Company: CXAI
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001829126-25-003532
Chunk: 68

Company: CXApp Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 68
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During the period from July 15, 2024, to December 26, 2024, the Company exchanged $3,428 thousands of the outstanding balance of the Note for approximately 2,012,107 shares of the Company’s Class A common stock at exchange prices between $1.47 and $2.23 per share.

Pursuant to the Streeterville
Exchange Agreements by and between the Company and Streeterville, Streeterville will surrender a partitioned note in exchange for common
stock, which will be issued free of any restrictive securities legend. Other than the surrender of the partitioned note, no consideration
of any kind shall be given by Streeterville to the Company in connection with this Agreement. Upon surrendering, the partitioned notes
shall be cancelled, and all obligations of CXApp under the partitioned notes shall be deemed fulfilled.

The Company analyzed the exchange of principal under the note as an extinguishment and compared the net carrying value of the debt being extinguished to the reacquisition price (shares of common stock being issued) and recorded an approximately $1,052 thousand loss on the exchange of debt for equity as a separate item in the other income (expense) section of the consolidated statements of operations for the year ended December 31, 2024.

As of January 17, 2025, the Company paid down the entire December 2023 Note.

Interest expense for the December 2023 Note recognized on the consolidated statements of operations and comprehensive loss were approximately $1,204 thousand and $53 thousand for the year ended December 31, 2024, and for period from March 15, 2023, to December 31, 2023, respectively.

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Convertible Debt Conversion

On May 22, 2024, the Company entered into the Streeterville Purchase Agreement pursuant to which Streeterville wants to purchase up to $10,000 thousand shares of the Company’s common stock and the Company issued an unsecured convertible Streeterville Pre-Paid Purchase #1 to Streeterville. The convertible Streeterville Pre-Paid Purchase #1 has the original principal amount of $2,625 thousand and Streeterville gave consideration of $2,480 thousand, reflecting original issue discount of $125 thousand and Streeterville’s transaction cost of $20 thousand.

During the year ended December 31, 2024, the Company has issued 1,683,104 shares of the Company’s Class A common stock pursuant to multiple purchase notices for