Company: CXAI
Filing Date: 2025-11-12
Form Type: 424B3
Source: 0001829126-25-009079
Chunk: 38

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 424B3
Chunk 38
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2025, the Company received the net proceeds from Avondale.

The Avondale convertible Pre-Paid Purchase #2
accrues interest on the outstanding balance at 5% per annum. Avondale may redeem all or any part of the outstanding balance of the Avondale
convertible Pre-Paid Purchase #2 at any time following earlier of six months from the purchase price date and the effectiveness of the
Initial Registration Statement by providing a written notice, in cash or converting into shares of the Company’s common stock at a price
equal to the lower of (a) Fixed Price of $1.0957 and (b) Market Price which is 91% multiplied by the lowest daily volume weighted average
price (“VWAP”) during the ten (10) consecutive trading days immediately prior to the written notice date, but in any event not
lower than the Floor Price of $0.1826, subject to certain adjustments and ownership limitations specified in the Avondale convertible
Pre-Paid Purchase #2.

As of September 30, 2025, Pre-Paid Purchase #2
is recorded at fair value of $2,974 thousand and is within convertible debt on the accompanying condensed consolidated balance sheets.
For the three and nine months ended September 30, 2025, the Company recognized an unrealized gain on change in fair value of Pre-Paid
Purchase #2 of $176 thousand.

Securities Purchase Agreement with Streeterville Capital LLC

On May 22, 2024, the Company entered into a Securities
Purchase Agreement (the “SPA”) with Streeterville Capital, LLC (“Streeterville”), pursuant to which Streeterville
desired to purchase up to $10,000,000 shares of the Company’s Common Stock and the Company issued an unsecured convertible Pre-Paid Purchase
#1 to Streeterville. The SPA required 40,000 common shares of the Company’s Class A Common Stock to be issued as of closing date (May
22, 2024). The Company recorded a liability of $130 thousand on May 22, 2024, for the shares to be issued within contract to issue common
stock. The Company issued the Class A Common Stock on October 10, 2024, and recorded a gain of $68 thousand on settlement of the contract
to issue common stock.

The convertible Pre-Paid Purchase #1 has the original
principal amount of $2,625 thousand and Streeterville gave consideration of $2,480 thousand, reflecting