Mobile Esports (US:MGAM)2025-02-19 21:03Financial Performance - Total revenue for the nine months ended September 30, 2024, was $1,579, compared to $0 for the same period in 2023[16] - Operating expenses for the nine months ended September 30, 2024, were $1,720,992, a decrease from $3,578,785 in the same period of 2023, representing a reduction of approximately 52%[16] - Net loss attributable to Mobile Global Esports Inc. for the nine months ended September 30, 2024, was $1,713,254, compared to a net loss of $3,546,377 for the same period in 2023, indicating an improvement of about 52%[16] - The company reported a comprehensive loss of $1,718,191 for the nine months ended September 30, 2024, compared to $3,552,247 for the same period in 2023, showing a decrease of about 52%[16] - For the nine months ended September 30, 2024, the net loss was $1,719,213, a decrease of 51.5% compared to a net loss of $3,550,287 for the same period in 2023[21] Cash and Assets - Cash and cash equivalents decreased to $1,290,854 as of September 30, 2024, down from $3,174,703 as of December 31, 2023, reflecting a decline of approximately 59%[14] - Total assets as of September 30, 2024, were $1,636,154, a decrease from $3,421,344 as of December 31, 2023, representing a decline of about 52%[14] - Cash and restricted cash as of September 30, 2024, was $1,290,854, down from $4,514,459 as of September 30, 2023, representing a decrease of 71.5%[21] - Property and equipment net value increased to $83,425,000 as of September 30, 2024, compared to $29,632,000 at December 31, 2023[50] Liabilities and Deficits - Total liabilities decreased to $110,199 as of September 30, 2024, from $324,138 as of December 31, 2023, indicating a reduction of approximately 66%[14] - The accumulated deficit increased to $10,036,023 as of September 30, 2024, from $8,322,769 as of December 31, 2023[14] - The company has an accumulated deficit of $10.0 million as of September 30, 2024[29] Future Outlook - The company expects to continue incurring operating losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[29] - The company has no current intention to update forward-looking statements except as required by applicable law, indicating a cautious approach to future projections[11] Operational Activities - The company incurred a net cash used in operating activities of $1,750,597 for the nine months ended September 30, 2024, compared to $2,474,935 for the same period in 2023, indicating a 29.2% improvement[21] - The company made payments for property and equipment totaling $65,557 during the nine months ended September 30, 2024[21] - Operating lease cash payments for the nine months ended September 30, 2024, were approximately $51,000, up from $41,000 in the same period of 2023[51] Management and Governance - The company has a new Chief Executive Officer and is working with consultants to achieve its strategic goals[29] - The Company entered into an executive employment agreement with the new CEO, Brett Rosin, with an annual cash compensation of $96,000 and potential bonuses[74] Shareholder Information - The weighted average common shares outstanding for the nine months ended September 30, 2024, was 21,221,588, compared to 20,421,593 for the same period in 2023[16] - Basic earnings per share (EPS) for the period is calculated based on the weighted average number of common shares outstanding, with diluted EPS assuming all dilutive securities are converted[46] - The Company had 3,568,916 warrants outstanding as of September 30, 2024, with diluted net loss per share being the same as basic net loss per share due to anti-dilutive instruments[72] Miscellaneous - MOGO Pvt Ltd accounted for approximately 28.9% of the company's net loss for the nine months ended September 30, 2024[24] - The Company incurred a total of $82,500 for board stipends during the nine months ended September 30, 2024, compared to $66,000 in the same period of 2023[56] - The fair value of warrants issued for services was $139,440 for the nine months ended September 30, 2024, compared to $207,690 for the same period in 2023[21] - The Company paid approximately $29,000 to terminate all operating lease agreements for its office facilities in India in December 2024[73] - The Company adopted ASU 2016-13 for measuring expected credit losses, but it did not have a material impact on the valuation of its note receivable[48] - Accounts payable decreased significantly to $24,375,000 as of September 30, 2024, from $94,397,000 at December 31, 2023[54]