AI-Driven Initiatives - The company launched four proprietary games in 2023: Space Striker AI, Brawl Bots, BattleFleet AI, and Jigsaw Puzzle AI, all featuring AI-driven personalization and NFT capabilities[92] - Gaxos Gaming plans to launch an AI solution for game developers in Q3 2024, featuring AI-powered creativity, seamless integration, dynamic content generation, and customized solutions[93][94] - Gaxos Health, a new AI-powered health optimization initiative, is expected to launch in the second half of 2024, focusing on personalized wellness strategies using biometric data[95] Financial Performance and Expenses - Operating expenses for the three months ended June 30, 2024, increased by $85,902 (11.2%) compared to the same period in 2023, totaling $854,503[104] - Research and development expenses decreased by $18,277 (6.8%) for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to reduced costs for Gaxos Games development[105] - General and administrative expenses for the three months ended June 30, 2024, increased by $156,542 (34.9%) compared to the same period in 2023, totaling $605,162[106] - Compensation and related benefits decreased by $54,019 (26.0%) for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to reduced executive and employee compensation[107] - Professional fees increased by $176,657 (162.0%) for the three months ended June 30, 2024, compared to the same period in 2023, driven by higher advisory and other professional fees[108] - Other general and administrative expenses increased by $33,904 (25.7%) for the three months ended June 30, 2024, compared to the same period in 2023, mainly due to higher advertising and marketing expenses[109] - The company reported a loss from operations of $854,503 for the three months ended June 30, 2024, an increase of $85,902 (11.2%) compared to the same period in 2023[111] - Net loss for Q2 2024 increased by $55,194 (7.3%) to $809,238 compared to Q2 2023[114] - Total comprehensive loss for Q2 2024 increased by $67,798 (9.2%) to $802,193 compared to Q2 2023[114] - Net loss for the six months ended June 30, 2024 decreased by $568,692 (24.8%) to $1,721,383 compared to the same period in 2023[114] - Total comprehensive loss for the six months ended June 30, 2024 decreased by $438,517 (19.5%) to $1,813,753 compared to the same period in 2023[114] - The company expects to continue generating operating losses in the foreseeable future due to corporate overhead, R&D, and public company costs[117] Cash Flow and Liquidity - Cash balance on June 30, 2024 was $2,371,933 with short-term investments of $2,099,122 and 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 net loss of $1,721,383[118] - Net cash provided by investing activities for the six months ended June 30, 2024 was $147,604, mainly from sale of short-term investments of $2,617,205[120] - Net cash provided by financing activities for the six months ended June 30, 2024 was $3,037,486, primarily from private placement net proceeds of $3,056,984[121] - The company believes its existing working capital and cash on hand will meet operating needs and debt requirements for the next 12 months[117]
Gaxos.AI(GXAI) - 2024 Q2 - Quarterly Report