Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 7

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 7
---
and Exchange Commission (the “SEC”) for interim reporting. Accordingly, since they are interim statements, they do not include
all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the
three and nine months ended September 30, 2025, are not necessarily indicative of the results that may be expected for other quarters
or the year ending December 31, 2025. The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited
financial statements as of that date. For more complete financial information, these condensed consolidated financial statements and
the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for
the year ended December 31, 2024, which was filed with the SEC on April 7, 2025.

    7

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances have been eliminated in consolidation.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash, cash equivalents, and accounts receivable. The Company’s cash is placed
with high-credit-quality financial institutions, which periodically exceed federally insured limits. The Company’s cash equivalents are
certificates of deposit held by a number of banks limited to $250 thousand per bank with a duration of 90 days or less. The Company has
not realized any losses relating to its cash, cash equivalents, and accounts receivable. However, a material loss resulting from the
failure of one or more financial institutions, or from a significant default in accounts receivable, could have a substantial adverse
effect on the Company’s liquidity, financial position, and operating results. Given the concentration of these financial instruments,
any unexpected credit event could impair the Company’s ability to meet its short-term obligations and fund ongoing operations.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including,