Esports Market Growth - The global esports audience is projected to grow by 8.7% year-on-year to reach 532 million in 2022, with esports enthusiasts expected to increase from 261 million in 2022 to 318 million by 2025, reflecting a CAGR of 8.1% from 2020 to 2025 [99]. - Esports is anticipated to generate nearly $1.38 billion in global revenues by the end of 2022, with China accounting for approximately one-third of these revenues [100]. - Digital and streaming revenue streams for esports are expected to grow at CAGRs of 27.2% and 24.8%, respectively, from 2020 to 2025 [100]. Company Financial Performance - The company reported no revenue for the year ended December 31, 2021, compared to $1,000 in revenue for the year ended December 31, 2020 [105]. - Total expenses for the year ended December 31, 2021, were $402,796, an increase of $357,177 from $45,619 in 2020, primarily due to increased sales and marketing expenses [107]. - For the six months ended June 30, 2022, the company had no revenue, with expenses of $106,742, a decrease of $168,692 from $275,434 in the same period in 2021 [108][109]. Cash Flow and Funding Needs - Cash used in operating activities for the year ended December 31, 2021, was $(519,050), compared to $(147,611) in 2020 [110]. - The company anticipates needing approximately $1 million to ramp up operations over the next twelve months [103]. - As of December 31, 2020, the accumulated deficit was $881,701, raising substantial doubt about the company's ability to continue as a going concern [110][111]. - The company has relied on debt and equity securities to sustain operations and anticipates requiring additional capital to fund ongoing operations [111][112].
Midnight Gaming Corp(MDHT) - 2022 Q4 - Annual Report