Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 55

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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 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

Net
cash used in operating activities during the nine months ended September 30, 2025, was $6,750 thousand, consisting of a net loss of $7,912
thousand and an operating gain of $1,162 thousand. On March 26, 2025, the Company entered into a Securities Purchase Agreement with Avondale
Capital, LLC, under which the Company may issue and sell one or more Pre-Paid Purchase Agreements for up to an aggregate of $20,000 thousand
in exchange for shares of its common stock. The initial Pre-Paid Purchase, in the principal amount of $4,200 thousand, was structured
with a $200 thousand original issue discount (“OID”) and $10 thousand in transaction-related fees, resulting in net proceeds
of approximately $3,990 thousand, which were received on April 8, 2025. The second tranche of the SPA was issued on August 7, 2025, with
the principal amount of $3,150 thousand, was structured with $150 thousand of OID, net proceeds of $3,000 thousand which was received on
August 7, 2025. As of September 30, 2025, approximately $12,650 thousand remained available under this agreement. Additionally, under
the SPA with Streeterville Capital, LLC, entered into on May 22, 2024, the Company had access to up to $10,000 thousand in funding. As
of September 30, 2025, $3,520 thousand in funding remained available under this agreement. The Company believes these funds are sufficient
to satisfy its working capital needs, capital asset purchases, debt repayments, and other liquidity requirements associated with its existing
operations for at least the next 12 months from the issuance date of the financial statements. The Company may continue to pursue strategic
transactions and may