CXApp Inc 8-K, filed Apr 7, 2025
CXApp Inc. (CXAI)
About this 8-K
CXApp Inc filed this 8-K on April 7, 2025, reporting on events of April 3, 2025.
Items reported
- Item 2.02: Financial results
- Item 4.02: Earlier financial statements no longer reliable
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April
7, 2025 (
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
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(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
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mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
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INTRODUCTORY NOTE
References throughout this Form 8-K to “we,” “us,” the “Company” or “our company” are CXApp Inc., unless the context otherwise indicates.
Item 2.02 Results of Operations and Financial Condition.
Attached hereto as Exhibit 99.1 is a press release (the “Earnings Press Release”) issued by the Company on April 3, 2025, announcing its financial results for the fourth quarter ended December 31, 2024 and the fiscal year ended December 31, 2024. The Company held a webcast and conference call on Thursday, April 3, 2025 (the “Earnings Presentation”). The Earnings Presentation is attached hereto as Exhibit 99.2. The Earnings Press Release and Earnings Presentation are incorporated by reference into this Item 2.02, and the foregoing description of the Earnings Press Release and Earnings Presentation is qualified in its entirety by reference to this exhibit. The information furnished pursuant to this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated therein by reference.
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
During the preparation of its consolidated financial statements for the fiscal year ended December 31, 2024, the Company identified technical accounting deficiencies in its previously issued unaudited condensed consolidated financial statements for the quarters ended June 30, 2024 and September 30, 2024. The technical accounting deficiencies relate to the (i) accrual of legal expenses and (ii) identification of embedded derivatives in a convertible debt instrument. As such we are restating the financial statements of as of and for the periods ended June 30, 2024 and September 30, 2024 to align with Generally Accepted Accounting Principles. This restatement relates solely to non-operational, retrospective adjustments and does not reflect changes in business performance, revenue recognition, or operational execution. Our core financial results, product delivery, and strategic trajectory remain unchanged. This action underscores our proactive approach to ensuring the highest standards of financial transparency and regulatory alignment.
Accrual of Legal Expenses
During the quarter ended September 30, 2024, the Company recorded an accrual for legal expenses based on estimates available at the time. In the quarter ended December 31, 2024, upon receipt of the final invoice from legal counsel for services rendered throughout the year, management identified that the previously recorded accrual was understated and subsequently made an adjustment to reflect the actual amount due.
Accounting for Convertible Debt Instrument
The Company identified a deficiency in the accounting methodology for its convertible debt instrument. Specifically, the Company did not account for embedded derivatives in its convertible note in accordance with ASC 815, “Derivatives and Hedging.” The Company revised its accounting treatment at the inception of the convertible debt instrument by electing the fair value option under ASC 825, “Financial Instruments,” thereby accounting for the instrument at fair value.
Restatement of Unaudited Condensed Financial Statements
The Company’s management and the Audit Committee of the Company’s Board of Directors have concluded that the previously issued unaudited condensed consolidated financial statements as of and for the periods ended June 30, 2024 and September 30, 2024, as included in the Company’s Quarterly Reports on Form 10-Q for such periods should no longer be relied upon and that it is appropriate to restate such financial information. Accordingly, the Company has restated the unaudited condensed consolidated financial statements for the periods ended June 30, 2024 and September 30, 2024 (collectively, the “Restated Financial Statements”). The unaudited consolidated financial statements for the period from March 15, 2023 through December 31, 2023 and for the period from January 1, 2023 through March 14, 2023 were not affected by these adjustments. As such, the Company will incorporate the impact of the Restated Financial Statements into its Form 10-K for the fiscal year ended December 31, 2024 (the “Restatement Filing”).
The Company’s management and the Audit Committee have discussed the matters disclosed in this Current Report on Form 8-K pursuant to this Item 4.02 with WithumSmith+Brown, P.C., the Company’s independent registered public accounting firm.
Controls and Procedures
The Company’s management has concluded that a material weakness exists in the Company’s internal control over financial reporting and that the Company’s disclosure controls and procedures were not effective.
