Gaxos.AI Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $23,732, a significant increase from $19 in the same period last year. The company experienced a net loss of $1,232,062, compared to a net loss of $912,145 in the first quarter of 2024. This resulted in a net loss attributable to common shareholders of $1,191,800, or $0.17 per share, down from a loss of $912,145, or $0.91 per share, in the prior year. The increase in revenue was primarily driven by the launch of new health-related services through its subsidiary, RNK Health, which generated $22,552 in revenue.
Operating expenses for Gaxos.AI rose to $1,415,427, a 35.6% increase from $1,043,858 in the previous year. This rise was attributed to higher research and development costs, which increased by 21.2% to $220,989, and a substantial increase in general and administrative expenses, which reached $1,194,438, up 38.6% from the previous year. The increase in general and administrative expenses was largely due to higher compensation and related benefits, which rose by 62% to $588,985, reflecting increased executive bonuses.
In terms of operational developments, Gaxos.AI has made strides in expanding its product offerings. The company launched its Gaxos Labs service in September 2024, aimed at empowering game developers with AI tools to enhance creativity and reduce development time. Additionally, Gaxos Health, a new initiative focused on AI-driven health optimization solutions, was introduced, further diversifying the company's portfolio. As of March 31, 2025, Gaxos.AI had a cash balance of $2,571,340 and short-term investments totaling $12,116,298, indicating a solid liquidity position despite ongoing operational losses.
The company has also seen a significant increase in its employee headcount, which is expected to support its growth strategy. Gaxos.AI anticipates continued operating losses as it invests in research and development and expands its market presence. The management believes that the existing cash and working capital will be sufficient to meet operational needs for the next twelve months. However, the company acknowledges the need for additional financing to support its long-term growth plans, particularly in the competitive landscape of AI and gaming technologies.
Looking ahead, Gaxos.AI aims to leverage its recent product launches and strategic initiatives to drive revenue growth. The company plans to enhance its service offerings and expand its user base, particularly through its health and gaming platforms. Management remains optimistic about the potential for future revenue generation as it continues to innovate and adapt to market demands.
About GAXOS.AI INC.
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