Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 44

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 be disclosed.

Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

NOTE 19 – Subsequent Events

The Company evaluated subsequent events and transactions that occurred after June 30, 2025, through the date the condensed consolidated financial statements were issued. Based upon this review, the Company identified the following subsequents events:

One
Big Beautiful Bill

On
July 4, 2025, the One Big Beautiful Bill (“OBBB”) was enacted into law. Among its provisions, the reinstatement of full expensing
for research and development expenditures is applicable to the Company. While further regulatory guidance is anticipated regarding the
treatment of prior periods, the Company expects that the previously recognized deferred tax asset related to Section 174 will be reversed,
resulting in an increase in net operating loss carryforwards. The Company is currently evaluating potential other impacts of the passage
of OBBB.

Streeterville
Debt

Following
the quarter ended June 30, 2025, the Company converted a portion of its outstanding Streeterville Prepaid Purchase #3 Convertible Notes
into Class A common stock. These conversions were part of the Company’s ongoing efforts to reduce debt and strengthen its equity
structure.

As
the transactions occurred after the reporting date, they are classified as non-recognized subsequent events. In total, the Company issued
approximately 1,994,072 shares of Class A common stock in connection with these conversions.

Draw
from Avondale Pre-Paid Purchase

On
August 7, 2025, the Company received net cash proceeds of $3,000 thousand from the second tranche of the Pre-Paid Purchase Agreement
with Avondale, as per the SPA entered into on August 7, 2025. The second tranche was structured with a principal amount of $3,150 thousand,
less a $150 thousand OID, resulting in the net cash proceeds mentioned above.

Shelf
Registration Filing in Form S-3

After
the quarter ended June 30, 2025, the Company filed a shelf registration statement on Form S-3 with the Securities and Exchange Commission
(“SEC”), authorizing the future offering and sale of up to $150,000 thousand of various securities. Concurrently, the Company
filed a