Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 21

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 loss in the Consolidated Statements of Operations and Comprehensive Loss of $303 thousand and $421 thousand, $0 respectively, which are presented as a change in fair value of derivative liability. See additional details within Note 11, Convertible debt.

Under ASC Topic 820-10, the convertible debts
that are being valued under the fair value option election were classified as Level 3 due to the use of unobservable inputs. The fair
value of the convertible note is valued by an independent valuer using a probability-weighted scenarios model with the following significant
inputs:

Streeterville

Pre-Paid Purchase #3

    Schedule of valuation models

    Inputs
     
    June 30, 2025
     
    December 31, 2024

    Valuation method
     
    Scenario based analysis
     
    Scenario based analysis

    Stock price
     
    $1.07
     
    $1.82

    Equity dividend yield
     
    0.00%
     
    0.00%

    Expected term (years)
     
    1.93
     
    2.42

    Volatility
     
    93.6%
     
    100.8%

    Discount rate
     
    12.66%
     
    11.8%

    Risk free rate
     
    4.26%
     
    4.22%

Avondale

Pre-Paid Purchase #1

    Inputs
     
    June 30, 2025

    Valuation method
     
    Scenario based analysis

    Stock price
     
    $1.07

    Equity dividend yield
     
    0.00%

    Expected term (years)
     
    2.74

    Volatility
     
    96.8%

    Discount rate
     
    24.00%

    Risk free rate
     
    4.26%

    16

Fair Value of Financial Instruments

Financial instruments consist of cash and cash equivalents, accounts receivable, unbilled and other receivables and accounts payable. The Company determines the estimated fair value of such financial instruments presented in the financial statements is equal to its carrying value due to their short-term nature.

Carrying Value, Recoverability and Impairment of Long-Lived Assets

The Company follows FASB ASC 360 “Property, Plant, and Equipment” (“ASC 360