MGO Global Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, MGO Global's revenues decreased by 46.4% to $565,400, down from $1,054,161 in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $2,661,253, a decline of 5.7% from $2,823,601 in the same period of 2023. Despite the drop in revenue, gross profit for the nine-month period increased slightly to $2,074,751, up 0.6% from $2,062,128 in 2023, with a gross profit margin improvement from 73.0% to 78.0%. However, the company reported a net loss from continuing operations of $(5,653,027) for the nine months, a 57.2% increase from $(3,596,339) in the prior year.

Total operating expenses for the third quarter decreased by 35.1% to $1,850,717, while for the nine months, they rose by 36.0% to $7,738,241, primarily due to increased selling, general, and administrative expenses, which surged by 71.8% to $5,711,978. The net loss attributable to MGO stockholders for the third quarter was $(1,307,796), or $(0.52) per share, compared to $(2,489,313), or $(1.79) per share, in Q3 2023.

Strategically, MGO Global has undergone significant changes, including the assignment of the Messi License to Centric Brands for $2,000,000 in cash, which has been reflected as discontinued operations. The company also entered into a Business Combination Agreement with Heidmar, Inc., expected to close in late Q4 2024, where MGO will become a wholly owned subsidiary of Heidmar Maritime Holdings Corp.

As of September 30, 2024, MGO Global's total current assets increased to $2,575,259 from $1,922,448 at the end of 2023, with cash and cash equivalents rising to $1,435,288. Total current liabilities significantly decreased to $182,244 from $1,320,162, contributing to an increase in stockholders' equity from $921,748 to $2,631,399.

The company has also faced challenges, including a notice from Nasdaq regarding non-compliance with listing rules, which was resolved by September 30, 2024, confirming compliance with all listing standards. MGO Global continues to navigate a challenging market environment, with inflation impacting its cost structure and overall financial performance.