NFTG(NFTG) - 2025 Q4 - Annual Report

Revenue Generation - Gaxos.AI generated revenues of $1,933,030 for the year ended December 31, 2025, with $1,509,886 from RNK Health providing non-clinical services[180] - Revenue from health coaching packages was $1,124 in 2025, compared to $3,952 in 2024, indicating a significant increase in service offerings[180] - Subscription services from Art-Gen.ai, UnGPT.ai, and Bible.ai applications generated $421,995 in revenue in 2025[180] - Total revenues for the year ended December 31, 2025, were $1,933,030, a decrease of 52.0% compared to $4,027 in 2024[181] Product Development and Launches - Gaxos Labs launched a generative AI service in September 2024, reducing creative asset development time from hours to minutes for game developers[165] - The company launched UnGPT.ai in May 2025, enhancing AI-generated text to sound more natural and human-like[166] - Art-Gen.AI, launched in August 2025, allows users to create professional-grade content quickly and cost-effectively[167] - As of December 31, 2025, Gaxos.AI launched five proprietary games, integrating AI for personalized gaming experiences[172] Financial Performance - Operating expenses increased by $3,141,924, or 84.7%, totaling $6,849,556 for the year ended December 31, 2025, compared to $3,707,632 in 2024[183] - Research and development fees slightly decreased by $2,816, or 0.3%, totaling $993,671 in 2025 compared to $996,487 in 2024[184] - General and administrative expenses rose to $5,855,885 in 2025, an increase of $3,144,740, or 116.0%, from $2,711,145 in 2024[186] - Advertising and marketing expenses surged by $2,715,433, or 739.2%, reaching $3,082,784 in 2025 compared to $367,351 in 2024[190] - The company reported a loss from operations of $4,916,526 for the year ended December 31, 2025, an increase of $1,212,921, or 32.7%, from $3,703,605 in 2024[194] - Net loss attributable to common shareholders was $3,900,583 in 2025, with a net loss per share of $0.55, compared to a net loss of $3,418,197 and $1.92 per share in 2024, reflecting an increase of 14.1%[196] Cash and Investments - As of December 31, 2025, the company had a cash balance of $840,799 and short-term investments of $11,345,187, with working capital of $11,919,230[198] - Net cash used in operations for the year ended December 31, 2025, was $3,853,757, compared to $3,280,397 in 2024[203] Future Plans and Compliance - The company plans to pursue additional financing to support its growth strategy and research and development efforts, indicating a need for significant capital investment[209] - The company is taking advantage of the extended transition periods under the JOBS Act for complying with new accounting standards, which may affect comparability with other public companies[214] - The company will remain an "emerging growth company" until it reaches total annual gross revenues of $1.07 billion or more[215] - The company intends to rely on exemptions from certain requirements, including auditor's attestation on internal controls over financial reporting[215] - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[216]