Financial Performance - Revenue for the three-month period ended March 31, 2025, was $320,737,233, a significant increase from $107,105,009 in the same period of 2024, representing a growth of approximately 199%[5] - Net loss for the period was $317,142,490, compared to a net loss of $147,848,271 in the same period of 2024, indicating an increase in losses of approximately 114%[5] - Total comprehensive loss for the period was $317,142,490, compared to $147,848,271 in the prior year, marking an increase of approximately 114%[5] - For the three-month period ended March 31, 2025, the loss before income taxes was $358,985,554, compared to a loss of $145,223,980 in the same period of 2024, indicating a significant increase in losses[9] - Room rentals generated $116,097,764 in revenue for the three-month period ended March 31, 2025, compared to $71,164,213 in 2024, reflecting a growth of 63%[78] - Food and beverage revenue increased to $37,221,008 in 2025 from $30,881,856 in 2024, marking a growth of 20%[78] - Other income decreased to $6,762,725 in 2025 from $12,867,697 in 2024, a decline of 47%[80] Assets and Liabilities - Total current assets decreased to $1,012,244,245 as of March 31, 2025, down from $1,478,230,300 at the end of 2024, reflecting a decline of about 31.5%[3] - Total liabilities as of March 31, 2025, were $16,351,425,799, slightly down from $16,436,834,802 at the end of 2024, a decrease of about 0.5%[3] - Current liabilities decreased to $4,095,357,635 as of March 31, 2025, from $4,212,229,986 at the end of 2024, a reduction of about 2.8%[3] - Total stockholders' equity decreased to $5,096,280,157 as of March 31, 2025, down from $5,413,422,647 at the end of 2024, a decline of approximately 5.8%[3] - The accumulated deficit increased to $(4,150,810,971) as of March 31, 2025, compared to $(3,833,668,481) at the end of 2024, reflecting a worsening of approximately 8.3%[3] - As of March 31, 2025, total debt amounted to $11,080,643,508, slightly down from $11,174,200,426 as of December 31, 2024[74] Expenses - Employee benefits expenses rose to $103,532,990 for the three-month period ended March 31, 2025, compared to $64,281,994 in the same period of 2024, an increase of about 61%[5] - Direct and selling, general and administrative expenses totaled $390,784,859 for the three-month period ended March 31, 2025, compared to $272,143,322 in the same period of 2024, an increase of about 43.5%[5] Cash Flow and Financing - Net cash flows from operating activities were $25,499,284 for Q1 2025, a recovery from a net cash outflow of $89,715,267 in Q1 2024[9] - The company reported cash and cash equivalents at the end of the period of $470,575,639, down from $969,455,648 at the beginning of the period[9] - The outstanding loan amount with Bancomext as of March 31, 2025, was $2,029.1 million, classified as a current liability due to a covenant breach[32] - The Group incurred significant debt primarily to fund operating expenses and construction projects, leading to total current liabilities exceeding total current assets as of March 31, 2025[31] - The Group has engaged professional advisors for a debt restructuring plan to mitigate risks of future covenant breaches[33] - The Group's long-term debt, excluding current installments, was $7,654,508,652 as of March 31, 2025[74] Development Projects - The GIC Complex is expected to incorporate around 1,016 rooms and approximately 1,254 condominiums, with the first phase including a 400-room "Vivid" hotel that began operations on April 1, 2024[13] - The "Dreams" hotel, part of the GIC Complex, is expected to commence operations in Q4 2025, following a delay to enhance property standards[13] - The company is developing a cruise port with a capacity of 2 million passengers per year, having signed an MOU with a major global cruise line operator[16] - The initial plan for the Bajamar project has been modified, with construction expected to begin once financing is secured[14] - The total expected investment for the GIC I hotel complex under construction in Cancun is $3,200,000,000, with construction costs incurred of $141,748,140 for the period ended March 31, 2025[52] - Construction costs for GIC II, a new development in Cancun, were $6,427,616 for the period ended March 31, 2025[53] Debt Restructuring and Covenants - The Group is actively discussing with lenders to obtain waivers for covenant breaches related to the Dreams Hotel, which is required to be operational by June 1, 2025[83] - The Group has engaged professional advisors for a potential restructuring of the Senior Secured Notes to address future covenant breaches[86] - On June 18, 2025, Bancomext approved the restructuring of the Insurgentes 421 Loan, which will help cure covenant breaches with the lender[86] - NAFIN waived certain covenant breaches, extending deadlines for construction and financial reporting until December 31, 2025[86] Tax and Regulatory - The effective income tax rate is 30% as per Mexican tax law, with changes attributed to temporary differences in asset balances[81]
Murano Global Investments PLC(MRNO) - 2025 Q2 - Quarterly Report