Revenue and Expenses - For the three months ended March 31, 2025, the company generated revenues of $23,732, primarily from RNK Health, which provided non-clinical services totaling $22,552[120]. - Operating expenses for the same period increased by $371,569, or 35.6%, totaling $1,415,427 compared to $1,043,858 in the prior year[121]. - General and administrative expenses totaled $1,194,438, reflecting an increase of $332,909, or 38.7%, compared to $861,529 in the previous year[123]. - Research and development fees rose to $220,989, an increase of $38,660, or 21.2%, primarily due to costs associated with Gaxos Health[122]. Net Loss and Cash Flow - The net loss for the three months ended March 31, 2025, was $1,232,062, an increase of $319,917, or 35.1%, from $912,145 in the same period of 2024[130]. - The company reported a loss from operations of $1,391,695 for the three months ended March 31, 2025, an increase of $347,856, or 33.3%[128]. - For the three months ended March 31, 2025, the net cash used in operations was $1,297,485, primarily due to a net loss of $1,232,062[134]. - For the three months ended March 31, 2024, the net cash used in operations was $1,099,417, resulting from a net loss of $912,145[135]. Investments and Financing - For the three months ended March 31, 2025, net cash used in investing activities was $10,529,274, mainly from the purchase of short-term investments of $12,171,293[136]. - The company sold 1,449,277 common shares at $3.45 per share in December 2024, generating net proceeds of $4,449,055[132]. - For the three months ended March 31, 2024, net cash provided by financing activities was $3,037,382, following a private placement of common stock and warrants[139]. Future Outlook and Plans - The company expects to continue generating operating losses in the foreseeable future due to corporate overhead and research and development costs[133]. - The company believes existing working capital will be sufficient to meet operating needs for the next twelve months[133]. - The company plans to pursue research and development of products, requiring additional capital from third-party sources[140]. Company Initiatives - The company launched Gaxos Labs in September 2024, focusing on generative AI services for game developers and publishers[109]. - Gaxos Health, initiated in 2024, aims to provide AI-powered health optimization solutions, integrating biometric data with personalized wellness strategies[111]. Accounting and Compliance - The company did not have any off-balance sheet arrangements for the three months ended March 31, 2025 and 2024[141]. - The company intends to rely on exemptions under the JOBS Act until certain revenue or debt thresholds are met[146]. - The company does not expect the adoption of new accounting standards to have a material impact on its consolidated financial statements[142].
Gaxos.AI(GXAI) - 2025 Q1 - Quarterly Report