Product and Technology - CXApp's flagship product, the CXAI Platform, integrates AI-driven tools to enhance employee productivity and engagement [25] - CXApp has filed 37 patents, with 17 granted, to protect its innovative technologies in employee experience solutions [36] - CXApp's platform aims to create a seamless and engaging workplace experience, leveraging AI-driven personalization and real-time insights [39] - The company plans to integrate AI capabilities into its product offerings, which may incur substantial costs and present competitive risks [150] - The company is expanding its AI-driven capabilities with a generative AI analytics platform to enhance workplace decision-making [214] Market Trends - The digital workplace market was valued at $27.4 billion in 2022 and is projected to grow to $90.5 billion by 2030, reflecting a compound annual growth rate (CAGR) of 21.4% [40] - The global virtual events market is projected to expand at a CAGR of 21.4% from 2022 to 2030, indicating a growing demand for collaboration tools [41] - The occupancy analytics market in commercial office space is expected to rise from $2.17 billion in 2019 to $5.73 billion by 2024, growing at a CAGR of 21.5% [43] - The global employee experience market is projected to grow at a 20% CAGR, providing strong growth opportunities for the company [218] Financial Performance - The company incurred recurring net losses of approximately $19.4 million and $53.6 million for the fiscal years ended 2024 and 2023, respectively [80] - Revenue growth is dependent on increasing sales to existing customers and acquiring new customers, which may be limited by competition and market conditions [88] - Recurring revenue increased to 87% from 78%, reflecting a successful transition to a recurring revenue model [214] - Total operating expenses decreased to $19,598 thousand from $58,204 thousand, indicating effective cost optimization initiatives [214] - Cash and cash equivalents at year-end were $4,880 thousand, with an additional $3,500 thousand available from a Securities Purchase Agreement [213] Customer Base and Competition - CXApp's customer base includes Fortune 1000 enterprises across various industries, enhancing its market presence and revenue potential [50] - The company faces competition from specialized SaaS providers and large technology-driven entrants like Microsoft and Cisco, which are integrating employee experience offerings [45] - The top three customers accounted for approximately 25% and 22% of gross revenue during the years ended December 31, 2024 and the period from March 15, 2023 to December 31, 2023, respectively [77] - The company relies on a limited number of key customers, with one customer accounting for 10% of gross revenue in 2024 and another for 12% in 2023 [77] Risks and Challenges - The company is subject to risks associated with early-stage and emerging growth companies, including potential difficulties in obtaining financing and integrating acquisitions [60] - The company may require additional cash financing to support growth, and failure to secure such financing could limit operational capabilities [90] - Delays in collecting receivables could adversely affect cash flow and working capital, impacting overall business operations [91] - The company faces significant price competition, which may force it to reduce prices and impact profitability [156] - The company faces risks related to cybersecurity threats that could disrupt operations and adversely affect revenues and profitability [144] Regulatory and Compliance - The company is required to comply with SEC and Nasdaq regulations, which increases operational costs and may affect its ability to attract qualified board members [129] - The evolving regulatory landscape regarding data practices may impose burdens on the company's operations and profitability [174] - The company is subject to data protection regulations such as GDPR and CCPA, which could impose fines up to $7,500 per violation, potentially affecting service demand [176] - The uncertain regulatory environment may inhibit customer data sharing, affecting the company's service utilization [178] Corporate Strategy and Governance - The company’s corporate strategy includes potential future acquisitions, which may require effective planning and management processes to integrate new operations [82] - The company has never declared or paid cash dividends and does not intend to do so in the foreseeable future, focusing on retaining funds for operations [204] - The Board of Directors actively oversees the company's information security program and evaluates current cybersecurity policies [195] - The company has implemented a risk management program aligned with ISO 27001 and SOC 2 frameworks to address cybersecurity risks [186] Stock and Market Performance - The market price of the company's common stock may be volatile, influenced by various factors including operational results and strategic actions by competitors [108] - The company has experienced a sustained depression in its stock price from October to December 2023, which could impact its market capitalization and financial condition [123] - Future sales of common stock may cause substantial dilution to existing shareholders, potentially harming the market price [117] - The trading market for the company's common stock relies on research and reports from analysts, and any negative evaluations could lead to a decline in stock price [116]

Financial Results - The company announced its financial results for Q4 2024 and the fiscal year ended December 31, 2024 during a conference call on April 3, 2025[6]. - The earnings press release and presentation are attached as exhibits to the current report, providing detailed financial results[16]. Restatement and Accounting Deficiencies - The company identified technical accounting deficiencies in previously issued financial statements for the quarters ended June 30, 2024, and September 30, 2024, leading to a restatement of those financials[7]. - The restatement does not reflect changes in business performance, revenue recognition, or operational execution, indicating core financial results remain unchanged[7]. - A deficiency was identified in the accounting for a convertible debt instrument, which was not in accordance with ASC 815, necessitating a revision of its accounting treatment[9]. - The restated financial statements did not impact the company's liquidity, cash flows, or operating expenses for the affected periods[13]. - The company plans to provide further specifics on deficiencies in internal control over financial reporting and its remediation plan in the upcoming Restatement Filing[14]. Internal Control and Compliance - The company has acknowledged a material weakness in its internal control over financial reporting[12]. - The company is classified as an emerging growth company under the Securities Act[3]. Legal and Financial Adjustments - The company recorded an accrual for legal expenses that was subsequently adjusted to reflect the actual amount due, indicating a prior understatement[8].

