As filed with the U.S. Securities and Exchange
Commission on April 4, 2024
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
GAXOS.AI INC.
(Exact name of Registrant as specified in its charter)
Delaware |
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87-3288897 |
(State or other jurisdiction of |
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(I.R.S. Employer |
incorporation or organization) |
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Identification Number) |
101 Eisenhower Pkwy Suite 300
Roseland, New Jersey 07068
(973) 275-7428
(Address, including zip code, and telephone number,
including area code, of registrant’s principal executive offices)
Vadim Mats
Chief Executive Officer
Gaxos.ai Inc.
101 Eisenhower Pkwy Suite 300
Roseland, New Jersey 07068
(973) 275-7428
(Name, address, including zip code, and telephone
number, including area code, of agent for service)
Copies to:
Richard A. Friedman, Esq.
Hannah R. Zelcer, Esq.
Sheppard, Mullin, Richter & Hampton LLP
30 Rockefeller Plaza
New York, NY 10112
Telephone: (212) 653-8700
Approximate date of commencement of proposed
sale to the public: From time to time, after the effective date of this registration statement.
If the only securities being registered on this
Form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. ☐
If any of the securities being registered on this
Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered
only in connection with dividend or interest reinvestment plans, check the following box. ☒
If this Form is filed to register additional securities
for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ☐
If this Form is a post-effective amendment filed
pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of
the earlier effective registration statement for the same offering. ☐
If this Form is a registration statement pursuant
to General Instruction I.D. or a post-effective amendment thereto that shall become effective upon filing with the Commission pursuant
to Rule 462(e) under the Securities Act, check the following box. ☐
If this Form is a post-effective amendment to
a registration statement filed pursuant to General Instruction I.D. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, check the following box. ☐
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ |
Accelerated filer ☐ |
Non-accelerated filer ☒ |
Smaller reporting company ☒ |
Emerging growth company ☒ |
|
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐
The Registrant hereby amends this Registration
Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment that
specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities
Act or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
The information in
this prospectus is not complete and may be changed. The selling shareholder listed herein may not sell these securities until the registration
statement filed with the U.S. Securities and Exchange Commission becomes effective. This prospectus is not an offer to sell the securities
and it is not soliciting an offer to buy the securities in any state where offers or sales are not permitted.
PRELIMINARY PROSPECTUS
Subject to completion,
dated April 4, 2024
![](https://www.sec.gov/Archives/edgar/data/1895618/000121390024030481/image_001.jpg)
1,932,229 Shares of Common Stock
The selling shareholders named in this prospectus
may use this prospectus to offer and resell from time to time up to 1,932,229 shares of our common stock, par value $0.0001 per share,
which are comprised of (i) 108,000 shares (the “Shares”) of our common stock issued in a private placement on March 13, 2024
(the “Private Placement”), pursuant to that certain Securities Purchase Agreement by and among us and an investor, dated as
of March 13, 2024 (the “Securities Purchase Agreement”), (ii) 520,367 shares (the “Pre-funded Warrant Shares”)
of our common stock issuable upon the exercise of the pre-funded warrants (the “Pre-funded Warrants”), (iii) 628,367 shares
(the “Series A Warrant Shares”) of our common stock issuable upon exercise of series A warrants (the “Series A Warrants”),
(iv) 628,367 shares (the “Series B Warrant Shares” and together with the Pre-funded Warrant Shares and the Series A Warrant
Shares, the “Warrant Shares” and collectively with the Shares, the “Registrable Securities”) of our common stock
issuable upon exercise of series B warrants (the “Series B Warrants” and together with the Series A Warrants, the “Common
Stock Warrants” and together with the Pre-funded Warrants, the “Warrants”) issued in the Private Placement pursuant
to the Securities Purchase Agreement and (iv) 47,128 shares (the “Placement Agent Warrant Shares”) of our common stock issuable
upon the exercise of the placement agent warrants (the “Placement Agent Warrants”) issued in connection with the Private Placement.
The Shares, the Warrant Shares and the Warrants
were issued to the investors in reliance upon the exemption from the registration requirements in Section 4(a)(2) of the Securities Act
of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder. The Placement Agent Warrants
and the Placement Agent Warrant Shares were issued to the placement agent in reliance upon the exemption from the registration requirements
in Section 4(a)(2) of the Securities Act. We are registering the offer and resale of the Shares and Warrant Shares to satisfy the provisions
of that certain registration rights agreement, dated March 13, 2024 (the “Registration Rights Agreement”), pursuant to which
we agreed to register the resale of the Shares and the Warrant Shares.
We are not selling any common stock under this
prospectus and will not receive any of the proceeds from the sale of shares by the selling shareholders. We will, however, receive the
net proceeds of any Warrants or Placement Agent Warrants exercised for cash.
The selling shareholders identified in this prospectus
may offer the shares from time to time through public or private transactions at fixed prices, at prevailing market prices at the time
of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices.
The registration of the shares of common stock on behalf of the selling shareholders, however, does not necessarily mean that any of
the selling shareholders will offer or sell their shares under this registration statement or at any time in the near future. We provide
more information about how the selling shareholders may sell their shares of common stock in the section entitled “Plan of Distribution”
on page 16.
The selling shareholders will bear all commissions
and discounts, if any, attributable to the sale or disposition of the shares, or interests therein and all costs, expenses and fees in
connection with the registration of the shares. We will not be paying any underwriting discounts or commissions in this offering or costs,
expenses, and fees in connection with the registration of the shares of common stock described in this prospectus. We will pay the expenses
of registering the shares.
Our common stock is traded on The Nasdaq Capital
Market under the symbol “GXAI.” On March 28, 2024, the last reported sale price of our common stock was $6.14 per share.
We are an “emerging growth company”
under the federal securities laws and, as such, are subject to reduced public company reporting requirements.
We may amend or supplement this prospectus from
time to time by filing amendments or supplements as required. You should read the entire prospectus and any amendments or supplements
carefully before you make your investment decision.
An investment in our common stock involves
a high degree of risk. See “Risk Factors” on page 6 of this prospectus for more information on these risks.
Neither the U.S. Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities, or passed upon the adequacy or accuracy of this prospectus.
Any representation to the contrary is a criminal offense.
The date of this prospectus is , 2024
TABLE OF CONTENTS
You should rely only on the information provided
in this prospectus, as well as the information incorporated by reference into this prospectus and any applicable prospectus supplement.
Neither we nor the selling shareholders have authorized anyone to provide you with different information. Neither we nor the selling shareholders
are making an offer of these securities in any jurisdiction where the offer is not permitted. You should not assume that the information
in this prospectus, any applicable prospectus supplement or any documents incorporated by reference is accurate as of any date other than
the date of the applicable document. Since the respective dates of this prospectus and the documents incorporated by reference into this
prospectus, our business, financial condition, results of operations and prospects may have changed.
SUMMARY
The following summary highlights some information
from this prospectus. It is not complete and does not contain all of the information that you should consider before making an investment
decision. You should read this entire prospectus, including the “Risk Factors” section on page 6, the financial statements
and related notes and the other more detailed information appearing elsewhere or incorporated by reference into this prospectus and any
applicable prospectus supplement.
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 Gaming
Our flagship product
is our gaming platform called “Gaxos” (the “Platform” or “Gaxos Gaming”), created with a vision to
develop, design, acquire, and manage conventional games and to combine these games with unconventional game mechanisms, such as the ability
for gamers and developers to utilize artificial intelligence to create and design in-game features, as well as to mint unique in-game features,
such as skins, characters, weapons, gear, levels, and virtual lands, in the form of non-fungible tokens, or “NFTs,” that
will allow users to have unique experiences and more control over in-game assets.
In 2023, we launched
our own proprietary games that are simple and fun to play, and that offer gamers the ability to utilize AI to personalize their gaming
experience as well as to mint their own affordable NFTs, with unique and exclusive features, that can be utilized across the network of
games and platform that we intend to build. As of December 31, 2023, we have launched four games, Space Striker AI, Brawl Bots, BattleFleet
AI, and Jigsaw Puzzle AI. Space Striker AI allows players to engage in a captivating storyline and exciting retro shooting space action
in the players AI-generated spaceship. Players can fuse crystals to upgrade their ship parts to craft, clash and conquer the galaxy all
within a dynamic free-to-play economy. Brawl Bots immerses users in high-octane battles in real time against other players, in solo play
or teams. Each player gets to control their own exclusive Bot character, ensuring a personalized gaming experience. BattleFleet AI is
a take on the classic Battleship game with AI elements that allow gamers to design their ships. Jigsaw Puzzle AI lets gamers solve preloaded
jigsaw puzzles as well as design and solve new jigsaw puzzles using AI.
