Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 45

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 45
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 negative public reactions to technologies, products and services such as ours. Public concerns regarding personal data processing, privacy and security may cause some of our customers’ end users to be less likely to visit their venues or otherwise interact with them. If enough end users choose not to visit our customers’ venues or otherwise interact with them, our customers could stop using our platform. This, in turn, may reduce the value of our service, and slow or eliminate the growth of our business, or cause our business to contract.

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Around the world, there are numerous lawsuits in process against various technology companies that process personal information and personal data. If those lawsuits are successful, it could increase the likelihood that our company may be exposed to liability for our own policies and practices concerning the processing of personal data and could hurt our business. Furthermore, the costs of compliance with, and other burdens imposed by laws, regulations and policies concerning privacy and data security that are applicable to the businesses of our customers may limit the use and adoption of our technologies and reduce overall demand for it. Privacy concerns, whether or not valid, may inhibit market adoption of our technologies. Additionally, concerns about security or privacy may result in the adoption of new legislation that restricts the implementation of technologies like ours or require us to make modifications to our existing services and technology, which could significantly limit the adoption and deployment of our technologies or result in significant expense.

Our cash and cash equivalents may be exposed to failure of our banking institutions.

While we seek to minimize
our exposure to third-party losses of our cash and cash equivalents, we hold our balances in a number of large financial
institutions. Notwithstanding this, those institutions are subject to the risk of failure. For example, on March 10, 2023,
Silicon Valley Bank (“SVB”) was unable to continue their operations, and the Federal Deposit Insurance Corporation was
appointed as receiver for SVB and created the National Bank of Santa Clara to hold the deposits of SVB after SVB was unable to
continue their operations. As of March 20, 2023, substantially all of our cash and cash equivalents are held with other large
financial institutions, and we do not expect further developments with SVB to have a material impact on our cash and cash
equivalents balance, expected results of operations, or financial performance for the foreseeable future. However, if further
failures in financial institutions occur where we hold deposits, we could experience additional risk. Any such loss or limitation on
our cash and cash equivalents would adversely