Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 20

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. 

    ●
    Level
    2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. 

    ●
    Level
    3: Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted
    cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant
    judgment or estimation. 

Fair value measurements discussed herein are based
upon certain market assumptions and pertinent information available to management. The fair value of the warrants has been measured based
on the listed market price of such warrants, a Level 1 measurement. For the three and nine months ended September 30, 2025, the Company
recognized, in the consolidated statements of operations and comprehensive loss, unrealized gain of $0 and $3,576, respectively. The Company
recognized unrealized loss of $1,052 thousand and $3,575 thousand for the three and nine months ended September 30, 2024, respectively.

    16

The following table presents information about
the Company’s financial liabilities that were measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024,
and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

    Schedule of financial liabilities measured at fair value 

    As of
September 30, 2025  
    Quoted price in
                                                                               Active Market (Level 1)  
    Significant other observable
                                                                               input (Level 2)  
    Significant other unobservable input (Level 3) 
  
    Warrants 
    $1,472  
    $1,472  
    $-  
    $- 
  
    Convertible Note 

    -Avondale Prepaid Purchase  #1 
     3,564  
     -  
     -  
     3,564 
  
    -Avondale Prepaid Purchase #2 
     2,974  
     -  
     -  
     2,974 

    As of
December 31,
2024  
    Quoted price in
Active Market (Level 1)  
    Significant other observable