Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 170

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 170
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 to revenue in 2023. The
loss of a significant amount of business from one of our major customers would materially and adversely affect our results of operations
until such time, if ever, as we are able to replace the lost business. Significant customers or projects in any one period may not continue
to be significant customers or projects in other periods. To the extent that we are dependent on any single customer, we are subject to
the risks faced by that customer to the extent that such risks impede the customer’s ability to stay in business and make timely
payments to us.

Risks Related to our Industry

    ●
    We compete in a rapidly evolving sector with frequent technological advances, emerging business models, and the introduction of new or improved products by competitors. Developing market-leading innovations is capital-intensive and uncertain. Failure to anticipate and respond to industry changes, standardize new offerings, or gain market acceptance could erode our competitive position. In addition, macroeconomic pressures, regulatory complexities, and intensifying competition all contribute to heightened operational and financial risks.

Risks Related to External Factors and Third Parties

    ●
    Fluctuations in global or regional economic conditions, political disruptions, pandemics, or conflicts can interrupt supply chains and dampen demand for our products. Compliance with 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.