We expect to launch more
games in 2024. We have a pipeline of games in various stages of development. We plan to methodically launch games based on research and
market data.
In addition to launching
our own proprietary games, Gaxos Gaming is developing an artificial intelligence solution for game developers and studios. The solution
is intended to offer a transformative generative AI service that empowers the gaming industry to create without limits through dynamic
content generation, seamless integration, and personalized solutions. Key features of the product will be:
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AI-Powered Creativity: Reduces creative asset development time from hours to minutes, transforming artistic visions into reality with ease. |
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Seamless Integration: With plug-and-play functionality for Unity and upcoming support for Unreal Engine, integration is effortless into existing workflows. |
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Dynamic Content Generation: User-Generated-Ai-Content (“UGAiC”) feature offers new experiences with each playthrough by letting gamers use AI in real time, fostering a dynamic gaming environment. |
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Customized Solutions: From personalized AI models and templates to expert consulting services, offering to include custom solutions to meet unique needs of each developer. |
We expect to launch the
artificial intelligence solution in Q2 of 2024.
Gaxos Health
Recently, we launched
a new initiative, Gaxos Health, which is dedicated to revolutionizing personal health and wellness by developing a suite of innovative
AI-powered health optimization solutions. Gaxos Health will integrate AI-driven insights with individual biometric data and health goals
to create web and application based personalized wellness strategies to users. We believe that this cutting-edge approach will redefine
preventative medicine, offering unparalleled personalization in health and wellness. Gaxos Health solutions will analyze a wide range
of health data to provide tailored wellness plans and address the growing demand for personalized health solutions. We believe that this
technology is not just a step but a leap forward in empowering individuals to take control of their health and longevity with AI’s
precision and intelligence.
We expect to launch the
AI-powered health optimization product in the second half of 2024.
Our Strategy
Our strategy for Gaxos
Gaming includes the development of proprietary games and the development and launch of our AI solution for developers and studios.
We intend to implement
a number of initiatives and strategies that are designed to help us achieve revenue in the very near term and give us the ability to grow
our user base and future revenue opportunities significantly. This includes the following:
| ● | Generating revenue from the
sale of our in-game items to our customers including AI tickets for user-generated content and NFT minting |
| ● | Subscription sales –Generating
revenues from the sale of the AI solution for developers and studios |
| ● | NFT royalties — royalties
that will be paid to us in the event that NFTs that are minted in our games are resold; |
| ● | Advertising and Partnerships — fees
that will be paid by game advertisers, developers, hardware companies, or other strategic partners. |
We intend to utilize
various marketing strategies to target users, third-party game publishers, and developers, and believe that as the quantity of the
gaming assets and quality of our services increases, the likelihood of adoption of our games and services will increase.
Our strategy for Gaxos
Health includes the development of customized health and wellness plans based on goals, traits, DNA, blood biomarkers, and data from various
sources, such as wearables. The data will be supported by an AI-powered application that centralizes all the information and will allow
users to adhere and comply with the health plans which are designed to achieve higher success rates.
Plan of Operations
We have had a dedicated
approach to long-term success that we believe will allow us to achieve our milestones in product development, user acquisition, and
growth. In the next twelve months we plan to accomplish the following:
Milestones |
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Timeline |
Initial Development |
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● Complete production and development of our AI solution for developers; |
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Q2 2024 |
● Complete development of Gaxos Health offering; |
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2nd half of 2024 |
● Launch a successful beta test of our AI solution for developers with a limited group of users; |
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Q2 2024 |
● Launch Gaxos Health; |
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2nd half of 2024 |
● Launch initial marketing campaigns for AI solution and Gaxos Health |
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2nd half of 2024 |
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Future Development |
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● Launch of digital advertising campaigns for promotion and user acquisition; |
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Ongoing |
● Create and grow our community; |
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Ongoing |
● Launches of new games; |
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Ongoing |
● Develop additional content for our games and services. |
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Ongoing |
We currently estimate
that the cost of the development of our games, AI solution for developers, and Gaxos Health product, will cost approximately $1.1 million.
Risks Associated with Our Business
Our business is subject to a number of risks of
which you should be aware of before making an investment decision as more fully described in the section titled “Risk Factors.”
These risks include, among others, the following:
Risks Related to
Our Business and Industry
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We have a limited operating history and have not yet generated any revenues; |
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We have not developed a strong customer base, and we have not generated sustainable revenue since inception. We cannot assure you that we ever will. We will incur significant losses in launching products and we may not realize sufficient subscriptions or profits in order to sustain our business; |
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We are dependent on the services of certain key management personnel, employees, and advisors. If we are unable to retain or motivate such individuals or hire qualified personnel, we may not be able to grow effectively; |
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The Platform is based on new and unproven technologies and is subject to the risks of failure inherent in the development of new products and services; |
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A slowdown or reduction in our sales in due to a reduction in end user demand, unanticipated competition, regulatory issues, or other unexpected circumstances |
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If we fail to add new users, or if our users engage less with the Platform, our business would be seriously harmed; and |
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Uncertainty regarding our ability to achieve profitability and positive cash flow through the commercialization of the products we offer or intend to offer in the future. |
Risks Related to
Data Security
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We rely on information systems to obtain, process, analyze, and manage data and to the extent IT systems are not successfully implemented or fail, our business and results of operations may be adversely affected. |
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In addition to the risks generally relating to the collection, use, retention, security and transfer of personal information, we are also subject to specific obligations relating to information considered sensitive under applicable laws, such as health data and biometric data. |
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Unauthorized access, use or disclosure of certain sensitive information in our possession or our failure to satisfy legal requirements, including requirements relating to safeguarding protected health information under the Health Insurance Portability and Accountability Act (“HIPAA”) or state data privacy laws could result in civil and criminal liability and regulatory action, which could result in potential fines and penalties, as well as costs relating to investigation of an incident or breach, corrective actions, required notifications to regulatory agencies and customers, credit monitoring services and other necessary expenses. |
Risks Related to
Information Technology Systems, Intellectual Property and Privacy Laws
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We may not be able to adequately protect our proprietary technology, and our competitors may be able to offer similar products and services which would harm our competitive position; |
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Unauthorized breaches or failures in cybersecurity measures adopted by us and/or included in our products and services could have a material adverse effect on our business; and |
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We may be subject to stringent and changing laws, regulations, standards, and contractual obligations related to privacy, data protection, and data security. Our actual or perceived failure to comply with such obligations could adversely affect our business. |
Risks Related to
Digital Assets
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The exchanges on which crypto assets trade are relatively new and largely unregulated, and thus may be exposed to loss, fraud and |
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General regulatory uncertainty with respect to whether certain NFTs could be considered securities and if NFTs sold on the Platform were deemed to be securities, we could be in violation of securities laws which could lead to an enforcement action by the SEC and result in fines and other penalties, and have a negative impact on our business; and |
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We rely on third-party providers for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our products. Any disruption in the services provided by such third-party providers could adversely affect our business. |
Risks Related to
Regulatory Changes
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We may be subject to stringent and changing laws, regulations, standards, and contractual obligations related to privacy, data protection, and data security. Our actual or perceived failure to comply with such obligations could adversely affect our business; |
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Current and future laws and regulations. |
Risks Related to
the Offering and Our Common Stock
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We do not expect to pay dividends in the foreseeable future; |
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If our stock price fluctuates, you could lose a significant part of your investment; |
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The delisting of our securities by Nasdaq; and |
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Exclusive forum provisions in our certificate of incorporation and bylaws. |
Corporate History
We were originally incorporated in the State of
Wyoming on October 27, 2021. On March 30, 2022, we reincorporated to Delaware by filing the Delaware Certificate with the Delaware Secretary
of State. On January 5, 2024, we filed an amendment to our Certificate of Incorporation with the Delaware Secretary of State to change
our name to “Gaxos.ai Inc.”
Corporate Information
Our principal executive offices are located at
101 Eisenhower Pkwy, Suite 300, Roseland, New Jersey 07068 and our telephone number is (973) 275-7428. Our website address is https://gaxos.ai.
The information contained on our website is not incorporated by reference into this prospectus.
JOBS Act
On April 5, 2012, the Jumpstart Our Business Startups
(“JOBS”) Act was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage
of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies.
We have chosen to take advantage of the extended
transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until
those standards would otherwise apply to private companies provided under the JOBS Act. As a result, our consolidated financial statements
may not be comparable to those of companies that comply with public company effective dates for complying with new or revised accounting
standards.
