Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 21

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 21
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The Company presents transactional taxes such as sales and use tax collected from customers and remitted to government authorities on a net basis.

Shipping and Handling Costs

Shipping and handling costs are expensed as incurred as part of cost of revenues. These costs were deemed to be de minimis during each of the reporting periods.

Research and Development

Research and development (“R&D”) costs are expensed when incurred. R&D expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead.

Business Combinations

The Company accounts for business combinations under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations” using the acquisition method of accounting, and accordingly, the assets and liabilities of the acquired business are recorded at their fair values at the date of acquisition. The excess of the purchase price over the estimated fair value is recorded as goodwill. All acquisition costs are expensed as incurred. Upon acquisition, the accounts and results of operations are included as of and subsequent to the acquisition date.

Segments

The Company and its Chief Executive Officer (“CEO”),
and Chief Financial Officer (“CFO”), acting as the Chief Operating Decision Makers (“CODM”), determines its reporting
units in accordance with FASB ASC 280, “Segment Reporting” (“ASC 280”). The Company evaluates a reporting unit
by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes
one or more components that constitute a business. If there are components within an operating segment that meet the definition of a
business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable,
when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically
similar and, if so, the operating segments are aggregated. The Company has one operating segment and reporting unit. The Company is organized
and operated as one business. Management reviews its business as a single operating segment, using financial and other information rendered
meaningful only by the fact that such information is presented and reviewed in the aggregate.

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

Stock-based Compensation

The Company measures the cost of employee and non-employee services received in exchange for an award of equity instruments based on