Financial Data and Key Metrics Changes - The company achieved double-digit ARR growth, supported by six major logo renewals in Q4, indicating strong customer satisfaction and product value [51] - Subscription revenue accounted for 87% of total revenue, up from 78% in 2023, driving a gross margin of 82% compared to 78% last year [52] - The net retention rate reached 100%, significantly up from 73% in 2023, showing reduced churn and expansion within the existing customer base [52] - Q4 revenue was $1.66 million, down slightly compared to Q4 of 2023, while gross profit increased to $1.43 million [53] - Full-year revenue slightly declined year over year, but subscription revenue grew 10% year-over-year, totaling over $6.2 million [58] Business Line Data and Key Metrics Changes - The company completed the transformation to a single code base with Sky 1.0%, enabling feature upgrades and stability across all applications [44] - A significant expansion customer achieved over 100% increase in their ARR, indicating strong growth potential [45] - The Sky Kiosk product has been deployed with a large technology company in Silicon Valley, enhancing the return-to-office experience [47] Market Data and Key Metrics Changes - There was a 34 basis points increase in return-to-office across industries from 2023 to 2024, reflecting a growing trend in in-office usage [21] - Employee satisfaction and productivity rates are relatively lower across working models, highlighting the need for improved employee experiences [23] Company Strategy and Development Direction - The company is focused on investing in Agentech AI to reshape the market for employee experiences, positioning itself as a pioneer in this new software category [11] - The strategy includes enhancing AI capabilities for deeper product stickiness and maintaining tight cost discipline while investing in long-term growth [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating significant expansion demand from existing customers and new enterprise clients in 2025 [72] - The company aims to leverage cutting-edge AI technology to enhance productivity, engagement, and efficiency in the enterprise [71] Other Important Information - The company has filed an extension for its 10K and plans to file before the extension deadline [4] - The company is preparing for an annual investor day in May 2025 to provide further details on new product offerings and customer case studies [73] Q&A Session Summary Question: Insights on strategic initiatives and partnerships - Management indicated a focus on building AI capabilities and investing in tools, with a positive outlook for the company [75] Question: Why wait until earnings to post updates - Management acknowledged the need for improved communication and plans to provide more updates leading up to the investor meeting in May [77] Question: Future challenges and opportunities - Management highlighted competition from large companies but emphasized their unique differentiation in user experience and partnership approach with clients [79][80]

Financial Data and Key Metrics Changes - The company reported revenue of $1.9 million for Q3 2024, marking an 8% increase from $1.77 million in Q3 2023 [43][50] - The net retention rate stands at over 106%, indicating strong client retention and upselling success, a 43% increase year-over-year [51] - The company achieved a gross margin of 80% and an 18% growth in recurring revenue [43][44] Business Line Data and Key Metrics Changes - The company has transitioned to a subscription-based revenue model, with recurring revenue increasing to 88% from 80% year-over-year [50] - The first paid customer for the Skyview analytics platform was secured this quarter, indicating traction in new product offerings [45][59] Market Data and Key Metrics Changes - The return to office (RTO) mandates have increased, yet employee engagement remains low, with Gallup reporting significant productivity losses due to disengaged employees [11][13] - The company is positioned to address the challenges of hybrid work environments through its AI-driven solutions [19][24] Company Strategy and Development Direction - The company is focused on becoming an AI-first organization, leveraging Agentic AI to enhance workplace experiences [20][22] - Partnerships with major cloud providers like AWS, Google Cloud, and Microsoft Azure are crucial for scaling operations and enhancing service delivery [29][62] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of employee engagement and the need for innovative tools to improve workplace experiences [12][18] - The company is optimistic about its growth trajectory, driven by advancements in AI and cloud partnerships [60][74] Other Important Information - The company has successfully launched its platform on the AWS Marketplace, following a previous launch on Google Cloud [44][61] - A new product, Sky Kiosk, was introduced to enhance real-time space availability and booking capabilities [38][39] Q&A Session Summary Question: How has new management impacted growth at SKY? - Management noted that new leadership has positively influenced growth, particularly through financial strategy and partnerships [67][68] Question: Could you partner with Palantir to implement AIP? - Management acknowledged the suggestion but emphasized a focus on commercial solutions rather than government contracts [69] Question: Can you detail how your partnership with Google Cloud is progressing? - Management reported strong collaboration with Google Cloud, leading to enhanced product offerings and market engagement [71][72]

