CXApp (CXAI) Registration Filing summary

Company overview and business model

• Provides a SaaS workplace experience platform for enterprises, integrating employee apps, indoor mapping, on-device positioning, AR, and analytics to support hybrid work environments.

• Revenue model is based on recurring software fees and professional service fees for setup and deployment.

• Focuses on Fortune 1000 clients, with deployments across multiple industries and global locations.

• Differentiates through a single app approach, extensive partner integrations, and a robust IP portfolio.

Financial performance and metrics

• For the year ended December 31, 2023, combined revenue was $7.4M, down 13% from the prior year, primarily due to a shift from professional services to SaaS.

• Gross margin remained strong at 76% for 2023.

• Net loss for 2023 was $53.6M, up from $29.2M in 2022, driven by a $36.1M goodwill impairment and increased operating expenses.

• As of June 30, 2024, cash was $6.2M with a working capital deficit of $6.8M; net loss for the first half of 2024 was $10.4M.

• Recurring revenue comprised 78% of 2023 revenue, with a customer churn rate below 3%.

Use of proceeds and capital allocation

• No proceeds will be received from the resale of shares or warrants by selling securityholders.

• Proceeds from warrant exercises are contingent on market price; cashless exercises may result in no cash inflow.

• Recent financing includes a $3.9M promissory note and a $2.65M convertible pre-paid purchase agreement, with up to $10M available.

• Funds are allocated to working capital, R&D, and operational needs.