via NewMediaWire –
Golden Matrix Group Inc.
(NASDAQ:GMGI) (“GMGI” or the “Company”), a developer and
licensor of online gaming platforms, systems and gaming content,
today reported financial results for its third fiscal quarter ended
July 31, 2022.
- 2022 Q3 (Q3) revenues of
$9,101,541**; an increase of 180% on revenues of $3,251,354 in the
like year-ago quarter.
- Q3 net income attributable to
GMGI of $628,332, versus $484,613 in the like year-ago
quarter.
- Revenues of $26,461,389** in the
first nine months of this fiscal year, an increase of 237% on
revenues of $7,842,271 in the comparable year-ago period.
- Net income attributable to GMGI
of $1,564,695 in the first nine months of this fiscal year, versus
$664,757 in the comparable year-ago period.
- Cash and cash equivalents of
$15,869,660** and total assets of $33,385,620** as of July 31,
2022.
- Total liabilities as of July 31,
2022 of $3,697,086** including $3,604,599** of current liabilities;
and $92,487** of non-current liabilities.
- GMGI shareholders’ equity of
$26,753,460, up from $18,928,109 on October 31, 2021.
- Current game operations and
registered user numbers of 645 and 6.8 million, respectively, in
business-to-business (B2B) traditional business.
- Business-to-consumer (B2C)
segment – RKingsCompetitions Ltd. (RKings), which GMGI owns 80% of
– now has over 229,000 registered users.
** The revenues, cash-on-hand, total assets, and total
liabilities (including both current and non-current) referenced in
this press release include the 20% minority interest in RKings.
More detailed information on minority interest factors can be found
in our most recent Quarterly Report on Form 10-Q for the quarter
ended July 31, 2022, which was filed with the Securities and
Exchange Commission (SEC) today.
The Company also noted it has recorded 16 consecutive quarters
of profitability.
Revenue contributions in Q3 from GMGI’s B2B and B2C segments
were $4,256,372 and $4,845,169, respectively. Total revenues during
the quarter ended July 31, 2021 of $3,251,354 were generated by the
B2B segment. There were no contributions from the (RKings) B2C
segment during the quarter ended July 31, 2021, as GMGI had not
acquired an 80 percent controlling ownership interest in RKings
until the beginning of the current fiscal year.
The increase of general and administrative expenses – to
$1,453,776 in Q3 from $340,903 during the quarter ended July 31,
2021 - was due primarily to $832,901 of G&A expenses relating
to RKings during the quarter.
“Our ability to generate increasing revenues with
quarter-after-quarter of profitability attests to the strengths of
our B2B and B2C platforms,” said Golden Matrix CEO, Anthony Brian
Goodman, who continued “Because of the highly competitive nature of
our industry, we are continually upgrading our systems and gaming
content offerings to support the needs of our millions of
participants. The GMX-Ag (aggregate) platform, which provides
numerous features to benefit both operators and their players,
continues to gain traction, even outside our traditional
markets.
“Additionally, on the B2B side, we provide our operators with
the marketing tools they need to strengthen their customer
acquisition and retention. With respect to the B2C segment, we have
improved functionality and responsiveness of the
RKingsCompetitions.com website and expanded its marketing efforts
from Northern Ireland to encompass the UK as its customer
reach.”
Mr. Goodman noted that “the Company’s strong cash position and
asset-to-liability ratio of 9:1 as of July 31, 2022, has enabled us
to actively pursue expansion plans for both divisions. We are
anticipating introducing the RKings Tournament Platform soon, as
well as a B2C casino platform, in Mexico. We believe new market
penetration is critical to accelerate our overall growth, and
success in Mexico – with its compelling B2C options for players –
and believe these efforts can lead to significant expansion for
GMGI throughout the Latin American market and beyond.”
Mr. Goodman concluded, “We continue to evaluate strategic
opportunities in both the B2B and B2C spaces and plan to pursue
acquisitions that are suitable and expected to be accretive to
earnings.”
