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MI

MANGOCEUTICALS, INC. (MGRX)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 revenue grew 15.5% year over year to $0.163M, while sequentially lower than Q1 ($0.214M), reflecting mixed momentum; gross profit declined YoY due to higher shipping and first-time customer discounts .
  • Net loss was $(2.39)M versus $(2.28)M YoY; H1 net loss improved modestly to $(4.76)M vs $(4.84)M in 1H23 as operating expenses fell year to date, but remain elevated relative to revenue .
  • Shareholders’ equity surged to $13.83M from $0.78M at year-end, driven primarily by the April patent portfolio acquisition paid in preferred stock and cash .
  • Management highlighted upcoming launches (GLP‑1 ODT “Slim”/“Trim”, hormone therapy “MOJO”) and a DEA-approved telemedicine operating system as H2 growth catalysts .
  • Liquidity remains tight (cash $0.49M; working deficit ~$0.9M); funding actions (Series B preferred, ELOC) and a new distribution agreement (APAC/LatAm excl. Mexico) are key to sustaining operations .

What Went Well and What Went Wrong

What Went Well

  • Revenue growth: Q2 revenue rose 15.5% YoY to $0.163M; H1 revenue grew 55.9% YoY to $0.377M, reflecting stronger marketing and recurring subscriptions .
  • Strategic assets and equity: Shareholders’ equity increased 1,685% to $13.83M following the Intramont patents acquisition (Series C preferred and $0.4M cash), enhancing IP optionality .
  • Market expansion: Signed a 3-year Master Distribution Agreement for APAC and LatAm (ex-Mexico), with potential path to exclusivity upon milestones .
    • Quote: “MangoRx continues to advance its core business segments...expects further growth...fueled by the recent launch of our newly developed DEA approved telemedicine operating system.” — Jacob Cohen, CEO .

What Went Wrong

  • Profitability pressure: Gross profit fell YoY in Q2 ($0.070M vs $0.087M) amid higher shipping costs and discounts; sequential gross profit dropped vs Q1 ($0.147M) .
  • Operating costs and losses: Q2 operating expenses were $2.24M (incl. $0.86M stock-based comp in H1), driving a $(2.39)M net loss; interest expense on preferred discount added $0.223M .
  • Liquidity/going concern: Cash $0.49M, working deficit ~$0.9M, accumulated deficit $15.99M; company needs additional funding to operate over the next 12 months .

Financial Results

Consolidated P&L comparatives (oldest → newest)

Metric ($USD)Q2 2023Q1 2024Q2 2024
Revenues$141,237 $214,095 $163,163
Gross Profit$87,130 $147,398 $69,792
Total Operating Expenses$2,379,388 $2,515,015 $2,238,433
Loss from Operations$(2,292,258) $(2,367,617) $(2,168,641)
Net Loss$(2,284,025) $(2,367,617) $(2,391,319)
Basic & Diluted EPS ($)$(0.14) $(0.10) $(0.09)
Interest Expense (discount amort.)$0 $0 $222,678
Gross Profit Margin % (derived)61.7% 68.8% 42.8%

Notes: Gross margin is derived from reported revenues and gross profit in each period .

Estimates vs Actuals

MetricQ2 2024 ActualQ2 2024 ConsensusSurprise
Revenue ($USD)$163,163 N/A (consensus unavailable via S&P Global)*N/A
EPS ($USD)$(0.09) N/A (consensus unavailable via S&P Global)*N/A

*Consensus unavailable via S&P Global.

Segment Breakdown

  • Mangoceuticals operates as one segment; no segment revenue breakdown provided .

KPIs and Balance/Liquidity (oldest → newest)

KPIQ2 2023Q1 2024Q2 2024
Cash and Equivalents ($)$2,947,495 $15,305 $490,243
Working Capital Deficit ($)N/A~$1.1M ~$0.9M
Shareholders’ Equity ($)N/A$(958,468) (deficit) $13,829,445

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024Not providedQualitative: “expects further growth in second half” Maintained qualitative only
Product LaunchesH2 2024GLP‑1 ODT (planned)GLP‑1 ODT “Slim”/“Trim” anticipated; “MOJO” launched; DEA-approved telemedicine OS launched New/affirmed initiatives
Margin/OpEx/Tax/Segments/DividendFY 2024Not providedNot providedN/A

No formal numeric financial guidance was disclosed in the Q2 8‑K or 10‑Q; management provided qualitative outlook tied to product launches and platform enhancements –.

