CXApp Announces $1M Stock Buyback Program, Standstill Agreement With Avondale Capital, And An AI-Based Operating Efficiency Program; Targets Positive Operating Cash Flow By Q3 2027

These initiatives build on CXAI's expanded global operating platform following its acquisition of EngineRoom, resulting in a pro-forma annualized revenue run-rate exceeding $12 million. Together with recent enterprise customer wins and continued innovation in agentic AI, this expansion provides a strong foundation for scalable growth and improved operating leverage.

$1 Million Share Repurchase Program

CXAI's Board of Directors has authorized a share repurchase program of up to $1 million of the Company's outstanding common stock.

The authorization provides management with flexibility to repurchase shares opportunistically when it determines that such purchases represent an attractive use of capital, taking into account the Company's financial position, operating requirements and strategic priorities.

The program reflects the Board's confidence in CXAI's long-term business prospects and commitment to disciplined capital allocation.

Repurchases may be made from time to time through open-market transactions or other legally permissible methods, subject to market conditions, applicable securities laws, the Company's financing arrangements and management discretion.

Avondale Standstill Agreement

CXAI has entered into a conditional 90-day standstill agreement with its financing partner Avondale Capital, LLC concerning its outstanding Pre-Paid Purchase financing instruments.

Under the agreement, Avondale has agreed to restrict specified purchase and conversion-related activity during the standstill period unless defined stock-price and trading-volume conditions are satisfied. If these stock-price and trading-volume conditions are satisfied, Avondale may resume purchases and conversions under the applicable instruments, which could result in the issuance of additional shares and dilution to existing stockholders.

The agreement is intended to provide greater predictability regarding potential future equity issuances and represents an important step toward strengthening CXAI's capital structure, enhancing financial flexibility, and supporting the Company's long-term growth strategy.

Targeting Positive Operating Cash Flow by Q3 2027

CXAI is implementing a comprehensive operating efficiency initiative focused on leveraging AI-driven automation to streamline operations, optimize external expenditures and improve operating leverage, while preserving and expanding the revenue-generating capabilities of its global operations.

The Company intends to maintain disciplined investment in its enterprise AI platform, customer deployments and commercial growth initiatives.

Management is targeting positive operating cash flow by the third quarter of 2027. Achievement of this goal depends on a number of factors, including the Company's ability to grow recurring revenue, realize anticipated cost optimization, and operational efficiencies, and continue commercial execution.

Building on Strong Commercial and Product Momentum

CXAI's recent milestones include more than $4 million in aggregate contracted value from announced global financial-services enterprise agreements, and the launch of Beat, its agentic AI solution for intelligent enterprise workflow automation.