For additional information on Golden Matrix’s financial
performance, please refer to the Company's Quarterly Report on Form
10-Q for the third quarter ended July 31, 2022 which has been filed
with the SEC today and is available at www.sec.gov.
A summary of the Company's performance and highlights can be
found at www.goldenmatrix.com/highlights.
About Golden Matrix
Golden Matrix Group, based in Las Vegas NV, is an established
gaming technology company that develops and owns online gaming IP
and builds configurable and scalable white-label B2B gaming
platforms for its international customers, located primarily in the
Asia Pacific region. The gaming IP includes tools for marketing,
acquisition, retention and monetization of users. The Company's
platform can be accessed through both desktop and mobile
applications. As a result of its 80 percent controlling ownership
interest in UK-based RKings Competitions Ltd., Golden Matrix also
generates revenues from RKings’ scalable B2C tournament
platform.
Our sophisticated software automatically declines any gaming or
redemption requests from within the United States, in strict
compliance with current US law.
About RKings
Based in Northern Ireland, RKings Competitions Ltd. is a prize
competition business offering customers in Ireland and the United
Kingdom paid for entry, and free entry, routes to enter prize
competitions in order to win a range of consumer products as
prizes. Customers can access competitions via iOS or Android apps
as well as online where they can win prizes ranging from super cars
through to luxury holidays.
The competitions are currently open only to residents of Ireland
and the United Kingdom.
Forward-Looking Statements
Certain statements made in this press release contain
forward-looking information within the meaning of applicable
securities laws, including within the meaning of the Private
Securities Litigation Reform Act of 1995 (“forward-looking
statements”). These forward-looking statements represent the
Company’s current expectations or beliefs concerning future events
and can generally be identified using statements that include words
such as “estimate,” “expects,” “project,” “believe,” “anticipate,”
“intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “target”
or similar words or phrases. These forward-looking statements are
subject to risks, uncertainties and other factors, many of which
are outside of the Company’s control which could cause actual
results to differ materially from the results expressed or implied
in the forward-looking statements, including, but not limited to,
the impact of the COVID-19 pandemic on the Company; the need for
additional financing, the terms of such financing and the
availability of such financing; the ability of the Company and/or
its subsidiaries to obtain additional gaming licenses; the ability
of the Company to manage growth; the Company’s ability to complete
acquisitions and the available funding for such acquisitions;
disruptions caused by acquisitions; dilution caused by fund
raising, the conversion of outstanding preferred stock and/or
acquisitions; the Company’s ability to maintain the listing of its
common stock on the Nasdaq Capital Market; the Company’s
expectations for future growth, revenues, and profitability; the
Company’s expectations regarding future plans and timing thereof;
the Company’s reliance on its management; the fact that the
Company’s chief executive officer has voting control over the
Company; related party relationships; the potential effect of
economic downturns, recessions, increases in interest rates and
inflation, and market conditions, decreases in discretionary
spending and therefore demand for our products, and increases in
the cost of capital, related thereto, among other affects thereof,
on the Company’s operations and prospects; the Company's ability to
protect proprietary information; the ability of the Company to
compete in its market; the Company’s lack of effective internal
controls; dilution caused by efforts to obtain additional
financing; the effect of current and future regulation, the
Company’s ability to comply with regulations and potential
penalties in the event it fails to comply with such regulations and
changes in the enforcement and interpretation of existing laws and
regulations and the adoption of new laws and regulations that may
unfavorably impact our business; the risks associated with gaming
fraud, user cheating and cyber-attacks; risks associated with
systems failures and failures of technology and infrastructure on
which the Company's programs rely; foreign exchange and currency
risks; the outcome of contingencies, including legal proceedings in
the normal course of business; the ability to compete against
existing and new competitors; the ability to manage expenses
associated with sales and marketing and necessary general and
administrative and technology investments; and general consumer
sentiment and economic conditions that may affect levels of
discretionary customer purchases of the Company's products,
including potential recessions and global economic slowdowns.
