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[161]. - Subscription-based revenue constituted 87% of total revenue for the three months ended March 31, 2024, up from 74% for the same period in 2023, indicating a 13% increase in revenue mix[162]. Profitability and Loss - 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[163]. - 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[159]. - Adjusted EBITDA for the same period was $(2,281) thousand, a decline from $(362) thousand in the prior year[171]. 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[164]. Other Income and Tax - 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[165]. - The income tax benefit for the three months ended March 31, 2024, was approximately $207 thousand, down from $1,560 thousand for the same period in 2023[166]. Cash Flow and Liquidity - The company had a working capital deficiency of approximately $5,280 thousand and cash of approximately $5,603 thousand as of March 31, 2024[179]. - Net cash used in operating activities during the three months ended March 31, 2024 was $650 thousand, an improvement from $4,431 thousand in the same period of 2023[181]. - Cash flows used in investing activities were approximately $18 thousand for the three months ended March 31, 2024, compared to $9,980 thousand in the same period of 2023[182]. - There were no cash flows provided by or used in financing activities during the three months ended March 31, 2024, contrasting with $328 thousand used in the same period of 2023[183]. - The company believes its current liquidity position is sufficient to meet its working capital needs for the next 12 months[180]. Business Operations - CXApp's SaaS platform targets the emerging hybrid workplace market, offering solutions such as indoor mapping and AI-based analytics[149]. - The company aims to enhance employee experiences by reducing app overload and streamlining workflows through The Workplace SuperApp[150]. Financing and Obligations - 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[176]. - The company has total obligations for operating leases of approximately $391 thousand, with $231 thousand expected to be paid in the next twelve months[185]. Accounting and Compliance - 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[191]. - 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[192]. - 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[190].
KINS TECHNOLOGY(KINZ) - 2024 Q1 - Quarterly Report