Company: CXAI
Filing Date: 2025-11-12
Form Type: 424B3
Source: 0001829126-25-009079
Chunk: 24

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 424B3
Chunk 24
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airment of Long-Lived Assets

The Company follows FASB ASC 360 “Property, Plant, and Equipment” (“ASC 360”) for its long-lived assets. Pursuant to ASC 360-10-35-17, an impairment loss shall be recognized only if the carrying amount of a long-lived asset (asset group) is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset (asset group) is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount of the asset (asset group) at the date it is tested for recoverability. An impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Pursuant to ASC 360-10-35-20 if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset. Restoration of a previously recognized impairment loss is prohibited.

Pursuant to ASC 360-10-35-21, the Company’s
long-lived asset (asset group) is tested for recoverability whenever events or changes in circumstances indicate that its carrying amount
may not be recoverable. The Company considers the following to be some examples of such events or changes in circumstances that may trigger
an impairment review: (a) significant decrease in the market price of a long-lived asset (asset group); (b) a significant adverse change
in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition; (c) a significant adverse
change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse
action or assessment by a regulator; (d) an accumulation of costs significantly in excess of the amount originally expected for the acquisition
or construction of a long-lived asset (asset group); (e) a current-period operating or cash flow loss combined with a history of operating
or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset
group); and (f) a current expectation that, more likely than not, a long-lived asset (asset group