Subject to certain conditions set forth in the
JOBS Act, as an “emerging growth company,” we intend to rely on certain of these exemptions, including, without limitation,
(i) providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b)
of the Sarbanes-Oxley Act of 2002, as amended, and (ii) complying with any requirement that may be adopted by the Public Company Accounting
Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information
about the audit and the consolidated financial statements, known as the auditor discussion and analysis. We will remain an “emerging
growth company” until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235
billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of our initial public offering; (iii)
the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which
we are deemed to be a large accelerated filer under the rules of the SEC.
RISK FACTORS
Any investment in our common stock involves
a high degree of risk. Before deciding whether to purchase our common stock, investors should carefully consider the risks described below
together with the “Risk Factors” described in our most recent Annual Report on Form 10-K and any updates described in our
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all of which are incorporated herein by reference, as may be amended,
supplemented or superseded from time to time by other reports we file with the U.S. Securities and Exchange Commission (the “SEC”).
Our business, financial condition, operating results and prospects are subject to the following material risks as well as those material
risks incorporated by reference. Additional risks and uncertainties not presently foreseeable to us may also impair our business operations.
If any of the following risks actually occurs, our business, financial condition or operating results could be materially adversely affected.
In such case, the trading price of our common stock could decline, and our shareholders may lose all or part of their investment in the
shares of our common stock.
We are an emerging growth company and a
smaller reporting company under U.S. securities laws and may take advantage of the reduced disclosure and governance requirements applicable
to emerging growth companies and smaller reporting companies, which could make our common stock less attractive to investors.
We are an emerging growth company and smaller
reporting company and may take advantage of certain exemptions from various reporting requirements that are otherwise applicable to public
companies that are not emerging growth companies and/or smaller reporting companies including, but not limited to:
| ● | not being required to comply
with the auditor attestation requirements regarding internal controls under Section 404 of the Sarbanes-Oxley Act, as amended; |
| ● | reduced disclosure obligations
regarding executive compensation in periodic reports and proxy statements; |
| ● | exemptions from the requirements
of holding a non-binding shareholder advisory vote on executive compensation and shareholder approval of any golden parachute payments
not previously approved; |
| ● | exemption from the requirement
to provide pay for performance disclosure; and |
| ● | exemption from the requirement
to provide compensation ratio disclosure. |
Moreover, we also are eligible under the JOBS
Act for an exemption from compliance with any requirement that the Public Company Accounting Oversight Board may adopt regarding mandatory
audit firm rotation or supplements to the auditor’s report providing additional information about the audit and the financial statements.
We may take advantage of these reporting exemptions until we no longer are an emerging growth company and/or smaller reporting company.
A sale of a substantial number of shares
of common stock by our shareholders may cause the price of our common stock to decline.
If our shareholders sell, or the market perceives
that our shareholders intend to sell for various reasons, substantial amounts of our common stock in the public market, the price of our
common stock may decline. Additionally, such conditions may make it more difficult for us to sell equity or equity-related securities
in the future at a time and price that we deem reasonable or appropriate.
The price of our common stock may fluctuate substantially.
You should consider an investment in our common
stock to be risky, and you should invest in our common stock only if you can withstand a significant loss and wide fluctuations in the
market value of your investment. Some factors that may cause the market price of our common stock to fluctuate, in addition to the other
risks mentioned in this “Risk Factors” section are:
| ● | sale of our common stock by
our shareholders, executives, and directors; |
| ● | volatility and limitations in
trading volumes of our shares of common stock; |
| ● | the timing and success of introductions
of new products by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among
competitors; |
| ● | our ability to attract new customers; |
In addition, if the market for stocks in our industry
or industries related to our industry, or the stock market in general, experiences a loss of investor confidence, the trading price of
our common stock could decline for reasons unrelated to our business, financial condition and results of operations. If any of the foregoing
occurs, it could cause our stock price to fall and may expose us to lawsuits that, even if unsuccessful, could be costly to defend and
a distraction to management.
We will not receive any proceeds from the
sale of the shares of common stock by the selling shareholders covered by this prospectus.
We are registering the shares of common stock
that were, or may be, issued by us to the selling shareholders to permit the resale of these shares of common stock from time to time
after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling shareholders of the shares of
common stock.
We do not intend
to pay cash dividends on our shares of common stock so any returns will be limited to the value of our shares.
We currently anticipate that we will retain future
earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends for
the foreseeable future. Any return to shareholders will therefore be limited to the increase, if any, of our share price.
We are currently listed on The Nasdaq Capital
Market. If we are unable to maintain listing of our securities on Nasdaq or any stock exchange, our stock price could be adversely affected
and the liquidity of our stock and our ability to obtain financing could be impaired and it may be more difficult for our shareholders
to sell their securities.
Although our common stock is currently listed
on The Nasdaq Capital Market, we may not be able to continue to meet the exchange’s minimum listing requirements or those of any
other national exchange. If we are unable to maintain listing on Nasdaq or if a liquid market for our common stock does not develop or
is sustained, our common stock may remain thinly traded.
The Listing Rules of Nasdaq require listing issuers
to comply with certain standards in order to remain listed on its exchange. If, for any reason, we should fail to maintain compliance
with these listing standards and Nasdaq should delist our securities from trading on its exchange and we are unable to obtain listing
on another national securities exchange, a reduction in some or all of the following may occur, each of which could have a material adverse
effect on our shareholders:
| ● | the liquidity of our common
stock; |
| ● | the market price of our common
stock; |
| ● | our ability to obtain financing
for the continuation of our operations; |
| ● | the number of investors that
will consider investing in our common stock; |
| ● | the number of market makers
in our common stock; |
| ● | the availability of information
concerning the trading prices and volume of our common stock; and |
| ● | the number of broker-dealers
willing to execute trades in shares of our common stock. |
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated
by reference into this prospectus and any applicable prospectus supplement may contain forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), about
us and our subsidiary. These forward-looking statements are intended to be covered by the safe harbor for forward-looking statements provided
by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, and can be
identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,”
“could,” “should,” “projects,” “plans,” “goal,” “targets,” “potential,”
“estimates,” “pro forma,” “seeks,” “intends,” or “anticipates” or the negative
thereof or comparable terminology. Forward-looking statements include, among other things, statements about:
| ● | our business strategies; |
| ● | the timing of regulatory submissions; |
| ● | our ability to obtain and maintain
regulatory approval of our existing product candidates and any other product candidates we may develop, and the labeling under any approval
we may obtain; |
| ● | risks related to market acceptance
of products; |
| ● | intellectual property risks; |
| ● | risks associated with our reliance
on third-party organizations; |
| ● | our competitive position; |
| ● | our industry environment; |
| ● | our anticipated financial and
operating results, including anticipated sources of revenues; |
| ● | assumptions regarding the size
of the available market, benefits of our products, product pricing and timing of product launches; |
| ● | management’s expectation
with respect to future acquisitions; |
| ● | statements regarding our goals,
intentions, plans and expectations, including the introduction of new products and markets; and |
| ● | our cash needs and financing
plans. |
We caution our shareholders and other readers
not to place undue reliance on such statements.
You should read this prospectus and the documents
incorporated by reference completely and with the understanding that our actual future results may be materially different from what we
currently expect. Our business and operations are and will be subject to a variety of risks, uncertainties and other factors. Consequently,
actual results may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors
that could cause actual results to differ from those projected include, but are not limited to, the risk factors set forth herein, risk
factors under the title “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2023, and
any updates described in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and elsewhere in the documents incorporated
by reference into this prospectus and any applicable prospectus supplement.
You should assume that the information appearing
in this prospectus and any document incorporated herein by reference is accurate as of its date only. Because the risk factors referred
to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us
or on our behalf, you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks
only as of the date on which the statement is made. New factors emerge from time to time, and it is not possible for us to predict which
factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All written or oral
forward-looking statements attributable to us or any person acting on our behalf made after the date of this prospectus and any applicable
prospectus supplement are expressly qualified in their entirety by the risk factors and cautionary statements contained in and incorporated
by reference into this prospectus and any applicable prospectus supplement. Unless legally required, we do not undertake any obligation
to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date of this prospectus
and any applicable prospectus supplement or to reflect the occurrence of unanticipated events.
USE OF PROCEEDS
The net proceeds from any disposition of the shares
of common stock covered hereby will be received by the selling shareholders. We will not receive any of the proceeds from any such shares
of common stock offered by this prospectus. We will, however, receive the net proceeds of any Warrants or Placement Agent Warrants exercised
for cash. We expect to use the proceeds received from the exercise of the Warrants or Placement Agent Warrants, if any, for general corporate
purposes and working capital.
