Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 14

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 14
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 effect on our business, financial condition, results of operations and cash flows. Due to recurring
losses and net capital deficiency, our current financial status may increase our default and litigation risks and may make us more financially
vulnerable in the face of threatened litigation.

Any future acquisitions that we may make could disrupt our business, cause dilution to our stockholders and harm our business, financial condition or operating results.

If we are successful in consummating acquisitions, those acquisitions could subject us to a number of risks, including, but not limited to:

    ●
    the purchase price we pay and/or unanticipated costs could significantly deplete our cash reserves or result in dilution to our existing stockholders; 

    ●
    we may find that the acquired company or technologies do not improve our market position as planned; 

    ●
    we may have difficulty integrating the operations and personnel of the acquired company, as the combined operations will place significant demands on our management, technical, financial and other resources; 

    ●
    key personnel and customers of the acquired company may terminate their relationships with the acquired company as a result of the acquisition; 

    ●
    we may experience additional financial and accounting challenges and complexities in areas such as tax planning and financial reporting; 

    ●
    we may assume or be held liable for risks and liabilities (including environmental-related costs) as a result of our acquisitions, some of which we may not be able to discover during our due diligence investigation or adequately adjust for in our acquisition arrangements; 

    ●
    our ongoing business and management’s attention may be disrupted or diverted by transition or integration issues and the complexity of managing geographically or culturally diverse enterprises; 

    ●
    we may incur one-time write-offs or restructuring charges in connection with the acquisition; 

    ●
    we may acquire goodwill and other intangible assets that are subject to amortization or impairment tests, which could result in future charges to earnings; and 

    ●
    we may not be able to realize the cost savings or other financial benefits we anticipated. 

We cannot assure you that, following any acquisition, our continued business will achieve sales levels, profitability, efficiencies or synergies that justify the acquisition or that the acquisition will result in increased earnings for us in any future period. These factors could have a material adverse effect on our business, financial condition and operating results.

11

The growth of our business is dependent on increasing sales to our existing customers and obtaining new customers, which, if unsuccessful, could limit