The Restated Financial Statements did not have any impact on the Company’s liquidity, cash flows, costs of operations in the period included in Item 8, Financial Statements and Supplementary Data in the Restatement Filing. The Restated Financial Statements do not impact the amounts previously reported for the Company’s cash, operating expenses or total cash flows from operations for the affected period.
We will provide further specifics on the deficiencies in our internal control over financial reporting and our disclosure controls and procedures, and our plan for remediation, in the Restatement Filing.
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Item 7.01 Regulation FD Disclosure.
Item 2.02 above is incorporated herein by reference.
A copy of the Earnings Press Release and the Earnings Presentation is attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K. The information in this Item 7.01 of this Current Report on Form 8-K, including the Earnings Press Release and the Earnings Presentation attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, is being furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act , except as expressly set forth in such filing.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the Company’s expectations and preliminary estimates of the impact of the restatement on the Company’s prior financial statements; the scope of the restatement and the controls and procedures deficiencies; the belief that the restatement will not affect any other GAAP or non-GAAP measure other than as specified in this Current Report on Form 8-K; the timing of the completion of the restatement and the filing of the Restatement Filing; plans to remediate the deficiencies, including the material weakness, with respect to the Company’s internal control over financial reporting and disclosure controls and procedures; the impact of these matters on the Company’s performance and outlook; expectations concerning the Company’s performance and financial outlook; and any statements or assumptions underlying any of the foregoing. You can identify forward looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “if,” “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future events. We cannot assure you that future developments affecting us will be those that we have anticipated. Important risks and uncertainties that could cause actual results to differ materially from our expectations include, among others, risks related to the timely and correct completion of the restatement and related filings; identification of errors in our financial reporting in the future that require us to restate previously issued financial statements, which may subject us to unanticipated costs or regulatory penalties and could cause investors to lose confidence in the accuracy and completeness of our financial statements; the risk that additional information may become known prior to the expected filing with the SEC of the periodic reports described herein or that other subsequent events may occur that would require the Company to make additional adjustments to its financial statements or delay the filing of the corrected or future periodic reports with the SEC; risks related to changes in the effects of the restatement on the prior financial statements or financial results; risks related to higher than expected charges after completing the restatement process; risks related to delays in the filing of the prior financial statements; risks related to our ability to implement and maintain effective internal control over financial reporting in the future, which may adversely affect the accuracy and timeliness of our financial reporting; risks related to changes to accounting rules or regulations; risks related to fluctuations in our tax obligations and effective tax rate and realization of our deferred tax assets, including net operating loss carryforwards, which may result in volatility of our results of operations; risks related to the Company’s plans to remediate any control and procedures deficiencies; risks related to the timing and results of the Company’s review of the effectiveness of internal control over financial reporting and related disclosure controls and procedures; risks related to whether a restatement of financial results will be required for other accounting issues; risks related to the application of accounting or tax principles in an unanticipated manner; risks related to our dependence on key personnel and any changes in our ability to retain key personnel; as well as those risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Form S-1, Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on our investor relations website at ir.cxapp.com and on the SEC website at www.sec.gov. Any forward-looking statement made by us in this release speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Earnings Press Release, dated April 3, 2025 | |
| 99.2 | Earnings Presentation, dated April 3, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CXApp Inc. | |||
| Date: April 7, 2025 | By: | /s/ Khurram P. Sheikh | |
| Name: | Khurram P. Sheikh | ||
| Title: | Chairman and Chief Executive Officer | ||
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Exhibit 99.1
CXApp Inc.
CXApp Inc. (Nasdaq: CXAI) Reports Record Business Performance for 2024 and Momentum of Agentic AI based CXAI Platform
Transformation to an AI-centric Subscription Application Business
Successful deployment of New Products CXAI Kiosk and CXAI VU
PALO ALTO, CA / ACCESSnewswire / April 3, 2025 / CXApp Inc. (Nasdaq: CXAI), the global technology leader in employee workplace experiences announced its Q4 2024 and Annual 2024 financial results and update on its state-of-the-art technology platform CXAI (“Sky”).
