10-Q - CMG HOLDINGS GROUP, INC. (0001346655) (Filer)

Mon, Nov 18, 11:01 AM (15 days ago)

CMG Holdings Group, Inc. (CMGO) reported a significant decline in financial performance for the quarter ended September 30, 2024. Revenues dropped to $14,805 from $146,143 in the same quarter of 2023, primarily due to decreased business activity attributed to global inflation. Operating expenses rose to $162,646 from $278,079, reflecting increased general and administrative costs. Consequently, the net loss widened to $121,015 compared to $97,486 in the prior year. As of September 30, 2024, total assets decreased to $1,886,804, while total liabilities increased to $1,438,815, resulting in a stockholders' deficit of $447,989. Cash flow from operating activities showed improvement, with a usage of $103,817 compared to $188,289 in the previous year. The company faces uncertainties regarding future operations, primarily influenced by macroeconomic factors. Despite these challenges, CMGO is negotiating potential equity investments to bolster its financial position. The management's discussion indicates a commitment to enhancing internal controls to address identified weaknesses, which may impact future financial reporting and operational efficiency.