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Mangoceuticals(MGRX) - 2024 Q3 - Quarterly Report
MGRXMangoceuticals(MGRX)2024-11-14 21:16

Product Offerings - The company reported a significant focus on men's wellness telemedicine services, particularly in erectile dysfunction, hair loss, testosterone replacement, and weight management treatments[88] - The Mango ED product includes either Sildenafil (50 mg or 100 mg) or Tadalafil (10 mg or 20 mg), Oxytocin (100 IU), and L-Arginine (50 mg) and is produced under an exemption from FDA approval[88] - The Mango GROW product contains Minoxidil (2.5 mg), Finasteride (1 mg), Vitamin D3 (2000 IU), and Biotin (1 mg), also produced without FDA approval[88] - The MOJO product includes DHEA (10 mg), Pregnenolone (5 mg), and Enclomiphene Citrate (25 mg), produced under the same FDA exemption[89] - The PRIME product, an FDA-approved oral Testosterone Replacement Therapy, is designed to treat low testosterone levels and has shown 96% efficacy by day 90 in clinical trials[89] - The SLIM product contains Vitamin B6 (10 mg) and Semaglutide in varying dosages (0.5 mg to 2.0 mg), produced without FDA approval[90] - The TRIM product includes Tirzepatide in dosages of 3 mg, 4 mg, or 5 mg, also produced under the FDA exemption[90] - The company is expanding its product offerings to include innovative formulations aimed at addressing various health concerns in men[88] - Future pharmaceutical products are planned to be developed under the same regulatory exemptions, allowing for flexibility in product formulation[88] - The company emphasizes the importance of physician determination for the necessity of compounded drugs for individual patients[88] Financial Performance - Revenues for the three months ended September 30, 2024, were 133,368,adecreaseof133,368, a decrease of 111,792 or 45.6% compared to 245,160forthesameperiodin2023,duetomigrationissuestoanewtelehealthplatform[98]−GrossprofitforthethreemonthsendedSeptember30,2024,was245,160 for the same period in 2023, due to migration issues to a new telehealth platform[98] - Gross profit for the three months ended September 30, 2024, was 82,671, down from 144,589in2023,attributedtodecreasedrevenueandincreasedshippingcosts[98]−Thecompanyreportedanetlossof144,589 in 2023, attributed to decreased revenue and increased shipping costs[98] - The company reported a net loss of 1,999,694 for the quarter ended September 30, 2024, an increase of 200,234or11.1200,234 or 11.1% from the net loss of 1,799,460 in the same quarter of 2023[99] - For the nine months ended September 30, 2024, revenues increased by 23,507or4.823,507 or 4.8% to 510,626 compared to 487,119forthesameperiodin2023,drivenbyincreaseddigitalmarketingeffortsandrecurringsubscriptions[100]−CostofrevenuesfortheninemonthsendedSeptember30,2024,was487,119 for the same period in 2023, driven by increased digital marketing efforts and recurring subscriptions[100] - Cost of revenues for the nine months ended September 30, 2024, was 71,965, down from 101,538in2023,whilerelatedpartycostsincreasedto101,538 in 2023, while related party costs increased to 138,800 from 96,663[100]−TotalgeneralandadministrativeexpensesfortheninemonthsendedSeptember30,2024,were96,663[100] - Total general and administrative expenses for the nine months ended September 30, 2024, were 6,594,193, a decrease of 345,568from345,568 from 6,939,761 in 2023[100] - The company reported a net loss of 6,758,630fortheninemonthsendedSeptember30,2024,comparedtoanetlossof6,758,630 for the nine months ended September 30, 2024, compared to a net loss of 6,644,370 for the same period in 2023, representing a decrease in net loss of 114,260or1.7114,260 or 1.7%[104] - Cash and cash equivalents decreased to 73,912 as of September 30, 2024, from 739,006asofDecember31,2023,primarilyduetofundsusedforgeneraloperatingexpenses[105]−Totalcurrentliabilitiesamountedto739,006 as of December 31, 2023, primarily due to funds used for general operating expenses[105] - Total current liabilities amounted to 1,391,382 as of September 30, 2024, including 707,519inaccountspayableandaccruedliabilities[105]−Thecompanyhadaworkingdeficitof707,519 in accounts payable and accrued liabilities[105] - The company had a working deficit of 1.3 million and a total accumulated deficit of 17,985,966asofSeptember30,2024[106]−Cashusedinoperatingactivitieswas17,985,966 as of September 30, 2024[106] - Cash used in operating activities was 3,734,201 for the nine months ended September 30, 2024, mainly due to the net loss of 6,758,630[110]−Cashprovidedbyfinancingactivitieswas6,758,630[110] - Cash provided by financing activities was 3,005,770 for the nine months ended September 30, 2024, primarily from 2,250,000inproceedsfromthesaleofpreferredstock[110]−Stock−basedcompensationincreasedto2,250,000 in proceeds from the sale of preferred stock[110] - Stock-based compensation increased to 1,881,464 for the nine months ended September 30, 2024, compared to 1,367,134forthesameperiodin2023[102]−Advertisingandmarketingexpensesdecreasedto1,367,134 for the same period in 2023[102] - Advertising and marketing expenses decreased to 1,332,957 for the nine months ended September 30, 2024, from 1,633,528in2023,reflectingareductioninmarketingefforts[102]−Thecompanyhasexperiencedrecurringnetlossessinceinceptionandanticipatessubstantialoperatingexpensesintheforeseeablefuture[108]StrategicInitiatives−ThecompanyenteredintoaPatentPurchaseAgreementfor1,633,528 