CXApp Inc. (CXAI) is a SaaS-focused enterprise workplace software company. Under the liquidation lens as of March 31, 2026, the company presents a materially negative recovery posture for equity holders. The MFFAIS-computed cash liquidation value of approximately $4.5M and liquid liquidation value of approximately $5.3M confirm this assessment. The asset base is dominated by cash ($12.3M per MD&A), goodwill ($6.6M, zero liquidation value), and intangible assets (amortizing at $683K/quarter, zero liquidation value). Tangible liquid assets net of the intangible and goodwill haircut leave a thin recoverable asset pool. Against this, liabilities are substantial: convertible debt carried at fair value of $10.8M as of March 31, 2026 (down from $12.7M at December 31, 2025 due to $3.1M in share-settled conversions and a new $1.05M tranche), accrued liabilities of $2.4M, deferred revenue of $2.0M (a performance obligation that survives liquidation as a refund liability), and operating lease liabilities of $121K. The four tranches of Avondale Capital convertible pre-paid purchases represent the most structurally complex liability: they are unsecured, carried at fair value, convertible at market-linked prices with floors as low as $0.04/share, and bear 5% accrued interest. During Q1 2026 alone, $3.1M was settled via issuance of 15.8M shares. The dilutive conversion mechanics are material to equity recovery under liquidation because they represent an obligation that, if not cash-settled, would be settled in additional shares—reducing per-share recovery. A new $40M SPA with Avondale (March 27, 2026, initial tranche $1.05M drawn) commits the company to further potential tranches, adding future liability exposure. Operating cash burn was $2.2M for Q1 2026 (net loss $4.0M adjusted for non-cash). The company raised $2.5M via an ATM equity program during Q1 2026, partially offsetting burn. Goodwill of $6.6M and identified intangible long-lived assets ($12.1M total long-lived assets per geographic segment disclosure) are fully haircut to zero under liquidation, eliminating the bulk of book assets. The filing does not separately disclose a breakdown of intangibles vs. PP&E within the $12.1M long-lived asset figure in XBRL, though MD&A discloses $683K quarterly amortization of intangibles. No pension obligations, no inventory, no significant PP&E. Deferred revenue ($2.0M at March 31, 2026 vs. $1.5M at December 31, 2025) increased QoQ driven by new license billings; in liquidation this is a refund obligation at face value. The lease liability is de minimis at $121K with 0.5-year remaining term. TAG_CONTEXT is empty for this filing, meaning no XBRL tags were provided for direct reference in tag_insights. All balance sheet observations are drawn from the filing narrative and tables embedded in the HTML.
▼ Community Notes