Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 49

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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. Specifically, we present Adjusted EBITDA as supplemental disclosure because of the following:

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    We believe Adjusted EBITDA is a useful tool for investors to assess the operating performance of our business without the effect of interest, income taxes, depreciation and amortization and other non- cash items including acquisition transaction and financing costs, impairment, unrealized gains, stock based compensation, interest income and expense, and income tax benefit. 

    ●
    We believe that it is useful to provide to investors with a standard operating metric used by management to evaluate our operating performance; and 

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    We believe that the use of Adjusted EBITDA is helpful to compare our results to other companies. 

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Even though we believe Adjusted EBITDA is useful for investors, it does have limitations as an analytical tool. Thus, we strongly urge investors not to consider this metric in isolation or as a substitute for net income (loss) and the other condensed consolidated statement of operations data prepared in accordance with GAAP. Some of these limitations include the fact that:

    ●
    Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; 

    ●
    Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; 

    ●
    Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt; 

    ●
    Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; 

    ●
    Adjusted EBITDA does not reflect income or other taxes or the cash requirements to make any tax payments; and 

    ●
    Other companies in our industry may calculate Adjusted EBITDA differently than we do, thereby potentially limiting its usefulness as a comparative measure. 

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business or as a measure of performance in compliance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and providing Adjusted EBITDA only as supplemental information.

Financing Obligations and Requirements

Net cash used in operating activities during the three months ended March 31, 2025