Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 12

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 12
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 diverse international regulations, including data privacy laws and trade restrictions, involves complexities and potential liabilities that can adversely affect our business. 

9

Risks Relating to our Operations.

We have a history of operating losses and there is no assurance that we will ever be able to earn sufficient revenue to achieve profitability or raise additional financing to successfully operate our business plan.

We have a history of operating losses and may not earn sufficient revenue to support our operations. We have incurred recurring net losses of approximately $19,408 thousand and $53,618 thousand for the fiscal years ended 2024 and 2023, respectively. Our continuation is dependent upon attaining and maintaining profitable operations and raising additional capital as needed, but there can be no assurance that we will be able to raise any further financing.

Our ability to generate positive
cash flow from operations is dependent on implementing certain cost reductions and generating sufficient revenues. Based on our current
business plan, we may need additional capital to support our operations, which may be satisfied by additional debt or equity financings.
Future financings through equity offerings will be dilutive to existing stockholders. In addition, the terms of securities we may issue
in future capital transactions may be more favorable to new investors than our current investors. 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