CXApp (CXAI)2025-05-20 20:54Revenue Performance - Revenue for the three months ended March 31, 2025, was $1,224 thousand, a decrease of $594 thousand compared to $1,818 thousand for the same period in 2024[189]. - Subscription-based revenue represented 99% of total revenue for the three months ended March 31, 2025, up from 87% in the same period in 2024, indicating a 12% increase in revenue mix[190]. Profitability and Expenses - Gross profit margin improved to 88% for the three months ended March 31, 2025, compared to 82% for the same period in 2024, driven by higher-margin AI-enabled services[181]. - Operating expenses decreased to $4,819 thousand for the three months ended March 31, 2025, down from $5,078 thousand in the same period in 2024, reflecting cost management initiatives[192]. - Net loss for the three months ended March 31, 2025, was $1,616 thousand, an improvement from a net loss of $5,170 thousand for the same period in 2024[187]. Cash Flow and Liquidity - Cash and cash equivalents were $3,893 thousand as of March 31, 2025, with an additional $3,990 thousand available from a Securities Purchase Agreement[179]. - The company has a working capital deficiency of approximately $4,017 thousand and cash of approximately $3,893 thousand as of March 31, 2025[212]. - Net cash used in operating activities for the three months ended March 31, 2025, was $979 thousand, with a net loss of $1,611 thousand[212]. - The company incurred net cash flows used in investing activities of approximately $5 thousand for the three months ended March 31, 2025, compared to $18 thousand in 2024[215]. - The company has a net cash decrease of $987 thousand for the three months ended March 31, 2025, compared to a decrease of $672 thousand in 2024[213]. - The company believes that the funds from the Pre-Paid Purchase agreements are sufficient to meet its working capital needs for the next 12 months[202]. Strategic Focus and Market Outlook - The global employee experience market is projected to grow at a 20% CAGR, presenting significant opportunities for the company to expand its market presence[188]. - The company is focused on AI-driven innovation, market expansion, and financial discipline to ensure long-term profitability and growth[176]. Financing and Agreements - The company entered into a SPA with Avondale to issue and sell up to $20,000 thousand of Pre-Paid Purchase agreements, with the initial tranche of $4,200 thousand received on April 8, 2025[202]. - The company has not provided any cash flows from financing activities during the three months ended March 31, 2025[216]. Accounting and Compliance - CXApp is classified as an emerging growth company and has elected to take advantage of the extended transition period for complying with new or revised accounting standards[225]. - The financial statements of CXApp may not be comparable to those of companies that comply with new or revised accounting standards due to the extended transition period[225]. - The decision to not opt out of the extended transition period for accounting standards compliance is irrevocable[225].