Mangoceuticals(MGRX) - 2024 Q4 - Annual Report

Financial Performance - Mangoceuticals, Inc. reported revenues of $615,873 for the year ended December 31, 2024, a decrease of 15.8% compared to $731,493 for the year ended December 31, 2023[604]. - The company's gross profit for 2024 was $379,964, down from $431,501 in 2023, reflecting a gross margin decline[604]. - Total operating expenses decreased to $8,351,957 in 2024 from $9,650,391 in 2023, indicating a reduction of approximately 13.4%[604]. - The net loss for the year ended December 31, 2024, was $8,707,226, compared to a net loss of $9,212,417 in 2023, showing an improvement of about 5.5%[604]. - The basic and diluted loss per share improved to $(4.84) in 2024 from $(8.58) in 2023, reflecting a reduction in loss per share[604]. - Cash used in operating activities for the year ended December 31, 2024, was $4,863,776, an improvement from $6,997,375 in the previous year[616]. - The net loss for the year ended December 31, 2024, was $8,707,226, compared to a net loss of $9,212,417 for the year ended December 31, 2023, indicating a reduction in losses by approximately 5.5%[616]. Cash and Assets - Cash equivalents decreased significantly from $739,006 in 2023 to $58,653 in 2024, a decline of approximately 92.1%[602]. - Total assets increased to $15,370,511 as of December 31, 2024, compared to $1,050,793 in 2023, representing a substantial growth[602]. - The cash and cash equivalents at the end of the period for December 31, 2024, were $58,653, down from $739,006 at the beginning of the period[616]. - As of December 31, 2024, the Company reported total cash of $58,653, down from $739,006 as of December 31, 2023[677]. Financing Activities - The company raised $2,650,000 from the issuance of preferred stock for cash during the year ended December 31, 2024[616]. - The company’s total cash provided by financing activities was $4,128,268 for the year ended December 31, 2024, compared to $7,057,040 in the previous year[616]. - The Company completed an initial public offering in March 2023, issuing 83,333 shares at $60.00 per share, resulting in net proceeds of $4.35 million[624]. - The Follow On Offering closed on December 19, 2023, raising total gross proceeds of $1.2 million from the sale of 266,667 shares at $4.50 per share[631]. - The net proceeds from the Follow On Offering were approximately $1.0 million, allocated for marketing, operational expenses, and working capital[632]. Intangible Assets and Patents - The company has intangible assets of $15,232,617 related to acquired patents as of December 31, 2024[602]. - The Company entered into a Patent Purchase Agreement with Intramont Technologies for patents related to infection prevention, paying $20,000,000, which included 980,000 shares of Series C Convertible Preferred Stock valued at $19,600,000 and $400,000 in cash[649]. - The Company acquired patents from Greenfield Investments for $1,344,150, issuing 515,000 shares of common stock as payment[651]. - As of December 31, 2024, the carrying amount of patents is $15,232,617, with a gross carrying amount of $15,954,150 and accumulated amortization of $721,533[667]. - Amortization expense for the year ended December 31, 2024, was $721,533, with estimated amortization expenses of $1,122,639 for the next five years[668]. - The Company performed annual impairment testing for intangible assets, with no impairment losses recognized for the year ended December 31, 2024[668]. Operational Developments - The Company has developed and marketed a range of men's wellness products, including brands for erectile dysfunction, hair loss, hormone balance, and weight management[619]. - The Company is conducting Phase II clinical trials for its patented respiratory illness prevention technology, with completion expected in Q2 2025[621]. - The Company is preparing to launch its Dermytol brand targeting skin conditions, with operations expected to commence in Q3 2025[622]. Stock and Equity Transactions - The Company executed a 1-for-15 reverse stock split on October 16, 2024, with no effect on the par value or authorized shares[625]. - The Company sold 1,500 shares of Series B Convertible Preferred Stock for $1,650,000, along with warrants to purchase 220,000 shares of common stock[636]. - The Company issued warrants for the purchase of 18,667 shares at an exercise price of $5.70 as part of the Follow On Offering[633]. - The Company designated 6,250,000 shares of Series C Convertible Cumulative Preferred Stock, with 980,000 shares issued and outstanding as of December 31, 2024[738]. - The Company accrued undeclared dividends on Series C Preferred Stock totaling $802,109 during 2024[739]. - The Company issued 28,067 shares of common stock as dividends on Series B Preferred Stock, resulting in a deemed dividend of approximately $70,168[734]. Consulting and Service Agreements - The Company entered into a service agreement with Greentree Financial Group, agreeing to pay $40,000 in cash and issue 5,000 shares of restricted common stock valued at $16.95 per share, totaling $84,752[749]. - The Company entered into a Consulting Agreement with G&P General Consulting, issuing 16,667 shares valued at $4.20 per share for a total of $70,000, for services related to international expansion[758]. - The Company entered into a Consulting Agreement with John Dorsey, agreeing to pay $6,000 per month and issuing 13,333 shares valued at $6.31 per share, totaling $84,180[774]. - A Consulting Agreement with Levo Healthcare Consulting, Inc. was established, involving a cash payment of $6,250 and 13,000 shares valued at $4.35 per share, totaling $56,160[776]. Revenue Recognition and Accounting Policies - The Company follows ASC 606 for revenue recognition, generating online revenue through direct sales on its platform[691]. - The Company has a Physician Services Agreement with Doctegrity for online telemedicine services, accounting for service revenue as a principal[694]. - The Company’s contracts for prescription products include two performance obligations: access to products and consultation services, with revenue recognized upon delivery[693]. - The Company has not yet adopted ASU No. 2023-09, which will require additional disclosures on income tax paid and effective tax rate reconciliation once implemented[685].