Company: CXAI
Filing Date: 2025-11-12
Form Type: 424B3
Source: 0001829126-25-009079
Chunk: 26

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 424B3
Chunk 26
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 inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions presented on the face of the income statement. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact this ASU will have on our disclosures.

In November 2024, the FASB issued ASU No. 2024-04
“Debt-Debt with Conversion and Other Options (Subtopic 470-20)”. The amendment requires companies to apply a preexisting contract
approach. Under this approach, a settlement qualifies for induced conversion accounting if the inducement offer preserves the form of
consideration and results in an amount of consideration that is no less than that issuable pursuant to the preexisting conversion privileges.
The ASU is effective for all entities in annual and interim reporting periods in fiscal years beginning after December 15, 2025. Early
adoption permitted for entities that have adopted the amendments in ASU 2020-06. The amendments may be applied either (1) prospectively
to any settlements of convertible debt instruments that occur after the effective date of this ASU or (2) retrospectively to all prior
periods that occurred after the adoption of the amendments in ASU 2020-06. We are currently evaluating the impact of this standard
on our condensed consolidated financial statements.

NOTE 3 – Disaggregation of Revenue

The Company recognizes revenue when control is transferred of the promised products or services to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. The Company derives revenue from software as a service, design and implementation services for its enterprise apps solutions systems, and professional services for work performed in conjunction with its systems, and sale of hardware.

Revenues consisted of the following (in thousands):

| Schedule of disaggregation of revenue |     |   | Three Months Ended 
      September 30, 
               2025 |     |   | Nine Months Ended 
     September 30, 
              2025 |     |   | Three Months Ended 
      September 30, 
               2024 |