LAS VEGAS, June 12, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Golden Matrix Group Inc. (OTC: GMGI), a technology-driven company that designs and develops social gaming platforms, systems and gaming content, today announced that for the first fiscal quarter ended April 30, 2020, the company recorded net income of $229,739 on revenues of $734,764. This compares with a net income of $279,323 on revenues of $737,169 in like year-ago quarter.
Net income reported in the first quarter was impacted adversely, by a non-cash amortization expense of $259,560. The company’s operating profit for the quarter - excluding derivative expense - was $520,795.
Shareholder equity of $3,035,284 as of April 30, 2020 represents an increase of 23% on the previous quarter and 418% on the comparable quarter in the previous fiscal year. Cash on hand increased to $1,940,392, up 5% on the previous quarter, and assets of $4,175,871 were up 13% on the previous quarter.
Golden Matrix revenues are derived primarily from licensing fees received from gaming operators located in the Asia Pacific (APAC) region and integrated with the company’s state-of-the-art GM-X platform. Currently there are over 358 active operators and more than 2.8 million registered users across all gaming operator/GM-X platforms.
Golden Matrix CEO Anthony Goodman noted that while the Covid-19 environment had created certain challenges to operations, such as an impact on GMGI’s technical resources and sales team due to current travel restrictions, the company has shown resilience and achieved its 7th consecutive profitable quarter. “Toward the end of the quarter,” he said, “we saw a significant increase in the number of casino operators seeking to create an online presence. The integration process with these new operators, while initially slow due to the impact of the pandemic, is now accelerating and expected to boost revenue and profit growth moving forward.”
Mr. Goodman added that GMGI’s revenue base and profitability should also expand during 2020 as the company increases its proprietary gaming portfolio and leverages its extensive operator and user base to participate in the rapidly growing eSport and online gambling market.
For additional information on Golden Matrix’s Q1 performance, please refer to the Company's 10-Q filing at https://www.otcmarkets.com/stock/GMGI/disclosure or www.sec.gov.
A summary of the Company's performance and highlights can be found at https://goldenmatrix.com/highlights/Q1FY21.pdf or alternatively at https://www.goldenmatrix.com/highlights.html
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 social 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. Our sophisticated software automatically declines any gaming or redemption requests from within the United States, in strict compliance with current US law.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control.
Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
| Golden Matrix Group, Inc. | ||
| Consolidated Balance Sheets | ||
| As of | As of | |
| April 30,2020 | Jan 31, 2020 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 1,940,392 | 1,856,505 |
| Account receivable, net | 994,540 | 791,340 |
| Account receivable - related party, net | 1,240,939 | 1,058,874 |
| Total current assets | 4,175,871 | 3,706,719 |
| Total Assets | 4,175,871 | 3,706,719 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | 31,306 | 25,621 |
| Accounts payable-related party | 735,830 | 660,682 |
| Advance from shareholder | 1,000 | 1,000 |
| Accrued interest | 42,451 | 41,964 |
| Settlement payable -related parties | 290,000 | 290,000 |
| Convertible notes payable, net of discount | 30,000 | 30,000 |
| Convertible notes payable, net of discount-in default | 10,000 | 10,000 |
| Promissory Note - related party | - | 174,254 |
| Total Current liabilities | 1,140,587 | 1,233,521 |
| TOTAL LIABILITIES | 1,140,587 | 1,233,521 |
| Shareholder's equity: | ||
| Preferred stock, Series A: $0.00001 par value; 19,999,000 shares authorized, none outstanding | - | - |
| Preferred stock, Series B: $0.00001 par value; 1000 shares authorized, 1000 and 1000 shares issued and outstanding, respectively | - | - |
| Common stock: $0.00001 par value; 6,000,000,000 shares authorized; 2,845,318,757 and 2,845,318,757 shares issued and outstanding respectively | 28,453 | 28,453 |
| Additional paid in capital | 28,211,736 | 27,916,389 |
| Stock payable | 37,000 | - |
| Accumulated other comprehensive loss | (683) | (683) |
| Retained earnings (accumulated deficit) | (25,241,222) | (25,470,961) |
| Total shareholders' equity | 3,035,284 | 2,473,198 |
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | 4,175,871 | 3,706,719 |
| Golden Matrix Group, Inc. | ||
| Condensed Consolidated Statements of Operations and Comprehensive Loss | ||
| Unaudited | ||
| For the three months ended April 30, | ||
| 2020 | 2019 | |
| Sales | 203,199 | 162,772 |
| Sales-Related Party | 531,565 | 574,397 |
| Cost of goods sold | (31,496) | (214,849) |
| Gross profit | 703,268 | 522,320 |
| Operating expenses | ||
| G&A expenses | 110,640 | 105,409 |
| G&A expenses - related party | 78,086 | 53,922 |
| Compensation expense -acquisition cost- related party | - | 6,791 |
| Professional fees | 20,388 | 7,983 |
| Amortization expense | 259,560 | 54,979 |
| Total operating expenses | 468,674 | 229,084 |
| Gain from operations | 234,594 | 293,236 |
| Other income (expense) | ||
| Interest expense | (6,151) | (17,168) |
| Interest earned | 1,296 | 2,346 |
| Gain on derivative liability | - | 909 |
| Total other income (expense) | (4,855) | (13,913) |
| Net income | 229,739 | 279,323 |
| Per share information | ||
| Basic, weighted number of common | ||
| shares outstanding | 2,845,318,757 | 2,838,577,184 |
| Net profit per common share-basic | 0.00 | 0.00 |
| Diluted weighted number of common | ||
| shares outstanding | 4,220,395,360 | 2,851,432,351 |
| Net profit per common share-diluted | 0.00 | 0.00 |
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Golden Matrix Group
info@goldenmatrix.com
Tel: (702) 318-7548
www.goldenmatrix.com