Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 21

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 input (Level 2)  
    Significant other unobservable
                                                                               input (Level 3) 
  
    Warrants 
    $5,048  
    $5,048,000  
    $-  
    $- 
  
    Convertible Note 

    -Streeterville Prepaid Purchase #1 
     543  
     -  
     -  
     543 
  
    -Streeterville Prepaid Purchase #2 
     1,028  
     -  
     -  
     1,028 
  
    -Streeterville Prepaid Purchase #3 
     2,941  
     -  
     -  
     2,941 

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.

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, 2025
     
    $
    5,048

    Change in fair value of derivative instruments

    (2,314
    )
  
    Warrant liability – March 31, 2025

    2,734

    Change in fair value of derivative instruments

    (1,262
    )
  
    Warrant
    liability – June 30, 2025

    1,472

    Change in fair value of derivative instruments

    -

    Warrant liability – September 30, 2025
     
    $
    1,472

    Warrant liability – January 1, 2024
     
    $
    1,683

    Change in fair value of derivative instruments

    1