Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 171

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 171
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 Newly issued securities may include
preferences, superior voting rights, and the issuance of warrants or other derivative securities. We may also issue incentive awards under
our equity incentive plans, which may have additional dilutive effects. We may also be required to recognize non-cash expenses in connection
with certain securities we may issue in the future such as convertible notes and warrants, which would adversely impact our financial
condition and results of operations. Our ability to obtain needed financing may be impaired by certain factors, including the condition
of the economy and capital markets, both generally and specifically in our industry, and the fact that we are not profitable, which could
affect the availability or cost of future financing. If the amount of capital we are able to raise from financing activities, together
with our revenues from operations, is not sufficient to satisfy our capital needs, we may need to reduce our operations by, for example,
selling certain assets or business segments.

Failure to manage or protect growth may be detrimental to our business because our infrastructure may not be adequate for expansion.

Our corporate strategy contemplates
potential future acquisitions and to the extent we acquire other businesses, we will also need to integrate and assimilate new operations,
technologies and personnel. The integration of new personnel will continue to result in some disruption to ongoing operations. The ability
to successfully manage growth in a rapidly evolving market requires effective planning and management processes. We will need to continue
to improve operational, financial, and managerial controls, reporting systems and procedures, and will need to continue to expand, train
and manage our workforce. There can be no assurance that we would be able to accomplish such an expansion on a timely basis. If we are
unable to affect any required expansion and are unable to perform our contracts on a timely and satisfactory basis, our reputation and
eligibility to secure additional contracts in the future could be damaged. The failure to perform could also result in contract terminations
and significant liability. Any such result would adversely affect our business and financial condition.

Insurance and contractual protections may not always cover lost revenue, increased expenses, or liquidated damages payments, which could adversely affect our financial results.

Although we maintain insurance and intend to obtain warranties from suppliers, obligate subcontractors to meet certain performance levels and attempt, where feasible, to pass risks we cannot control to our customers, the proceeds of such insurance or the warranties, performance guarantees or risk sharing arrangements may not be adequate to cover lost revenue, increased expenses or liquidated damages payments that may be required in the future.

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