Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 507

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 3
Chunk 507
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 such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash, checking accounts, money market accounts, temporary investments and certificates of deposit with maturities of three months or less when purchased. As of December 31, 2024, the Company had cash equivalents of approximately $4,353 thousand of certificates of deposit held by a number of banks limited to $250 thousand per bank with a duration of 90 days or less. As of December 31, 2023, the Company had cash equivalents of approximately $5,584 thousand of certificates of deposit.

Accounts Receivable, net and Allowance for Credit Losses

Accounts receivables are
stated at the amount the Company expects to collect. The Company recognizes an allowance for credit losses to ensure accounts
receivable are not overstated due to uncollectability. Allowance for credit losses is maintained for various customers based on a
variety of factors, including the length of time the receivables are past due, significant one-time events and historical
experience. An additional allowance for credit losses for individual accounts is recorded when the Company becomes aware of a
customer’s inability to meet its financial obligation, such as in the case of bankruptcy filings, or deterioration in such
customer’s operating results or financial position. If circumstances related to a customer change, estimates of the
recoverability of receivables would be further adjusted. Accounts receivable, net of allowance, totaled approximately $1.7
million and $2.0
million as of December 31, 2024 and December 31, 2023, respectively. The Company’s allowance for credit losses as of
December 31, 2024 is approximately $0
thousand and $2
thousand as of for the period March 15, 2023 to December 31, 2023. Accounts receivable as of March 15,