Company: CXAI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006141
Chunk: 6

Company: CXApp Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 6
---
 the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of:

    ●
    the valuation of stock-based compensation; 

    ●
    the valuation of warrant liabilities; 

    ●
    the allowance of credit losses; 

    ●
    the valuation of convertible debt; 

    ●
    the valuation of allowance for deferred tax assets; and 

    ●
    impairment of long-lived assets and goodwill. 

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. Accordingly, since they are interim statements, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2025, are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2025. The condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited financial statements as of that date. For more complete financial information, these condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on April 7, 2025.

    6

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances have been eliminated in consolidation.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash, cash equivalents, and accounts receivable. The Company’s cash is placed
with high-credit-quality financial institutions, which periodically exceed federally insured limits. The Company’s cash equivalents
are certificates of deposit held by a number of banks limited to $250 thousand per bank with a duration of 90 days or less. The Company
has not realized any losses relating to its cash, cash equivalents, and accounts receivable.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section