Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 26

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 payment on the policy of $85 thousand. As of March 31, 2025 and December 31, 2024, the Company currently owes $240 thousand and $23 thousand, respectively on the D&O insurance policy.

NOTE 8 – Promissory Note

Note payable consisted of the following (in thousands):

    Schedule of promissory note

    March 31, 2025

    December 31, 2024

    Principal amount
     
    $
    603

    $
    3,885

    Add: 
    Interest

    2

    372

    Accrued monitoring fee

    -

    273

    605

    4,530

    Less: 
    Extinguishment

    605

    3,927

    $
    -

    $
    603

On December 15, 2023, we entered into a note purchase agreement (“Streeterville note”) with Streeterville Capital, LLC (the “Lender”), pursuant to which we agreed to issue and sell to the Lender an unsecured promissory note (the “Note”) in an aggregate initial principal amount of $3,885 thousand, which is payable on or before the date that is 12 months from the issuance date. The initial principal amount includes an original issue discount of $870 thousand and $15 thousand that we agreed to pay to the Lender to cover the Lender’s legal fees, accounting costs, due diligence, monitoring and other transaction costs. The net proceeds of the Note are $3,000 thousand.

Interest on the Note accrues at a rate of 10% per annum and is payable on the maturity date.

    20

A monitoring fee of 10% of the outstanding balance will be charged starting six (6) months from the issuance of the Note to cover Lender’s accounting, legal and other costs incurred in monitoring. The foregoing fee shall automatically be added to the outstanding balance on the applicable date without any further action by either party.

The Lender shall have the right to redeem up to an aggregate of 1/6th of the initial principal balance of the Note plus any interest accrued thereunder each month by providing written notice delivered to us; provided, however, that if the Lender does not exercise any monthly redemption amount in its corresponding month then such monthly redemption amount shall be available for the Lender to redeem in any further month in addition to such future month’s monthly redemption amount