Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 27

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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2

    30

    135

    135

    $
    1,114

    $
    3,561

    $
    1,897

    $
    5,481

    (1)
    
    Professional services are also contracted on the fixed fee and time and materials basis. Fixed fees are paid monthly, in phases, or upon acceptance of deliverables. The Company has generally elected the practical expedient to recognize revenue for the right to invoice because the Company’s right to consideration corresponds directly with the value to the customer of the performance completed to date. 
  
    (2)
    
    Software As A Service Subscription Revenue’s performance obligation is satisfied evenly over the service period using a time-based measure because the Company is providing continuous access to its service and service is recognized over time. 
  
    (3)
    Hardware revenue is recognized at a point in time when the control over the goods transfers to the customer - upon delivery to the customers. 

NOTE 4 – Property and Equipment, net

Property and equipment consisted of the following (in thousands):

    Schedule of property and equipment

    September 30,2025

    December 31,2024

    Computer and office equipment
     
    $
    209

    $
    177

    Furniture and fixtures

    4

    11

    Leasehold improvements

    5

    4

    Software

    -

    -

    Total

    218

    192

    Less: accumulated depreciation and amortization

    (171
    )

    (128
    )
  
    Total Property and Equipment, Net
     
    $
    47

    $
    64

Depreciation expense was approximately
$11
thousand and $35
thousand for the three and nine months ended September 30, 2025, respectively. Depreciation expense was approximately $20 thousand and $64 thousand for the three and nine months ended September 30, 2024, respectively.

NOTE 5 – Goodwill and Intangible Assets

The Company reviews goodwill for impairment on a reporting unit basis annually on November 30 (beginning with fiscal year 2024) and whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of goodwill was $8,737 thousand as of September 30, 2025 and December 31, 2024.

We first assess qualitative factors, such as macroeconomic