Q2 2023 MGO Global Inc Earnings Call

Speaker 1: And.

Speaker 2: Good afternoon everyone and welcome to MGO Global's 2023 second quarter results webcast. Presenting on today's webcast are Maximiliano O'Heda, co-founder, chairman and CEO , as well as MGO's chief financial officer, Vincent Ottominelli. Before I turn the floor over to them, I remind you that during today's call, statements that are not historical facts, including any projections, statements regarding future events or future financial performance, or statements of intent or belief are forward-looking statements and are covered by the safe harbor disclaimers contained in the company's public filings with the SEC.

Speaker 2: Actual outcomes and results may differ materially from what is expressed in or implied by these forward looking statements. At this time, I'd now like to introduce the company's chairman and CEO , Max O'Heda. Max?

Speaker 3: Thank you, Karen. It is a great pleasure to be hosting today's webcast, and we thank you for joining us and for your interest in MGO Global. Our second quarter results reflect that MGO Global is successfully executing in our plan to start a portfolio of brands and the consumer products we offer. Yet, we believe that we have yet to hit our stride. However, before we talk about what is ahead for our company, Vincent Dottomanelli will present the second quarter results.

Speaker 4: I'd be delighted to, Max.

Speaker 4: After the market closed today, we filed our 2023 second quarter report on Form 10-Q with the SEC. After it is filed, you may access it on sec.gov.

Speaker 4: to ensure you have a full understanding about business, financial results, and other important information disclosed.

Speaker 4: I'll begin with the review of our income statement of operations.

Speaker 4: Total revenues for the three months ended June 30th, 2023, substantially increased to 1.95 million. Up 1,914% from approximately 97,000 reported for the same three months in the prior year, and surpassing total revenue booked for the entire year in 2022.

Speaker 4: So the six month period ended June , Gordia, 2023. Revenues substantially increased 1,067 percent to 2.29 million, which was up from $196,000 for the first half of 2022. Gales of the Leo Messy branded apparel, accessories and homewares, offered through the Messy store contributed notable revenue growth for both the three and six months and the June 30, 2023, rising 134 percent and 164 percent respectively. Moreover, revenues from our new STAN FLAG poll line of products were indeed pronounced, totaling $1.72 million for the three months and the June 30, 2023. And 1.77 million for the six month reporting period this year. As a reminder,

Speaker 4: Moving on to cost of goods sold in the Q2 of this year, totaled approximately 623,000, which was up 3,655% compared to cost of goods sold of roughly 17,000 for the three months ended June 30th, 2022. This resulted in a gross profit of 1.33 million compared to 80,242 dollars for the comparable three months periods in 2023 and 2022 respectively. For the first six months of 2023, cost of goods sold substantially increased 1,469% to approximately $757,000 and our gross profit was 1.53 million. This compared to cost of goods sold

Speaker 4: but the six months ended June 30th, 2022 of $48,266, resulting in a gross profit of approximately $148,000. So the three months ended June 30th, 2023, total operating expenses climbed 251%.

Speaker 4: 2.75 million, which compared to total operating expenses of roughly 786,000 for the three months ended June 30, 2022.

Speaker 4: This increase was due primarily to a 424% increase in selling, general, and administrative expenses during the quarter.

Speaker 4: Likewise, for the six months and the June 30th, 2023, total operating expenses increased 192 percent.

Speaker 4: The overall increase in operating expenses for the first half of 2023 was largely due to higher selling, general, administrative expenses associated with the company's workforce expansion amounting to approximately 1.05 million compared to 249,000 in the first six months of 2022. As well as increased sales and marketing expenses amounting to 1.78 million in the first six months of 2023.

Speaker 4: compared to approximately 234,000 for the first half of the prior year. The company also incurred costs associated with becoming a publicly traded company in January of 2023, which totaled $210,928 for the six months ended June 30, 2023. Now moving on to our net results. After factoring the net loss attributable to non-controlling interest of approximately 61,000 for the three months ended June 30, 2023. Net loss increased 86%.

Speaker 4: to 1.34 million or 0.09 cents lost per share. This compared to a net loss after factoring the net loss attributable to non-controlling interests of $84,000 on $721,000 or 0.07 cents lost per share.

Speaker 4: for the three months ended June 30th, 2022.

Speaker 4: For the six months ended June 30, 2023, net loss totaled approximately 2.5 million for 18 cents loss per share after accounting for a net loss attributable to non-controlling interests of 123,000.

Speaker 4: This compared to a net loss of 1.23 million or 12 cents lost per share for the first six months of 2022, after factoring a net loss attributable to non-controlling interest of roughly 150,000.

Speaker 4: Switching over to our balance sheet as of the end of June of 2023, we had cash on hand of 4.13 million working capital of 4.39 million zero long-term debt and 4.51 million in total stock hold is equity.

Speaker 4: While NGO has continued to realize losses from operations because about a capital raising efforts.

