Revenue Performance - Revenue for the three months ended March 31, 2025, was $1,224 thousand, a decrease of $594 thousand or 33% 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]. - The transition to a recurring revenue model has improved revenue predictability and supports long-term growth objectives[181]. 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[191]. - 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]. - The company implemented cost optimization initiatives that reduced operating expenses by approximately 5% year-over-year[175]. Net Loss and Cash Flow - 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]. - 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]. - For the three months ended March 31, 2025, net cash used in operating activities was $979 thousand compared to $650 thousand for the same period in 2024[213]. - The company incurred a net loss of approximately $1,611 thousand for the three months ended March 31, 2025, compared to a net loss of $5,170 thousand for the same period in 2024[214]. Cash and Working Capital - 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]. - The company believes that the funds from the Pre-Paid Purchase agreements are sufficient to satisfy its working capital needs for the next 12 months[202]. Other Income and Investments - Other income increased to $2,129 thousand for the three months ended March 31, 2025, compared to an expense of $1,790 thousand for the same period in 2024, primarily due to changes in fair value of derivative warrant liabilities[193]. - Cash flows used in investing activities during the three months ended March 31, 2025, were approximately $5 thousand, compared to $18 thousand in the same period in 2024[215]. - The company has no cash flows provided by or used in financing activities during the three months ended March 31, 2025[216]. Lease Obligations - Total obligation for operating leases as of March 31, 2025, is approximately $365 thousand, with $274 thousand expected to be paid in the next twelve months[218]. Accounting and Compliance - The company has not made any significant changes to critical accounting estimates during the three months ended March 31, 2025[223]. - 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].
KINS TECHNOLOGY(KINZ) - 2025 Q1 - Quarterly Report