Q3 2023 MGO Global Inc Earnings Call
Afternoon, ladies and gentlemen, and welcome to M. G. L. Globals third quarter results webcast, joining us from M. G. O R. Massimiliano O Heder co founder Chairman and CEO and M. G O as Chief Financial Officer, Vincent Auto Minnelli, before I turn the floor over to them I'll 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 S. E C. Actual outcomes and results may differ.
Materially from what is expressed in or implied by these forward looking statements with that said I'd now like to introduce Max Max the floor is yours.
Thank you very much Kevin I also like to thank all the people who are listening this afternoon.
For both the third and nine months' reporting periods. This year as compared to last year Mgo has succeeded in delivering revenue growth of 948% and 1017% respectively. We believe that this performance is a direct reflection of our growth initiatives producing.
Highly favorable top line results.
Define to our team's hard work and the trust of our customers.
Moving through the holiday season and into the new year, we expect to perpetuate our success by driving leverage in our operating efficiencies expanding product categories for each of our brands.
We're aligning our cost structure with revenue growth and executing marketing strategies that will fuel higher customer conversion rates and increased per customer order values for both the macy store and it sounds like both.
M. G O. It's also focus on capitalizing on our service platform and infrastructure to support. The addition of potential new brands addressing niche markets to our portfolio through possible acquisitions run collaborations inorganic incubation initiatives all of which are in the works.
She was going public in January of this year, we have embarked on a journey that has presented and continues to present us with Bollywood learnings and future growth opportunities.
Our unique high quality products and World class team serve us that's the foundation of our strategy to become a leading direct to consumer at least you've got a commerce company.
While navigating the challenges posed by a difficult capital market environment inflationary pressures impacting consumers geopolitical conflicts in a volatile microeconomic backdrop.
By these challenges our focus has not changed and our financial and operational goals for the year appear to be on track as a result.
Binnie could you now please provide our listeners with some insights into our third quarter results.
Sure Max.
To all of you listening in on today's webcast.
Earlier today, we filed our third quarter of 2023 report on Form 10-Q with the SEC.
If you have not had a chance to review it you may access it on FCC Dot Gov, well Vega Ngls Investor Relations section on our website under SEC filings.
I encourage everyone to read our 10-Qs and other filings with the SEC to ensure you have a full understanding of our business financial results and other important information disclosed.
I'll begin by sharing performance highlights from our statement of operations for the three and nine months ended September 32023, compared to the same reporting period in the prior year.
Q3, 2023, total revenues, increasing 548% to approximately $146 million, which is up from approximately $140000 reported in Q3 of last year.
Revenues generated from sales of the messy Grand apparel accessories, and Homewares through our NGL team one LLC subsidiary.
197% to approximately 415033 months ended September 32023.
<unk> to approximately 140000.
Reported for the three months ended September 30 of 2022.
Revenues from our relatively new stance flagpole business operated through our Americana Liberty subsidiary totaled approximately 1.05 million for Q3 of this year, which compared to zero for the third quarter in 2020 to.
Due to the fact that we did not license the stance that coal business until March of this year 2023.
For the nine months of this year total revenues climbed 1000% to 17% to approximately $3 75 million from approximately 336000 for the same nine months in 2022.
Revenue contribution from domestic brand represented approximately 931000.
First nine months of 'twenty three.
Which is up from revenues of approximately 336000 reported for the comparable nine month period last year.
Revenues from the sales of the <unk> products totaled around $2 $82 million for the nine months ended September 32023, compared to zero in the prior year due to the aforementioned timing of the licensing of the stand black holes, which occurred in the first quarter.
2023.
Now moving down the income statement Ngos total operating expenses increased 328% to around $3 $4 million.
From approximately 800 in 2000 for the comparable three months.
Our expenses for the first nine months of 2023.
<unk> increased rising 241% to around $7 6 million from around $2 $23 million the.
The increase on a comparable nine month basis was largely due to higher SG&A expenses.
Connection with noncash stock compensation expense public company costs increased head count and higher marketing expenses to fuel the increased sales of our messy and stance led coal products.