Speaker 4: To date, including completing our IPO in January of 2023,

Speaker 4: That concludes my overview of the financial results, and I will now turn to call back to Max.

Speaker 5: And.

Speaker 3: Thank you Dean.

Speaker 3: We believe that the digital commerce industry has never been more robust and dynamic than now.

Speaker 3: And we could not be more excited about this promising future ahead for MGL.

Speaker 3: I'm especially proud of our team ability to work all hastily to successfully navigate through rising interest rates and general economic uncertainty to overcome the inherent challenges really in a business that started small while growing at a bright next peak.

Speaker 3: As we look ahead to the remainder of the year, we believe that the decisive action that we have been taking since going public in January , from raising vital capital growth, should keep us in a good position to continue taking advantage of favorable market changes and competing growth opportunities being presented to us.

Speaker 3: From a financial point of view, you can expect NGO to continue focusing on managing or working capital with discipline and deploying our capital resources where, when and how we expect to generate the most possible impact for our shareholders.

Speaker 3: Investment in our AI enabled self-involved engine at enabling MGO to lean into creative optimization strategies that are generating tangible results in our business across all key metrics including customer growth, conversion and attention.

Speaker 3: We're also receiving high-customers reviews for our colleagues, which serve to provide third-party valuation of our commitment to produce quality and customer service excellence.

Speaker 5: So, my operations perspective.

Speaker 3: We had some exciting developments recently occur that should some NGO, the role, as we move forward.

Speaker 3: As you might suspect, Leo Messi's recent decision to sign with Intermayani is helping to lift awareness and traffic to the Messi store and on our social media channels, particularly for a growing base of the new American Messi sense.

Speaker 3: In fact, World of Followers on our Instagram page has shown from 1.7 million in general to nearly 2 million and followers of the messy store on our Facebook page have reached 315,000 up from 267,000 since the beginning of the year.

Speaker 3: Leas personal social media following has also suspension increased after his announcement of the June 2023, rising to 482 million on Instagram, and a handle that 15 million on Facebook, up from 4, 6 million and 111 million, respectively.

Speaker 3: In late July , when Leo posted our promo of the new ROSA file collection, created specifically by NGO, tomorrow, Mexico moved to the Intermayani and available exclusively on the message solvercom over 2.79 million of his Instagram followers like the post.

Speaker 3: With another 1808 click and like on the similar post on Facebook. Traffic to our store and mobile app, boom, a further solve.

Speaker 3: We have a strong pipeline of innovation across fabrications, categories, and style that we believe will continue to attract new customers to the messy store. And that our new revenue for customer has to expand our total addressable market and increase brand awareness of the messy store or the common quarters.

Speaker 3: Our stand of flagpole business is also significant, after most traded by our financial results. When we're publishing all the analysis or intention to build a lifestyle brand around the residential flagpole, this much host of you, all of you wondering why flagpole's?

Speaker 3: Soon the immediate impact that Stan Fleck-Polz has had in our financial performance, in just a one-two-month-report period, should help many to appreciate our logic to end on this and fighting the commerce business segment.

Speaker 3: According to the Nature Research report from that on-tannel, the multiple flight balls within a significant expansion on a global scale with worldwide self-spectative exceeding 3.7 million over the next five years.

Speaker 3: We believe that the men for flag balls and other related products we sell will be legally fueled by the first coaching election year as more Americans choose flags and other patriotic apparel products to express their personal political views and passions. We believe that the second coaching election year as more Americans choose flags and other related products we sell will be legally fueled by the first coaching election year as more

Speaker 3: We'll be working on creating and creating new products to join the STEM flight polls and that are new brand and Americana Liberty. And we look forward to sharing more details with you on this front and the year and the new brand and polls.

Speaker 3: Our leadership team is also committing time and totally assessing our new brain concepts.

Speaker 3: Some of which we might elect to incubate to determine the long term viability and ability to benefit from our end-to-end Bum Building platform.

Speaker 3: As an incubated concept takes shape and feed the balls into a self-sustained brand with promising financial appeal, we will be providing you with much more retail insights for the press releases and our quarterly webcasts.

Speaker 3: In the meantime, NGO is an admission to be an enduring family of digital commerce brands swiftly, but smartly. Overall, we're making police with the performance of our business, which reflects Mario's old in the first half of the year.

Speaker 3: As we must put the challenging environment, we will continue concentrating on driving running growth.

Speaker 3: achieving positive cash flow and ultimately, attaining sustainable profitability, as we expand our portfolio of brands and bring to life new-run concepts through an incubation process.

Speaker 3: Before we close today's call, for those of you who would like to listen to today's webcast again, a replay of this call will be available later today on our website. Find that www.mgeoglogging.com. With that said, I'd like to wish everyone a good afternoon. Come in, back to you.

Speaker 2: Thank you, ladies and gentlemen. This does conclude today's NGO webcast. We thank you for your participation. You may disconnect at this time and have a great day.

Speaker 1: The.