Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 52

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 product acceptability, acting as the principal in the transaction and recording revenue on a gross basis. Customers typically pay within 30 to 60 days of invoice receipt. The Company has elected the practical expedient to expense the costs of obtaining a contract when they are incurred because the amortization period of the asset that otherwise would have been recognized is less than a year.

38

Liquidity and Capital Resources as of March 31, 2025 Compared with March 31, 2024

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations, including working capital needs, debt service, acquisitions, contractual obligations and other commitments. We assess liquidity in terms of our cash flows from operations and their sufficiency to fund our operating and investing activities.

As of March 31, 2025, the Company has a working capital deficiency of approximately $4,017 thousand and cash of approximately $3,893 thousand. For the three months ended March 31, 2025, the Company incurred net loss of approximately $1,611 thousand and used approximately $979 thousand of cash for operating activities.

The Company’s net cash flows used in operating, investing and financing activities and certain balances are as follows (in thousands):

    Three Months Ended March 31,  2025

    Three Months Ended March 31, 2024

    Cash flows (used in) provided by

    Net cash used in operating activities
     
    $
    (979
    )
     
    $
    (650
    )
  
    Net cash provided by (used in) investing activities

    (5
    )

    (18
    )
  
    Net cash provided by (used in) financing activities

    -

    -

    Effect of exchange rates on cash

    (3
    )

    (4
    )
  
    Net increase (decrease) in cash and cash equivalents
     
    $
    (987
    )
     
    $
    (672
    )

    March 31,2025

        December 31,
        2024

    Cash and cash equivalents
     
    $
    3,893

    $
    5,603

    Working capital deficit
     
    $
    (4,012
    )
     
    $
    (5,280
    )

Operating Activities for the three months ended March 31, 2025 and March 31, 2024