Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 59

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 59
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 from the issuance date of the financial statements. The Company may continue to pursue strategic transactions and
may raise additional capital as needed, using our equity securities and/or cash and debt financings in combinations appropriate for each
acquisition.

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Liquidity and Capital Resources as of September 30, 2024

Liquidity describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations, including working capital needs, debt service, acquisitions, contractual obligations and other commitments. We assess liquidity in terms of our cash flows from operations and their sufficiency to fund our operating and investing activities.

As of September 30, 2024 (Successor), the Company has a working capital deficiency of approximately $7,404 thousand and cash of approximately $5,082 thousand. For the period ended September 30, 2024 (Successor), the Company incurred net loss of approximately $15,430 thousand and used approximately $4,629 thousand of cash for operating activities.

The Management believes that the current liquidity position, including the cash raised under the promissory note of $3,000 thousand payable by December 2024, and the Securities Purchase Agreement (the “SPA”), pursuant to which the Lender desires to purchase up to $10,000 thousand in shares of the Company’s Common Stock, par value $0.0001, has the ability to mitigate any going concern indicators for a period of at least one year from the date these financial statements are issued.

The Company’s net cash flows used in operating, investing and financing activities and certain balances are as follows (in thousands):

|                                                      |     | Successor         
 (unaudited)       
 Nine months ended 
 September 30,     
 2024              |        |   |     | Period from    
 March 15, 2023 
 to             
 September 30,  
 2023           |        |   |     | Predecessor     
 Period from     
 January 1, 2023 
 to              
 March 14,       
 2023            |        |   |
|:-----------------------------------------------------|:----|:------------------|-------:|:--|:----|:---------------|-------:|:--|:----|:----------------|-------:|:--|
| Cash flows (used in) provided by                     |     |                   |        |   |     |                |        |   |     |                 |        |   |
| Net cash used