Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 46

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 States and worldwide. Specifically, the rising conflict between Russia and Ukraine, and resulting market volatility could adversely affect the Company’s ability to complete a Business Combination. In response to the conflict between Russia and Ukraine, the United States and other countries have imposed sanctions or other restrictive actions against Russia. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, could have a material adverse effect on the Company’s ability to complete a Business Combination and the value of the Company’s securities.

Management continues to evaluate the impact of these types of risks and has concluded that while it is reasonably possible that these risks and uncertainties could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these condensed consolidated financial statements. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

    35

NOTE 19 – Subsequent Events

The Company evaluated subsequent events and transactions that occurred after September 30, 2025, through the date the condensed consolidated financial statements were issued. Based upon this review, the Company identified the following subsequent events:

The
Company commenced sales of its common stock pursuant to the shelf registration. These sales were facilitated through a third-party arrangement
with Maxim Group LLC, acting as the Company’s agent under an equity distribution agreement. The Company received $669 thousand
and issued 782,102
shares of class A common stock, which are intended
to be used for general working capital and other general corporate purposes.

On
October 17, 2025, the Company received net cash proceeds of $5,000
thousand from the second tranche of the Pre-Paid
Purchase Agreement with Avondale, as per the SPA entered into on, October 17, 2025. The third tranche was structured with a principal
amount of $5,250
thousand, less a $250
thousand OID, resulting in the net cash proceeds
mentioned above.

Following the quarter ended September 30, 2025,
the Company converted a portion of its outstanding Avondale Prepaid Purchase #1 Convertible Notes into Class A common stock. These conversions
were part of the Company’s ongoing efforts to reduce debt and strengthen its equity structure.

As the transactions occurred after the reporting
date, they are classified as non-recognized subsequent events. In total, the Company issued approximately 1,583,633