Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 430

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 2
Chunk 430
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 the Company’s total outstanding accounts receivable
balance.

The Company continually monitors
the creditworthiness of its customers and maintains an allowance for doubtful accounts based on historical experience and specific customer
information. The Company does not require collateral from its customers. Management does not believe the concentration of credit risk
represents a significant risk of loss based on current knowledge and collection history.

    F-38

NOTE 16 – Segment Information

The Company has determined that it operates as a single operating segment.
The Company offers a vertical software-as-a-service (or SaaS) platform for the enterprise. The flagship product, the CXAI Platform (pronounced
“Sky”), provides a comprehensive suite of tools designed to empower employees and enable organizations to create smarter workplaces.
The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM allocates resources and
makes operating decisions based on consolidated net income.

The CODM does not evaluate
profitability below the level of the consolidated company. The Company uses net income (loss) as the primary measure of financial performance.
However, in evaluating operating results on a budget versus actual basis, the Company focuses on cash-based operating expenses as a more
cost of revenue, professional services, marketing, research and development, and other general and administrative expenses—to be
significant. In contrast, the Company does not place significant emphasis on stock-based compensation, amortization of intangibles, change
in fair value of warrant liabilities, loss on debt extinguishment, and other non-cash adjustments in its internal analysis of period-over-period
operating results.

The following table presents selected financial information with respect to the Company’s single operating segment:

    Schedule of segment Information

    Successor

    Predecessor

    (In thousands)
     
    Year ended December 31, 2024

    Period fromMarch 15, 2023 toDecember 31,2023

    Period fromJanuary 1, 2023 toMarch 14,2023

    Revenue – Licenses
     
    $
    6,202

    $
    4,560

    $
    1,204

    Revenue – Professional Services

    798

    1,186

    416

    Revenue – Hardware

    142

    -

    -

    Less:

    Cost of revenue

    1,285

    1,268

    483

    Research and development

    5,744