Chairman and CEO Khurram Sheikh commented, “Agentic AI is transformational to employee experiences and 2024 has been a transformational year for the Company on both the business and product side. The CXAI platform anchored on customer experience (CX) and artificial intelligence (AI) is the most advanced technology solution solving the biggest problems in our industry post the pandemic – the Return to Office (RTO) and Employee Engagement. Our team has completed the product transformation to a single code base and streamlined our cost structure resulting in a profitable CXAI 1.0 application business and now we are investing in Agentic AI for the massive opportunity to reshape the whole market for employee experiences”.
The annual financial metrics for the Company in 2024 demonstrated significant progress for the year driven by a major transformation of the business metrics towards a true subscription platform business:
| ● | ARR (Annual Recurring Revenue) Growth: Double Digit Growth in recurring revenue from 2023 |
| ● | Subscription to One time Revenue split: 87% in 2024 from 78% in 2023 - leading to more recurring revenue |
| ● | Net Revenue Retention (NRR): 101% from 73%- higher recurring revenue retention |
| ● | Gross Margin (GM): 82% from 78%- more profitable revenue |
| ● | Opex and EBITDA: 20% Reduction in Expenses and 30% increase in EBITDA |
“Overall, the company has seen a major improvement in financial metrics year-over-year. Our strong performance demonstrates the effectiveness of our shift toward a subscription-based model and our focus on creating value through scalable, recurring revenue,” said Joy Mbanugo, Chief Financial Officer of CXApp “With 87% of revenue now derived from subscriptions this year and an NRR>100% with healthy gross margins, we’re positioning CXApp for consistent, sustainable growth that aligns with the evolving needs of our clients. Moreover, we are coming into 2025 with a strong balance sheet with access to capital that provides us financial stability as well as capability to fund our growth initiatives”.
The Company made amazing progress on customer adoption and employee engagement with large enterprise clients in 2024, some key highlights:
| ● | We successfully enabled a single code-base solution to all existing customers, now called CXAI 1.0 – this resulted in acceleration of feature upgrades as well as massive optimization of cost structures |
| ● | One of our largest customers increased their ARR by >100% YoY and have significant plans to scale up their offering to all campuses globally |
| ● | We completed the first deployment of the brand new CXAI 2.0 platform at a leading financial services customer last quarter. This includes the trifecta CXAI platform offering of CXAI App, CXAI BTS (rule engine and content management system) and CXAI VU (analytics engine) |
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| ● | We completed the deployment of our brand new product CXAI Kiosk at the headquarters of a technology leader in Silicon Valley that is critical to their RTO |
| ● | We are deploying an AI-based localization capability in partnership with Google Cloud to a major client in the entertainment industry that will be rolled out for all major customers in 2025 |
| ● | Our partnership with Google Cloud is at the strategic partner level that is allowing us early access to AI models and tools that are powering our rapid development and deployment of new products like CXAI VU delivered in 2024 as well as our aggressive roadmap of Agentic AI offerings in 2025 |
Khurram Sheikh, Founder, Chairman and CEO of CXApp, Inc. expressed confidence on the Company’s performance, “We are excited to have achieved significant milestones in product delivery to meet our customers’ expectations that has resulted in continued growth over the past year leading to our best financials to date. The amazing innovations from our team with our analytics platform CXAI VU and the unique CXAI Kiosk position us well for 2025 to exceed our customer’s expectations to provide the best employee experience solution in the market.”
Khurram Sheikh concluded, “RTO is a multi-billion problem and with our CXAI platform we are leading the industry with a disruptive offering. We’re leveraging cutting-edge AI technology to enhance productivity, engagement, and efficiency in the enterprise. Our new generative AI capabilities allow us to automate complex workflows and offer our customers intelligent solutions that drive measurable outcomes solving real world problems. Some of the largest brands in the world in the Fortune 500 are our clients and we are working with as partners to solve their problems and their commitment to renew and expand with us establishes us as the leader in this emerging market.
