NFTG(US:NFTG)2024-05-14 20:30Revenue and Financial Performance - Revenue for the three months ended March 31, 2024, was $19, compared to $0 in the same period of 2023[115] - Net loss for Q1 2024 was $912,145, a decrease of $623,886, or 40.6%, compared to a net loss of $1,536,031 in Q1 2023[125] Operating Expenses - Operating expenses decreased by $498,493, or 32.3%, from $1,542,332 in Q1 2023 to $1,043,858 in Q1 2024[116] - General and administrative expenses decreased from $1,437,781 in Q1 2023 to $861,529 in Q1 2024, a decrease of $576,252, or 40.1%[119] - Research and development expenses increased by $77,778, or 74.4%, from $104,551 in Q1 2023 to $182,329 in Q1 2024[118] Cash Flow and Investments - Cash balance as of March 31, 2024, was $3,312,277, with short-term investments of $2,092,078 and working capital of $5,251,505[126] - Net cash used in operations for Q1 2024 was $1,099,417, compared to $933,858 in Q1 2023[129][130] - Net cash provided by investing activities for Q1 2024 was $349,602, resulting from proceeds from the sale of short-term investments[131] - For the three months ended March 31, 2024, net cash provided by financing activities was $3,037,382, compared to $5,958,470 for the same period in 2023, representing a decrease of approximately 49.1%[133][134] Financing and Capital Requirements - The company anticipates requiring significant capital to sustain operations and execute its long-term business plan, indicating a reliance on additional debt or equity financing if revenue generation is insufficient[135] - The net proceeds from the IPO closed in February 2023 are expected to be sufficient to meet financial obligations for at least the next 12 months[135] - The company entered into a securities purchase agreement for the issuance of 108,000 shares of common stock and warrants, with a purchase price of $5.57 per share, resulting in aggregate net proceeds of $3,056,984 after expenses[133] - The company purchased and cancelled 6,846 treasury shares for $19,602, averaging $2.86 per share during the three months ended March 31, 2024[133] Regulatory and Compliance - The company has no off-balance sheet arrangements or commitments as defined in Regulation S-K[136] - 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[138] - As an "emerging growth company," the company intends to rely on certain exemptions under the JOBS Act, including auditor's attestation reports on internal controls[139] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[140] Future Plans - The company plans to launch more games in 2024 and has a pipeline of games in various stages of development[103] - Gaxos Health is expected to launch its AI-powered health optimization product in the second half of 2024[108]