in 2023, reflecting a reduction in marketing efforts[102] - The company has experienced recurring net losses since inception and anticipates substantial operating expenses in the foreseeable future[108] Strategic Initiatives - The company entered into a Patent Purchase Agreement for 20,000,000, including 980,000 shares of Series C Preferred Stock valued at 19,600,000and19,600,000 and 400,000 in cash payments[93] - A Master Distribution Agreement was signed with ISFLST, Inc. for the sale of products in Asia Pacific and Latin America, with a term of three years and potential for exclusivity based on milestones[94] - The company plans to continue expanding operations and may seek additional funding through equity or debt financing, which could result in significant dilution for existing shareholders[95] - The company intends to utilize newly acquired patents for research and development of oral applications, including dissolvable tablets and mouthwash[93] - The company is currently evaluating strategic alternatives, which may include business combinations or asset sales, with no definitive timetable set for completion[108] Capital Raising Activities - The company completed its IPO on March 23, 2023, selling 83,334 shares at 60.00pershare,generatingapproximately60.00 per share, generating approximately 5 million in gross proceeds[111] - A Follow On Offering on December 19, 2023, resulted in the sale of 266,667 shares for total gross proceeds of 1.2million,withnetproceedsofapproximately1.2 million, with net proceeds of approximately 1.0 million after expenses[112] - The underwriters exercised their over-allotment option on January 22, 2024, resulting in an additional sale of 40,000 shares, generating net proceeds of approximately 160,000[112]−ThecompanyenteredintoaSecuritiesPurchaseAgreementonApril5,2024,tosell1,500sharesofSeriesBConvertiblePreferredStockfor160,000[112] - The company entered into a Securities Purchase Agreement on April 5, 2024, to sell 1,500 shares of Series B Convertible Preferred Stock for 1,650,000 and warrants for an aggregate purchase price of 1,500,000[114]−ThetotalproceedsfromtheSeriesBPreferredStocksales,includingallclosings,areexpectedtoreach1,500,000[114] - The total proceeds from the Series B Preferred Stock sales, including all closings, are expected to reach 2.75 million, with 320,000 warrants issued[115] - The company issued warrants for the purchase of common stock at various exercise prices, including 5.70and5.70 and 0.50, with terms of five years[113][116] - The company is prohibited from issuing additional shares or entering into agreements for new equity financing for a specified period following the closings under the Securities Purchase Agreement[116] - The company has reserved 50,000,000 shares of common stock for the exercise of warrants and conversion of Series B Preferred Stock[116] - The company plans to use proceeds from offerings for marketing, operational expenses, and general corporate purposes[112] - The Company has sold a total of 230,000 shares for gross proceeds of 999,667undertheELOC,beforefees,discounts,andexpenses[120]−TheCompanyenteredintoanEquityPurchaseAgreementwiththePurchasertopurchaseupto999,667 under the ELOC, before fees, discounts, and expenses[120] - The Company entered into an Equity Purchase Agreement with the Purchaser to purchase up to 25,000,000 of common stock, with an initial issuance of 66,667 shares as a commitment fee[118] - The floor price of the Series B Preferred Stock was increased from 0.525pershareto0.525 per share to 2.25 per share[119] - The Company is required to file a resale registration statement with the SEC within 30 days of the Closing Date, with certain penalties for non-compliance[118] - The ELOC terminates upon the earlier of April 4, 2026, or when $25,000,000 in Advance Shares have been purchased[120] - The Company anticipates needing additional funding to support operations over the next 12 months, which may lead to shareholder dilution[121] - The Registration Statement for the Advance Shares was declared effective on May 9, 2024[120] - The Company has obligations to indemnify the Purchaser and cover all fees related to the ELOC RRA[121] - The Company maintains a share reserve while the ELOC is effective but is not obligated to sell any Advance Shares[120] Accounting and Compliance - The Company has implemented all new accounting pronouncements that may impact its financial statements and does not foresee any material impact from recent accounting standards[124] - The FASB issued ASU No. 2023-07, effective for annual periods beginning after December 15, 2023, requiring additional disclosures on reportable segment expenses and the Chief Operating Decision Maker's role[127] - ASU No. 2023-09 was issued in December 2023, mandating disaggregated information on effective tax rate reconciliation and income taxes paid, effective for annual periods beginning after December 15, 2024[127] - The company is currently evaluating the provisions of ASU No. 2023-07 and expects to adopt them for the year ending December 31, 2024[127] - The adoption of the new accounting standards will likely result in additional required disclosures in the consolidated financial statements[127] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[128]