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 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 rates across working models remain relatively low, indicating a 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][12] - 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 2025 being a banner year, anticipating significant expansion demand from existing customers and new enterprise clients [72] - The company is well-prepared to deliver on commitments to shareholders and clients as the era of agentic AI for employee experiences is realized [72] Other Important Information - The company has filed an extension for its 10K and plans to file before the extension deadline [4] - The company is collaborating with Gartner on thought leadership regarding the evolution of human interaction with AI [30] Q&A Session Summary Question: Insights on strategic initiatives and partnerships - The company will continue to build out AI capabilities and invest in tools, with a positive outlook for the market of employee experiences [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 shareholder meeting in May [77] Question: Future challenges and opportunities - The company competes with large enterprises but differentiates itself through engaging UI and full-stack solutions, emphasizing the importance of partnerships 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].

As filed with the Securities and Exchange Commission on October 2, 2024 Registration No. 333-281452 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CXApp Inc. (Exact name of registrant as specified in its charter) (State or jurisdiction of incorporation or organization) (Primary Standard Industrial Delaware 7370 85-2104918 Classification Code Number) (I.R.S. Employer Identification No.) Four Palo Alto ...

As filed with the Securities and Exchange Commission on September 9, 2024 Registration No. 333-281452 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CXApp Inc. (Exact name of registrant as specified in its charter) Delaware 7370 85-2104918 (State or jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identification No.) Four Palo Al ...

As filed with the Securities and Exchange Commission on September 9, 2024 Registration No. 333-281452 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CXApp Inc. (Exact name of registrant as specified in its charter) Delaware 7370 85-2104918 (Address and telephone number of registrant's principal executive offices and principal place of business) Khurram P. Sheikh Chairman, Chief Executive Officer CXAp ...

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]