“We believe 2025 will be a banner year for the Company as we see significant expansion demand from existing customers for scaling our products in their footprint as well as new enterprise clients in our target markets. With our Silicon Valley based technology team and Global customer success teams delivering amazing products and experiences today, we are well-prepared to deliver on our commitments to shareholders, clients, and the broader market as the era of Agentic AI for employee experiences is realized.”
We invite stakeholders, potential clients, and the media to join us on this exciting journey into the future of work. We are planning our annual Investor Day in May 2025 where we provide further details on our new product offerings as well as customer case studies on how CXAI is shaping our clients employee experiences and will keep investors updated on the final date and location. Sign up for our email list to stay updated on CXAI announcements and discover how our partnerships are setting new standards for employee experience innovation. For more information on how to engage with CXAI, including upcoming events, webinars, or demonstrations, please visit our website www.cxapp.com
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The release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law.
About CXApp Inc.
CXApp Inc., is the global technology leader in employee workplace experiences. The Company is headquartered in the SF Bay Area and operates the CXAI SaaS platform that is anchored on the intersection of customer experience (CX) and artificial intelligence (AI) providing digital transformation for the workplace for enhanced experiences across people, places and things.
CXApp’s customers include major Fortune 1000 Global Companies in the technology, financial services, consumer, healthcare, and media entertainment verticals.
www.cxapp.com
CXApp Inc.: marketing@cxapp.com
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company’s auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company’s services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company’s business; difficulties of managing growth profitably; the loss of one or more members of the Company’s management team; loss of a major customer and other risks and uncertainties included from time to time in the Company’s reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication.
SOURCE: CXApp Inc.
Topic: Earnings
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Exhibit 99.2
CXAI FY24 & Q4 Earnings Call Employee Experiences April 3rd, 2025 Pronounced SKY
2 ©2024 cxai Disclaimer General This presentation has been prepared by CXApp Inc. (“ CXApp ”) and is made for informational purposes only and does not constitute an offer to sell or a solicitation to offer to buy securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitati on or sale would be unlawful prior to registration or qualification under the securities laws of any state of jurisdiction. Safe Harbor Statement under the Private Securities Litigation Act All statements in this presentation that are not based on historical fact are "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward - looking statements included in this presentation on its current expectations, the information o n which such expectations were based may change. Statements containing words such as “expect”, “believe”, “should”, “anticipate”, “intend”, plan”, “may”, “will”, or similar expressions constitute forward - looking expressions. These forward - looking statements are not guarantees of future performance rely on a number of assumptions concerni ng future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of CXApp and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, statements about our prop ose d and completed acquisitions, the impact of COVID - 19 on CXApp’s results of operations, our anticipated cash flow balances, our product development plans and marketing initiatives, our abili ty to compete successfully in our industry, projected operating expenses, projected operating efficiencies, revenues, and capital requireme nts , and our projected cash position, the fluctuation of economic conditions, competition, the performance of management and employees, our ability to maintain complia nce with Nasdaq’s minimum bid price requirement and other continued listing requirements. Additional factors that could cause results to differ materially from tho se described in the forward - looking statements can be found in CXApp’s Annual Report on Form 10 - K, as amended, for the year ended December 31, 2022, as originally filed with the Securities and Excha nge Commission (the “SEC”) on March 21, 2023 and periodic reports and current reports filed with the SEC on or after the date the reo f. All of CXApp’s forward - looking statements are expressly qualified by all such risk factors and other cautionary statements. Such statements an d are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and advers ely from those expressed in any forward - looking statements. KINS and CXApp undertake no obligation to publicly update any forward - looking statement, whether as a result of new information, future events or otherwise. Statements in this presentation, including factors that we believe may impact our results, are not intended to be exclusive. 2
