Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 21

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 21
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-paid purchases consummated pursuant to the Avondale
Purchase Agreement on March 26, 2025. The sale of all or a portion of the securities being offered in this prospectus could result in
a significant decline in the public trading price of our securities. Despite such a decline in the public trading price, the Selling Securityholders
may still experience a positive rate of return on the securities they purchased due to the price at which such Selling Securityholder
initially purchased the securities. See “Certain existing stockholders purchased, or may purchase, securities in the Company at a price below the current trading price of such securities, and may experience a positive rate of return based on the current trading price. Future investors in the Company may not experience a similar rate of return.” below.

Sales of a substantial number of our shares of common stock and/or warrants in the public market by the Selling Securityholders and/or by our other existing securityholders, or the perception that those sales might occur, could depress the market price of our shares of common stock and warrants and could impair our ability to raise capital through the sale of additional equity securities.

Certain existing stockholders purchased, or may purchase, securities in the Company at a price below the current trading price of such securities, and may experience a positive rate of return based on the current trading price. Future investors in the Company may not experience a similar rate of return.

Certain stockholders in
the Company, including certain of the Selling Securityholders acquired, or may acquire, shares of our common stock or warrants at prices
below the current trading price of our common stock, and may experience a positive rate of return based on the current trading price.

This prospectus relates to
the offer and resale from time to time by the Selling Securityholders of up to 18,500,000 shares of common stock constituting approximately
89% of our issued and outstanding shares of common stock as of May 8, 2025, consisting of (i) up to 80,000 shares of common stock issued
in private placement to Avondale and (ii) the maximum number of up to 18,420,000 shares issuable to Avondale under the pre-paid purchases
consummated pursuant to the Avondale Purchase Agreement on March 26, 2025.

Based on the closing price
of our common stock of $1.12 on May 8, 2025, Avondale may experience potential profit of up to $0.05 per share of common