Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 177

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1A
Chunk 177
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 we or our employees have wrongfully used or disclosed alleged trade secrets of their former employers.

We may be subject to claims
that we and our employees may have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of former
employers or competitors. Litigation may be necessary to defend against these claims. We may be subject to unexpected claims of infringement
of third-party intellectual property rights, either for intellectual property rights of which we are not aware, or for which we believe
are invalid or narrower in scope than the accusing party. Even if we are successful in defending against these claims, litigation could
result in substantial costs and be a distraction to management. If we fail in defending such claims, in addition to paying money damages,
we may lose valuable intellectual property rights or personnel or be enjoined from selling certain products or providing certain services.
A loss of key research personnel or their work product could hamper or prevent our ability to commercialize certain products, which could
severely harm our business.

The loss of key personnel may adversely affect our operations.

Our success depends to a significant extent upon the operation, experience, and continued services of certain of our officers, and other key personnel. While our key personnel are employed under employment contracts, there is no assurance we will be able to retain their services. The loss of our key personnel could have an adverse effect on us. If certain of our executive officers were to leave, we would face substantial difficulty in hiring a qualified successor and could experience a loss in productivity while any successor obtains the necessary training and experience. Furthermore, we do not maintain “key person” life insurance on the lives of any executive officer and their death or incapacity would have a material adverse effect on us. The competition for qualified personnel is intense, and the loss of services of certain key personnel could adversely affect our business.

15

Risks Relating to our Intellectual Property

If we do not adequately protect our intellectual property rights, we may experience a loss of revenue, and our operations and growth prospects may be materially harmed.

We have not registered copyrights on any of the software we have developed, and while we may register copyrights in the software if needed before bringing suit for copyright infringement, such registration can introduce delays before suit of over three years and can constrain damages for infringement. We rely upon confidentiality agreements signed by our employees, consultants and third parties to protect our intellectual property. We cannot assure you that we can adequately protect our intellectual property or successfully prosecute actual or potential infringement of our intellectual property rights. In addition,