GXAIMEDIUM SIGNALFINANCIAL10-K

GXAI expanded its business scope from health and entertainment AI to a broader portfolio spanning defense, health, entertainment, and productivity while experiencing deteriorating financial metrics across profitability and cash position.

The company is pivoting toward a more diversified AI application strategy, particularly with the addition of defense sector focus, which could represent significant market opportunities. However, the simultaneous increase in operating losses and decline in cash reserves raises questions about the company's ability to fund this expanded strategy without additional capital.

Comparing 2026-03-17 vs 2025-03-28View on EDGAR →
FINANCIAL ANALYSIS

GXAI's financial position weakened notably during the period, with operating losses expanding from $3.7M to $4.9M while current assets declined 25% to $12.6M and cash dropped 18% to $840K. Current liabilities increased substantially by 69% to $681K, creating a deteriorating liquidity picture. The combination of growing losses, declining cash, and rising liabilities suggests the company may need additional funding to support its expanded AI portfolio strategy across multiple sectors.

FINANCIAL STATEMENT CHANGES
Total Liabilities
Balance Sheet
+69.5%
$402K$681K

Liabilities grew 69.5% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+69.5%
$402K$681K

Current liabilities surged 69.5% — significant near-term obligations; verify ability to meet short-term debt.

Operating Income
P&L
-32.7%
-$3.7M-$4.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Current Assets
Balance Sheet
-25.1%
$16.8M$12.6M

Current assets declined 25.1% — monitor working capital adequacy and short-term liquidity.

Total Assets
Balance Sheet
-21.2%
$17.0M$13.4M

Total assets contracted 21.2% — asset sales, write-downs, or balance sheet optimization underway.

Stockholders Equity
Balance Sheet
-21%
$16.6M$13.1M

Equity decreased 21% — buybacks or losses reducing book value, monitor solvency ratios.

Cash & Equivalents
Balance Sheet
-18%
$1.0M$840K

Cash decreased 18% — monitor burn rate and upcoming capital needs.

Operating Cash Flow
Cash Flow
-17.5%
-$3.3M-$3.9M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Net Income
P&L
-14.1%
-$3.4M-$3.9M

Net income declined 14.1% — review whether driven by operations, interest costs, or non-recurring items.

LANGUAGE CHANGES
NEW — 2026-03-17
PRIOR — 2025-03-28
ADDED
As of March 25, 2026, 10,219,934 shares of the registrant s common stock, $0.0001 par value per share, were issued and outstanding.
BUSINESS Gaxos.AI is a technology company focused on reshaping the way people interact with artificial intelligence across everyday life and high-impact industries.
More than a developer of applications, Gaxos.AI is building a portfolio of AI-powered solutions designed to make advanced technology more practical, accessible, and transformative.
The company s growing portfolio spans defense, health and wellness, entertainment, and productivity bringing intelligent tools to markets where innovation can drive meaningful real-world outcomes.
Gaxos Labs Gaxos Labs, launched in September 2024, is the Gaxos.AI product studio developing and launching AI applications across fast-moving sectors.
+7 more — sign up free →
REMOVED
As of March 25, 2025, 7,123,453 shares of the registrant s common stock, $0.0001 par value per share, were issued and outstanding.
BUSINESS Overview We are a technology-based company that is developing applications aimed at redefining the way we utilize artificial intelligence ( AI ) to optimize the user experience.
We are committed to addressing the need for AI solutions in both health and entertainment.
Gaxos Labs Gaxos Labs, launched in September 2024, is a transformative generative AI service that empowers game developers and publishers.
Key features of the product include: AI-Powered Creativity: Reduces creative asset development time from hours to minutes, transforming artistic visions into reality with ease.
+7 more — sign up free →
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