Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 58

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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do not have any off-balance sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading
activities involving non-exchange traded contracts.

Contractual
Obligations and Commitments

Contractual
obligations are cash that we are obligated to pay as part of certain contracts that we have entered during our course of business. Our
contractual obligations consist of operating lease liabilities that are included in our balance sheet. As of September 30, 2025, the total
obligation for operating leases is approximately$324 thousand, of which approximately $274 thousand is expected to be paid in the next
twelve months.

Quantitative
and Qualitative Disclosures about Market Risk

Not
applicable.

Critical
Accounting Policies and Estimates

Our
unaudited condensed consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
In connection with the preparation of our financial statements, we are required to make assumptions and estimates about future events
and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures. We base our
assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant
at the time our unaudited condensed consolidated financial statements are prepared. On a regular basis, we review the accounting policies,
assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. However,
because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates,
and such differences could be material.

Critical
Accounting Policies

Our
significant accounting policies are discussed in Note 2 of the unaudited condensed consolidated financial statements which are included
elsewhere in this filing.

Critical
Accounting Estimates

We
consider an accounting judgment, estimate or assumption to be critical when (1) the estimate or assumption is complex in nature or requires
a high degree of judgment and (2) the use of different judgments, estimates and assumptions could have a material impact on our unaudited
condensed consolidated financial statements.

45

The
Management believes there have been no significant changes during the three months ended September 30, 2025, to the items disclosed as
critical accounting estimates in management’s discussion and analysis in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2024 that was filed with the SEC on April