Thu, Nov 14, 4:59 PM (121 days ago)
MGO Global Inc. (MGOL) reported significant financial metrics for the quarter ending September 30, 2024, highlighting a substantial decline in revenue and ongoing operational challenges. Revenue for Q3 2024 decreased by 46.4% to $565,400, while nine-month revenues fell by 5.7% to $2,661,253 compared to the previous year, primarily due to reduced marketing expenditures aimed at improving profitability. Gross profit margins improved significantly, reaching 88.0% for Q3 2024, up from 78.0% in Q3 2023. Operating expenses decreased by 35.1% in Q3 2024, driven by a reduction in selling, general, and administrative costs. Despite these efforts, the net loss from continuing operations was $1,346,804 for Q3 2024, a 33.7% improvement from the previous year, while the total net loss for the nine months was $3,715,019, down from $5,170,443 in 2023. Cash flow showed improvement, with cash on hand increasing to $1,435,288, driven by proceeds from a $2 million assignment deal concerning the Messi brand and $3.2 million from stock sales. However, the company faces ongoing liquidity concerns and significant operational uncertainties, emphasizing the need for additional capital to sustain operations and growth strategies.