Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 41

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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8, 2025, the Company issued 80,000 shares of the Company’s Class A Common Stock as part of the Security Purchase Agreement with Avondale. The issued shares serve as the commitment shares of the agreement.

On May 21, 2025, the company issued 112,192 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt.

During June 2025, the company issued total of 471,973
shares of the company’s Class A Common stock to satisfy
obligations due under the convertible debt through multiple issuances.

During July 2025, the company issued total of
834,762 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt through multiple issuances.

During August 2025, the company issued total of
2,074,223 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt through multiple issuances.

During September 2025, the company issued total
of 1,500,030 shares of the company’s Class A Common stock to satisfy obligations due under the convertible debt through multiple issuances.

During nine months ended September 30, 2025, the Company issued total of 6,206,884 shares of Class A Common Stock to satisfy obligations due under the promissory note and convertible debt. See Note 8, Promissory Note and Note 11, Convertible Debt, in the accompanying notes to the consolidated financial statements for further detail.

NOTE 13 – Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income
Taxes. The provision for income taxes is determined using the discrete method. This is because the Company has determined that it
is not able to reliably forecast its annual earnings which results in an inability to calculate its annual effective tax rate.

Under the discrete method, the Company is calculating
its income tax expense for the interim period based only on actual year-to-date results. This is an appropriate approach when the estimated
annual effective tax rate method would not provide a reliable estimate of the quarterly income tax provision.

The Company recorded an income tax expenses of
approximately $0
thousand and $1
thousand, for the three and nine months ended September 30, 2025,  respectively and income tax benefits of approximately
$147
thousand and  $513
thousand for the three and nine months ended September 30,  2024, respectively