Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 38

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 38
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 prohibitions on doing business and damage to our reputation. Violations of these regulations or contractual obligations related to regulatory compliance in connection with the performance of customer contracts could also result in liability for significant monetary damages, fines and/or criminal prosecution, unfavorable publicity and other reputational damage, restrictions on our ability to compete for certain work and allegations by our customers that we have not performed our contractual obligations.

Global events and other general economic factors may impact our results of operations.

Global events and other
general economic factors that are beyond our control may impact our results of operations. These factors can include interest rates;
recession; inflation; unemployment trends; the threat or possibility of war, terrorism or other global or national unrest; political
or financial instability; and other matters that influence our customers spending. Increasing volatility in financial markets and
changes in the economic climate could adversely affect our results of operation. While we have been able to realize growth in the
year ended December 31, 2024, as compared to the period from March 15, 2023 to December 31, 2023, the impact that these
global events will have on general economic conditions is continuously evolving and the ultimate impact that they will have on our
results of operations continues to remain uncertain. There are no assurances that we will be able to continue to experience the same
growth or not be materially adversely affected.

Our businesses, results of operations and financial condition could be adversely affected by ongoing international conflicts and related disruptions in the global economy.

The global economy has been
negatively impacted by the military conflict between Russia and Ukraine, and the ongoing conflict between Israel and Hamas has
caused political, economic, and military instability in Israel and surrounding regions. While we have no operations in Russia,
Ukraine, Israel, Palestine, or surrounding areas, our business may be indirectly adversely affected by this conflict and its
effects, including as a result of financial and economic sanctions imposed by governments in the U.S., United Kingdom and European
Union, among others, on certain industry sectors and parties in Russia.

29

We are unable to predict the impact of either the Israel-Hamas conflict or the Russia-Ukraine conflict on our business or the global economy. The impact of further escalation of geopolitical tensions related to these conflicts, including increased trade barriers or restrictions on global trade, is unknown and could result in, among other things, heightened cybersecurity threats, protracted or further increased inflation, lower consumer demand, fluctuations in interest and foreign exchange rates and increased volatility in financial markets, any of