OverActive Media lost over $27 million in 2022

OverActive Media’s balance sheet was recently revealed, showing the company lost over $27 million. For people who don’t know who OverActive Media is, it is the parent company behind MAD Lions, the team that is part of the LEC.

OverActive Media lost over $27 million in 2022

MAD Lions’ parent company has posted very high net losses since 2021. Unfortunately, 2022 was a worse financial year; they could not recover, and the losses exceeded $27 million. The huge growth in losses is attributed to the expenses incurred on payroll, new talent hired, and assets to achieve success in the future.

On the other hand, the very significant year-over-year increase in losses is due to recording a non-cash impairment charge, which unlike 2021, was not included.

OverActive Media, despite being in a difficult financial situation concerning losses, the company has managed to maintain 2022 revenues at about $10.4 million relative to 2021. On the other hand, the financial report highlights that the company increased revenue from business operations by 23%. However, there was an offset for the decline in tournament prize revenue, with revenue from team operations increasing.

OverActive Media’s debts

According to the audited balance sheet, OverActive Media’s debt is due to three principal payments in the long term in the following fiscal years.

On the other hand, it is important to note that OverActive Media’s operating costs compared to 2021 have increased greatly. These expenses, in turn, are a consequence of more live events; but that’s not all general and administrative expenses have also increased.

Another factor influencing OverActive Media’s financial problems is its decreased share price on the Toronto Stock Exchange. Although, at the moment, the value per share of OverActive Media is $0.11, the value of the shares since 2021 has had a slight decline. There are currently 80,308 shares outstanding on a weighted average basis.

The company stated in a press release that, fortunately, they have received a deferral from the league franchise to pay their installment debt, which is over $10 million. However, no details were given as to the time frame to pay off the debt, but the process is expected to take 12 to 24 months.

On the other hand, in the press release, the company is confident it will be able to reverse this difficult situation by 2023; this year, they have major partners and plans to hold important tournaments in Canada.

In addition, OverActive Media’s co-founder, Adam Adamou, has commented very encouragingly about the company’s future. Adamou states that their economic strategy for this year is paying off, reporting that despite the difficult economic recession, they have increased revenues. So Adam Adamou is optimistic about the company’s situation for 2023.

Header: OverActive Media