Although we believe that our plans, intentions and expectations
reflected in or suggested by the forward-looking statements we make
in this release are reasonable, we provide no assurance that these
plans, intentions or expectations will be achieved. Consequently,
you should not consider any such list to be a complete set of all
potential risks and uncertainties. More information on potential
factors that could affect the Company's financial results is
included from time to time in the "Special Note Regarding
Forward-Looking Statements," "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's periodic and current filings
with the SEC, including the Form 10-Qs and Form 10-Ks, including,
but not limited to, the Company’s Transition Report on Form 10-K
for the nine month transition period ended October 31, 2021 and its
Quarterly Report on Form 10-Q for the quarter ended July 31, 2022.
These reports are filed with the SEC and available at www.sec.gov.
All subsequent written and oral forward-looking statements
attributable to the Company or any person acting on behalf of the
Company are expressly qualified in their entirety by the cautionary
statements referenced above. Other unknown or unpredictable factors
also could have material adverse effects on the Company’s future
results. The forward-looking statements included in this press
release are made only as of the date hereof. The Company cannot
guarantee future results, levels of activity, performance or
achievements. Accordingly, you should not place undue reliance on
these forward-looking statements. Finally, the Company undertakes
no obligation to update these statements after the date of this
release, except as required by law, and takes no obligation to
update or correct information prepared by third parties that are
not paid for by the Company. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
Connect with us:Twitter -
https://twitter.com/GMGI_GroupInstagram -
https://www.instagram.com/goldenmatrixgroup/
Golden Matrix GroupContact: Scott Yaninfo@goldenmatrix.com
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Golden Matrix Group, Inc and Subsidiaries |
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Consolidated Balance Sheets |
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As of |
As of |
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July 31, |
October 31, |
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2022 |
2021 |
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(Unaudited) |
(Audited) |
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ASSETS |
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Current
assets: |
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Cash and cash equivalents |
$15,869,660 |
$16,797,656 |
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Accounts receivable, net |
1,929,653 |
1,762,725 |
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Accounts receivable – related parties |
659,515 |
1,306,896 |
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Prepaid expenses |
202,779 |
114,426 |
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Short-term deposit |
57,385 |
61,799 |
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Inventory, prizes |
1,191,102 |
- |
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Total current assets |
$19,910,094 |
$20,043,502 |
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Non-current
assets: |
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Property, plant and equipment |
81,783 |
- |
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Intangible assets |
2,486,005 |
135,263 |
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Operating lease right-of-use assets |
188,914 |
280,183 |
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Goodwill |
10,718,824 |
- |
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Total non-current assets |
13,475,526 |
415,446 |
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Total assets |
$33,385,620 |
$20,458,948 |
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LIABILITIES AND
SHAREHOLDERS’ EQUITY |
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Current
liabilities: |
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Accounts payable and accrued liabilities |
$1,622,694 |
$1,074,786 |
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Accounts payable-related party |
100,541 |
105,062 |
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Accrued income tax liability |
243,989 |
- |
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Deferred revenues |
212,636 |
- |
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Deferred tax liability |
4,657 |
- |
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Accrued interest |
123 |
123 |
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Customer deposit |
100,925 |
68,635 |
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Contingent liability |
1,218,027 |
- |
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Current portion of operating lease liabilities |
101,007 |
100,209 |
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Total current liabilities |
3,604,599 |
1,348,815 |
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Non-current
liabilities: |
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Non-current portion of operating lease liability |
92,487 |
182,024 |
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Total non-current liabilities |
92,487 |
182,024 |
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Total liabilities |
$3,697,086 |
$1,530,839 |
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Shareholders’
equity: |
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Preferred stock, $0.00001 par value; 20,000,000 shares
authorized |
- |
- |
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Preferred stock, Series B: $0.00001 par value, 1,000 shares
designated, 1,000 and 1,000 shares issued and outstanding,
respectively |
- |
- |
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Common stock: $0.00001 par value; 250,000,000 and 40,000,000 shares
authorized; 28,182,575 and 27,231,401 shares issued and outstanding
respectively |
$282 |
$272 |
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Additional paid-in capital |