Revenue Performance - Revenues for the three months ended September 30, 2024, increased to $1,897 thousand, reflecting a 7% quarter-over-quarter growth driven by new enterprise clients and deeper integration of platform solutions [184]. - For the nine months ended September 30, 2024, revenues were $5,481 thousand, compared to $4,027 thousand for the same period in 2023, reflecting a continued growth trajectory [194]. Subscription Revenue - Subscription-based revenue constituted 87% of total revenue for the three months ended September 30, 2024, up from 80% in the same period of 2023, indicating a shift to a full SaaS model [185]. - Subscription-based revenue for the nine months ended September 30, 2024, was 87%, up from 79% in the same period of 2023, indicating an 8% increase in the revenue mix [195]. Profitability and Loss - Gross profit margin remained stable at 80% for the three months ended September 30, 2024, compared to 80% for the same period in 2023 [186]. - Net loss for the three months ended September 30, 2024, was $5,004 thousand, compared to a net income of $1,441 thousand for the same period in 2023 [182]. - The company reported a net loss of approximately $15,430 thousand for the nine months ended September 30, 2024, compared to a net loss of $10,531 thousand for the same period in 2023 [216]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(6,105) thousand, compared to $(5,977) thousand for the period from March 15, 2023, to September 30, 2023 [205]. Operating Expenses - Operating expenses decreased to $4,851 thousand for the three months ended September 30, 2024, down from $5,641 thousand in the same period of 2023, primarily due to reductions in sales and marketing expenses [188]. - Operating expenses for the nine months ended September 30, 2024, were $14,992 thousand, compared to $11,501 thousand for the same period in 2023, reflecting increased investment in operations [197]. Cash Flow and Liquidity - Net cash used in operating activities during the nine months ended September 30, 2024, was $(4,629) thousand, compared to $(8,937) thousand for the period from March 15, 2023, to September 30, 2023 [215]. - Net cash flows provided by financing activities during the nine months ended September 30, 2024, were approximately $3,480 thousand, compared to $4,674 thousand for the same period in 2023 [219]. - Cash flows used in investing activities during the nine months ended September 30, 2024, were approximately $(30) thousand, compared to $9,956 thousand for the period from March 15, 2023, to September 30, 2023 [218]. - The company believes its current liquidity position is sufficient to meet its working capital needs for the next 12 months [214]. - As of September 30, 2024, the company had a working capital deficiency of approximately $7,404 thousand and cash of approximately $5,082 thousand [213]. Other Financial Information - Other income/expense for the nine months ended September 30, 2024, was a loss of $5,380 thousand, compared to a loss of $5,090 thousand for the same period in 2023 [199]. - The income tax benefit for the nine months ended September 30, 2024, was approximately $513 thousand, down from $2,958 thousand for the same period in 2023, primarily due to the release of valuation allowance [200]. - The company incurred interest expense and other income of $274 thousand for the three months ended September 30, 2024 [205]. - The company reported non-cash adjustments of approximately $9,826 thousand for the nine months ended September 30, 2024 [216]. Accounting and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions [227]. - The company has elected to utilize the extended transition period for complying with new or revised accounting standards, which may affect the comparability of its financial statements [228]. - There have been no significant changes to critical accounting estimates during the nine months ended September 30, 2024, compared to the previous year [226]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring assumptions and estimates that could materially impact reported amounts [224]. - The company has not yet decided whether to take advantage of all exemptions available under the JOBS Act, which may affect investor perception of its common stock [227]. - The company’s significant accounting policies are detailed in Note 2 of the unaudited condensed consolidated financial statements [225]. - The management regularly reviews accounting policies and estimates to ensure fair presentation in accordance with GAAP [224]. - The company’s decision regarding the extended transition period for accounting standards compliance is irrevocable [228]. - The company’s critical accounting estimates are considered complex and may significantly impact financial statements [225].

