2024 Q2 Form 10-Q Financial Statement

#000121390024042974 Filed on May 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $19.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $861.5K $77.50K
YoY Change 1011.61% -50.86%
% of Gross Profit
Research & Development $249.3K $182.3K $104.6K
YoY Change -6.83% 74.39% -30.53%
% of Gross Profit
Depreciation & Amortization $14.15K $8.700K $3.140K
YoY Change 124.96% 177.07%
% of Gross Profit
Operating Expenses $854.5K $1.044M $1.542M
YoY Change 11.18% -32.32% 400.42%
Operating Profit -$854.5K -$1.044M -$1.542M
YoY Change 11.18% -32.32% 400.42%
Interest Expense $131.7K $6.300K
YoY Change 1990.48% 1602.7%
% of Operating Profit
Other Income/Expense, Net $45.27K $131.7K $6.301K
YoY Change 210.95% 1990.05% 1598.38%
Pretax Income -$912.2K -$1.536M
YoY Change -40.61% 398.97%
Income Tax
% Of Pretax Income
Net Earnings -$809.2K -$912.1K -$1.536M
YoY Change 7.32% -40.62% 398.97%
Net Earnings / Revenue -4800763.16%
Basic Earnings Per Share -$0.72 -$0.91 -$0.14
Diluted Earnings Per Share -$0.72 -$0.91 -$0.14
COMMON SHARES
Basic Shares Outstanding 1.094M shares 1.094M shares 12.10M shares
Diluted Shares Outstanding 1.120M shares 1.006M shares 11.26M shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.671M $5.404M $5.723M
YoY Change -10.48% -5.56% 209.48%
Cash & Equivalents $2.372M $3.312M $2.213M
Short-Term Investments $2.299M $2.092M $3.509M
Other Short-Term Assets $216.8K $360.9K $165.5K
YoY Change 85.94% 118.04% 86.84%
Inventory
Prepaid Expenses
Receivables $10.00
Other Receivables $0.00
Total Short-Term Assets $4.888M $5.765M $5.888M
YoY Change -8.37% -2.09% 203.87%
LONG-TERM ASSETS
Property, Plant & Equipment $63.07K $67.73K
YoY Change
Goodwill
YoY Change
Intangibles $147.5K $55.51K
YoY Change 165.74%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $203.1K $216.0K $55.51K
YoY Change 289.22%
TOTAL ASSETS
Total Short-Term Assets $4.888M $5.765M $5.888M
Total Long-Term Assets $203.1K $216.0K $55.51K
Total Assets $5.091M $5.981M $5.944M
YoY Change -4.57% 0.63% 206.74%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $297.7K $393.2K $125.6K
YoY Change 63.17% 212.99% 0.08%
Accrued Expenses $94.45K $120.6K $23.66K
YoY Change -0.11% 409.73% 80.64%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $392.1K $513.8K $149.3K
YoY Change 41.57% 244.18% 7.69%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $392.1K $513.8K $149.3K
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $392.1K $513.8K $149.3K
YoY Change 41.57% 244.18% 7.69%
SHAREHOLDERS EQUITY
Retained Earnings -$7.103M -$6.294M -$2.969M
YoY Change 90.76% 111.95%
Common Stock $120.00 $109.00 $1.210K
YoY Change -90.06% -90.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.699M $5.468M $5.794M
YoY Change
Total Liabilities & Shareholders Equity $5.091M $5.981M $5.944M
YoY Change -4.57% 0.63% 206.74%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$809.2K -$912.1K -$1.536M
YoY Change 7.32% -40.62% 398.97%
Depreciation, Depletion And Amortization $14.15K $8.700K $3.140K
YoY Change 124.96% 177.07%
Cash From Operating Activities -$738.5K -$1.099M -$933.9K
YoY Change -48.5% 17.73% 403.67%
INVESTING ACTIVITIES
Capital Expenditures $2.010K $171.3K
YoY Change
Acquisitions
YoY Change
Other Investing Activities -$200.0K $520.9K -$3.491M
YoY Change -94.27% -114.92%
Cash From Investing Activities -$202.0K $349.6K -$3.491M
YoY Change -94.21% -110.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 90.00 $3.037M $5.958M
YoY Change -100.0% -49.02% -13753.69%
NET CHANGE
Cash From Operating Activities -738.5K -$1.099M -$933.9K
Cash From Investing Activities -202.0K $349.6K -$3.491M
Cash From Financing Activities 90.00 $3.037M $5.958M
Net Change In Cash -940.4K $2.288M $1.533M
YoY Change -193.19% 49.19% -769.45%
FREE CASH FLOW
Cash From Operating Activities -$738.5K -$1.099M -$933.9K
Capital Expenditures $2.010K $171.3K
Free Cash Flow -$740.5K -$1.271M
YoY Change

