Tue, Jan 28, 6:01 PM (20 days ago)
Midnight Gaming Corporation (MHGI) reported no revenue for the year ended December 31, 2022, maintaining a negative cash flow and recurring losses totaling $925,160, up from $427,562 in 2021. The company’s total assets rose to $447,547, primarily due to increased notes receivable, while total liabilities increased to $529,102, driven by higher notes payable. The accumulated deficit reached $2,295,856. Operating expenses surged to $892,187, largely due to media production costs of $520,000 for a documentary. The company's liquidity remains precarious, with cash reserves at $184,875 and reliance on equity financing for operations. Strategically, Midnight Gaming is focused on expanding its presence in the esports media sector, targeting a growing audience projected to reach 640 million by 2025. However, it faces significant risks, including intense competition and the need for substantial capital to sustain operations. The management has acknowledged material weaknesses in internal controls over financial reporting and aims to enhance its financial governance. Future outlook remains uncertain, hinging on the ability to secure additional funding and effectively monetize its esports platform. The company's stock is illiquid, and ongoing financial instability raises substantial doubt about its ability to continue as a going concern.