NFTG(US:NFTG)2023-05-12 20:01Gaming Platform Development - The company is developing a gaming platform called "Gaxos," which will integrate conventional games with unique in-game features as non-fungible tokens (NFTs) to enhance user experiences [88]. - The company plans to launch proprietary games that allow gamers to mint affordable NFTs with unique features, usable across its network of games [89]. Financial Position - As of March 31, 2023, the company had approximately $1,556,000 in cash exceeding the FDIC limit of $250,000 [101]. - As of March 31, 2023, the company had cash of $2,213,151 and short-term investments of $3,509,398, totaling $5,722,549 in liquid assets [132]. - The accumulated deficit as of March 31, 2023, was $2,969,458, indicating ongoing financial challenges [133]. - The company expects to require significant capital to sustain operations and execute its long-term business plan, indicating a need for additional financing [140]. Revenue Generation - Revenue will be generated from the sale of in-game NFTs, recognized upon delivery to customers, with payments accepted in both USD and digital currencies [113]. - The company plans to generate revenue from advertising fees, recognized ratably over the agreed advertising service period [117]. - Royalty revenues will be recognized when it is probable that the company will collect the fee owed, typically upon notification of an NFT sale on a third-party platform [117]. - Transaction fee revenues will be recognized on the date of the respective transaction, with current transaction fees being negligible [117]. Research and Development - Research and development costs are expensed as incurred, including labor and outside development costs [114]. - Research and development fees decreased to $104,551 for the three months ended March 31, 2023, from $150,495 in the same period of 2022, a decrease of 30.6% [124]. Operational Performance - For the three months ended March 31, 2023, the company reported no revenue from operations and does not anticipate generating revenue in the foreseeable future [121]. - The company reported a loss from operations of $1,542,332 for the three months ended March 31, 2023, compared to a loss of $308,209 in the same period of 2022, an increase of 400.5% [129]. - The net loss for the three months ended March 31, 2023, was $1,536,031, or a net loss per common share of $0.14, compared to a net loss of $307,838, or $0.03 per share, in the same period of 2022, an increase of 399.5% [131]. - Net cash used in operations for the three months ended March 31, 2023, was $933,858, compared to $185,405 in the same period of 2022 [135]. IPO and Financing - The company closed an IPO on February 17, 2023, issuing 1,686,747 shares for gross proceeds of approximately $7 million and net proceeds of $5,958,470 [138]. Other Financial Metrics - The company recorded $18,156 of unrealized gains as a component of other comprehensive loss for the three months ended March 31, 2023 [105]. - The company accounts for digital currencies and other digital assets as indefinite-lived intangible assets at historical cost, with no such assets held as of March 31, 2023 [106]. - General and administrative expenses increased significantly to $1,437,781 for the three months ended March 31, 2023, compared to $157,714 in the same period of 2022, an increase of 811.5% [125].