Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 47

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 This decrease in cost of revenues of approximately $177 thousand, or approximately 54%, for the comparative periods ended March 31, 2025 and March 31, 2024, was attributable to the decrease in professional services revenue related costs.

Operating Expenses

Operating expenses consist primarily of research and development costs, sales and marketing costs, and general and administrative costs. These operating expenses were $4,819 thousand for the three months ended March 31, 2025 compared to $5,078 thousand for the three months ended March 31, 2024. The decrease in operating expenses of $259 thousand for the same comparative quarter was attributable to an increase in general and administrative expenses of $384 thousand and a decrease in other operating expenses of approximately $643 thousand.

Other Income/(Expense)

Other income/expense was a $2,129 thousand income, $1,790 thousand expenses for the three months ended March 31, 2025 and March 31, 2024 respectively. This increase in other income was primarily attributable to changes in fair value of derivative warrant liabilities of $2,196 thousand during the three months ended March 31, 2025.

Provision for Income Taxes

There was no income tax benefit for the three months ended March 31, 2025 compared to $207 thousand for the three months ended March 31, 2024. The income tax benefit for the three months ended March 31, 2024 is primarily a result of the release of valuation allowance attributable to acquired intangible assets from the Business Combination recorded in the first quarter of 2023.

Non-GAAP Financial information

EBITDA

The Company includes a non-GAAP measure that we use to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as earnings before interest and other income, taxes, depreciation and amortization. Adjusted EBITDA is used by our management as the matrix in which it manages the business. It is defined as EBITDA plus adjustments for other income or expense items, non- recurring items and non-cash stock-based compensation. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because it illustrates the underlying financial and business trends relating to our core, recurring results of operations and enhances comparability between periods.

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Adjusted EBITDA is not a recognized measure under U.S. GAAP and is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may