Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 38

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 5% per annum. Streeterville may redeem all or any part of the outstanding balance of the convertible Pre-Paid Purchase #3, at any time following earlier of six months from the purchase price date and the effectiveness of the Initial Registration Statement by providing a written notice, in cash or converting into shares of the Company’s common stock at a price equal to the lower of (a) Fixed Price of $1.987 and (b) Market Price which is 91% multiplied by the lowest daily volume weighted average price (“VWAP”) during the ten (10) consecutive trading days immediately prior to the written notice date, but in any event not lower than the Floor Price of $0.331, subject to certain adjustments and ownership limitations specified in the convertible Pre-Paid Purchase. The Pre-Paid Purchase #3 was recorded at its initial fair value of $2,986 thousand. The Company recognized an unrealized gain on change in fair value of pre-paid #3 of $164 thousand. As of June 30, 2025, Pre-Paid Purchase #3 is recorded at fair value of $3,139 thousand and is recognized under convertible debt on the accompanying condensed consolidated balance sheets. For the three months and six months ended June 30, 2025, the Company recognized an unrealized loss on change in fair value of Pre-Paid Purchase #3 of $145 thousand and $197 thousand, respectively.

    27

The following table presents changes in convertible debt measured at fair value for the six months ended June 30, 2025 and for the year ended December 31, 2024.

    Schedule of company’s net deferred tax assets

    Convertible Debt

    Balance as of December 31, 2024
     
    $
    4,512

    Additions

    4,200

    Settlement(1)

    (1,678
    )
  
    Fair value measurement adjustments

    500

    Balance as of June 30, 2025
     
    $
    7,534

    Convertible Debt

    Balance as of December 31, 2023
     
    $
    -

    Additions

    6,825

    Settlement(2)

    (2,100
    )
  
    Fair value measurement adjustments

    (213
    )
  
    Balance as of December 31, 2024
     
    $
    4,512

        (1) 

    During