Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 28

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 March 31, 2025 and December 31, 2024, there were 10,280,000 Private Placement Warrants outstanding. The Private Placement Warrants are identical to the Public Warrants, except that the Private Placement Warrants and the shares of Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until April 14, 2023 subject to certain limited exceptions.

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Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

For the periods ended March 31, 2025 and December 31, 2024, there were no exercises or exchanges made in relation with the Company’s Warrants.

NOTE 10 – Stock Option Plan and Stock-Based Compensation

2023 Equity Incentive Plan

At the special meeting held on March 10,
2023, the KINS stockholders considered and approved, among other things, the Incentive Plan. The Incentive Plan was previously
approved, subject to stockholder approval, by KINS’ board of directors. The Incentive Plan became effective immediately upon
the closing of the Business Combination. Pursuant to the terms of the Incentive Plan, there were 2,110,500 shares of CXApp Class A
Common Stock available for issuance under the Incentive Plan, which is equal to 15% of the aggregate number of shares of CXApp
common stock issued and outstanding immediately after the closing of the Business Combination (giving effect to the
redemptions).

Employee Stock Options

To calculate the stock-based compensation resulting from the issuance of options, the Company uses the Black-Scholes option pricing model, which is affected by the Company’s fair value of its stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors.

On February 6, 2024, a total of 705,000 stock options to purchase the Company’s