Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 578

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 4
Chunk 578
---
714

    -

    Loss on debt extinguishment

    1,052

    -

    -

    Unrealized (gains) losses

    318

    (44
    )

    (32
    )
  
    Impairment of goodwill

    -

    36,056

    -

    Gain/Loss on contract to issue common stock

    (68
    )

    -

    -

    Stock-based compensation – compensation and related benefits

    2,831

    1,080

    158

    Adjusted EBITDA
     
    $
    (8,194
    )
     
    $
    (8,289
    )
     
    $
    (3,221
    )

We rely on Adjusted EBITDA, which is a non-GAAP financial measure for the following:

    ●
    To compare our current operating results with corresponding periods and with the operating results of other companies in our industry; 

    ●
    As a basis for allocating resources to various projects; 

    ●
    As a measure to evaluate potential economic outcomes of acquisitions, operational alternatives and strategic decisions; and 

    ●
    To evaluate internally the performance of our personnel. 

48

We have presented Adjusted EBITDA above because we believe it conveys useful information to investors regarding our operating results. We believe it provides an additional way for investors to view our operations, when considered with both our GAAP results and the reconciliation to net income (loss). By including this information, we can provide investors with a more complete understanding of our business. Specifically, we present Adjusted EBITDA as supplemental disclosure because of the following:

    ●
    We believe Adjusted EBITDA is a useful tool for investors to assess the operating performance of our business without the effect of interest, income taxes, depreciation and amortization and other non- cash items including acquisition transaction and financing costs, changes in fair value of warrant liabilities, loss on debt extinguishment unrealized (gains) losses, goodwill impairment, stock-based compensation; 

    ●
    We believe that it is useful to provide investors with a standard operating metric used by management to evaluate our operating performance; and 

    ●
    We believe that the use of Adjusted EBITDA is helpful to compare our results to other companies. 

Even though we believe Adjusted EBITDA is useful for investors, it does have limitations as an analytical tool. Thus, we strongly urge investors not to consider