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

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 25
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, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. |

Fair value measurements discussed herein are
based upon certain market assumptions and pertinent information available to management. The fair value of the warrants has been
measured based on the listed market price of such warrants, a Level 1 measurement. For the three months ended September 30,
2024 (Successor), for the 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), the Company recognized, in the consolidated statements of operations and comprehensive income, unrealized loss
of $1,052 thousand,
unrealized loss $3,575 thousand,
unrealized gain $5,220 thousand,
$5,134 thousand unrealized loss, and $0 thousand,
respectively. See Note 10.

The Company accounts for its public and private warrants as a derivative liability initially measured at its fair values and remeasured in the condensed consolidated statements of operations at the end of each reporting period. When the warrants are exercised, the corresponding derivative liability is de-recognized at the underlying fair value of the Class A common stock that is issued to the warrant holder less any cash paid in accordance with the warrant agreement. Upon either cash or cashless exercise, the de-recognized derivative liability results in an increase in additional paid in capital equal to the difference between the fair value of the underlying Class A common stock and its par value. A cashless exercise results in the warrant holder surrendering Class A common stock equal to the stated warrant exercise price based on the contractual terms in the warrant agreement that governs the cashless conversion.

<div align='center'>14

CXAPP INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

The following table shows the changes in fair value of the liabilities:

| Schedule of changes in fair value of the liabilities |     |   |       |
|:-----------------------------------------------------|:----|:--|------:|
| Warrant liability –                                  
 January 1, 2024                                      |     | $ | 1,683 |
| Change in FV of derivative instruments               |