After factoring the net loss attributable to noncontrolling interests of $62800 for the three months ended September 32023.
Net loss increased 307% to around $2, $5 5 million or <unk> 17 loss per share as compared to a net loss. After the factory. The net loss attributable to noncontrolling interests of approximately 73000 of around $627000 or <unk> <unk> loss.
<unk> per share for the three months ended September 32022.
Now for the nine months ended September 32023, net loss increased 178%.
Around $5 1 million or <unk> 36.
Loss per share after accounting for a net loss attributable to noncontrolling interest of around $186000. This compared to a net loss of approximately $186 million was 17 cents loss per share for the.
The first nine months of 2022.
After factoring in net loss attributable to noncontrolling interests of approximately 222000.
Now moving onto our balance sheet.
As of September 32023, cash on hand was approximately $1 $72 million.
Our working capital was approximately $2 42 million and total stockholders' equity was approximately $2 $63 million.
Now that concludes my overview of the financial highlights and I'll now turn the call back to Max.
Thanks.
Thank you Manny.
Significant changes in GFR behavior, and <unk> brands and E. Commerce companies are evolving to meet new challenges in the marketplace Mgo is executing at 4% that our strategy to help ensure that we're optimizing the value that we're creating for all our shareholders along with myself Mgo as co founder and Chief design.
Officer, Gina Hilfiger, and our company's Chief operating officer, Julian groups, we own nearly 57% of Ngls common stock.
Our significant shareholders our interest in the market performance of our stock is directly aligned with the interest all of our shareholders.
It's important to note that we recognize that the volatility and decline of our share price detrimental blow to all of us over the past several months.
While we believe that there are many companies in the microcap market quite experiencing the same market challenges of mgo.
Tend to remain undeterred in our efforts to earn the distinction as a world class public company.
In time, we are hopeful that our strategy as we execute to strengthen our fundamentals will result in a healthy rebound of our stock price.
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.
Www Dot Mgo Global Inc, Dot com and net.
Said I'd like to wish everyone. Good afternoon, Kevin.
Back to you.
Ladies and gentlemen, this does conclude today's mgo Global's webcast. We thank you for your participation you may disconnect at this time and have a great day.
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 S. E C.
Actual outcomes and results may differ materially from what is expressed in or implied by these forward looking statements with that said I'd now like to introduce Max Max the floor is yours.
Thank you very much Kevin I also like to thank all of you for listening this afternoon.
Both the third nine months reporting periods. This year as compared to last year Mgo has succeeded in delivering revenue growth of 948% and 1017% respectively. We believe that this performance is a direct reflection of our growth initiatives producing highly.
Favorable top line results and Thats defined to our team's hard work and the trust of our customers.
Moving through the holiday season and into the new year, we expect to perpetuate our success by driving leverage in our operating efficiencies expanding product categories for each of our brands better aligning our cost structure with revenue growth and executing marketing strategies that will fuel higher customer conversion.
Rates and increased per customer order values for both the Macy store and it sounds like both.
Mgo, It's also focus on capitalizing on our shared service platform and infrastructure to support. The addition of potential new brands addressing niche markets to our portfolio through possible acquisitions brand collaborations and organic incubation initiatives all of which are in the works.
Since going public in January of this year, we have embarked on a journey that has presented and continues to present us with valuable learnings in future growth opportunities.
Our unique high quality products and World class team serve as the foundation of our strategy to become a leading direct to consumer digital Commerce company, all while navigating the challenges posed by a difficult capital market environment inflationary pressure impacting consumers geopolitical conflicts in a volatile.
Microeconomic backdrop.
Despite these challenges our focus has not changed and our financial and operational goals for the year appear to be on track as a result.
Binnie could you now please provide our listeners with some insights into our third quarter results.
Sure Max good.
Good afternoon to all of you listening in on today's webcast.
Earlier today, we filed our third quarter of 2023 report on Form 10-Q with the SEC.
If you have not had a chance to review it you may access it on SEC Dot Gov.
Ngls Investor Relations section on our website under SEC filings.
I encourage everyone to read our 10, Qs and other filings with the SEC.
