Mobile Esports (MGAM) - 2022 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $177.265 million for the six months ended June 30, 2022, compared to a net loss of $150 for the same period in 2021[20]. - Cash and cash equivalents decreased to $68.735 million as of June 30, 2022, down from $238.202 million at the beginning of the period, representing a decrease of approximately 71.2%[20]. - The company had no revenue reported for the three and six months ended June 30, 2022, maintaining the same status as the previous year[15]. - Research and development expenses for the six months ended June 30, 2022, were $92.960 million, while general and administrative expenses were $84.305 million[15]. Assets and Equity - As of June 30, 2022, total assets decreased to $185.081 million from $301.200 million as of December 31, 2021, reflecting a decline of approximately 38.6%[14]. - Total stockholders' equity as of June 30, 2022, was $185.081 million, down from $269.386 million as of December 31, 2021, indicating a decrease of approximately 31.4%[14]. - The company issued common stock with an additional paid-in capital of $623.025 million as of June 30, 2022, compared to $530.065 million at the end of 2021[14]. Stock and Warrants - As of June 30, 2022, the company had 16,809,800 shares of common stock issued and outstanding[40]. - The company issued 1,725,000 shares of common stock through an IPO in July 2022, raising total gross proceeds of $6,900,000[37]. - At June 30, 2022, there were 1,000,000 warrants outstanding with an exercise price of $1.00[41]. - The company recorded an expense of approximately $93,000 related to warrants during the six months ended June 30, 2022[43]. - The company has authorized the issuance of 10,000,000 shares of preferred stock, with none issued as of June 30, 2022[39]. Risks and Future Outlook - The company anticipates potential risks from increased competition and the ongoing impact of the COVID-19 pandemic on its operations and financial condition[12]. - The company has no current intention to update forward-looking statements except as required by law, indicating a cautious approach to future projections[11]. Financial Instruments and Tax Positions - The fair value of financial instruments held by the company approximates their carrying amounts due to short maturities[28]. - The company has not identified any assets or liabilities required to be presented on the balance sheet at fair value as of June 30, 2022[30]. - The company has not incurred any losses related to credit risk as it places cash with high-quality financial institutions[31]. - The company has no material uncertain tax positions for any of the reporting periods presented[34]. - The company adopted ASU 2019-12 on January 1, 2022, which did not have a material effect on its financial statements[36].