Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 53

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 53
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. These operating expenses were $4,851 thousand for the three months ended September 30, 2024 (Successor), compared to $5,641 thousand for the three months ended September 30, 2023 (Successor). The decrease in operating expenses of $790 thousand for the same comparative period was attributable to decrease in sales and marketing expenses of $446 thousand, other general and administrative expenses of $329 thousand, research and development expenses of $121 thousand, professional fees through issuance of the Company’s Class A Common Stock amounting to $106 thousand, acquisition related costs of $30 thousand, amortization of intangibles of $14 thousand, and increase in stock-based compensation expense of $256 thousand.

Other Income/(Expense)

Other income/expense was $1,825 thousand expense, and $5,253 thousand income for the three months ended September 30, 2024 (Successor) and the three months ended September 30, 2023 (Successor), respectively. This decrease of $7,078 thousand in other expense for the same comparative periods was attributable to the decrease in changes in fair value of derivative warrant liabilities of approximately $6,272 thousand, loss on debt extinguishment of approximately $535 thousand and increase in interest expense of approximately $369 thousand and increase in other income of approximately $98 thousand.

Provision for Income Taxes

There was an income tax benefit of approximately $147 thousand for the three months ended September 30, 2024 (Successor), compared to $417 thousand tax benefit for the three months ended September 30, 2023 (Successor). The income tax benefit for the three months ended September 30, 2024 (Successor) 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.

Comparison of the results of operations for the nine months ended September 30, 2024 (Successor), period ended September 30, 2023 (Successor), and period ended March 14, 2023 (Predecessor)

The following table sets forth our results of operations. This data should be read together with our unaudited condensed consolidated financial statements and related notes.

|                                                      | (in thousands) | Successor   
 (unaudited) | Nine months ended 
     September 30, 
              2024 |   |     |   |    Period from 
 March 15, 2023 
             to