Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 1500

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 13
Chunk 1500
---
 - Warrants)

    (766
    ) 
  
    Warrant liability - December 31, 2023
     
    $
    1,683

    F-17

The Company accounts for convertible debt under the fair value option election using Level 3 inputs. For the year ended December 31, 2024, and for the period from March 15, 2023 to December 31, 2023, the Company recognized an unrealized gain in the Consolidated Statements of Operations and Comprehensive Income (Loss) of $213 thousand and $0 thousand, respectively, which are presented as change in fair value of derivative liability. See additional details within Note 12, Convertible debt.

The significant inputs in the valuations models for each of the three issuances were as follows:

Pre-Paid Purchase #1

    Schedule of valuation models

    Inputs
     
    June 30, 2024

    December 31, 2024

    Valuation method
     
    Scenario based analysis

    Scenario based analysis

    Stock price
     
    $2.67

    $1.82

    Equity dividend yield
     
    0.00%

    0.00%

    Expected term (years)
     
    3.00

    2.42

    Volatility
     
    106.2%

    100.8%

    Discount rate
     
    13.9%

    11.8%

    Risk free rate
     
    4.57%

    4.22%

Pre-Paid Purchase #2

    Inputs
     
    September 30, 2024

    December 31, 2024

    Valuation method
     
    Scenario based analysis

    Scenario based analysis

    Stock price
     
    $1.68

    $1.82

    Equity dividend yield
     
    0.00%

    0.00%

    Expected term (years)
     
    2.68

    2.42

    Volatility
     
    106.2%

    100.8%

    Discount rate
     
    11.6%

    11.8%

    Risk free rate
     
    3.58%

    4.22%

Pre-Paid Purchase #3

    Inputs

        December 9,
        2024

    December 31