Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 193

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 193
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 loss to us.

26

Risks Relating 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.

We rely on our customers to purchase products and services from us to maintain and increase our earnings, and customer purchases are frequently subject to budget constraints, multiple approvals and unplanned administrative, processing and other delays. If sales expected from a specific customer are not realized when anticipated or at all, our results could fall short of public expectations and our business, operating results and financial condition could be materially adversely affected.

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 24% and 22% of our gross revenue during the years ended December 31, 2024, and the period from
March 15, 2023 to December 31, 2023. 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 to
revenue in 2023. The loss of a significant amount of business from one of our major customers would materially and adversely affect
our results of operations until such time, if ever, as we are able to replace the lost business. Significant customers or projects
in any one period may not continue to be significant customers or projects in other periods. To the extent that we are dependent on
any single customer, we are subject to the risks faced by that customer to the extent that such risks impede the customer’s
ability to stay in business and make timely payments to us.

Risks Relating to our Industry

Our competitiveness depends significantly on our ability to keep pace with the rapid changes in our industry. Failure to anticipate and meet our customers’ technological needs could adversely affect our competitiveness and growth prospects.

We operate and compete in an industry characterized by rapid technological innovation, changing customer needs, evolving industry standards and frequent introductions of new products, product enhancements, services and distribution methods. Our success depends on our ability to develop expertise with these new products, product enhancements, services and distribution methods and to implement solutions that anticipate and respond to rapid changes in technology, the industry, and customer