Company: CXAI
Filing Date: 2025-05-23
Form Type: 424B3
Source: 0001829126-25-003922
Chunk: 51

Company: CXApp Inc.
Filing Date: 2025-05-23
Form: 424B3
Chunk 51
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| ● | As a basis for allocating resources to various projects; |

| ● | As a measure to evaluate potential economic outcomes of acquisitions, operational alternatives and strategic decisions; and |

| ● | To evaluate internally the performance of our personnel. |

We have presented Adjusted EBITDA above because we believe it conveys useful information to investors regarding our operating results. We believe it provides an additional way for investors to view our operations, when considered with both our GAAP results and the reconciliation to net income (loss). By including this information, we can provide investors with a more complete understanding of our business. Specifically, we present Adjusted EBITDA as supplemental disclosure because of the following:

| ● | We believe Adjusted EBITDA is a useful tool for investors to assess the operating performance of our business without the effect of interest, income taxes, depreciation and amortization and other non- cash items including acquisition transaction and financing costs, impairment, unrealized gains, stock based compensation, interest income and expense, and income tax benefit. |

| ● | We believe that it is useful to provide to investors with a standard operating metric used by management to evaluate our operating performance; and |

| ● | We believe that the use of Adjusted EBITDA is helpful to compare our results to other companies. |

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Even though we believe Adjusted EBITDA is useful for investors, it does have limitations as an analytical tool. Thus, we strongly urge investors not to consider this metric in isolation or as a substitute for net income (loss) and the other condensed consolidated statement of operations data prepared in accordance with GAAP. Some of these limitations include the fact that:

| ● | Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; |

| ● | Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; |

| ● | Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on our debt; |

| ● | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; |

| ● | Adjusted EBITDA does not reflect income or other taxes or the cash requirements to make any tax payments; and |

| ● |