Mobile Global Esports, Inc.
Mobile Global Esports filed its Q2 2026 10-Q, revealing a near-total cash depletion — $19,936 remaining as of June 30, 2026, down from $573,305 at year-end 2025. Revenue was negligible at $15,557 for the quarter and $21,877 for the half, while cost of revenue alone consumed $207,005. The company continues to fund operations through convertible note issuances and equity-for-services arrangements, with 53.7 million shares issued for note conversions in Q2.
- Cash collapsed to $19,936 at June 30, 2026 from $573,305 at December 31, 2025 — a 96.5% drawdown in six months.
- Revenue was just $15,557 for Q2 and $21,877 for H1 2026, while cost of revenue alone was $103,537 and $207,005 respectively.
- Gross margin was -565.5% and operating margin was -5,454.1%, per SEC XBRL-tagged data.
- 53.7 million shares were issued for convertible note conversions in Q2 alone, plus 11.4 million shares for services.
- The company states it 'continue[s] to seek additional financing' and warns of 'substantial dilution to existing shareholders.'
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A public company with $19,936 in cash, negative gross margins, and 53.7M shares of dilution in a single quarter is in a cash emergency that threatens its viability.
Micro-cap esports companies continue to struggle with monetization; MGAM's sub-$22K semi-annual revenue against nearly $1.6M in operating costs exemplifies the sector's unit-economics challenge for sub-scale players.
Cash of $19,936 against $1.04M in current liabilities creates a going-concern risk; the company explicitly warns that inability to obtain additional financing 'could have a material adverse effect.' Massive dilution from convertible note conversions — 53.7M shares in Q2 alone — continues to pressure
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