PRIVATE PLACEMENT OF SHARES OF COMMON STOCK
AND WARRANTS
On March 13, 2024, we entered
into a securities purchase agreement (the “Purchase Agreement”) with an accredited investor pursuant to which, we sold to
such investor (i) 108,000 shares of common stock, par value $0.0001 per share (the “Common Stock”), (ii) pre-funded warrants
to purchase up to 520,367 shares of Common Stock (the “Pre-Funded Warrants”) (ii) series A warrants to purchase up to 628,367
shares of Common Stock (the “Series A Warrants”), and (iii) series B warrants to purchase up to 628,367 shares of Common Stock
(the “Series B Warrants” and together with the Series A Warrants, the “Common Warrants”). The purchase price of
each share of Common Stock and associated Common Warrants was $5.57 and the purchase price of each Pre-Funded Warrant and associated Common
Warrants was $5.569 in a private placement for aggregate gross proceeds of approximately $3.5 million, exclusive of placement agent commission
and fees and other offering expenses (the “Offering”). For more information regarding the Warrants and Pre-Funded Warrants,
see “Description of Capital Stock – Warrants – Pre-Funded Warrants and Common Stock Warrants”.
In connection
with the Offering, we entered into a registration rights agreement dated March 13, 2024 (the “Registration Rights Agreement”)
with the investor pursuant to which we agreed to prepare and file a registration statement covering the Securities on or prior to the
date that is 30 calendar days following the date of the Registration Rights Agreement. We agreed to use our best efforts to cause the
registration statement covering the Registrable Securities to be declared effective as promptly as practicable after the filing thereof,
but in any event no later the 60th calendar day following the date of the Registration Rights Agreement (or in the event of
a full review by the SEC, the 90th calendar day following the date of the Registration Rights Agreement).
In
addition, pursuant to the terms of the Engagement Letter dated as of dated as of March 7, 2024 and as amended on March 13, 2024,
between us and H.C. Wainwright & Co., LLC (the “Placement Agent”), we issued to the Placement Agent’s
designees Placement Agent Warrants to purchase up to an aggregate of 47,128 shares of Common Stock. For more information regarding
the Placement Agent Warrants, see “Description of Capital Stock – Warrants – Placement Agent
Warrants”.
SELLING SHAREHOLDERS
The common stock being offered by the selling
shareholders are those previously issued to the selling shareholders, and those issuable to the selling shareholders, upon exercise of
the Warrants and Placement Agent Warrants. For additional information regarding the issuances of those shares of common stock, the Warrants
and Placement Agent Warrants, see “Private Placement of Shares of Common Stock and Warrants” above. We are registering
the shares of common stock in order to permit the selling shareholders to offer the shares for resale from time to time. Except for the
ownership of the shares of common stock and the Warrants and Placement Agent Warrants, as applicable, or as otherwise set forth herein
the selling shareholders have not had any material relationship with us within the past three years.
The table below lists the selling shareholders
and other information regarding the beneficial ownership of the shares of common stock by each of the selling shareholders. The second
column lists the number of shares of common stock beneficially owned by each selling shareholder, based on its ownership of the shares
of our securities, as of March 28, 2024, assuming exercise of the Warrants and Placement Agent Warrants held by the selling shareholders
on that date, without regard to any limitations on exercises.
The third column lists the shares of common stock
being offered by this prospectus by the selling shareholders.
In accordance with the terms of a registration
rights agreement with the selling shareholders, this prospectus generally covers the resale of the sum of (i) the number of shares of
common stock issued to the selling shareholders in the “Private Placement of Shares of Common Stock and Warrants” described
above and (ii) the maximum number of shares of common stock issuable upon exercise of the related Warrants and Placement Agent Warrants,
determined as if the outstanding Warrants and Placement Agent Warrants were exercised in full as of the trading day immediately preceding
the date this registration statement was initially filed with the SEC, each as of the trading day immediately preceding the applicable
date of determination and all subject to adjustment as provided in the registration right agreement, without regard to any limitations
on the exercise of the Warrants or and Placement Agent Warrants. The fourth column assumes the sale of all of the shares offered by the
selling shareholders pursuant to this prospectus.
Under the terms of the Warrants and Placement
Agent Warrants, a selling shareholder may not exercise such warrants to the extent such exercise would cause such selling shareholder,
together with its affiliates and attribution parties, to beneficially own a number of shares of common stock which would exceed 4.99%
or 9.99%, as applicable, of our then outstanding common stock following such exercise, excluding for purposes of such determination shares
of common stock issuable upon exercise of the Warrants and Placement Agent Warrants which have not been exercised. The number of shares
in the second and fourth columns do not reflect this limitation. The selling shareholders may sell all, some or none of their shares in
this offering. See “Plan of Distribution.”
Name of Selling Shareholder | |
Number of shares of Common
Stock Owned Prior to Offering | | |
Maximum Number of shares of Common Stock to be Sold Pursuant to this Prospectus | | |
Number of
shares of
Common Stock
Owned After
Offering | |
Armistice Capital, LLC (1) | |
| 628,367 | (2) | |
| 1,885,101 | (3) | |
| - | |
Michael Vasinkevich (4) | |
| - | | |
| 30,221 | (5) | |
| - | |
Noam Rubinstein (4) | |
| - | | |
| 14,845 | (6) | |
| - | |
Craig Schwabe (4) | |
| - | | |
| 1,591 | (7) | |
| - | |
Charles Worthman (4) | |
| - | | |
| 471 | (8) | |
| - | |
TOTAL | |
| | | |
| 1,932,229 | | |
| | |
(1) | The securities are directly
held by Armistice Capital Master Fund Ltd., a Cayman Islands exempted company (the “Master Fund”), and may be deemed to be
beneficially owned by: (i) Armistice Capital, LLC (“Armistice Capital”), as the investment manager of the Master Fund; and
(ii) Steven Boyd, as the Managing Member of Armistice Capital. The warrants are subject to a beneficial ownership limitation of 4.99%,
which such limitation restricts the Selling Stockholder from exercising that portion of the warrants that would result in the Selling
Stockholder and its affiliates owning, after exercise, a number of shares of common stock in excess of the beneficial ownership limitation.
The address of Armistice Capital Master Fund Ltd. is c/o Armistice Capital, LLC, 510 Madison Avenue, 7th Floor, New York, NY 10022. |
(2) | Represents (i) 108,000 shares
of common stock and (ii) pre-funded warrants to purchase up to 520,367 shares of common stock. |
(3) | Represents (i) 108,000 shares
of common stock, (ii) pre-funded warrants to purchase up to 520,367 shares of common stock (iii) Series A Warrants to purchase up to
628,367 shares of common stock, and (iv) Series B Warrants to purchase up to 628,367 shares of common stock. The pre-funded warrants
contain an ownership limitation such that the holder may not exercise any of such pre-funded warrants
to the extent that such exercise would result in the holder’s beneficial ownership being in excess of 9.99% of the Company’s
issued and outstanding common stock together with all shares owned by the holder and its affiliates. The warrants contain
an ownership limitation such that the holder may not exercise any of such warrants to the extent that such exercise would result in the
holder’s beneficial ownership being in excess of 4.99% of the Company’s issued and outstanding common stock together with
all shares owned by the holder and its affiliates. |
(4) | Each of the selling shareholders
is affiliated with H.C. Wainwright & Co., LLC, a registered broker dealer with a registered address of c/o H.C. Wainwright &
Co., 430 Park Ave, 3rd Floor, New York, NY 10022, and has sole voting and dispositive power over the securities held. The number of shares
to be sold in this offering consists of shares of common stock issuable upon exercise of Placement Agent Warrants, which were received
as compensation for our private placement. The selling shareholder acquired the Placement Agent Warrants in the ordinary course of business
and, at the time the Placement Agent Warrants were acquired, the selling shareholder had no agreement or understanding, directly or indirectly,
with any person to distribute such securities. |
(5) | Represents warrants to purchase
up to 30,221 shares of common stock. The warrants contain an ownership limitation such that the
holder may not exercise any of such warrants to the extent that such exercise would result in the holder’s beneficial ownership
being in excess of 4.99% of the Company’s issued and outstanding common stock together with all shares owned by the holder and
its affiliates. |
(6) |
Represents warrants to purchase up to 14,845 shares of common stock. The warrants contain an ownership limitation such that the holder may not exercise any of such warrants to the extent that such exercise would result in the holder’s beneficial ownership being in excess of 4.99% of the Company’s issued and outstanding common stock together with all shares owned by the holder and its affiliates. |
|
|
(7) |
Represents warrants to purchase up to 1,591 shares of common stock. The warrants contain an ownership limitation such that the holder may not exercise any of such warrants to the extent that such exercise would result in the holder’s beneficial ownership being in excess of 4.99% of the Company’s issued and outstanding common stock together with all shares owned by the holder and its affiliates. |
(8) | Represents warrants to purchase
up to 471 shares of common stock. The warrants contain an ownership limitation such that the holder
may not exercise any of such warrants to the extent that such exercise would result in the holder’s beneficial ownership being
in excess of 4.99% of the Company’s issued and outstanding common stock together with all shares owned by the holder and its affiliates. |
DESCRIPTION OF CAPITAL STOCK
The following is a summary description of the
material terms of our common stock as provided in our Certificate of Incorporation, as amended (“Certificate of Incorporation”),
and Amended and Restated Bylaws, as amended (“Bylaws”), copies of which are incorporated by reference as exhibits to the registration
statement of which this prospectus forms a part. The following discussion is only a summary and may not contain all the information that
is important to you or that you should consider before investing in our stock, and is qualified in its entirety by reference to the complete
text of the Certificate of Incorporation and Bylaws. For a more detailed description of these securities, you should read the applicable
provisions of Delaware law, our Certificate of Incorporation, our Bylaws and the reports that we file with the SEC, which are incorporated
herein by reference.