To ensure you have a full understanding of our business and financial results and other important information disclosed.
I'll begin by sharing performance highlights from our statement of operations for the three and nine months ended September 32023.
<unk> to the same reporting period in the prior year.
Q3, 2023, total revenues increased 948% to approximately $146 million, which is up from approximately $140000 reported in Q3 of last year.
Revenues generated from sales of the messy brand apparel accessories, and homewares through our Mgo team one LLC subsidiary climbed 197% to approximately 415000.
The three months ended September 32023, when compared to approximately 140000.
Reported for the three months ended September 32022.
Revenues from our relatively new Stan flagpole business operated through our Americana Liberty subsidiary totaled approximately one point <unk> 5 million for Q3 of this year, which compared to zero for the third quarter in 2022 due.
Due to the fact that we did not license the stance that coal business until March of this year 2023.
For the nine months of this year total revenues climbed one 717% to approximately $3 $75 million from approximately 336000 for the same nine months in 2022.
Revenue contribution from the messy brand represented approximately 931000 for the <unk>.
First nine months of 'twenty three.
Which is up from revenues of approximately 336000 reported for the comparable nine month period last year.
Revenues from the sales of the stand flagpoles products totaled around $282 million for the nine months ended September 32023, compared to zero in the prior year due to the aforementioned timing of the licensing of the stance led bulbs, which occurred in the first quarter.
Of 2023.
Now moving down the income statement Ngos total operating expenses increased 328% to around $3 4 million.
From approximately 800 in 2000 for the comparable three months.
Our expenses for the first nine months of 2023.
So increased rising 241% to around $7 6 million from around $2 $23 million the.
The increase on a comparable nine month basis was largely due to higher SG&A expenses in connection with noncash stock compensation expense public company costs increased head count and higher marketing expenses to fuel the increased sales of our messy and stand for.
<unk> coal products.
After factoring the net loss attributable to Noncontrolling interest of $62800 for the three months ended September 32023.
Net loss increased 307% to around $2, $5 5 million or <unk> 17 loss per share as compared to a net loss. After factoring the net loss attributable to noncontrolling interests of approximately 73000 of around $627000 or <unk> <unk>.
<unk> per share for the three months ended September 32022.
Now for the nine months ended September 32023, net loss increased 178%.
Around $5 1 million or <unk> 36.
Loss per share after accounting for a net loss attributable to noncontrolling interest of around $186000.
This compared to a net loss of approximately $1 $86 million was 17 cents loss per share for the.
The first nine months of 2022.
After factoring in net loss attributable to Noncontrolling interest of approximately 222000.
Now moving on to our balance sheet.
As of September 32023, cash on hand was approximately $1 $72 million.
Our working capital was approximately $2 42 million and total stockholders' equity was approximately $2 $63 million.
Now that concludes my overview of the financial highlights and I'll now turn the call back to Max.
<unk>.
Thank you Manny.
Significant changes in shopper behavior, and <unk> brands and E. Commerce companies are evolving to meet new challenges in the marketplace Mgo is executing at 4% on a strategy to help ensure that we're optimizing the value that we're creating for our shareholders.
Along with myself Mgo as co founder and Chief Design Officer, Gina Hilfiger, and our company's Chief operating officer, Julian groups, we own nearly 57% of Ngls common stock.
Our significant shareholders our interest in the market performance of our stock is directly aligned with the interest all of our shareholders.
It is important to note that we recognize that the volatility in them decline of our share price detrimental blow to all of us over the past several months.
We believe that there are many companies in the microcap market quite experiencing the same market challenges of mgo, we intend to remain undeterred in our efforts to earn the distinction as a world class public company.
In time, we are hopeful that a strategy that we execute to strengthen our fundamentals will result in a healthy rebound of our stock price.
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.
Www Dot Mgo Global Inc, Dot com and net.
Said I'd like to wish everyone. A good afternoon, Karen back to you.
Ladies and gentlemen, this does conclude today's mgo Global's webcast. We thank you for your participation you may disconnect at this time and have a great day.
Sure.