Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 27

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 27
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. The Company tests its long-lived assets for potential impairment indicators at least annually and more frequently upon the occurrence of such events.

Based on its assessments, the Company recorded no
impairment charges on long-lived assets for the three and nine months ended September 30, 2024 (Successor), for the three months ended September 30, 2023 (Successor), for the period from March
15, 2023 to September 30, 2023 (Successor), and the period from January 1, 2023 to March 14, 2023 (Predecessor).

Recently Issued Accounting Standards Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06
“Disclosure Improvements”, which amends the codification in response to the SEC’s Disclosure Update and Simplification
Initiative. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation
S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or
Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any
entity. The Company is currently assessing the potential impact of ASU 2023-06 and does not expect the adoption of this guidance to have
a material impact on its condensed consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09,
Income Taxes (Topic 740) that enhances transparency into income tax disclosures. Requires annual disclosure of certain information relating
to the rate reconciliation, income taxes paid by jurisdiction, income (or loss) from continuing operations before income tax expense (or
benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) from continuing operations disaggregated by federal
(national), state, and foreign. Eliminates certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure
relating to subsidiaries and corporate joint ventures. For public business entities, the amendments in this Update are effective for annual
periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or
made available for issuance. We are currently evaluating the impact of this standard on our condensed consolidated financial statements.

In March 2024, the FASB issued ASU 2024-