Fri, Mar 28, 9:30 PM (30 days ago)
### Summary of GAXOS.AI INC. (GXAI) Annual Report for the Fiscal Year Ended December 31, 2024 **Financial Performance:** - **Revenue:** $4,027, primarily from the sale of health coaching packages. - **Net Loss:** $3,424,283, a decrease of $523,814 or 13.3% from 2023. - **Operating Expenses:** $3,707,632, a decrease of $307,909 or 7.7% from 2023. - **Cash on Hand:** $14,398,099, with a working capital of $16,427,618. **Strategic Overview:** - **Gaxos Labs:** Launched in September 2024, offering AI-powered creativity tools for game developers. - **Gaxos Gaming:** Platform for developing, designing, acquiring, and managing conventional games with AI integration. - **Gaxos Health:** Launched in July 2024, focusing on AI-powered health optimization solutions. - **RNK Health:** Formed in September 2024, partnering with Nekwellness to market health-related products. **Future Outlook:** - **Growth Strategy:** Plans to implement growth strategy with existing working capital and cash on hand. - **Capital Expenditures:** No contractual obligations for ongoing capital expenditures, but purchases equipment and software as needed. **Risk Factors:** - **Operational Risks:** Dependence on key management personnel, regulatory compliance, and market acceptance of NFTs. - **Financial Risks:** Need for additional financing, potential dilution of shareholders, and dependence on third-party providers. - **Technological Risks:** Rapid technological change, cybersecurity threats, and data privacy regulations. **Market Position Changes:** - **Stock Performance:** Listed on the Nasdaq Capital Market under the symbol "GXAI." - **Shareholder Matters:** 10 shareholders of record as of March 15, 2025, with actual number of holders greater. **Financial Condition:** - **Liquidity:** Ability to generate funds to support operations, satisfy obligations, and operate on an ongoing basis. - **Cash Flows:** Net cash used in operations was $3,280,397 for the year ended December 31, 2024. **Operating Expenses Breakdown:** - **Research and Development:** $996,487, an increase of $80,669 or 8.8%. - **General and Administrative:** $2,711,145, a decrease of $336,215 or 11.0%. - **Impairment Loss:** $0, a decrease of $52,363 or 100%. **Earnings per Share:** - **Basic and Diluted:** $(1.92) for the year ended December 31, 2024. **Capital Structure:** - **Common Stock:** 6,923,453 shares issued and outstanding as of December 31, 2024. - **Preferred Stock:** No preferred shares issued and outstanding. **Market Position:** - **Competitive Landscape:** Faces intense competition in gaming and digital products, with key competitors including healthcare consulting service providers and data analytics solutions. **Regulatory Environment:** - **Data Privacy:** Subject to various federal, state, and international laws and regulations. - **Healthcare Regulations:** Subject to HIPAA and other healthcare regulations. **Corporate Governance:** - **Board of Directors:** Comprised of independent directors, with committees for audit, compensation, and nominating and corporate governance. - **Executive Compensation:** Summary compensation table provided for named executive officers. **Subsequent Events:** - **February 21, 2025:** Entered into a Software Purchase Agreement with a third party to acquire certain technology and computer code for $500,000 in cash and 200,000 shares of the Company’s common stock.