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, a 169% 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 through 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 $1,517,158, there was no long-term debt and total stockholders' equity was $2,042,886. This compared to cash and cash equivalents of $836,446, zero long term debt and total stockholders' equity of $921,748 as of December 31, 2023.
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 $2 million cash infusion and the elimination of the 2024 minimum royalty payments to LMM of €1,500,000. MGO is now concentrating on driving sustainable, long-term growth of Stand Flagpoles, while achieving material efficiencies in our day-to-day operations. Moreover, in the first quarter, we took aggressive actions to simplify our cost structure, reduce our headcount and implement a more sustainable business model - all of which we believe will help position MGO to achieve positive cash flow in the quarters ahead."
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: [email protected]
SOURCE: MGO Global