Company: CXAI
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001829126-25-006142
Chunk: 40

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 40
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 for the 315,665 vested Restricted Stock Units.

On March 31, 2025, the Company issued total of 554,274 shares of Class A Common Stock to satisfy obligations due under the promissory note and convertible debt.

In April 2025, the company issued total of 971,213 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt.

On May 8, 2025, the Company issued 80,000 shares of the Company’s Class A Common Stock as part of the Security Purchase Agreement with Avondale. The issued shares serve as the commitment shares of the agreement.

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On May 21, 2025, the company issued 112,192 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt.

In June 2025, the company issued total of 471,973 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt.

During six months ended June 30, 2025, the Company issued total of 2,109,652 shares of Class A Common Stock to satisfy obligations due under the promissory note and convertible debt. See Note 8, Promissory Note and Note 11, Convertible Debt, in the accompanying notes to the consolidated financial statements for further detail.

NOTE 13 – Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income
Taxes. The provision for income taxes is determined using the discrete method. This is because the Company has determined that it
is not able to reliably forecast its annual earnings which results in an inability to calculate its annual effective tax rate.

Under the discrete method, the Company is calculating
its income tax expense for the interim period based only on actual year-to-date results. This is an appropriate approach when the estimated
annual effective tax rate method would not provide a reliable estimate of the quarterly income tax provision.

The Company recorded an income tax expenses of approximately $1 thousand and provision of $159 thousand, for the three months ended June 30, 2025 and 2024 respectively, income tax expense of approximately $1 thousand and provision of $366 thousand for the six months ended June 30, 2025 and 2024, respectively.

The effective tax rate for three and six months ended June 30, 2025 and 2024 was (0.03%) and (0.02%), (2.94%)