Group 1: AI Market Overview - The global AI market size is currently $184 billion and is projected to grow to $826 billion over the next six years [2] - Major technological shifts, such as the AI revolution, historically unfold over years, not months, indicating ongoing investment opportunities [2] Group 2: Investment Opportunities in AI - Smaller, lesser-known AI companies have significant growth potential compared to established giants like Microsoft and Alphabet [4] - CXApp focuses on making websites accessible for people with disabilities, showcasing a niche market within AI [5] - AEYE has partnered with Nvidia for its LiDAR technology and has seen a stock increase of 363% over the past year, indicating strong performance and profitability [6] - SoundHound AI has gained attention due to Nvidia's investment and its strategic partnership with Perplexity, with revenue expected to grow at over 70% annually into 2025 [8][9] Group 3: Conclusion on AI Investment - The AI revolution is still in its early stages, with several obscure AI companies presenting multi-bag potential for investors in the coming years [10]

Financial Data and Key Metrics Changes - For Q2 2024, the company reported $1.91 million in bookings, significantly higher than the same quarter last year [23] - The annual recurring revenue (ARR) growth reached 120% due to a major expansion deal [26] - The subscription to one-time revenue split was 85% recurring, an increase from 79% a year ago, with gross margins consistently trending above 80% [24][26] Business Line Data and Key Metrics Changes - The company signed its largest expansion deal with a major financial services customer, expanding from two sites to over 25 globally [19] - Bookings growth was driven by renewals and expansions from five enterprise customers across various verticals, including financial services and healthcare [20] Market Data and Key Metrics Changes - The trend towards hybrid work is stabilizing, with 37% of U.S. companies adopting a structured hybrid model, up from 20% in Q1 2023 [6][7] - Office occupancy rates have flattened at around 50% of 2019 levels, indicating a new work norm [5][6] Company Strategy and Development Direction - The company is focused on creating an AI-centric employee experience platform that integrates various workplace functionalities [12][15] - A multiyear, multimillion-dollar agreement with Google Cloud aims to enhance capabilities and drive workplace transformation [20][30] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of technology in addressing the challenges of hybrid work, including coordination and productivity issues [9][10] - The company is optimistic about future growth, particularly with the new CXAI platform set for deployment in Q4 [22][30] Other Important Information - The company has completed a full business transformation towards an AI-native SaaS model, with a significant increase in renewal and expansion bookings [25][26] - The company is leveraging AI tools to reduce operational expenses by over 15% compared to last year [27] Q&A Session Summary Question: Is the business with Google set for big growth or slow growth? - Management indicated that working with Google Cloud is set for growth, with initiatives to be announced soon [36] Question: Clarification on the S-1 filing - The S-1 was a refiling due to a delay in the 10-K, not a new issuance [37] Question: Potential partnership with Palantir - Management expressed openness to engage with Palantir but emphasized a current focus on enterprise customers [37]

Revenue Performance - Revenue for the three months ended June 30, 2024, was $1,766 thousand, a decrease of $149 thousand (approximately 7.8%) compared to $1,915 thousand for the same period in 2023[156]. - Revenue for the six months ended June 30, 2024, was $3,584 thousand, an increase from $2,257 thousand for the same period in 2023, reflecting a growth of $1,327 thousand (approximately 58.7%)[164]. Subscription Revenue - Subscription-based revenue accounted for 85% of total revenue for the three months ended June 30, 2024, up from 79% in the same period of 2023, indicating a 6% increase in the revenue mix[156]. - Subscription-based revenue for the six months ended June 30, 2024, was 86% of total revenue, up