Revenue Generation - In Q3 2024, the company generated revenues of $2,704 from health coaching packages, a new revenue stream as no revenue was generated in the same period of 2023[126]. Operating Expenses - Operating expenses for Q3 2024 were $908,573, an increase of 4.0% from $873,616 in Q3 2023[127]. - General and administrative expenses in Q3 2024 increased by 47.2% to $224,247 from $152,293 in Q3 2023, driven by higher advertising and marketing expenses[136]. - Compensation and related benefits decreased by 17.2% in Q3 2024 to $172,502 from $208,365 in Q3 2023, mainly due to reduced executive compensation[132]. - Professional fees in Q3 2024 were $259,167, a slight increase of 1.8% from $254,553 in Q3 2023, attributed to higher advisory fees[134]. Research and Development - Research and development expenses in Q3 2024 were $252,657, a decrease of 2.2% from $258,405 in Q3 2023, primarily due to reduced costs in Gaxos Games development[129]. - The company expects research and development expenses to increase as the development of Gaxos Games and Gaxos Health accelerates[129]. - The company plans to launch an AI solution for game developers in Q4 2024, aimed at enhancing content generation and integration[117]. - Gaxos Health, a new initiative, aims to provide AI-powered health optimization solutions, with a product launch expected in Q3 2024[118]. Financial Performance - For the three months ended September 30, 2024, the company reported a loss from operations of $905,869, an increase of $32,253, or 3.7% compared to the same period in 2023[138]. - The net loss for the three months ended September 30, 2024, was $864,410, or $0.61 per common share, compared to a net loss of $857,059, or $0.85 per common share in the same period of 2023, reflecting an increase of $7,351, or 0.86%[141]. - For the nine months ended September 30, 2024, the net loss decreased to $2,585,793, or $1.95 per common share, down by $561,341, or 17.8% from the previous year[142]. Cash and Liquidity - As of September 30, 2024, the company had a cash balance of $5,227,894 and working capital of $6,525,650, indicating a solid liquidity position[143]. - The company raised aggregate gross proceeds of $3,499,484 from a private placement on March 13, 2024, which included the sale of common stock and warrants[144]. - On September 20, 2024, the company received gross proceeds of $3,242,374 from the exercise of warrants at a reduced price, resulting in net proceeds of $2,834,843 after expenses[145]. - For the nine months ended September 30, 2024, net cash used in operations was $2,512,166, primarily due to the net loss adjusted for various non-cash items[148]. - The company reported net cash provided by financing activities of $5,872,746 for the nine months ended September 30, 2024, reflecting successful capital raising efforts[152]. - The company anticipates continued operating losses in the foreseeable future due to corporate overhead and R&D costs, but believes existing cash will meet operational needs for the next twelve months[146]. Impairment Loss - The company recorded an impairment loss of $52,363 in Q3 2023 due to the termination of a software and patent license agreement[137].
Gaxos.AI(GXAI) - 2024 Q3 - Quarterly Report