Company: CXAI
Filing Date: 2025-04-07
Form Type: 10-K
Source: 0001829126-25-002438
Chunk: 149

Company: CXApp Inc.
Filing Date: 2025-04-07
Form: 10-K
Item: Item 1
Chunk 149
---
  
    Rate differential on foreign earnings

    0.44
    %

    0.24
    %

    -
    %
  
    State taxes, net of federal tax benefit

    (0.24
    )%

    0.93
    %

    3.49
    %
  
    Current federal tax true-up

    (1.27
    )%

    0.01
    %

    -
    %
  
    Provision to return adjustments

    %

    -
    %

    -
    %
  
    Deferred only adjustment

    %

    -
    %

    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 (Success