There are two cats in the film - Lexi and Bruno. Lexi is the striped cat that Nina and Dave had in San Francisco. Bruno is the black cat that Nina has in her apartment in New York. According to Nina Paley's Director's Commentary, Bruno does, in fact, sleep in Nina's armpit, as shown at the end of the movie.
The intermission in the movie is a tribute to Bollywood, the Indian Film Industry.