CXApp Inc. (formerly KINS Technology Group Inc.) reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability. The company generated revenues of $1,897,000 for the third quarter of 2024, reflecting a 7% increase from $1,770,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $5,481,000, up from $4,027,000 for the comparable period in 2023. Subscription-based revenue constituted 87% of total revenue for the third quarter, an increase from 80% in the prior year.

Despite the revenue growth, CXApp reported a net loss of $5,004,000 for the third quarter of 2024, a significant decline from a net income of $1,441,000 in the same quarter of 2023. The nine-month net loss also widened to $15,430,000 from $10,531,000 in the previous year. The increase in losses was attributed to higher operating expenses, which totaled $4,851,000 for the third quarter, down from $5,641,000 in 2023, but still contributing to overall financial strain.

The company’s total assets decreased to $31,575,000 as of September 30, 2024, from $36,581,000 at the end of 2023, while total current liabilities rose to $13,424,000 from $10,316,000. This resulted in a working capital deficiency of approximately $7,404,000. Cash and cash equivalents also declined to $5,082,000 from $6,275,000 at the end of 2023.

Strategically, CXApp has undertaken several measures to improve its financial position, including a workforce reduction of approximately 20% in January 2024 to streamline operations and conserve cash. The company also renegotiated its Directors and Officers insurance premium, achieving a 50% reduction in March 2024. In August 2024, CXApp expanded its market reach by adding its CXAI application platform to the Google Marketplace and signing a partnership agreement with Google Cloud.

Additionally, the company entered into a Securities Purchase Agreement with Streeterville Capital, LLC, allowing for the purchase of up to $10,000,000 in shares of common stock. This agreement included the issuance of two unsecured convertible Pre-Paid Purchases, generating net proceeds of $3,480,000 for the nine months ended September 30, 2024.

As of September 30, 2024, CXApp's management expressed concerns regarding liquidity and the ability to continue as a going concern, emphasizing the need for ongoing strategic initiatives to enhance liquidity and support long-term growth. The company’s disclosure controls and procedures were deemed ineffective, prompting the appointment of a new Chief Financial Officer in August 2024 to address these issues.