Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 10

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 10
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 as a going concern. Given the current liquidity
position, management has taken several strategic measures to improve operational efficiency and strengthen the financial outlook. These
initiatives include streamlining operations through workforce reductions, renegotiating contractual agreements, adjusting professional
service fees, and optimizing expenses such as software licenses and contractor-related costs. Additionally, the Company has made progress
in forming strategic partnerships such as the addition of its platform to key marketplaces and has successfully negotiated cost reductions
in areas such as insurance premiums. Management believes that these actions will contribute to improved operational efficiency and long-term
financial stability. However with the current liquidity position, management has implemented the following strategic measures to improve
operational efficiency and strengthen the financial outlook:

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CXAPP INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

| ● | In January 2024, the Company streamlined its operations to conserve cash resources by laying off approximately 20% of the global employee headcount; |

| ● | In March 2024, the Company successfully negotiated for a 
 50% reduction in D&O insurance premium; and              |

| ● | In August 2024, Google added the CXAI application platform to the Google Marketplace and signed a go-to-market partnership agreement. 
 Google Cloud’s sales and marketing teams will work with CXAI on targeting key clients and providing them the best workplace platform  
 experience. With this, the Management believes that this partnership would help boost the Company’s product capability revenue.       |

These steps, along with anticipated revenue growth
from organic sales and other partnerships, provide the Company with the necessary resources to support operations mitigating liquidity
risk.

On May 22, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with Streeterville Capital, LLC (“Lender”), pursuant
to which the Lender desires to purchase up to $10,000 thousand in shares of the Company’s Common Stock, par value $0.0001. Pursuant
to the SPA, the Company issued two unsecured convertible Pre-Paid Purchases to Lender. The convertible Pre-Paid Purchase #1 has the original
principal amount of $2,625 thousand. On June 3, 2024, the Company received net proceeds of $2,480 thousand, reflecting original issue
discount of $125 thousand and Lender’s transaction cost of $20 thousand. On September 30,