Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 13

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 13
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, such as in the case of bankruptcy filings, or deterioration in such customer’s operating results or financial
position. If circumstances related to a customer change, estimates of the recoverability of receivables would be further adjusted.
The Company’s allowance for credit losses is approximately $0 thousand and $2
thousand as of September 30, 2024 (Successor) and December 31, 2023 (Successor), respectively.

Property and Equipment, net

Property and equipment are recorded at cost, less accumulated depreciation and amortization. The Company depreciates its property and
equipment for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range from 5 to 10 years. Leasehold improvements are amortized over the useful life of the asset or the initial lease term, whichever is shorter. Expenditures
for maintenance and repairs, which do not extend the economic useful life of the related assets, are charged to operations as incurred,
and expenditures, which extend the economic life, are capitalized. When assets are retired, or otherwise disposed, the costs and related
accumulated depreciation or amortization are removed from the accounts and any gain or loss on disposal is recognized.

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CXAPP INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

Intangible Assets, net

Intangible assets primarily consist of developed technology, customer lists/relationships, intellectual property agreements, export licenses
and trade names/trademarks. They are amortized ratably over a range of 5
to 10
years, which approximates customer attrition rate and technology obsolescence. The Company assesses the carrying value of its intangible
assets for impairment annually, or more frequently if an event or other circumstances indicates that the Company may not be able to recover
the carrying amount of the assets. Based on its assessments, the Company did not incur any impairment charges for the three and nine months
ended September 30, 2024 (Successor), for the three months ended September 30, 2023 (Successor), for the period from March 15, 2023 to
September 30, 2023 (Successor), and the period from January 1, 2023 to March 14, 2023 (Predecessor).

Goodwill

The Company tests goodwill for potential impairment at least annually, or more frequently if an