from 78% in the same period of 2023, indicating an 8% increase in the revenue mix[165]. Profitability and Loss - Gross profit margin improved to 80% for the three months ended June 30, 2024, compared to 75% for the same period in 2023[157]. - Net loss for the three months ended June 30, 2024, was $5,256 thousand, compared to a net loss of $14,730 thousand for the same period in 2023, representing an improvement of $9,474 thousand (approximately 64.3%)[154]. - Gross profit margin increased to 81% for the six months ended June 30, 2024, compared to 75% for the same period in 2023, reflecting a decrease in cost of revenues by approximately $370 thousand, or 35%[166]. - The company reported a net loss of approximately $10,426 thousand for the six months ended June 30, 2024, compared to a net loss of $11,972 thousand for the same period in 2023[182]. Operating Expenses - Operating expenses decreased to $5,063 thousand for the three months ended June 30, 2024, down from $5,118 thousand in the same period of 2023, reflecting a reduction of $55 thousand (approximately 1.1%)[159]. - Operating expenses rose to $10,141 thousand for the six months ended June 30, 2024, up from $5,860 thousand in the same period of 2023, primarily due to increased research and development costs[167]. Other Expenses - Other expenses significantly decreased to $1,765 thousand for the three months ended June 30, 2024, from $12,028 thousand in the same period of 2023, a reduction of $10,263 thousand (approximately 85.3%)[160]. - Other expenses decreased by $6,787 thousand for the six months ended June 30, 2024, attributed to a reduction in changes in fair value of derivative warrant liabilities by $7,831 thousand[168]. Tax Benefits - The company reported an income tax benefit of $159 thousand for the three months ended June 30, 2024, compared to $981 thousand for the same period in 2023[161]. - The company reported an income tax benefit of approximately $366 thousand for the six months ended June 30, 2024, down from a benefit of $2,541 thousand in the same period of 2023[169]. Cash Flow and Liquidity - As of June 30, 2024, the company had a working capital deficiency of approximately $6,807 thousand and cash of approximately $6,160 thousand[180]. - Net cash used in operating activities was $2,560 thousand for the six months ended June 30, 2024, compared to $6,598 thousand for the same period in 2023[179]. - The company believes its current liquidity position, including cash raised under the promissory note of $3,000 thousand, can mitigate going concern indicators for at least one year[181]. - Net cash flows used in investing activities for the six months ended June 30, 2024, was approximately $26 thousand, a decrease from $9,977 thousand in the prior period[184]. - Net cash flows provided by financing activities during the six months ended June 30, 2024, was approximately $2,480 thousand, compared to $328 thousand and $8,892 thousand in the previous periods[185]. Business Combination - The company completed a Business Combination on March 14, 2023, valued at $69,928 thousand, which included the transfer of the Enterprise Apps Business from Inpixon[148]. Securities and Agreements - The company entered into a Securities Purchase Agreement to raise up to $10,000 thousand in shares of common stock, with an initial principal amount of $2,650 thousand received[179]. - The Company entered into a Securities Purchase Agreement on May 22, 2024, to sell up to $10,000 thousand in shares of Common Stock[185]. - The Company received net proceeds of $2,480 thousand from a convertible Pre-Paid Purchase on June 3, 2024[185]. Lease Obligations - Total obligation for operating leases as of June 30, 2024, is approximately $677 thousand, with $389 thousand expected to be paid in the next twelve months[187]. Accounting and Estimates - The Company has not engaged in off-balance sheet guarantees or trading activities involving non-exchange traded contracts[186]. - The Company has elected to take advantage of the extended transition period for complying with new accounting standards as an emerging growth company[192]. - Management believes there have been no significant changes to critical accounting estimates during the six months ended June 30, 2024[190].

