Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 36

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 36
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 default, interest would accrue on the outstanding balance beginning on the date the applicable event of default occurred at an interest rate equal to the lesser of twenty-two percent (22%) or the maximum rate permitted under applicable law.

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

Note Exchanges

During the period from July 15, 2024 to August
19, 2024, the Company exchanged $1,400 thousand of the outstanding balance of the Note for approximately 798,298 shares of the Company’s
Class A Common Stock at exchange prices between $1.47 and $2.23 per share.

The Company analyzed the exchange of principal under
the note as an extinguishment and compared the net carrying value of the debt being extinguished to the reacquisition price (shares of
common stock being issued) and recorded an approximately $535 thousand loss on the exchange of debt for equity as a separate item in
the other income (expense) section of the consolidated statements of operations for the three months ended September 30, 2024.

As of November 12, 2024, there is an aggregate
outstanding principal and interest balance of approximately $2,633 thousand underlying the December 2023 Note.

Interest expense for the December 2023 Note recognized
on the condensed consolidated statement of operations and comprehensive loss were approximately $317 thousand, $958 thousand, and $0
thousand for the three months ended September 30, 2024 (Successor), for the nine months ended September 30, 2024 (Successor), and the
period from March 15, 2023 to September 30, 2023 (Successor), respectively.

NOTE 10 – Warrants

Public Warrants

As of September 30, 2024 (Successor) and
December 31, 2023 (Successor), there were 10,751,862
Public Warrants outstanding. Each whole warrant entitles the holder thereof to purchase one share of the Company’s Class A
common stock at a price of $11.50
per share, subject to adjustments described in the Company’s registration statement on Form S-1 (Registration No. 333-249177)
filed in connection with its initial public offering.

The Public Warrants is exercisable and will expire on March 15, 2028 or