Facts In Submission

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span style="text-decoration:underline">NATURE OF OPERATIONS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gaxos.ai Inc. (formerly The NFT Gaming Company, Inc.) (the “Company”) was incorporated in the state of Wyoming on October 27, 2021 (“Inception”). On March 30, 2022, the Company reincorporated to the State of Delaware pursuant to a Plan of Conversion approved by the Board of Directors and a majority of the shareholders. On January 5, 2024, the Company changed its name from The NFT Gamimg Company, Inc. to Gaxos.ai Inc. The Company develops, designs, acquires, and manages games that offer affordable non-fungible tokens (NFTs) for unique and exclusive features, rewards, and opportunities. In addition to developing proprietary games, the Company’s platform will onboard third-party game publishers and provide access to blockchain and NFT architecture, product experiences, exclusive content, and revenue opportunities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 9, 2024, the Staff notified the Company that it has not regained compliance with Listing Rule 5550(a)(2) and was not eligible for a second 180-day period (the “Delisting Determination”). Further, unless the Company requested an appeal of the Delisting Determination to a Hearings Panel (the “Panel”), the Company’s securities would be scheduled for delisting from The Nasdaq Capital Market.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In early January 2024, the Company submitted a request to the Panel to appeal the Delisting Determination, and on January 16, 2024, the Panel notified the Company that it received the request which stayed the suspension of the Company’s securities and the filing of the Form 25-NSE, pending the Hearing Panel’s final written decision. On March 22, 2024, the Company received written notice from the Panel that the Company regained compliance with the minimum bid price requirement under NASDAQ Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 28, 2024, a majority of the Company shareholders granted discretionary authority to the Company’s Board of Directors to amend the Company’s Certificate of Incorporation to effect one or more consolidations of the Company’s issued and outstanding shares of common stock, pursuant to which the shares of common stock would be combined and reclassified into on the basis of one share of common stock for each 12 shares of the Company’s common stock then issued and outstanding (the “Reverse Stock Split”). On March 7, 2024, the Company filed a Certificate of Amendment to the Amended and Restated Articles of Incorporation (the “Certificate of Amendment”) with the Secretary of State of the State of Delaware to effect a 1-for-12 reverse stock split with respect to the outstanding shares of the Company’s common stock. The Certificate of Amendment and the reverse stock split became effective on March 7, 2024. All share and per share data in the accompanying financial statements have been retroactively adjusted to reflect the effect of the Reverse Stock Split.</span></p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Use of Estimates</i></b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0in 0in 0in 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited financial statements include valuation of intangible assets and other long-lived assets, estimates of deferred tax valuation allowances and the fair value of stock options issued for services.</span></p>
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2033-02-14
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription
The options vest as to (i) 28,333 of such options on February 14, 2023; and (ii) the remaining 5,000 options vest quarterly (417 each quarter) beginning on May 14, 2023 and each quarter thereafter through February 14, 2026.
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2024Q1 us-gaap Stock Option Exercise Price Increase
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CY2024Q1 gxai Amount Of Annual Cash Fee Proceed
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
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CY2024Q1 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2023Q1 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2024Q1 ecd Rule10b51 Arr Trmntd Flag
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CY2024Q1 us-gaap Commitments And Contingencies
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CY2023Q1 us-gaap Gain Loss On Investments
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CY2024Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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CY2024Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2023Q1 us-gaap Payments For Repurchase Of Common Stock
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CY2024Q1 us-gaap Income Taxes Paid Net
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CY2024Q1 gxai Reclassification Of Deferred Offering Costs To Equity
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CY2024Q1 us-gaap Preferred Stock Shares Issued
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CY2024Q1 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
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CY2024Q1 dei Document Fiscal Period Focus
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Q1
CY2024Q1 dei Entity Central Index Key
EntityCentralIndexKey
0001895618

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