3 ©2024 cxai Financial Information; Non - GAAP Financial Measures Certain financial information and data contained in this presentation is unaudited and does not conform to Regulation S - X. Accor dingly, such information and data may not be included in, may be adjusted in or may be presented differently in, CXApp’s periodic reports. This presentation contains certain financial information and data that was not prepared in accordance with United States generally accepted accounting principles (“GAAP”), including non - GAAP cost of revenues, non - GAAP r esearch and development expense, non - GAAP selling, general and administrative expense, non - GAAP loss from operations, non - GAAP net loss, and non - GAAP adjusted EBITDA. Th ese non - GAAP measures, and other measures that are calculated using such non - GAAP measures, are an addition to, and not a substitute for or superior to, measures of finan cial performance prepared in accordance with GAAP and should not be considered as an alternative to any performance measures derived in accordance with GAAP. CXApp presents these non - GAAP amounts because management believes they provide useful information to management and investors regardi ng certain financial and business trends relating to CXApp’s financial condition and results of operations, and they assist management and investors in comparing CXApp’s performance across reporting periods on a consistent basis. CXApp’s management uses these non - GAAP measures for trend analyses, for purposes of determining management incentive compensation and f or budgeting and planning purposes. CXApp believes that the use of these non - GAAP financial measures provides an additional tool for investors to use in evaluating opera ting results and trends in and in comparing CXApp’s financial measures with other similar companies, many of which present similar non - GAAP financial measures to investors. CXApp’s management does not consider these non - GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. However, there are several limitations related to the use of these non - GAAP measures and their nearest GAAP equivalents. For exa mple, other companies may calculate non - GAAP measures differently, or may use other measures to calculate their financial performance, and therefore CXApp’s non - GAAP measures may not be directly comparable to similarly - titled measures of other companies. Industry and Market Data This presentation includes market data and other statistical information from third - party sources. Although CXApp believes these third - party sources are reliable as of their respective dates, none of CXApp or its subsidiaries or affiliates has independently verified the accuracy or completeness of this information. Some data are al so based on CXApp’s good faith estimates, which are derived from both internal sources and the third - party sources described above. None of CXApp , its affiliates, or any of their respective subsidiaries, directors, officers, employees, members, partners, stockholders or agents make any representation or warranty with respect to the accura cy of such information. Trademarks This presentation contains trademarks and tradenames of CXApp and of other parties and are the property of their respective owners. Third - party logos included herein may represent past customers, present customers or may be provided simply for illustrative purposes only. Inclusion of such logos does not nec essarily imply affiliation with or endorsement by such firms or businesses. There is no guarantee that either KINS or CXApp will work, or continue to work, with any of the firms or businesses whose logos are included herein in the future. 3
4 ©2024 cxai 37 Filed 17 Granted Patents: HQ: SF Bay Area Customers: Global F1000 CXAI NASDAQ: Team: 75 (>66% R&D) Company Snapshot AI - First Enterprise Software Market : Employee Experiences Segment : Deployed across: 200+ cities 50+ countries 5 Continents Toronto HQ: SF Bay Area Manila