General
As of the date of this prospectus, our authorized
capital stock consisted of 50,000,000 shares of common stock, $0.0001 par value per share, and 5,000,000 shares of preferred stock, $0.0001
par value per share. As of March 28, 2024, there were 1,093,672 shares of our common stock issued and outstanding and no shares of preferred
stock issued and outstanding.
Common Stock
Authorized Capital Shares
The Company’s authorized capital shares
consist of 50,000,000 shares of Common Stock, and 5,000,000 shares of preferred stock, $0.0001 par value per share (“Preferred Stock”).
Voting Rights
Holders of the Company’s Common Stock are
entitled to one vote for each share held on all matters submitted to a vote of the Company’s stockholders. Holders of the Company’s
Common Stock have no cumulative voting rights.
Dividend Rights
Subject to preferences that may be applicable
to any outstanding shares of the Company’s Preferred Stock, holders of the Company’s Common Stock are entitled to receive
dividends, if any, as may be declared from time to time by the Company’s board of directors out of the Company’s assets which
are legally available.
Liquidation Rights
Upon the Company’s liquidation, dissolution
or winding-up, holders of the Company’s Common Stock are entitled to share in all assets remaining after payment of all liabilities
and the liquidation preferences of any of the Company’s outstanding shares of Preferred Stock.
Other Rights
Holders of the Company’s Common Stock have
no preemptive or conversion rights or other subscription rights.
Preferred Stock
Our board of directors is authorized, subject
to limitations prescribed by Delaware law, to issue shares of our preferred stock in one or more series, to establish from time to time
the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each
series and any of its qualifications, limitations or restrictions, in each case without further vote or action by our shareholders. Our
board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares
of that series then outstanding, without any further vote or action by our shareholders. Our board of directors may authorize the issuance
of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our
common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate
purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our Company and might
adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current
plan to issue any shares of preferred stock.
Warrants
As of March 28, 2024, there are outstanding warrants
to purchase an aggregate of 11,245 shares of our common stock at an exercise price of $54.78 per share.
Warrants Registered Pursuant to this Registration
Statement
Pre-Funded Warrants
Each Pre-Funded Warrant is exercisable until exercised
in full at an exercise price of $0.001 per share and may be exercised by means of a cashless exercise. The Company is prohibited from
effecting an exercise of the Pre-Funded Warrants to the extent that, as a result of such exercise, the holder together with the holder’s
affiliates, would beneficially own more than 4.99% (or, at the election of the holder, 9.99%) of the number of shares of common stock
outstanding immediately after giving effect to the issuance of the Pre-Funded Warrant Shares upon exercise of the Pre-Funded Warrants,
which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.
Common Stock Warrants
Each Common Stock Warrant is exercisable for a
period of five and one-half years from the issuance date at an exercise price of $5.50 per share, subject to adjustment. If, at any time
after the issuance date of the Common Stock Warrant, a registration statement covering the resale of the Common Stock Warrant Shares is
not effective, the holders may exercise the Common Stock Warrants by means of a cashless exercise. The Company is prohibited from effecting
an exercise of the Common Stock Warrants to the extent that, as a result of such exercise, the holder together with the holder’s
affiliates, would beneficially own more than 4.99% (or, at the election of the holder, 9.99%) of the number of shares of common stock
outstanding immediately after giving effect to the issuance of the Common Stock Warrant Shares upon exercise of the Common Stock Warrant,
which beneficial ownership limitation may be increased by the holder up to, but not exceeding, 9.99%.
Placement Agent Warrants
The Placement Agent Warrants are exercisable for
a period of five and one-half from the issuance date at an exercise price of $6.9625 per share, subject to adjustment. If, at any time after
the issuance date of the Placement Agent Warrants, a registration statement covering the resale of the Placement Agent Warrant Shares
is not effective, the holders may exercise the Placement Agent Warrants by means of a cashless exercise. The Company is prohibited from
effecting an exercise of the Placement Agent Warrants to the extent that, as a result of such exercise, the holder together with the holder’s
affiliates, would beneficially own more than 4.99% of the number of shares of common stock outstanding immediately after giving effect
to the issuance of the Placement Agent Warrant Share upon exercise of the Placement Agent Warrants, which beneficial ownership limitation
may be increased by the holder up to, but not exceeding, 9.99%.
Applicable Anti-Takeover Law
Set forth below is a summary of the provisions
of the Company’s Certificate of Incorporation and Bylaws and the Delaware General Corporation Law that could have the effect of
delaying or preventing a change in control of the Company. The following description is only a summary, and it is qualified by reference
to the Certificate of Incorporation, Bylaws and relevant provisions of the Delaware General Corporation Law (the “DGCL”).
Delaware Law
The Company is governed by the provisions of Section
203 of the DGCL. In general, Section 203 prohibits a publicly traded Delaware corporation from engaging in a business combination with
an interested stockholder for a period of three years after the date of the transaction in which the person became an interested stockholder,
unless the business combination is approved in a prescribed manner. A business combination includes mergers, asset sales or other transactions
resulting in a financial benefit to the stockholder. An interested stockholder is a person who, together with affiliates and associates,
owns (or within three years, did own) 15% or more of the corporation’s voting stock, subject to certain exceptions. The statute
could have the effect of delaying, deferring or preventing a change in control of the Company.
Board of Directors Vacancies
Our Bylaws authorize the Company’s board
of directors to fill vacant directorships. In addition, the number of directors constituting the Company’s board of directors may
be set by resolution of the incumbent directors.
Special Meeting of Stockholders
Our Bylaws provide that special meetings of our
shareholders may be called by the chief executive officer of the Corporation, the board of directors or a committee of the board of directors
that has been duly designated by the board of directors and whose powers and authority include the power to call such meetings.
Advance Notice Requirements for Stockholder
Proposals and Director Nominations
Our Bylaws provide that shareholders seeking to
bring business before our annual meeting of shareholders, or to nominate candidates for election as directors at our annual meeting of
shareholders, must provide timely notice of their intent in writing. To be timely, a shareholder’s notice must be delivered to the
secretary at our principal executive offices not later than the close of business on the 90th day nor earlier than the close of business
on the 120th day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event the
date of the annual meeting is not within 25 days before or after such anniversary date, notice by the shareholder to be timely must be
so delivered not later than the close of business on the 10th day following the day on which such notice of the date of annual meeting
was mailed or public disclosure of the date of the annual meeting was made, whichever occurs first. These provisions may preclude our
shareholders from bringing matters before our annual meeting of shareholders or from making nominations for directors at our annual meeting
of shareholders.
Authorized but Unissued Shares
The Company’s authorized but unissued shares
of Common Stock and Preferred Stock are available for future issuance without stockholder approval and may be utilized for a variety of
corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans.
The existence of authorized but unissued and unreserved Common Stock and Preferred Stock could render more difficult or discourage an
attempt to obtain control of the Company by means of a proxy contest, tender offer, merger or otherwise.
