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8/14/2023
Good afternoon, everyone, and welcome to MGO Global's 2023 Second Quarter Results Webcast. Presenting on today's webcast are Maximiliano Ojeda, 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. 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 Ojeda. Max?
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 expand our 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 Dottamanelli will present the second quarter results.
I'd be delighted to, Max. 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 or via NGO's investor relations section on our website under SEC filings. I encourage everyone to read the Form 10-Q and all of our 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 with the review of our income statement of operations. 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. For the six-month period ended June 30, 2023, revenues substantially increased 1,067 percent to $2.29 million, which was up from $196,000 for the first half of 2022. Sales of the Leo Messi branded apparel, accessories, and homewares offered through the Messy store contributed notable revenue growth for both the three and six months ended June 30th, 2023, rising 134 percent and 164 percent respectively. Moreover, revenues from our new Stan flagpole line of products were indeed pronounced, totaling 1.72 million for the three months ended June 30th, 2023, and $1.77 million for the six-month reporting period this year. As a reminder, we licensed exclusive rights to certain assets of StandCo in late March 2023. So, the second quarter is the first full quarter of results for this new business. Moving on to cost of goods sold in the Q2 of this year, totaled approximately $623,000 which was up 3,655 percent compared to cost of goods sold of roughly 17,000 for the three months ended June 30, 2022. This resulted in a gross profit of $1.33 million compared to $80,242 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 percent to approximately $757,000, and our gross profit was $1.53 million. This compared to cost of goods sold for the six months of June 30, 2022 of $48,266, resulting in a gross profit of approximately $148,000. For the three months ended June 30, 2023, total operating expenses climbed 251 percent to $2.75 million, which compared to total operating expenses of roughly $786,000 for the three months ended June 30, 2022. This increase was due primarily to a 424 percent increase in selling, general, and administrative expenses during the quarter. Likewise, For the six months ended June 30, 2023, total operating expenses increased 192 percent to $4.16 million compared to total operating expenses of $1.43 million reported for the same six-month period in 2022. 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. 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 30th, 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 percent to $1.34 million, or 0.09 cents loss per share. This compared to a net loss after factoring the net loss attributable to non-controlling interests of $84,000 of $721,000 or 0.07 cents loss per share for the three months ended June 30th, 2022. For the six months ended June 30th, 2023, net loss totaled approximately 2.5 million or 18 cents loss per share after accounting for a net loss attributable to non-controlling interests of 123,000. This compared to a net loss of $1.23 million, or $0.12 loss per share, for the first six months of 2022, after factoring a net loss attributable to non-controlling interest of roughly $150,000. 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 stockholders' equity. While MGO has continued to realize lost system operations because of our capital-raising efforts to date, including completing our IPO in January of 2023, coupled with continued revenue growth, we believe that we will have sufficient cash to meet our anticipated operating costs and capital expenditure requirements through December of 2023. Now, that concludes my overview of the financial results, and I will now turn the call back to Max. Max?
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