Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 11

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 11
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 to our Customers

A delay in the completion of our customers’ budget processes could delay purchases of our products and services and have an adverse effect on our business, operating results and financial condition.

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    Our revenue depends on successfully maintaining existing customer relationships and expanding our customer base. Budget constraints, shifting priorities, or technological changes could lead customers to delay or reduce purchases of our offerings. A few large customers often represent a significant portion of our revenue; losing one of these customers or failing to adequately diversify could materially affect our financial results.

We rely on a limited number of key customers, the importance of which may vary dramatically from year to year, and a loss of one or more of these key customers may adversely affect our operating results.

Our top three customers accounted
for approximately 25% and 22% of our gross revenue during the year ended December 31, 2024 and the period from March 15, 2023 to December
31, 2023, respectively. One customer accounted for 10% of our gross revenue in 2024, and a separate customer accounted for 12% of our
gross revenue in 2023; however, each of these customers may or may not continue to be a significant contributor 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

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    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

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