Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
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Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
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 streamlines all capabilities through The Workplace SuperApp. All features, services and integrations are housed
in one easy-to-access platform allowing businesses to deliver a more holistic employee experience in a hybrid workplace.

NOTE 2 – Summary of Significant Accounting Policies

Liquidity

As of September 30, 2025, the Company had a working capital deficiency of approximately $711 thousand and cash and cash equivalents of approximately $5,088 thousand. For the three and nine months ended September 30, 2025, the Company incurred net losses of approximately $3,157 thousand and $7,912 thousand, respectively. During the nine months ended September 30, 2025, the Company used approximately $6,750 thousand of cash for operating activities.

The Company cannot assure that it will ever earn revenues sufficient to support their operations, or that it will ever achieve profitable operations. The Company’s recurring losses and cash utilization raise doubt about its ability to continue as a going concern. However, management
believes these conditions have been mitigated for at least twelve months from the issuance date of these condensed consolidated financial
statements, due to the Company’s recent financing arrangements and expense reduction initiatives. Based on current operating plans and
available liquidity, management estimates available cash and committed funding will sustain operations through Q4 2026.

On March 26, 2025, the Company entered into a Securities Purchase Agreement (“SPA”) with Avondale Capital, LLC, under which the Company may
issue and sell one or more Pre-Paid Purchase Agreements for up to an aggregate of $20,000 thousand in exchange for shares of its common
stock. The initial Pre-Paid Purchase, in the principal amount of $4,200 thousand, closed on April 8, 2025, with the Company received net
proceeds of approximately $3,990 thousand. A second tranche was received on August 7, 2025, with a principal amount of $3,150 thousand
and net proceeds of approximately $3,000 thousand. As of September 30, 2025, approximately $12,650 thousand remained available under this
agreement.

Additionally, under the SPA with Streeterville Capital, LLC, entered into on May 22, 2024, the Company had access to up to $10,000 thousand in funding. As of September 30, 2025, the Company had $3,520 thousand in remaining available funding under this agreement.

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