49,722,074 |
43,354,366 |
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Accumulated other comprehensive loss |
-108,782 |
-1,720 |
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Accumulated deficit |
-22,860,114 |
-24,424,809 |
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Total
shareholders’ equity of GMGI |
26,753,460 |
18,928,109 |
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Noncontrolling interests |
2,935,074 |
- |
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Total equity |
29,688,534 |
18,928,109 |
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Total liabilities
and shareholders’ equity |
$33,385,620 |
$20,458,948 |
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Golden Matrix Group, Inc and Subsidiary |
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Consolidated Statements of Operations and Comprehensive
Income |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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July 31, |
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July 31, |
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2022 |
2021 |
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2022 |
2021 |
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Revenues |
$8,885,206 |
$2,694,611 |
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$25,800,234 |
$6,000,365 |
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Revenues-related
party |
216,335 |
556,743 |
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661,155 |
1,841,906 |
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Total
revenues |
9,101,541 |
3,251,354 |
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26,461,389 |
7,842,271 |
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Cost of goods
sold |
-6,620,517 |
-2,043,593 |
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-19,415,700 |
-4,491,520 |
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Gross profit |
2,481,024 |
1,207,761 |
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7,045,689 |
3,350,751 |
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Costs and
expenses: |
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G&A expense |
1,453,776 |
340,903 |
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4,133,368 |
820,254 |
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G&A expense- related party |
195,710 |
224,266 |
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534,910 |
1,524,208 |
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Professional fees |
101,656 |
63,770 |
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463,625 |
206,132 |
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Research and development expense |
570 |
68,046 |
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21,982 |
118,151 |
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Total operating
expenses |
1,751,712 |
696,985 |
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5,153,885 |
2,668,745 |
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Income from
operations |
729,312 |
510,776 |
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1,891,804 |
682,006 |
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Other income
(expense): |
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Interest expense |
- |
- |
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- |
-955 |
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Interest earned |
793 |
46 |
|
1776 |
127 |
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Foreign exchange gain (loss) |
28,495 |
-26,209 |
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227,324 |
-16,421 |
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Total other
income (expense) |
29,288 |
-26,163 |
|
229,100 |
-17,249 |
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Net income before
tax |
758,600 |
484,613 |
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2,120,904 |
664,757 |
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Provision for income taxes |
78,951 |
- |
|
326,135 |
- |
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Net income |
679,649 |
484,613 |
|
1,794,769 |
664,757 |
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Less: Net income
attributable to noncontrolling interest |
51,317 |
- |
|
230,074 |
- |
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Net income
attributable to GMGI |
$628,332 |
$484,613 |
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$1,564,695 |
$664,757 |
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Weighted average
ordinary shares outstanding: |
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Basic |
28,149,967 |
23,404,205 |
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27,994,628 |
22,615,734 |
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Diluted |
36,558,151 |
34,741,973 |
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35,876,734 |
33,844,975 |
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Net income per
ordinary share attributable to GMGI: |
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Basic |
$0.02 |
$0.02 |
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$0.06 |
$0.03 |
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Diluted |
$0.02 |
$0.01 |
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$0.04 |
$0.02 |
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Statement of
Comprehensive Income: |
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Net income |
$679,649 |
$484,613 |
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$1,794,769 |
$664,757 |
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Foreign currency
translation adjustments |
-53,881 |
-2,997 |
|
-107,062 |
-2,219 |
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Comprehensive
income |
625,768 |
481,616 |
|
1,687,707 |
662,538 |
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Less: Net income
attributable to noncontrolling interest |
51,317 |
- |
|
230,074 |
- |
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Comprehensive
income attributable to GMGI |
$574,451 |
$481,616 |
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$1,457,633 |
$662,538 |
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