Gaming Platform Development - The company is developing a gaming platform called "Gaxos," which will integrate conventional games with unique in-game features as non-fungible tokens (NFTs) to enhance user experiences [88]. - The company plans to launch proprietary games that allow gamers to mint affordable NFTs with unique features, usable across its network of games [89]. Financial Position - As of March 31, 2023, the company had approximately $1,556,000 in cash exceeding the FDIC limit of $250,000 [101]. - As of March 31, 2023, the company had cash of $2,213,151 and short-term investments of $3,509,398, totaling $5,722,549 in liquid assets [132]. - The accumulated deficit as of March 31, 2023, was $2,969,458, indicating ongoing financial challenges [133]. - The company expects to require significant capital to sustain operations and execute its long-term business plan, indicating a need for additional financing [140]. Revenue Generation - Revenue will be generated from the sale of in-game NFTs, recognized upon delivery to customers, with payments accepted in both USD and digital currencies [113]. - The company plans to generate revenue from advertising fees, recognized ratably over the agreed advertising service period [117]. - Royalty revenues will be recognized when it is probable that the company will collect the fee owed, typically upon notification of an NFT sale on a third-party platform [117]. - Transaction fee revenues will be recognized on the date of the respective transaction, with current transaction fees being negligible [117]. Research and Development - Research and development costs are expensed as incurred, including labor and outside development costs [114]. - Research and development fees decreased to $104,551 for the three months ended March 31, 2023, from $150,495 in the same period of 2022, a decrease of 30.6% [124]. Operational Performance - For the three months ended March 31, 2023, the company reported no revenue from operations and does not anticipate generating revenue in the foreseeable future [121]. - The company reported a loss from operations of $1,542,332 for the three months ended March 31, 2023, compared to a loss of $308,209 in the same period of 2022, an increase of 400.5% [129]. - The net loss for the three months ended March 31, 2023, was $1,536,031, or a net loss per common share of $0.14, compared to a net loss of $307,838, or $0.03 per share, in the same period of 2022, an increase of 399.5% [131]. - Net cash used in operations for the three months ended March 31, 2023, was $933,858, compared to $185,405 in the same period of 2022 [135]. IPO and Financing - The company closed an IPO on February 17, 2023, issuing 1,686,747 shares for gross proceeds of approximately $7 million and net proceeds of $5,958,470 [138]. Other Financial Metrics - The company recorded $18,156 of unrealized gains as a component of other comprehensive loss for the three months ended March 31, 2023 [105]. - The company accounts for digital currencies and other digital assets as indefinite-lived intangible assets at historical cost, with no such assets held as of March 31, 2023 [106]. - General and administrative expenses increased significantly to $1,437,781 for the three months ended March 31, 2023, compared to $157,714 in the same period of 2022, an increase of 811.5% [125].

Revenue Generation - The company did not generate any revenues from operations during the year ended December 31, 2022, and for the period from October 27, 2021, to December 31, 2021[251]. - The company anticipates that it will not generate revenue for the foreseeable future until a critical mass of users is achieved[251]. - The company plans to generate revenue from the sale of in-game NFTs, advertising fees, royalty revenues, commission from third-party sales, and transaction fees[244][247]. Research and Development - Research and development fees increased to $824,523 in 2022 from $6,810 in 2021, an increase of approximately $817,713 due to labor and outside development costs[254]. - The company expects research and development fees to increase in the future as the development of games accelerates[254]. - The company plans to capitalize development and production service payments to third-party developers as internal-use software development costs and licenses[253]. - The company plans to pursue research and development of its products, requiring significant capital beyond current resources[267]. Financial Condition - The company has no cash equivalents as of December 31, 2022, and 2021, and held approximately $1,578,000 in cash exceeding FDIC limits as of December 31, 2021[234][236]. - As of December 31, 2022, the company had approximately $679,781 in cash and an accumulated deficit of approximately $1.4 million[262]. - The company has not experienced any losses on its invested cash to date, but any loss or lack of access to funds could significantly impact its financial condition[235]. Expenses - General and administrative expenses for the year ended December 31, 2022, totaled $599,573, a significant increase from $5,445 in 2021[255]. - Compensation and related benefits increased to $369,914 in 2022 from $0 in 2021, due to the hiring of executive officers and employees[256]. - Professional fees rose to $164,495 in 2022, primarily due to accounting, legal, and recruiting fees associated with the IPO[257]. Losses - The company reported a loss from operations of $1,424,096 for the year ended December 31, 2022, compared to a loss of $12,255 in 2021, reflecting an increase of $1,411,841[259]. - Net loss for the year ended December 31, 2022, was $1,421,172, or $0.14 per common share, compared to a net loss of $12,255, or $0.00 per common share, in 2021[261]. - Net cash used in operations for the year ended December 31, 2022, was $1,260,425, primarily due to the net loss adjusted for changes in operating assets and liabilities[263]. IPO and Investments - The company closed its IPO on February 17, 2023, issuing 1,686,747 shares for gross proceeds of approximately $7 million, with net proceeds of $5.9 million[266]. - The company incurred net cash used in investing activities of $62,836 in 2022, related to a software and patent license agreement[264]. Digital Assets - The company accounts for digital currencies and other digital assets as indefinite-lived intangible assets at historical cost[237]. - The company plans to launch its gaming platform "Gaxos," which will allow users to mint unique in-game NFTs[224][225].