5 ©2024 cxai Delivers Amazing Insights Spatial Intelligence AI - powered Actions Predictable Outcomes Why Fortune 1000 Leaders Choose CXAI? Engaging UX/UI Intuitive user experience Seamless Integrations Immersive Content Turns Complexity into Productivity Automated Workflows Enterprise - grade Security Trusted Advisor
6 ©2024 cxai The Market
7 ©2024 cxai RTO (Return to the Office)…
8 ©2024 cxai Employee Experiences…
9 ©2024 cxai Agentic AI is Transformational
10 ©2024 cxai We believe every company needs to be an intelligent software company Figures post-2024 on the above graph are illustrative. There is no assurance that they will occur. Source: IDC Worldwide Black Book Live Edition - Forecast 2024, Federal Reserve Bank of St. Louis. Forecast U.S. GDP spend as % of GDP assumes no change in trailing 10-year annual compound growth. 1) Illustrative potential growth. There is no assurance that actual trends will match this approximation. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 U.S. Software spend % of U.S. GDP ON-PREMISE ERA Back-office solutions Runs the business of companies SAAS ERA AI Agents Very easy to deploy Use throughout organizations SAAS + AI AGENT ERA Drives business insights 1 Enterprise Software in the AI Era • Our portfolio companies hold valuable data and deep customer insights • Lower infrastructure costs are expected to benefit our SaaS companies • Differentiating in the AI era requires delivering high customer value cost-effectively Thoma Bravo’s Perspectives on AI The Evolution of Software Over Time
11 ©2024 cxai CXAI Agentic Booking
12 ©2024 cxai Employee Experiences CXAI Platform Products AI - Native, Mobile & Cloud - First Technology Platform CXAI BTS Rule Engine CXAI Apps Multi - OS CXAI VU Analytics
13 ©2024 cxai Employee Experiences Solutions Experiential Analytics Unified Employee Experience Spatial Intelligence Agentic AI 2D & 3D mapping, technologies enhanced by AI, enable intelligent interactions with spaces and things CXAI integrates 100+ enterprise tools & services into a one application platform, offering a seamless employee experience Insights about people, places and things lead to measured business outcomes for engagement and productivity Simplify any work interaction using natural language commands powered by trustful domain - specific AI In Trials Deployed with Global Customers Deployed in 2024
14 ©2024 cxai Annual 2024 Product & Customer Highlights We’re available anytime Single Code Base CXAI 1.0 Available to all existing customers We’~~re avail anytime We’~~re available anytime We’~~re available anytime e Largest Expansion Customer Deploying at entertainment client with Google Partnership CXAI Kiosk New CXAI Platform 1.5 >100% ARR increase for largest financial services client Successful Deployment with CXAI Vu and CXAI BTS First paid deployment in Silicon Valley CXAI Localization
15 ©2024 cxai 2024 Results
16 ©2024 cxai We’re available anytime DOUBLE DIGIT ARR GROWTH We’re available anytime EBITDA Improvement 30% We’re available anytime SUBSCRIPTION REVENUE SPLIT 87% We’ re a GROSS MARGIN 82% We’re anytime NET RETENTION RATE (NRR) 101% 73% 2023 78% 2023 78% 2023 6 Logo Renewals in Q4 20% Opex Reduction 2024 Financial Highlights
17 ©2024 cxai QoQ - Q4 24 to Q4 23 Comparison of Financial Results Statement of Operations (in thousands) Q4 2023 Q4 2024 1,719 1,661 Revenues 343 233 Cost of Revenues 1,376 1,428 Gross Profit Operating Expenses 1,862 1,498 Research and development 823 572 Sales and marketing 1,197 1,853 General and administrative 697 683 Amortization of intangibles 4,579 4,606 Total Operating Expenses $ (3,203) $ (3,178) Loss from Operations
18 ©2024 cxai FY 2023 FY 2024 $ 7,366 $ 7,142 Revenues 5,764 6.202 Subscription Revenue 1,751 1,285 Cost of Revenues 5,615 5,857 Gross Profit Operating Expenses 6,764 6,380 Research and development 4,206 3,249 Sales and marketing 7,667 7,237 General and administrative 543 Acquisition related costs 36,056 Impairment of goodwill 2,968 2,732 Amortization of intangibles 58,204 19,598 Total Operating Expenses (52,589) (13,741) Loss from Operations YoY - Comparison of Financial Results Statement of Operations (in thousands)
19 ©2024 cxai Why CXAI ? • Transformational Solution anchored on AI • Patented, Leading - Edge Enterprise AI SaaS platform • YoY/QoQ continued revenue growth on path to profitability • Great customer base of Fortune 1000 logos across five large verticals • Diversified deployments globally in 50+ countries and 200+ cities • Innovation Driven, Experienced Board & Management Team • Partnerships with Leading Innovators in Silicon Valley • Defining New Software Category: Employee Experiences