Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 56

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 56
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 of $2,027 thousand for the same comparative period was attributable to decrease in acquisition cost of approximately $194 thousand, general and administrative expenses of $840 thousand due to non-renewal of contract with contractors and reduction of D&O insurance premium, sales and marketing expenses of $706 thousand due to change in commission plan and employee restructuring effective in January 2024, research and development of approximately $20 thousand and amortization of intangibles of $267 thousand.

Other Income/(Expense)

Other income/expense was $5,380 thousand expense for the nine months ended September 30, 2024 (Successor), and $5,090 thousand expense and $1 thousand income for the period ended September 30, 2023 (Successor) and the period ended March 14, 2023 (Predecessor), respectively. This increase in other expense of $291 thousand for the same comparative period was attributable to decrease in changes in fair value of derivative warrant liabilities of $1,559 thousand and the increase in interest expense of approximately $1,320 thousand was primarily attributable to the one-time monitoring fee relating to the Promissory Note issued on December 15, 2023 and convertible debt, loss on debt extinguishment of $535 thousand and decrease in foreign exchange loss of approximately $5 thousand.

Provision for Income Taxes

There was an income tax benefit of approximately $513 thousand for the nine months ended September 30, 2024 (Successor), compared to $2,958 thousand tax benefit for the period ended September 30, 2023 (Successor). The income tax benefit for the nine months ended September 30, 2024 (Successor) is primarily a result of the release of valuation allowance attributable to acquired intangible assets from the Business Combination recorded in the first quarter of 2023.

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Non-GAAP Financial information

EBITDA

The Company includes a non-GAAP measure that we use to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as earnings before interest and other income, taxes, depreciation and amortization. Adjusted EBITDA is used by our management as the matrix in which it manages the business. It is defined as EBITDA plus adjustments for other income or expense items, non- recurring items and non-cash stock-based compensation. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because it illustrates the underlying financial and