Company: CXAI
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001829126-25-002762
Chunk: 64

Company: CXApp Inc.
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 64
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 conversion transaction and stockholders who acquired their pre-reverse stock split shares pursuant to the exercise of employee
stock options or otherwise as compensation. If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes)
is the beneficial owner of our common stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend
on the status of the partner and the activities of the partnership. Accordingly, partnerships (and other entities treated as partnerships
for U.S. federal income tax purpose) holding our common stock and the partners in such entities should consult their own tax advisors
regarding the U.S. federal income tax consequences of the proposed Reverse Stock Split. In addition, the following discussion does
not address the tax consequences of the Reverse Stock Split under state, local and foreign tax laws. Furthermore, the following
discussion does not address any tax consequences of transactions effectuated before, after or at the same time as the Reverse Stock
Split, whether or not they are in connection with the Reverse Stock Split.

In general, the federal
income tax consequences of a Reverse Stock Split will vary among stockholders depending upon whether they receive solely a
reduced number of shares of common stock in exchange for their old shares of common stock or a full share in lieu of a fractional
share. We believe that because the Reverse Stock Split is not part of a plan to periodically increase a stockholder’s
proportionate interest in our assets or earnings and profits, the Reverse Stock Split should have the following federal
income tax effects. The Reverse Stock Split is expected to constitute a “recapitalization” for U.S. federal
income tax purposes pursuant to Section 368(a)(1)(E) of the Code. A stockholder who receives solely a reduced number of shares of
common stock will not recognize gain or loss. In the aggregate, such a stockholder’s basis in the reduced number of shares of
common stock will equal the stockholder’s basis in its old shares of common stock and such stockholder’s holding period
in the reduced number of shares will include the holding period in its old shares exchanged. The Treasury Regulations provide
detailed rules for allocating the tax basis and holding period of shares of common stock surrendered in a recapitalization to shares
received in the recapitalization. Stockholders of our common stock acquired on different dates and at different prices should
consult their tax advisors regarding the allocation of the tax basis and holding period of such shares.

A stockholder who