Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 53

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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expense was an income of $3,770 thousand and expense of $5,663 thousand for the nine months ended September 30, 2025, and the nine
months ended September 30, 2024, respectively. This increase of 9,433 thousand in other income for the comparative periods was attributable
to an increase in the change in fair value of derivative warrant liabilities of approximately $7,555 thousand, a increase in other income
of approximately $174 thousand, an increase in interest expense of approximately $1,217 thousand, and an increase of $487 thousand in
debt extinguishment.

Provision
for Income Taxes

There
was $1 thousand income tax expenses for the nine months ended September 30, 2025, compared to $147 thousand tax benefit for the nine months
ended September 30, 2024. The income tax benefit for the nine months ended September 30, 2024 is primarily a result of the release of
valuation allowance attributable to acquired intangible assets from the Business Combination recorded in the first quarter of 2023.

Non-GAAP
Financial Information

EBITDA

The
Company includes a non-GAAP measure that we use to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as
earnings before interest and other income, taxes, depreciation and amortization. Adjusted EBITDA is used by our management as the matrix
in which it manages the business. It is defined as EBITDA plus adjustments for other income or expense items, non- recurring items and
non-cash stock-based compensation. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because
it illustrates the underlying financial and business trends relating to our core, recurring results of operations and enhances comparability
between periods.

Adjusted
EBITDA is not a recognized measure under U.S. GAAP and is not intended to be a substitute for any U.S. GAAP financial measure and, as
calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the
same industry. Investors should exercise caution in comparing our non-GAAP measure to any similarly titled measure used by other companies.

41

This
non-GAAP measure excludes certain items required by U.S. GAAP and should not be considered as an alternative to information reported in
accordance with U.S. GAAP. The table below presents our adjusted EBITDA,