MIAMI, FL and LONDON, UK / ACCESSWIRE / August 20, 2024 /MGO Global Inc. (NASDAQ:MGOL), a digitally-native, lifestyle brand portfolio company, ("MGO," "MGO Global" or the "Company"), today announced its second quarter 2024 financial results for the three and six months ended June 30, 2024.
Financial Highlights
For the six months ended June 30, 2024, revenues from the sales of the Company's Stand Flagpoles' line of products climbed 18% to $2.10 million as compared to $1.77 million reported for the first half of 2023. Revenues for the three month period ended June 30, 2024 totaled $1.43 million - down 17% from $1.72 million for the same three months in the prior year.
Gross profit margin improved, rising to 75.4% from 70.2% for the comparable six month reporting periods, and increased to 75.7% from 70.5% for the three months ended June 30, 2024 and 2023, respectively.
Net loss attributable to MGO stockholders totaled $2.64 million, or $1.57 loss per share, for the first half of 2024 as compared to a net loss of $2.50 million, or $1.79 loss per share, reported for the first six months of 2023. For the three months ended June 30, 2024 and 2023, net loss attributable to MGO stockholders was $2.47 million, or $1.35 loss per share, and $1.34 million, or $0.94 loss per share, respectively.
As of June 30, 2024, cash on hand was $1.30 million - up 56% from $836,446 as of December 31, 2023.
Key Operational Highlights
On March 21, 2024, MGO assigned its rights and obligations under its global license agreement with Leo Messi Management ("LLM") to Centric Brands, LLC ("Centric"), a global leading lifestyle brand collective, in a transaction that resulted in Centric paying MGO $2 million in cash and assuming the obligation to pay 1.5 million Euros in aggregate royalty payments to LMM in accordance with the terms of the license agreement. The Company has reflected The Messi Store business' historical results for the three and six months ended June 30, 2024 and 2023 as discontinued operations in its consolidated financial statements for the periods presented.
On June 18, 2024, MGO signed a definitive Business Combination Agreement with Heidmar, Inc. ("Heidmar"), a Greece-based single platform aggregator of maritime services for the drybulk, crude oil and refined petroleum product tanker industry with a unique and proven asset light business model that delivered $19.6 million of net income in 2023. Heidmar currently has more than 60 vessels under management, including drybulk, crude oil and refined petroleum product tankers with an aggregate capacity of approximately 8.3 million deadweight tons.
On July 18, 2024, the Company effected a reverse stock split at a 1-for-10 ratio in its efforts to regain compliance with Nasdaq's minimum bid price requirement for continued listing.
Maximiliano Ojeda, Co-Founder, Chairman and CEO of MGO, stated, "Despite a challenging macro-environment that remains dynamic with American consumers pulling back on discretionary spending, coupled with the fact that MGO has been implementing a more cost-efficient, higher return approach to marketing spend in 2024, sales of Stand Flagpoles and the brand's related direct-to-consumer product offerings, have remained relatively stable through the first six months of this year. Moreover, for the past several months we have been making steady progress advancing our anticipated, transformative business combination with Heidmar, and believe that its exciting, highly profitable business and robust future growth prospects could ultimately provide MGO's stockholders with the opportunity to realize potentially significant and sustainable value creation over the long term."
For more detailed information relating to MGO's second quarter 2024 results, please review the Company's Quarterly Report on Form 10-Q filed with the SEC this morning and accessible at www.sec.gov or on MGO's investor relations page found 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, please visit www.mgoglobalinc.com.
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 complete the proposed business combination with Heidmar, Inc., 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, including but not limited to the Company's Annual Report on Form 10-K for 2023 fiscal year. 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:
MGO Global Inc. Dodi Handy, Director of Communications Telephone: 407-960-4636 Email: ir@mgoteam.com
