Exhibit 99.2

 

GAXOS.AI INC. AND SUBSIDIARY

PRO FORMA NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025

 

NOTE 1 – Description of Sale

 

On June 15, 2026, Gaxos.ai Inc. (“Gaxos” or the “Company”) completed the sale of its gaming assets, including its portfolio of mobile games and Gaxos Gaming Labs, a generative AI service that empowers game developers and publishers, to Game Foundry AI, a privately-held company. In connection with the sale, the Company received 2,200,000 shares of common stock of Game Foundry AI valued at $0.80 per shares based on recent sales of Game Foundry common shares in a private placement.

 

NOTE 2 - Basis of Presentation

 

The unaudited pro forma consolidated financial information is prepared pursuant to Article 11 of Regulation S-X. The unaudited pro forma consolidated balance sheet and statements of operations and comprehensive loss are based upon the historical consolidated financial statements of the Company, which were included in its Annual Reports on Form 10-K for the fiscal years ended December 31, 2025, previously filed with the SEC. The unaudited pro forma consolidated balance sheet as of December 31, 2025 has been prepared by including the audited historical consolidated balance sheet of the Company as of December 31, 2025, adjusted to reflect the pro forma effect as if the sale of the Company’s gaming assets had been consummated on that date. The unaudited pro forma consolidated statements of operations and comprehensive loss for the year ended December 31, 2025 have been prepared by including the Company’s historical consolidated statements of operations and comprehensive loss, adjusted to reflect the pro forma effect as if the Sale had been consummated on January 1, 2025.

 

NOTE 3 - Pro Forma Adjustments

 

The following pro forma adjustments are included in the unaudited pro forma consolidated balance sheet and/or the unaudited pro forma consolidated statements of operations and comprehensive loss:

 

  a. Reflects the elimination of unamortized capitalized software developments costs related to the gaming assets of $22,069.

 

  b. Reflects the receipt of 2,200,000 shares of Game Foundry AI valued at $1,760,000, or $0.80 per share, based on recent sales of Game Foundry AI’s common shares in a private placement.

 

  c. Reflects the effect on unaudited consolidated statement of operations and comprehensive loss related to the estimated gain of $1,737,931 from the sale of the gaming assets.

 

 

 

GAXOS.AI INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED BALANCE SHEET

(Unaudited)

 

   Historical   Pro Forma Adjustments   Pro Forma 
   December 31,   Sale of Gaming Assets   December 31, 
   2025   Debit   Credit   2025 
                 
ASSETS                
CURRENT ASSETS:                
Cash  $840,799   $-   $-   $840,799 
Short-term investments, at fair value   11,345,187    -    -    11,345,187 
Investment in equity securities, at fair value   180,000    -    -    180,000 
Accounts receivable   76,247    -    -    76,247 
Prepaid expenses and other current assets   157,586    -    -    157,586 
                     
Total Current Assets   12,599,819    -    -    12,599,819 
                     
LONG-TERM ASSETS:                    
Property and equipment, net   103,393    -    22,069    81,324 
Intangible assets, net   718,333    -    -    718,333 
Investment in equity securities, at fair value   -    1,760,000    -    1,760,000 
                     
Total Long-Term Assets   821,726    1,760,000    22,069    2,559,657 
                     
TOTAL ASSETS  $13,421,545   $1,760,000   $22,069   $15,159,476 
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
                     
CURRENT LIABILITIES:                    
   $270,105   $-   $-   $270,105 
Accrued expenses   280,430    -    -    280,430 
Deferred revenue   130,054    -    -    130,054 
                     
Total Current Liabilities   680,589    -    -    680,589 
                     
Total Liabilities   680,589    -    -    680,589 
                     
Commitments and Contingencies (See Note 8)                    
                     
STOCKHOLDERS’ EQUITY:                    
Preferred stock; par value $0.0001; 5,000,000 shares authorized;                    
No shares issued and outstanding on December 31, 2025 and 2024   -    -    -    - 
Common stock; par value $0.0001: 50,000,000 shares authorized; 7,123,453 and 6,923,453 shares issued and outstanding on December 31, 2025 and 2024, respectively   712    -    -    712 
Additional paid-in capital   25,801,322    -    -    25,801,322 
Accumulated other comprehensive income   26,976    -    -    26,976 
Accumulated deficit   (12,700,304)   22,069    1,760,000    (10,962,373)
                     
Total Gaxos.AI Stockholders’ Equity   13,128,706    -    -    14,866,637 
Noncontrolling interest   (387,750)   -    -    (387,750)
                     
Total Stockholders’ Equity   12,740,956    -    -    14,478,887 
                     
Total Liabilities and Stockholders’ Equity  $13,421,545    -    -   $15,159,476 

 

See accompanying notes to unaudited pro forma consolidated financial statements.

 

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GAXOS.AI INC. AND SUBSIDIARY

PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

 

   Historical           Pro Forma 
   For the Year Ended   Pro Forma Adjustments   For the Year Ended 
   December 31,   Sale of Gaming Assets   December 31, 
   2025   Debit   Credit   2025 
                 
REVENUES  $1,933,030   $-   $-   $1,933,030 
                     
OPERATING EXPENSES:                    
Research and development   993,671    -    -    993,671 
Selling, general and administrative   5,855,885    -    -    5,855,885 
                     
Total Operating Expenses   6,849,556    -    -    6,849,556 
                     
LOSS FROM OPERATIONS   (4,916,526)   -    -    (4,916,526)
                     
OTHER INCOME (LOSS):                    
Interest income   612,285    -    -    612,285 
Unrealized gain on short-term investments   21,945    -    -    21,945 
Realized gain on short-term investments   30,047    -    -    30,047 
Realized loss on exchange of equity securities   (29,998)   -    -    (29,998)
Gain on sale of gaming assets        22,069    1,760,000    1,737,931 
                     
Total other income, net   634,279    22,069    1,760,000    2,372,210 
                     
NET LOSS   (4,282,247)   22,069    1,760,000    (2,544,316)
                     
Net loss of subsidiary attributable to noncontrolling interest   381,664    -    -    381,664 
                     
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(3,900,583)  $22,069   $1,760,000   $(2,162,652)
                     
COMPREHENSIVE LOSS:                    
Net loss  $(4,282,247)  $22,069   $1,760,000   $(2,544,316)
                     
Other comprehensive income:                    
Unrealized gain (loss) on short-term debt investments   15,283    -    -    (84,092)
                     
Comprehensive loss  $(4,266,964)  $22,069   $1,760,000   $(2,628,408)
                     
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS:                    
Basic and diluted  $(0.55)            $(0.30)
                     
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING:                    
Basic and diluted   7,093,316    -         7,093,316 

 

See accompanying notes to unaudited pro forma consolidated financial statements.

 

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