NFTG(US:NFTG)2024-08-13 20:30Financial Performance - In the six months ended June 30, 2024, the company generated revenue of $19, compared to $0 in the same period of 2023[103]. - Operating expenses for the three months ended June 30, 2024, were $854,503, an increase of $85,902, or 11.2%, compared to $768,601 in 2023[104]. - Research and development expenses for the three months ended June 30, 2024, were $249,341, a decrease of $18,277, or 6.8%, compared to $267,618 in 2023[105]. - General and administrative expenses for the three months ended June 30, 2024, were $605,162, an increase of $156,542, or 34.9%, compared to $448,620 in 2023[106]. - The company reported a loss from operations of $854,503 for the three months ended June 30, 2024, an increase of $85,902, or 11.2%, compared to $768,601 in 2023[111]. - For the three months ended June 30, 2024, the net loss was $809,238, representing a 7.3% increase from the net loss of $754,044 in the same period of 2023[114]. - For the six months ended June 30, 2024, the net loss decreased to $1,721,383, a reduction of 24.8% compared to $2,290,075 for the same period in 2023[114]. Cash Flow and Financial Position - As of June 30, 2024, the company had a cash balance of $2,371,933 and short-term investments of $2,099,122, resulting in total working capital of $4,495,777[115]. - Net cash used in operations for the six months ended June 30, 2024, was $1,837,867, primarily due to the net loss adjusted for various expenses[118]. - Net cash provided by financing activities for the six months ended June 30, 2024, was $3,037,486, including net proceeds of $3,056,984 from a private placement[121]. - For the six months ended June 30, 2024, net cash provided by investing activities was $147,604, resulting from proceeds from the sale of short-term investments[120]. - The company plans to use the net proceeds from the private placement for general corporate purposes and working capital[116]. - The company believes that existing working capital and cash on hand will be sufficient to meet its operating needs for the next twelve months[117]. - The company has no off-balance sheet arrangements or commitments as defined in Item 303(a)(4)(ii) of Regulation S-K[124]. Future Plans and Initiatives - The company plans to launch more proprietary games in 2024, with a pipeline of games in various stages of development[93]. - An artificial intelligence solution for game developers is expected to launch in Q3 of 2024, aimed at enhancing creativity and integration in game development[94]. - Gaxos Health, a new initiative focused on AI-powered health optimization solutions, is expected to launch in the second half of 2024[95]. - The company expects to continue generating operating losses in the foreseeable future due to corporate overhead and research and development costs[117]. Other Income and Impairments - Other income for the three months ended June 30, 2024, was $45,265, an increase of $30,708, or 210.9%, compared to $14,557 in 2023[113]. - The company recorded an impairment loss of $52,363 during the six months ended June 30, 2023, due to the termination of a license agreement[110].