CXAIWHIGH SIGNALFINANCIAL10-K

CXAIW experienced substantial revenue decline and deteriorating operational performance while dramatically expanding its share count and restructuring its balance sheet.

The company's share count nearly tripled from 19.8M to 57.1M shares, indicating significant dilution likely from equity financing or warrant exercises. Despite reducing losses on a net income basis, the underlying operational metrics show continued deterioration with declining revenue and worsening operating performance, suggesting ongoing business challenges.

Comparing 2026-03-30 vs 2025-04-07View on EDGAR →
FINANCIAL ANALYSIS

Revenue declined meaningfully by 36% to $4.6M while operating losses expanded to $17.6M, indicating deteriorating operational efficiency. The balance sheet shows mixed signals with current assets growing substantially to $12.8M and current liabilities being cut in half to $5.8M, suggesting possible debt restructuring or equity infusion. Operating cash flow losses worsened to $10.4M, reinforcing concerns about the company's ability to generate cash from core operations despite the improved balance sheet positioning.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-99.8%
$1.1M$2K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Total Deposits
Balance Sheet
-94.3%
$4.4M$250K

Deposits declined 94.3% — significant outflows warrant immediate investigation into funding stability.

Current Assets
Balance Sheet
+81.3%
$7.1M$12.8M

Current assets grew 81.3% — improving short-term liquidity or inventory/receivables build.

Accounts Receivable
Balance Sheet
-53.2%
$1.7M$789K

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Liabilities
Balance Sheet
-50.3%
$11.6M$5.8M

Current liabilities reduced — improved short-term financial position and working capital health.

Operating Cash Flow
Cash Flow
-41.7%
-$7.3M-$10.4M

Operating cash flow fell 41.7% — earnings quality concerns; investigate working capital changes and non-cash items.

Revenue
P&L
-35.8%
$7.1M$4.6M

Revenue declined 35.8% — significant demand weakness or market share loss warrants investigation.

Gross Profit
P&L
-31.6%
$5.9M$4.0M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Net Income
P&L
+30.6%
-$19.4M-$13.5M

Net income grew 30.6% — bottom-line growth signals improving overall business health.

Operating Income
P&L
-27.9%
-$13.7M-$17.6M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-03-30
PRIOR — 2025-04-07
ADDED
As of March 24, 2026, there were 57,115,772 shares of the Registrant s Class A common stock, par value $0.0001 per share, issued and outstanding.
Key components of the platform include: CXAI Applications : Mobile and web-based applications that provide employees and other users with access to workplace information, communications, and workflows across iOS, Android, kiosk and web environments.
CXAI BTS (Behind the Scenes) : The platform s core infrastructure layer that supports content management, workflow automation, integrations with enterprise systems, and security and compliance controls.
CXAI BTS includes a configurable rules engine designed to support complex customer requirements, including policy-based workflows, role-based access controls, and administrative governance.
CXAI-VU : An analytics and AI-enabled insights module that aggregates and analyzes workplace and experience-related data to provide visibility into usage patterns, engagement metrics, and operational trends.
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REMOVED
As of March 31, 2025, there were 19,805,784 shares of the Registrant s Class A common stock, par value $0.0001 per share, issued and outstanding.
Key components of the platform include: CXAI Apps: A multi-platform suite of applications (iOS, Android, and web) offering AI-driven, personalized workflows for employees, enhancing productivity and engagement.
CXAI BTS (Behind the Scenes): The core AI engine that powers automation, content management, and security compliance for enterprise-wide deployments.
CXAI-VU: A generative AI analytics platform that provides actionable insights into workplace utilization, employee engagement, and productivity, allowing real-time decision-making.
Market Size In a Market Research Report released in 2024, the digital workplace market size was valued at $27.4 billion in 2022, and is projected to grow from $33.7 billion in 2023 to $90.5 billion by 2030.
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