MGO Global Announces First Quarter 2024 Results
MGO Global (NASDAQ: MGOL) announced its Q1 2024 financial results, reporting a revenue surge of 1385% to $670,264 due to the launch of its Stand Flagpole line. The company assigned its Trademark License Agreement with Leo Messi Management to Centric Brand for $2 million in cash, leading to a net income from discontinued operations of $1,927,298. Net income overall reached $63,163, contrasting with a net loss of $1,220,125 in Q1 2023. The net loss from continuing operations increased by 169% to $1,864,135. MGO also initiated an At-The-Market offering with Maxim Group, raising $662,565. Cash and equivalents rose to $1,517,158, with total stockholders' equity at $2,042,886 by March 31, 2024.
- Total revenues increased by 1385% to $670,264.
- Net income from discontinued operations was $1,927,298.
- Overall net income of $63,163, a significant improvement from the previous year's net loss of $1,220,125.
- $2 million in cash from the assignment of Messi Brand's TLA to Centric Brand.
- Cash and cash equivalents rose to $1,517,158.
- No long-term debt as of March 31, 2024.
- Total stockholders' equity increased to $2,042,886.
- Net loss from continuing operations increased by 169% to $1,864,135.
- Net loss attributable to MGO stockholders was $164,644, or $0.01 per share.
- The company is reliant on the success of the Stand Flagpole line after divesting the Messi Brand.
Insights
Revenue Surge: The triple-digit increase in total revenues, jumping
Net Income Shifts: The net income from discontinued operations notably rose to
ATM Offering: The engagement with Maxim Group to implement an At-The-Market (ATM) offering, raising up to
Product Line Focus: The company's pivot to focus on its Stand Flagpole business after offloading the Messi Brand suggests a strategic shift towards a more streamlined and potentially profitable product line. The revenue boost from this line is promising, but market saturation and competition need to be monitored to ensure long-term viability.
Strategic Partnerships: The deal with Centric Brands not only brought in a substantial cash inflow but also transferred significant obligations, including minimum royalty payments to LMM. This allows MGO to redirect resources and attention to other growth areas, which can be beneficial if managed efficiently. However, it also means MGO loses a high-profile brand association which could impact brand equity in the long term.
Operational Efficiencies: MGO's efforts to simplify its cost structure and reduce headcount are critical steps towards achieving sustainable growth. The emphasis on operational efficiency and sustainable business models can help mitigate future financial risks. However, these measures must be balanced to avoid negatively impacting employee morale and productivity.
MIAMI, FL and LONDON, UK and NEW YORK, NY / ACCESSWIRE / May 21, 2024 / MGO Global Inc. (NASDAQ:MGOL), a digitally-native, lifestyle brand portfolio company, ("MGO" or the "Company" or "MGO Global"), today announced its financial results for the three months ended March 31, 2024.
First Quarter Financial and Operational Highlights
- Total revenues climbed
1385% to$670,264 from$45,147 due primarily to the timing of the launch of the Company's Stand Flagpole line of products, which did not occur until mid-March 2023. - On March 21, 2024, MGO assigned its Trademark License Agreement ("TLA") with Leo Messi Management ("LMM") for the Messi Brand line of apparel, accessories and homewares to Centric Brand in exchange for
$2,000,000 in cash and Centric Brands assuming all of MGO's right and obligations pursuant to the TLA, including the minimum guaranteed royalty amount of €1,500,000 due in 2024 to LMM. As a result, revenues generated from sales of Messi Brand products have been reflected in discontinued operations for the comparable three month reporting periods ended March 31, 2024 and 2023. - Net loss from continuing operations was
$1,864,135 , a169% increase over the net loss of$692,506 reported for the three months ended March 31, 2024 and 2023, respectively. - Net income from discontinued operations rose to
$1,927,298 from a net loss of$527,619 for the three months ended March 31, 2024 and 2023, respectively, largely as a result of the Centric Brands deal. - Overall, net income totaled
$63,163 for the three months ended March 31, 2024, which compared to a net loss of$1,220,125 posted for the three months ended March 31, 2023. After factoring net income of$227,807 and a net loss of$62,069 for non-controlling interest for the three months ended March 31, 2024 and 2023, respectively, net loss attributable to MGO stockholders was$164,644 , or$0.01 loss per share, and 1,158,056, or$0.08 loss per share, respectively. - In February 2024, the Company engaged New York-based investment banking firm Maxim Group, LLC to implement an At-The-Market offering ("ATM") to raise gross proceeds of up to
$1,650,000 t hrough sales of our common stock in the open market from time to time, depending on prevailing market conditions. As of March 31, 2024, the Company has received net proceeds of$662,565 from the ATM.
As of March 31, 2024, cash and cash equivalents was
Maximiliano Ojeda, Co-founder, Chairman and CEO of MGO, stated, "MGO started 2024 strong, highlighted by material revenue growth for our Stand Flagpole business, coupled with the assignment of the Messi Brand to Centric Brands, which resulted in a
For more detailed information on MGO's first quarter 2024 financial performance, please refer to the Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on MGO's website at www.mgoglobalinc.com.
About MGO Global Inc.
MGO Global is actively engaged in building a portfolio of independent, digitally native, lifestyle brands, which are unique and differentiated, yet all defined by distinctive, high-quality products and a shared commitment to delivering high-touch customer experiences across its ecommerce and wholesale channels. MGO is currently comprised of two business units: Americana Liberty, which markets a growing, high-end line of thoughtfully curated home and outdoor products, including Stand Flagpoles; and MGO Digital, which leverages data analytics, advanced technology-enabled marketing and our leadership's industry relationships and expertise to identify, incubate and introduce to market new, authentic lifestyle brand concepts. For more information on MGO Global, please visit www.mgoglobalinc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company's ability to grow its businesses and other statements that are not historical facts, including statements which may be accompanied by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, customer acceptance of new products, and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company's products and the Company's customers' economic condition, the impact of competitive products and pricing, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
FOR MEDIA AND INVESTOR RELATIONS
MGO Global Inc.
Dodi Handy, Director of Communications
Phone: +1 407-960-4636
Email: ir@mgoteam.com
SOURCE: MGO Global
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