NFTG(US:NFTG)2024-03-27 21:29Financial Performance - In 2023, the company generated revenue of $256, compared to $0 in 2022, indicating initial revenue generation from operations [217]. - Operating expenses increased to $4,015,541 in 2023 from $1,424,096 in 2022, representing a rise of 182.0% [218]. - The net loss for 2023 was $3,948,097, an increase of 177.8% from the net loss of $1,421,172 in 2022 [228]. - The company reported a net loss of $1,421,172 for the year ended December 31, 2022, with net cash used in operations amounting to $1,260,425 [234]. Research and Development - Research and development fees rose by 11.1% to $915,818 in 2023, primarily due to increased labor and outside development costs [219]. - The company plans to pursue research and development of products, requiring additional capital from third-party sources [239]. Cash and Investments - As of December 31, 2023, the company had a cash balance of $1,024,710 and short-term investments of $2,592,689, totaling working capital of $3,372,503 [230]. - For the year ended December 31, 2023, net cash used in investing activities was $2,533,213, primarily due to the purchase of short-term investments totaling $3,491,242 [235]. Future Plans - The company plans to launch more games in 2024, with a pipeline of games in various stages of development [207]. - An artificial intelligence solution for game developers is expected to launch in Q2 of 2024 [208]. - Gaxos Health, a new initiative, aims to launch AI-powered health optimization products in the second half of 2024 [210]. Shareholder Actions - During the year ended December 31, 2023, the company purchased and cancelled 244,184 treasury shares for $99,736, averaging $0.408 per share [237]. - The IPO closed on February 17, 2023, resulting in gross proceeds of approximately $7 million and net proceeds of $5,958,470 after expenses [237]. Financial Obligations and Capital Needs - The company will require significant amounts of capital to sustain operations and execute its long-term business plan [239]. - The company intends to rely on exemptions under the JOBS Act as an "emerging growth company" until certain revenue or debt thresholds are met [244]. - The company had no off-balance sheet arrangements or commitments for the years ended December 31, 2023 and 2022 [241]. Other Financial Metrics - The company recorded an impairment loss of $52,363 in 2023 due to the termination of a software and patent license agreement [225]. - The increase in accounts payable was $148,761, and accrued expenses increased by $8,197 for the year ended December 31, 2022 [234]. - The company experienced a decrease of $400 in prepaid expenses and other current assets, contributing to the net cash used in operations [234].