Company: CXAI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009077
Chunk: 6

Company: CXApp Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 August 11, 2025, the Company filed a shelf
registration statement on Form S-3 with the Securities and Exchange Commission (“SEC”), authorizing the future offering and
sale of up to $150,000 thousand of various securities. Concurrently, the Company filed a prospectus supplement allowing for the issuance
of up to $7,959 thousand of common stock under this registration. This amount is included within the total aggregate offering authorized.

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The Company believes that these financing efforts
can mitigate any going concern indicators for a period of at least one year from the date these unaudited condensed consolidated financial
statements are issued. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement
its business plan. The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business.

Management remains focused on executing cost
management strategies to optimize the Company’s expense structure and enhance operational efficiency. The Company is committed to expanding
its customer base, introducing monetizable features, and driving recurring revenue growth in next 12 months. By leveraging its current
cash position, financing agreements, and strategic initiatives, management is confident in CXAI’s ability to meet its obligations and
support its operations for at least the next 12 months. While there are no guarantees, the Company’s robust financing pipeline and operational
strategies provide a solid foundation for long-term financial stability.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at 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 unaudited condensed consolidated
financial statements have been prepared in accordance with U.S. GAAP for interim financial information and the requirements of the Securities