Company: CXAI
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001829126-25-006142
Chunk: 22

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 22
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 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.

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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 |   |
| Warrant liability – January 1, 2024                  |     | $ |  1,683 |   |
| Change in fair value of derivative instruments       |     |   |  1,472 |   |
| Warrant liability – March 31, 2024                   |     |   |  3,155 |   |
| Change in fair value of derivative instruments       |     |   |  1,051 |   |
| Warrant liability – June 30, 2024                    |     | $ |  4,206 |   |

The Company accounts for convertible debt under the fair value option election using Level 3 inputs. For the three and six months ended June 30, 2025 and June 30, 2024, the Company recognized an unrealized loss in the Consolidated Statements of Operations and Comprehensive Loss of $303 thousand and $421 thousand, $0 respectively, which are presented as a change in fair value of derivative liability. See additional details within Note 11, Convertible debt.

Under ASC Topic 820-10, the convertible debts
that are being valued under the fair value option election were classified as Level 3 due to the use of unobservable inputs. The fair
value of the convertible note is valued by an independent valuer using a probability-weighted scenarios model with the following significant
inputs:

Streeterville