Company: CXAI
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001829126-25-002456
Chunk: 151

Company: CXApp Inc.
Filing Date: 2025-04-08
Form: 424B3
Chunk 151
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               4.80 | %  |
| Other                                                                                         |     |           |              | %  |     |     |                 - | %  |     |             |              (0.35 | )% |
| Valuation allowance                                                                           |     |           |       (11.20 | )% |     |     |              0.88 | %  |     |             |              71.31 | %  |
| Income tax provision                                                                          |     |           |         3.17 | %  |     |     |              6.76 | %  |     |             |                  - | %  |

The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions as well as in foreign jurisdictions and is subject to examination by the various taxing authorities.

The Company recorded an income tax benefit/expense of approximately $637 thousand for the year ended December 31, 2024 (Successor).

The effective tax rate for the year ended December 31, 2024 (Successor) was 3.17%. The income tax benefit for the year ended December 31, 2024 (Successor) is a result of the reversal of deferred tax liability attributable to acquired intangible assets from the Business Combination. The company believes that positive evidence does not outweighs the negative evidence and thus it is more likely than not that the benefit from deferred tax asset may not be realized in foreseeable future. In view of this, valuation allowance has been created as of December 31, 2024.

Uncertain Tax Positions

The Company records tax positions as liabilities and adjusts these liabilities when its judgment changes because of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company’s current estimate of the recognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. As of December 31, 2024, and the period March 15, 2023, to December 31, 2023 (Successor) the Company has not recorded any liabilities for uncertain tax positions in its consolidated financial statements.

<div align='center'>F-37</div>

The Company records
interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2024 and the
period March 15, 2023 to December 31