Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 9

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 9
---
ability. Allowance for credit losses are maintained for various customers based on a variety of factors, including the
length of time the receivables are past due, significant one-time events and historical experience. An additional reserve for individual
accounts is recorded when the Company becomes aware of a customer’s inability to meet its financial obligation, such as in the case of
bankruptcy filings, or deterioration in such customer’s operating results or financial position. If circumstances related to a customer
change, estimates of the recoverability of receivables would be further adjusted. The Company has no allowance for credit losses as of
September 30, 2025 and December 31, 2024.

Other receivables as presented within “unbilled and other receivables” includes mainly unbilled receivables and sales tax recoverable
from tax authorities. These are recognized when the underlying transaction occurs and reviewed periodically for collectability. As of
September 30, 2025 and December 31, 2024, sales tax receivables were $77 thousand and $67
thousand, respectively.

Property and Equipment, net

Property and equipment are recorded at cost, less accumulated depreciation and amortization. The Company depreciates its property and equipment for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range from 5 to 10 years. Leasehold improvements are amortized over the lesser of the useful life of the asset or the initial lease term. Expenditures for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred, and expenditures, which extend the economic life, are capitalized. When assets are retired, or otherwise disposed of, the costs and related accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized. Depreciation expense related to property and equipment is not included as part of cost of revenues, but as part of operating expenses.

Intangible Assets, net

Intangible assets primarily consist of developed technology, customer lists/relationships, non-compete agreements, intellectual property agreements, export licenses and trade names/trademarks. They are amortized ratably over a range of 5 to 10 years, which approximates customer attrition rate and technology obsolescence. The Company assesses the carrying value of its intangible assets for impairment annually, or more frequently if an event or other circumstances indicates that the Company may not be able to recover the carrying amount of