Exclusive Forum
Our Certificate of Incorporation provides that
unless we consent in writing to the selection of an alternative forum, the State of Delaware is the sole and exclusive forum for: (i)
any derivative action or proceeding brought on behalf of us, (ii) any action asserting a claim of breach of a fiduciary duty owed by any
director, officer or other employee of our Company to us or our stockholders, (iii) any action asserting a claim against us, our directors,
officers or employees arising pursuant to any provision of the DGCL or our Certificate of Incorporation or our Bylaws, or (iv) any action
asserting a claim against us, our directors, officers, employees or agents governed by the internal affairs doctrine, except for, as to
each of (i) through (iv) above, any claim as to which the Court of Chancery determines that there is an indispensable party not subject
to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court of
Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than the
Court of Chancery, or for which the Court of Chancery does not have subject matter jurisdiction.
Additionally, our Certificate of Incorporation
provides that unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States
of America will be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act.
Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock are deemed to have notice of and consented
to this provision.
Transfer Agent and Registrar
The transfer agent and registrar is West Coast
Stock Transfer, Inc., whose address is 721 N. Vulcan Ave. Suite 106, Encinitas, CA 92024.
Exchange Listing
Our common stock is listed on the Nasdaq Capital Market under the symbol
“GXAI.” Prior to the change of our symbol to GXAI on January 19, 2024, our common stock was listed on the Nasdaq Capital Market
under the symbol “NFTG.”
PLAN OF DISTRIBUTION
Each selling shareholder of the securities and
any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby
on the principal Trading Market or any other stock exchange, market or trading facility on which the securities are traded or in private
transactions. “Trading Market” means any of the following markets or exchanges on which the Company’s common stock is
listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing). These sales may be at fixed
or negotiated prices. A selling shareholder may use any one or more of the following methods when selling securities:
| ● | ordinary brokerage transactions
and transactions in which the broker-dealer solicits purchasers; |
| ● | block trades in which the broker-dealer
will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
| ● | purchases by a broker-dealer
as principal and resale by the broker-dealer for its account; |
| ● | an exchange distribution in
accordance with the rules of the applicable exchange; |
| ● | privately negotiated transactions; |
| ● | settlement of short sales; |
| ● | in transactions through broker-dealers
that agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security; |
| ● | through the writing or settlement
of options or other hedging transactions, whether through an options exchange or otherwise; |
| ● | a combination of any such methods
of sale; or |
| ● | any other method permitted pursuant
to applicable law. |
The selling shareholders may also sell securities
under Rule 144 or any other exemption from registration under the Securities Act, if available, rather than under this prospectus.
Broker-dealers engaged by the selling shareholders
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling shareholders
(or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except
as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission
in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.
In connection with the sale of the securities
or interests therein, the selling shareholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling shareholders
may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers
that in turn may sell these securities. The selling shareholders may also enter into option or other transactions with broker-dealers
or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other
financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The selling shareholders and any broker-dealers
or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale
of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each selling shareholder
has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person
to distribute the securities.
The Company is required to pay certain fees and
expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify the selling shareholders
against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.
We agreed to keep this prospectus effective until
the earlier of (i) the date on which the securities may be resold by the selling shareholders without registration and without regard
to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance with the
current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have
been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in
certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and regulations under the
Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities
with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution.
In addition, the selling shareholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder,
including Regulation M, which may limit the timing of purchases and sales of the common stock by the selling shareholders or any other
person. We will make copies of this prospectus available to the selling shareholders and have informed them of the need to deliver a copy
of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).
LEGAL MATTERS
The validity of the issuance of the securities
offered hereby will be passed upon for us by Sheppard, Mullin, Richter & Hampton LLP, New York, New York. Additional legal matters
may be passed upon for us or any underwriters, dealers, or agents by counsel that we will name in the applicable prospectus supplement.
EXPERTS
Our consolidated financial statements as of and
for the years ended December 31, 2023 and 2022, incorporated by reference in this prospectus and the registration statement, of which
it forms a part, have been audited by Salberg & Company, P.A. and D. Brooks & Associates CPAs, independent registered public accounting
firms, as set forth in each of their reports thereon incorporated by reference herein, and are included in reliance on such reports given
on the authority of such firms as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are a reporting company and file annual, quarterly
and current reports, proxy statements and other information with the SEC. We have filed with the SEC a registration statement on Form
S-3 under the Securities Act with respect to the sale, from time to time, of the shares of common stock held by the selling shareholders
named in this prospectus and any applicable prospectus supplement.
This prospectus does not contain all of the information
set forth in the registration statement and the exhibits to the registration statement. For further information with respect to us and
the securities being offered under this prospectus, we refer you to the registration statement and the exhibits and schedules filed as
a part of the registration statement.
You may read and copy the registration statement,
as well as our reports, proxy statements and other information, on the SEC’s website at http://www.sec.gov. You can also
obtain copies of materials we file with the SEC from our website found at https://gaxos.ai. Information on our website does not
constitute a part of, nor is it incorporated in any way, into this prospectus and should not be relied upon in connection with making
an investment decision.
INCORPORATION OF DOCUMENTS BY REFERENCE
The SEC allows us to “incorporate by reference”
information into this prospectus, which means that we can disclose important information to you by referring you to another document filed
separately with the SEC. The documents incorporated by reference into this prospectus contain important information that you should read
about us.
The following documents are incorporated by reference
into this prospectus and any applicable prospectus supplement:
| ● | our Annual Report on Form 10-K
for the fiscal year ended December 31, 2023, filed with the SEC on March 27, 2024; |
| | |
| ● | our Current Reports on Form
8-K (other than Current Reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that are related to
such items) filed with the SEC on January 10, 2024, January 10, 2024, February 28, 2024, March 11, 2024, March 13, 2024, March 15, 2024,
and March 20, 2024; |
| | |
| ● | the description of our common
stock contained in our registration statement on Form 8-A filed with the SEC on February 10, 2023, including any amendments or reports
filed with the SEC for the purposes of updating such description. |
All documents subsequently filed by us (other
than Current Reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that are related to such items
unless such Form 8-K expressly provides to the contrary) with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act,
including those made after the date of the initial filing of the registration statement of which this prospectus forms a part and prior
to effectiveness of such registration statement, until we file a post-effective amendment that indicates the termination of the offering
of the shares of common stock made by this prospectus are deemed to be incorporated by reference into this prospectus. Such future filings
will become a part of this prospectus from the respective dates that such documents are filed with the SEC.
Any statement contained herein or in a document
incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes hereof to the
extent that such statement contained herein or in any other subsequently filed document, which is also incorporated or deemed to be incorporated
herein, modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this prospectus.
The documents incorporated by reference into this
prospectus are also available on our corporate website at https://gaxos.ai. Information contained on, or that can be accessed through,
our website is not part of this prospectus, and you should not consider information on our website to be part of this prospectus or any
prospectus supplement unless specifically incorporated herein by reference. We will provide to each person, including any beneficial owner,
to whom a prospectus is delivered a copy of any or all of the documents incorporated by reference in this prospectus and any prospectus
supplement free of charge upon request for such documents in writing or by telephone at the following address:
Gaxos.ai Inc.
101 Eisenhower Pkwy Suite
300
Roseland, New Jersey 07068
Attention: Secretary
![](https://www.sec.gov/Archives/edgar/data/1895618/000121390024030481/image_001.jpg)
1,932,229 Shares of Common Stock
PROSPECTUS
We have not authorized any dealer, salesperson,
or other person to give you written information other than this prospectus or to make representations as to matters not stated in this
prospectus. You must not rely on unauthorized information. This prospectus is not an offer to sell these securities or our solicitation
of your offer to buy these securities in any jurisdiction where that would not be permitted or legal. Neither the delivery of this prospectus
nor any sales made hereunder after the date of this prospectus shall create an implication that the information contained herein or the
affairs of the Company have not changed since the date of this prospectus.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth an estimate of
the fees and expenses relating to the issuance and distribution of the securities being registered hereby, other than underwriting discounts
and commissions, all of which shall be borne by the selling shareholders. All of such fees and expenses, except for the SEC Registration
Fee, are estimated:
SEC registration fee | |
$ | 1,751.11 | |
Legal fees and expenses | |
$ | 15,000 | |
Printing fees and expenses | |
$ | 2,000 | |
Accounting fees and expenses | |
$ | 10,000 | |
Miscellaneous fees and expenses | |
$ | 6,248.89 | |
| |
| | |
Total | |
$ | 35,000 | |
Item 15. Indemnification of Officers and Directors.
Our directors and officers are indemnified as
provided by the Delaware General Corporation Law (the “DGCL”), our Certificate of Incorporation and our Bylaws.
