Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 996

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 7
Chunk 996
---
 - January 1, 2024
     
    $
    1,683

    Change in FV of derivative instruments

    3,365

    Warrant liability – December 31, 2024
     
    $
    5,048

    Warrant liability - March 15, 2023
     
    $
    2,649

    Change in FV of derivative instruments

    4,714

    FV of Warrants exchanged for Class A common stock (see Note 10 - Warrants)

    (1,914
    ) 
  
    FV of Warrants exercised for Class A common stock (see Note 10 - 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