer taxes and certain legal expenses in connection with their sales.
We will bear all other costs of registration, including SEC filing and Nasdaq listing fees and