Section 102 of the DGCL permits a corporation
to eliminate the personal liability of directors of a corporation to the corporation or its stockholders for monetary damages for a breach
of fiduciary duty as a director, except where the director breached his duty of loyalty, failed to act in good faith, engaged in intentional
misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate
law or obtained an improper personal benefit. Our Certificate of Incorporation provides that no director of the Company shall be personally
liable to us or our stockholders for monetary damages for any breach of fiduciary duty as a director, notwithstanding any provision of
law imposing such liability, except to the extent that the DGCL prohibits the elimination or limitation of liability of directors for
breaches of fiduciary duty.
Section 145 of the DGCL provides that a corporation
has the power to indemnify a director, officer, employee, or agent of the corporation, or a person serving at the request of the corporation
for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit
or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or
proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his conduct was
unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect
to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the
extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability but in view of all
of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery
or such other court shall deem proper.
Our Certificate of Incorporation and Bylaws provide
indemnification for our directors and officers to the fullest extent permitted by the DGCL. We will indemnify each person who was or is
a party or threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or
in the right of us) by reason of the fact that he or she is or was, or has agreed to become, a director or officer, or is or was serving,
or has agreed to serve, at our request as a director, officer, partner, employee or trustee of, or in a similar capacity with, another
corporation, partnership, joint venture, trust or other enterprise (all such persons being referred to as an “Indemnitee”),
or by reason of any action alleged to have been taken or omitted in such capacity, against all expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding and
any appeal therefrom, if such Indemnitee acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to,
our best interests, and, with respect to any criminal action or proceeding, he or she had no reasonable cause to believe his or her conduct
was unlawful. Our Certificate of
Incorporation and Bylaws provide that we will
indemnify any Indemnitee who was or is a party to an action or suit by or in the right of us to procure a judgment in our favor by reason
of the fact that the Indemnitee is or was, or has agreed to become, a director or officer, or is or was serving, or has agreed to serve,
at our request as a director, officer, partner, employee or trustee of, or in a similar capacity with, another corporation, partnership,
joint venture, trust or other enterprise, or by reason of any action alleged to have been taken or omitted in such capacity, against all
expenses (including attorneys’ fees) and, to the extent permitted by law, amounts paid in settlement actually and reasonably incurred
in connection with such action, suit or proceeding, and any appeal therefrom, if the Indemnitee acted in good faith and in a manner he
or she reasonably believed to be in, or not opposed to, our best interests, except that no indemnification shall be made with respect
to any claim, issue or matter as to which such person shall have been adjudged to be liable to us, unless a court determines that, despite
such adjudication but in view of all of the circumstances, he or she is entitled to indemnification of such expenses. Notwithstanding
the foregoing, to the extent that any Indemnitee has been successful, on the merits or otherwise, he or she will be indemnified by us
against all expenses (including attorneys’ fees) actually and reasonably incurred in connection therewith. Expenses must be advanced
to an Indemnitee under certain circumstances.
Certificate of Incorporation
Our Certificate of Incorporation provides that
the Company shall, to the fullest extent permitted by the provisions of Delaware General Corporation Law, indemnify any and all persons
whom it shall have the power to indemnify under such section.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions,
or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in such
Act and is, therefore, unenforceable.
Item 16. Exhibits.
Exhibit Number |
|
Title of Document |
3.1 |
|
Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Company’s Form S-1/A Filed on February 8, 2023). |
|
|
|
3.2 |
|
Certificate of Conversion (Incorporated by reference to Exhibit 3.2 to the Company’s S-1/A filed on February 8, 2023). |
|
|
|
3.3 |
|
Certificate of Incorporation (Incorporated by reference to Exhibit 3.2 to the Company’s Form S-1/A Filed on February 8, 2023). |
|
|
|
3.4 |
|
Certificate of Amendment to Certificate of Incorporation (Incorporated by reference to Exhibit 3.4 to the Company’s Annual Report on Form 10-K filed on March 31, 2023). |
|
|
|
3.5 |
|
Bylaws (Incorporated by reference to Exhibit 3.3 to the Company’s Form S-1/A filed on February 8, 2023). |
|
|
|
3.6 |
|
Second Amendment to the Certificate of Incorporation of Gaxos.ai Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on January 10, 2024). |
|
|
|
3.7 |
|
Amendment to the Bylaws of Gaxos.ai Inc. (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on January 10, 2024). |
|
|
|
3.8 |
|
Third Amendment to the Certificate of Incorporation of Gaxos.ai Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on March 11, 2024). |
|
|
|
5.1* |
|
Opinion of Sheppard, Mullin, Richter & Hampton LLP as to the legality of the securities being registered |
|
|
|
23.1* |
|
Consent of Salberg & Company PA |
|
|
|
23.2* |
|
Consent of D, Brooks and Associates CPA’s P.A. |
|
|
|
23.3* |
|
Consent of Sheppard, Mullin, Richter & Hampton LLP (included in Exhibit 5.1) |
|
|
|
24.1 |
|
Power of Attorney (included on signature pages to the registration statement) |
|
|
|
107* |
|
Filing Fee Table |
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
(1) |
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
|
(i) |
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
|
|
|
|
(ii) |
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
|
|
|
|
(iii) |
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; |
Provided, however, that paragraphs
(1)(i), (1)(ii) and (1)(iii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs
is contained in periodic reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus
filed pursuant to Rule 424(b) that is part of the registration statement.
(2) |
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) |
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) |
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: |
| (A) | each prospectus filed pursuant to Rule 424(b)(3) as part
of a registration statement as of the date the filed prospectus was deemed part of and included in the registration statement. |
| (B) | each prospectus required to be filed pursuant to Rule 424(b)(2),
(b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i),
(vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act shall be deemed to be part
of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness
or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability
purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement
made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser
with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date. |
(5) | That, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d)
of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof. |
(6) | Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act, and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue. |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Roseland, State of New
Jersey, on April 4, 2024.
|
GAXOS.AI INC. |
|
|
|
|
By: |
/s/ Vadim Mats |
|
|
Vadim Mats |
|
|
Chief Executive Officer |
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
individual whose signature appears below constitutes and appoints Vadim Mats, his/her true and lawful attorney-in-fact and agent with
full power of substitution and re-substitution, for him/her and in his/her name, place and stead, in any and all capacities to sign any
or all amendments (including, without limitation, post-effective amendments) to this Registration Statement, any related Registration
Statement filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, and any or all pre- or post-effective amendments
thereto, and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite
and necessary to be done in and about the premises, as fully for all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming that said attorney-in-fact and agent, or any substitute or substitutes for him, may lawfully do or cause to be
done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
Signature |
|
Title |
|
Date |
|
|
|
|
|
/s/ Vadim Mats |
|
Chief Executive Officer and Director |
|
April 4, 2024 |
Vadim Mats |
|
(Principal Executive Officer) |
|
|
|
|
|
|
|
/s/ Steven Shorr |
|
Chief Financial Officer |
|
April 4, 2024 |
Steven Shorr |
|
(Principal Financial and Accounting Officer) |
|
|
|
|
|
|
|
/s/ Adam Holzer |
|
Director |
|
April 4, 2024 |
Adam Holzer |
|
|
|
|
|
|
|
|
|
/s/ Alex Kisin |
|
Director |
|
April 4, 2024 |
Alex Kisin |
|
|
|
|
|
|
|
|
|
/s/ Scott Grayson |
|
Director |
|
April 4, 2024 |
Scott Grayson |
|
|
|
|
Exhibit 5.1
![](https://www.sec.gov/Archives/edgar/data/1895618/000121390024030481/ex5-1_001.jpg) |
Sheppard, Mullin, Richter & Hampton LLP
30 Rockefeller Plaza
New York, New York 10112-0015
212.653.8700 main
212.653.8701 fax
www.sheppardmullin.com |
April 4, 2024
VIA EDGAR
Gaxos.ai Inc.
