CXApp Inc. Segments Disclosure
NOTE 15 – Segment Information
The Company has determined that it operates as a single operating segment. The Company offers a vertical software-as-a-service (or SaaS) platform for the enterprise. The flagship product, the CXAI Platform (pronounced “Sky”), provides a comprehensive suite of tools designed to empower employees and enable organizations to create smarter workplaces. The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM allocates resources and makes operating decisions based on consolidated net income.
The CODM does not assess profitability at a level below the consolidated entity. Net income (loss) is used as the Company’s primary measure of overall financial performance. However, when evaluating operating results on a budget-to-actual basis, management places greater emphasis on cash-based operating expenses, including cost of revenue, professional services, marketing, research and development, and general and administrative expenses. Conversely, the Company does not consider stock-based compensation, amortization of intangible assets, changes in the fair value of warrant liabilities, losses on debt extinguishment, or other non-cash items to be significant factors in its internal analysis of period-over-period operating performance.
The following table presents selected financial information with respect to the Company’s single operating segment:
| Year Ended December 31, 2025 |
Year Ended December 31, 2024 |
|||||||
| Revenue - Licenses | $ | 4,480 | $ | 6,202 | ||||
| Revenue - Professional Services | 73 | 798 | ||||||
| Revenue - Hardware | 30 | 142 | ||||||
| Less: | ||||||||
| Cost of revenue | 578 | 1,285 | ||||||
| Research and development | 6,206 | 5,744 | ||||||
| Sales and marketing | 1,832 | 2,870 | ||||||
| General and administrative | 5,859 | 5,489 | ||||||
| Impairment of goodwill | 2,148 | - | ||||||
| Interest expense, net | 701 | 1,756 | ||||||
| (Gain) loss on derivative liability fair value remeasurement | (4,548 | ) | 3,152 | |||||
| Loss on debt extinguishment | 48 | 1,052 | ||||||
| Other (income) expense, net | (259 | ) | 342 | |||||
| Add: | ||||||||
| Income tax benefit (expense) | 46 | 635 | ||||||
| Total loss without non-cash | (7,936 | ) | (13,913 | ) | ||||
| Less: | ||||||||
| Other noncash expenses(1) | 5,537 | 5,562 | ||||||
| Net loss | $ | (13,473 | ) | $ | (19,408 | ) | ||
| (1) | Other noncash expenses for the year ended December 31, 2025, includes mostly of $2,784 thousand of stock compensation and related expenses, $2,732 thousand of intangible amortization expense. Other noncash expenses for the year ended December 31, 2024, includes $2,831 thousand of stock compensation expenses, and $2,731 thousand of intangible amortization expense. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Apr 7, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.