Company: CXAI
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001829126-25-002456
Chunk: 21

Company: CXApp Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 21
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 improve operational, financial, and managerial controls, reporting systems and procedures, and will need to continue to expand, train
and manage our workforce. There can be no assurance that we would be able to accomplish such an expansion on a timely basis. If we are
unable to affect any required expansion and are unable to perform our contracts on a timely and satisfactory basis, our reputation and
eligibility to secure additional contracts in the future could be damaged. The failure to perform could also result in contract terminations
and significant liability. Any such result would adversely affect our business and financial condition.

Insurance and contractual protections may not always cover lost revenue, increased expenses, or liquidated damages payments, which could adversely affect our financial results.

Although we maintain insurance and intend to obtain warranties from suppliers, obligate subcontractors to meet certain performance levels and attempt, where feasible, to pass risks we cannot control to our customers, the proceeds of such insurance or the warranties, performance guarantees or risk sharing arrangements may not be adequate to cover lost revenue, increased expenses or liquidated damages payments that may be required in the future.

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Adverse judgments or settlements in legal proceedings could materially harm our business, financial condition, operating results, and cash flows.

We may be a party to claims
that arise from time to time in the ordinary course of our business, which may include those related to, for example, contracts, sub-contracts,
protection of confidential information or trade secrets, adversarial proceedings arising from customer bankruptcies, employment of our
workforce and immigration requirements or compliance with any of a wide array of state and federal statutes, rules or regulations that
pertain to different aspects of our business. We may also be required to initiate expensive litigation or other proceedings to protect
our business interests. There is a risk that we will not be successful or otherwise be able to satisfactorily resolve any such claims
or litigation. In addition, litigation and other legal claims are subject to inherent uncertainties. Those uncertainties include, but
are not limited to, litigation costs and attorneys’ fees, unpredictable judicial or jury decisions and the differing laws and judicial
proclivities regarding damage awards among the states in which we operate. Unexpected outcomes in such legal proceedings, or changes in
management’s evaluation or predictions of the likely outcomes of such proceedings (possibly resulting in changes in established
reserves), could have a material adverse effect on our business, financial condition, results of operations and cash flows. Due to recurring
losses and