101 Eisenhower Pkwy, Suite 300
Roseland, New Jersey 07068
Re: Registration Statement on Form S-3
Ladies and Gentlemen:
We have acted as counsel to
Gaxos.ai Inc., a Delaware corporation (the “Company”), in connection with the issuance of this opinion that relates
to a Registration Statement on Form S-3 (the “Registration Statement”) filed by the Company with the United States
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Securities
Act”). The Registration Statement covers the resale, by the selling shareholders listed therein, from time to time pursuant
to Rule 415 under the Securities Act as set forth in the Registration Statement, of shares (the “Shares”) of the Company’s
common stock, par value $0.0001 per share (the “Common Stock”), which consist of (i) 108,000 shares of Common Stock
delivered to the selling shareholders pursuant to the Agreement (as defined below), (ii) pre-funded warrants (the
“Pre-Funded Warrants”) to purchase up to 520,367 shares (the “Pre-Funded Warrant Shares”)
of Common Stock issued to the selling shareholders pursuant to the Agreement, (iii) series
A warrants (the “Series A Warrants”) to purchase up to 628,367 shares
(the “Series A Warrants Shares”) of Common Stock issued to the selling shareholders pursuant to the Agreement, (iv)
series B warrants (the “Series B Warrants”) to purchase up to 628,367 shares (the “Series B Warrants Shares,”
and together with the Series A Warrant Shares, the “Warrant Shares”) of Common Stock issued to the selling shareholders
pursuant to the Securities Purchase Agreement by and between the Company and the purchaser identified as a party thereto, dated
as of March 13, 2024 (the “Agreement”) and (v) warrants (the “Placement Agent Warrants”) to purchase
up to 47,128 shares (the “Placement Agent Warrant Shares”) of Common Stock issued to the selling shareholders pursuant
to the Engagement Agreement by and between the Company and H.C. Wainwright & Co., LLC dated as of March 7, 2024 and as amended on
March 13, 2024.
This opinion letter is being
delivered in accordance with the requirements of Item 601(b)(5)(i) of Regulation S-K under the Securities Act, and no opinion is expressed
herein as to any matter pertaining to the contents of the Registration Statement.
In connection with the issuance
of this opinion letter, we have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of
the Company and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the
Company and others, and such other documents as we have deemed necessary or appropriate as a basis for the opinions stated below. As to
any facts relevant to the opinions stated herein that we did not independently establish or verify, we have relied upon statements and
representations of officers and other representatives of the Company and of public officials.
In our examination, we have
assumed (a) the genuineness of all signatures, including endorsements, (b) the legal capacity and competency of all natural persons, (c)
the authenticity of all documents submitted to us as originals, (d) the conformity to original documents of all documents submitted to
us as facsimile, electronic, certified or photostatic copies, and the authenticity of the originals of such copies; and (e) the accuracy,
completeness and authenticity of certificates of public officials.
Based upon the foregoing and
subject to the qualifications and assumptions stated herein, we are of the opinion that:
1. The Shares have been duly
authorized by all requisite corporate action on the part of the Company under the General Corporation Law of the State of Delaware (the
“DGCL”) and are validly issued, fully paid, and non-assessable.
2. The Pre-Funded Warrant
Shares have been duly authorized by all requisite corporate action on the part of the Company under the DGCL and, when the Pre-Funded
Warrant Shares are delivered and paid for in accordance with the terms of the Pre-Funded Warrants and when evidence of the issuance thereof
is duly recorded in the Company’s books and records, the Pre-Funded Warrant Shares will be validly issued, fully paid, and non-assessable.
3. The Warrants Shares have
been duly authorized by all requisite corporate action on the part of the Company under the DGCL and, when the Warrant Shares are delivered
and paid for in accordance with the terms of the Warrants and when evidence of the issuance thereof is duly recorded in the Company’s
books and records, the Warrant Shares will be validly issued, fully paid, and non-assessable.
4. The Placement Agent Warrant
Shares have been duly authorized by all requisite corporate action on the part of the Company under the DGCL and, when the Placement Agent
Warrant Shares are delivered and paid for in accordance with the terms of the Placement Agent Warrants and when evidence of the issuance
thereof is duly recorded in the Company’s books and records, the Placement Agent Warrant Shares will be validly issued, fully paid,
and non-assessable.
Our opinion is expressly limited
to the matters set forth above, and we render no opinion, whether by implication or otherwise, as to any other matters relating to the
Company, the Shares, the Pre-Funded Warrants, the Warrants, the Placement Agent Warrants, the Pre-Funded Warrant Shares, the Warrant Shares,
the Placement Agent Warrant Shares, the Agreement or any other agreements or transactions that may be related thereto or contemplated
thereby. We are expressing no opinion as to any obligations that parties other than the Company may have under or in respect of the Shares,
the Pre-Funded Warrant Shares, the Warrant Shares, the Placement Agent Warrant Shares or as to the effect that their performance of such
obligations may have upon any of the matters referred to above. No opinion may be implied or inferred beyond the opinion expressly stated
above.
The opinion we render herein
is limited to those matters governed by the DGCL as of the date hereof and we disclaim any obligation to revise or supplement the opinion
rendered herein should the above-referenced laws be changed by legislative or regulatory action, judicial decision, or otherwise. We express
no opinion as to whether, or the extent to which, the laws of any particular jurisdiction apply to the subject matter hereof.
This opinion letter is rendered
as of the date first written above, and we disclaim any obligation to advise you of facts, circumstances, events, or developments that
hereafter may be brought to our attention or that may alter, affect, or modify the opinion expressed herein.
We hereby consent to the filing
of this opinion as an exhibit to the Registration Statement. We also hereby consent to the reference to our firm under the heading “Legal
Matters” in the Registration Statement. In giving this consent, we do not thereby admit that we are within the category of persons
whose consent is required under Section 7 of the Securities Act or the General Rules and Regulations under the Securities Act. It is understood
that this opinion is to be used only in connection with the offer and sale of the Shares, the Pre-Funded Warrant Shares, the Warrants
Shares and the Placement Agent Warrant Shares being registered while the Registration Statement is effective under the Securities Act.
Respectfully submitted,
/s/ Sheppard, Mullin, Richter & Hampton
LLP
SHEPPARD, MULLIN, RICHTER & HAMPTON llp
-2-
Exhibit 23.1
Consent of Independent Registered Public Accounting
Firm
We hereby consent to the incorporation by reference
in the Registration Statement on Form S-3 of Gaxos.AI, Inc. of our report dated March 27, 2024 on the financial statements of Gaxos.AI,
Inc. as of December 31, 2023 and for the year then ended and to the reference to our firm under the heading “Experts” in the
prospectus.
/s/ Salberg & Company, P.A.
SALBERG & COMPANY, P.A.
Boca Raton, Florida
April 4, 2024
Exhibit 23.2
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby
consent to the incorporation by reference in the Prospectus constituting a part of this
Registration Statement on Form S-3 of our report dual dated March 31, 2023 and March 27, 2024, relating to the financial statements of
Gaxos.AI Inc. as of and for the year ended December 31, 2022.
/s/ D. Brooks and Associates CPAs, P.A. |
|
D. Brooks and Associates CPAs, P.A. |
|
Palm Beach, FL |
|
April 4, 2024
Exhibit 107
Calculation of Filing Fee Tables
FORM S-3
(Form Type)
GAXOS.AI INC.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered Securities
| |
Security Type | |
Security Class Title | |
Fee Calculation or Carry Forward Rule | |
Amount Registered (2) | | |
Proposed Maximum Offering Price Per Unit | | |
Maximum Aggregate Offering Price | | |
Fee Rate | | |
Amount of Registration Fee | |
Fees to Be Paid | |
Equity | |
Common Stock, par value $0.0001 per share | |
Other (1) | |
| 1,932,229 | (3) | |
$ | 6.14 | | |
$ | 11,863,886.06 | | |
$ | 0.00014760 | | |
$ | 1,751.11 | |
| |
Total Offering Amounts | |
| | | |
| | | |
$ | 11,863,886.06 | | |
| | | |
$ | 1,751.11 | |
| |
Total Fees Previously Paid | |
| | | |
| | | |
| — | | |
| | | |
| — | |
| |
Total Fee Offsets | |
| | | |
| | | |
| — | | |
| | | |
| — | |
| |
Net Fee Due | |
| | | |
| | | |
| | | |
| | | |
$ | 1,751.11 | |
(1) | Estimated solely for the purpose
of computing the amount of the registration fee pursuant to Rule 457(c) under the Securities Act of 1933, as amended (the “Securities
Act”), based upon the average of the high and low prices for a share of the registrant’s common stock as reported on The
Nasdaq Capital Market on March 28, 2024. |
(2) | Pursuant to Rule 416 under
the Securities Act, the shares of common stock offered hereby also include an indeterminate number of additional shares of common stock
as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions. |
(3) | Represents the resale of (i)
108,000 shares of common stock, (ii) 520,367 shares of common stock issuable upon the exercise of the pre-funded warrants, (iii) 628,367
shares of common stock issuable upon the exercise of the Series A Warrants (iv) 628,367 shares of common stock issuable upon the exercise
of the Series B Warrants and (v) 47,128 shares of common stock issuable upon the exercise of the placement agent warrants. |
NFT Gaming (NASDAQ:NFTG)
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