Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 58

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 58
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 being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; |

| ● | Adjusted EBITDA does not reflect income or other taxes or the cash requirements to make any tax payments; and |

| ● | Other companies in our industry may calculate Adjusted EBITDA differently than we do, thereby potentially limiting its usefulness as a comparative measure. |

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to us to invest in the growth of our business or as a measure of performance in compliance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and providing Adjusted EBITDA only as supplemental information.

Financing Obligations and Requirements

As of November 12, 2024, the Company owed
approximately $2,731 thousand in principal and accrued interest payable of $20 thousand payable within the next three months related to
the December 2023 Note. The interest rate is 10%. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements.

Net cash used in operating activities during
the nine months ended September 30, 2024 (Successor) of $4,629 thousand consists of net loss of $15,430 thousand offset by non-cash
adjustments of approximately $9,826 thousand and net cash changes in operating assets and liabilities of approximately $975 thousand.
On May 22, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with Streeterville Capital, LLC
(“Lender”), 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. Pursuant to the SPA, the Company issued two unsecured convertible Pre-Paid Purchases to Lender. The convertible
Pre-Paid Purchases has the original principal amount of $3,675 thousand. For the period ended September 30, 2024, the Company received
net proceeds of $3,480 thousand, reflecting original issue discount of $175 and Lender’s transaction cost of $20 thousand. Given
our current cash balances and budgeted cash flow requirements, the Company believes such funds are sufficient to satisfy its working
capital needs, capital asset purchases, debt repayments and other liquidity requirements associated with its existing operations for
the next 12 months