Financial Performance - The company reported a net loss of $214,755 for the nine months ended September 30, 2023, compared to a net loss of $845,576 for the same period in 2022, indicating a 75% improvement in losses[12] - Total operating expenses for the nine months ended September 30, 2023, were $189,840, significantly reduced from $821,053 in the prior year, reflecting a 77% decrease[12] - The company has no revenue reported for the period from January 1, 2023, to September 30, 2023, consistent with the previous year[12] - As of September 30, 2023, the company reported an accumulated deficit of $2,510,611[43] Assets and Liabilities - As of September 30, 2023, total assets increased to $591,206, up from $447,547 as of December 31, 2022, representing a 32% growth[10] - Total liabilities increased to $554,017 as of September 30, 2023, compared to $529,102 as of December 31, 2022, marking a 5% increase[10] - The company’s retained earnings deficit widened to $(2,295,856) as of September 30, 2023, from $(1,370,696) at the end of 2022[10] Cash Flow - Cash and cash equivalents decreased to $10,723 as of September 30, 2023, down from $184,875 at the beginning of the year, a decline of 94%[18] Capital and Financing - The company anticipates needing to raise additional capital within the next 3 months to fund operations and cover costs[45] - The company is due $580,483 from a major shareholder, representing an unsecured note payable bearing interest at 5% per annum[38] - The company entered into three notes payable during 2020 with an aggregate amount of $53,000, accruing interest of $18,292 as of September 30, 2023[39] - The company issued warrants valued at $333,500 during the nine months ended September 30, 2023, contributing to additional paid-in capital[18] Operations and Business Development - Midnight Gaming Corporation continues to operate in the development stage with no revenue generation as it focuses on acquiring income-producing business entities[22] - The company has minimal operations as of September 30, 2023, and there is substantial doubt regarding its ability to continue as a going concern without significant capital infusion[44] Tax and Accounting - The company has not recognized any income tax expense since inception until September 30, 2023, with a blended Federal and State tax rate of 0% applicable to income before taxes[42] - The company has not taken any significant uncertain tax positions on its tax returns for the period ended September 30, 2023[33] - The company is evaluating the impact of new accounting pronouncements on its financial position and operations[35][36] Stock and Shareholder Information - The weighted average number of shares outstanding remained constant at 23,020,000 for both periods reported[12] - The company has issued 11,000,000 shares of common stock for services rendered by consultants during 2020[48] - The company has entered into multiple warrant agreements for common stock purchases, with options to purchase shares at strike prices between $0.50 and $0.75[54][55][56][57][58][59][60] Other Expenses - Media Production Expenses incurred during the quarter amounted to $520,000, related to a documentary produced by a related party[66] - The company no longer sponsors a gaming team, resulting in a reduction in player's winning expenses since 2019[65] - There have been no significant subsequent events since the balance sheet date[67]
Midnight Gaming Corp(MDHT) - 2023 Q3 - Quarterly Report