Core Viewpoint - The generative AI market is projected to reach $1.3 trillion by 2032, but there are concerns about overhyped AI stocks and potential market corrections similar to the dot-com bubble [1][2][3] Group 1: Nvidia (NVDA) - Nvidia's stock has increased over 115% since the start of the year and nearly 2,500% over the past five years, indicating strong market enthusiasm [4] - Current trading at 32.43X trailing-year sales, with projected revenue for fiscal 2025 at $120.73 billion, a 98.2% increase from the previous year [5] - Earnings surprises have decreased from 28.6% to 8.9% over the past four quarters, raising concerns about the sustainability of its high valuation [6] Group 2: CXApp (CXAI) - CXApp's stock has gained over 67% since the start of the year, but has lost nearly 69% over the past 52 weeks, indicating volatility [9] - The company generated $7.22 million in revenue over the trailing 12 months, trading at 4.42X sales, with projected revenue of $15 million by the end of fiscal 2025 [10] Group 3: Tesla (TSLA) - Tesla is heavily investing in AI for automated mobility but faces challenges such as a recent 4% stock loss and a recall affecting 1.8 million vehicles [11][12] - Weak demand for electric vehicles could be exacerbated by potential political changes, impacting Tesla's market position [13][14]

Revenue Performance - Revenue for the three months ended March 31, 2024, was $1,818 thousand, a decrease of $144 thousand compared to $1,620 thousand for the period from January 1, 2023, to March 14, 2023[167]. - Subscription-based revenue accounted for 87% of total revenue for the three months ended March 31, 2024, up from 74% in the same period of 2023, indicating a 13% increase in revenue mix[168]. Profitability - Gross profit margin improved to 82% for the three months ended March 31, 2024, compared to 70% for the period from January 1, 2023, to March 14, 2023[169]. - The gross profit for the three months ended March 31, 2024, was $1,491 thousand, compared to $1,137 thousand for the period from January 1, 2023, to March 14, 2023[166]. - The net loss for the three months ended March 31, 2024, was $5,170 thousand, compared to a net income of $2,758 thousand for the period from March 15, 2023, to March 31, 2023[165]. - Adjusted EBITDA for the same period was $(2,281) thousand, a decline from $(362) thousand in the prior year[178]. Operating Expenses - Operating expenses were $5,078 thousand for the three months ended March 31, 2024, a decrease of $1,182 thousand compared to $5,518 thousand for the period from January 1, 2023, to March 14, 2023[171]. - Other income/expense was a $1,790 thousand expense for the three months ended March 31, 2024, primarily due to changes in fair value of derivative warrant liabilities[172]. Cash Flow and Liquidity - The company had cash of approximately $5,603 thousand and a working capital deficiency of $5,280 thousand as of March 31, 2024[185]. - Net cash used in operating activities was $650 thousand, a significant improvement from $4,431 thousand used in the same period last year[187]. - Cash flows used in investing activities were approximately $18 thousand, a decrease from $9,980 thousand in the same period last year[188]. - There were no cash flows provided by or used in financing activities during the three months ended March 31, 2024, compared to $328 thousand used in the prior year[189]. - The company believes its current liquidity position is sufficient to meet its working capital needs for at least the next 12 months[186]. Business Developments - The Business Combination with KINS Technology Group Inc. was completed on March 14, 2023, with a valuation of $69,928 thousand[159]. - The company transitioned to a full SaaS model, which contributed to the decline in professional services revenue[167]. - The company entered into an equity line financing agreement for up to $10,000 thousand, with an initial draw of $2,500 thousand expected in Q2 2024[183]. Accounting and Reporting - CXApp is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of certain accounting standards until they apply to private companies[197]. - The company has elected to take advantage of the extended transition period for complying with new or revised accounting standards, which may affect the comparability of its financial statements[198]. - There have been no significant changes to critical accounting estimates during the three-month period ended March 31, 2024, compared to the previous annual report[196]. - The company has not yet decided whether to take advantage of exemptions from various reporting requirements that apply to non-emerging growth companies[197]. - The use of different judgments, estimates, and assumptions in accounting could have a material impact on the financial statements[195]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring assumptions and estimates about future events[193]. - The management regularly reviews accounting policies and estimates to ensure fair presentation in accordance with GAAP[193]. - The decision to not opt out of the extended transition period for accounting standards is irrevocable[198]. - The company’s stock may become less attractive to some investors if it takes advantage of certain exemptions, potentially leading to a less active trading market[197]. - The company’s financial statements may not be comparable to those of companies that comply with new or revised accounting standards due to the extended transition period[198].