Gaxosai Inc (GXAI) reported Q4 2024 revenue of $1.304 million, up approximately 409% year-over-year from Q4 2023, driven by the ongoing scaling of its NFT-driven digital gaming platform. The quarter delivered a gross profit equal to revenue, with operating expenses of $0.901 million resulting in a controlled but still meaningful quarterly operating loss of about $0.899 million and a net loss of roughly $0.838 million. This combination produced an EBITDA of approximately $(0.884) million and an EPS of $(0.52). While top-line growth was robust on a YoY basis, profitability remains elusive as the company continues to invest in R&D and SG&A to build out its platform and content slate.
Cash flow reflects a cash-rich balance sheet supported by financing activity. Operating cash flow was negative at about $(0.768) million, with capex of $(0.022) million and free cash flow around $(0.790) million. Importantly, GXAI finished the period with cash and cash equivalents of $14.40 million and total cash plus short-term investments of about $16.77 million, and total stockholdersβ equity of $16.63 million against minimal current liabilities ($0.40 million). The company also issued approximately 8.05 million shares of common stock during the period, contributing to a net cash inflow from financing of roughly $10.71 million and a net cash increase of about $9.17 million for the quarter.
Looking ahead, management did not publish formal forward guidance in the materials provided. The balance sheet suggests a strong liquidity runway to fund platform development and potential content acquisitions or partnerships as the business scales. The key question for investors is whether GXAI can convert revenue growth and platform expansion into durable profitability while managing dilution from equity financings and the inherent volatility of NFT/gaming markets.