Earnings Call Themes & Trends

(Note: No Q2 earnings call transcript was found in our document catalog; themes below reflect press release and 10‑Q MD&A.)

TopicPrevious Mentions (Q-2: FY 2023)Previous Mentions (Q-1: Q1 2024)Current Period (Q2 2024)Trend
Technology/PlatformN/A (see single-segment disclosure) Website/front/back-end development; increased spend –DEA-approved telemedicine operating system launched Accelerating
Product PortfolioN/APRIME by MangoRx (Kyzatrex) agreement disclosed GLP‑1 ODT “Slim/Trim” anticipated; MOJO hormone therapy launched Expanding
Regulatory/LegalN/AFDA Section 503A compounding framework risk noted –COFEPRIS path for ED product in Mexico referenced; broad risk factors reiterated Ongoing
Regional ExpansionN/ASubsidiaries formed (Mexico 98%, UK 100%); limited ops Master Distribution Agreement for APAC/LatAm (ex-Mexico) Expanding
Capital & DilutionN/AELOC ($25M), equity raises, warrants/options detailed –Series B preferred closings; additional warrants; equity reserve; going concern –Persistent
Profitability/MarginsN/AGross profit improved vs prior year; high OpEx –Gross profit down YoY; OpEx still high; net loss sustained –Mixed/pressured

Management Commentary

  • “MangoRx continues to advance its core business segments with a focus on innovation and customer satisfaction…expects further growth in the second half…fueled by the recent launch of our newly developed DEA approved telemedicine operating system.” — Jacob Cohen, CEO .
  • MD&A notes Q2 gross profit decreased “due to an increase in shipping costs and the Company offering various discounts and incentives to attract first time customers,” while operating expenses rose in legal, accounting, consulting, and software development categories –.

Q&A Highlights

  • No Q2 2024 earnings call transcript was available in our document catalog; analysis relies on the 8‑K and 10‑Q narrative [ListDocuments returned no transcript; see press release and 10‑Q citations: 1 and 4].

Estimates Context

  • Wall Street consensus estimates (revenue/EPS) were unavailable via S&P Global for Q2 2024 at time of analysis; consequently, we cannot assess beat/miss relative to consensus.*
  • Near-term estimate revisions may focus on monetization timing of new products (GLP‑1 ODT, MOJO), distribution ramp (APAC/LatAm), and funding availability given working capital needs –.

*Consensus unavailable via S&P Global.

Key Takeaways for Investors

  • Revenue trajectory is improving YoY but volatile sequentially; watch Q3/Q4 cadence as new launches and distribution agreements begin to contribute .
  • Profitability remains challenged: gross margin compression in Q2 and high operating expenses continue to drive sizable losses; operating leverage from platform and portfolio expansion is critical –.
  • Balance sheet transformed by IP acquisition (Series C preferred); equity improved, but cash is limited and going-concern risks persist; execution of Series B closings/ELOC drawdowns and registration effectiveness are pivotal –.
  • Regulatory and compounding risk (Section 503A), international approvals (COFEPRIS), and cybersecurity/compliance remain key non-financial risks that could affect commercialization timelines – .
  • Distribution agreement in APAC/LatAm and new telemedicine OS may accelerate customer acquisition outside the U.S.; monitor milestones for potential exclusivity .
  • Stock issuance, warrants, and preferred conversions imply ongoing dilution; investors should track share count, warrant exercises, and conversion activity –.
  • Near-term trading may hinge on concrete H2 commercialization updates (GLP‑1 “Slim/Trim”, MOJO traction), financing steps, and any progress toward Mexico ED approval .