via InvestorWire – Golden Matrix Group Inc.
(NASDAQ:GMGI), a developer and licensor of online gaming
platforms, systems and gaming content, today reports financial
results for its second fiscal quarter ended April 30, 2022.
- Q2 revenues of $8,482,743**, an
increase of 221% on revenues of $2,639,511 in the comparable
year-ago quarter.
- Q2 net income attributable to GMGI
of $586,984 versus $127,986 in the comparable year-ago
quarter.
- Revenues of $17,359,848** in the
first six months of this fiscal year, an increase of 278% on
revenues of $4,590,917 in the comparable year-ago period.
- Net income attributable to GMGI of
$936,363 in the first six months versus $180,144 in the comparable
year-ago period.
- Cash and cash equivalents of
$15,811,213** and total assets of $33,501,019** as of April 30,
2022.
- Total liabilities of $4,617,526**
- $4,496,214** current; $121,312** non-current as
of April 30, 2022.
- Shareholders’ equity of GMGI
increased to $25,999,736, up from $18,928,109 on Oct. 31,
2021.
** The revenues, cash-on-hand, total assets, and
total liabilities (including both current and non-current)
referenced in this press release include the 20% held in
RKingsCompetitions Ltd by minority interests. More detailed
information on minority interest factors can be found in our most
recent Quarterly Report on Form 10-Q.
The company also noted it has recorded 15
consecutive quarters of profitability.
The significant increase in revenues of this
fiscal quarter over revenues recorded in the comparable year-ago
quarter resulted primarily from a 28% increase in GMGI’s
traditional B2B segment, in addition to strong revenue
contributions from UK-based RKings, which was responsible for 60%
of total revenues in the quarter. There were no contributions from
UK-based RKings in the prior year comparable periods, as GMGI had
acquired an 80% controlling ownership interest in RKings at the
beginning of the current fiscal year.
During the three months ended April 30, 2022,
and 2021, general and administrative (G&A) expenses were
$1,380,706 and $327,723, respectively. The increase was due
primarily to $884,027 in G&A expenses from the RKings B2C
segment, which included payroll costs and bank charges for
transaction fees. The G&A expenses from GMGI’s traditional B2B
segment also increased due to higher costs in marketing fees, lease
expenses and payroll.
“We are pleased with the financial results of
our second quarter as a company with both B2B and B2C verticals,”
said Golden Matrix CEO Brian Goodman. “During the quarter we
implemented upgraded technology and stronger accounting controls to
improve cash flow and profitability at RKings. With the Tournament
Platform’s added features and functionality, we expect steady
increases in both the monthly number of skill tournaments and
participants; and, because this robust platform gives RKings’
tournament players immediate access to a growing number of exciting
prize competitions, we expect this third quarter and future
quarters to generate increasing revenues and profits.
“The acquisition of RKings has given us entry
into a well-established B2C vertical in a new market outside of the
Asia Pacific (APAC) region. With its highly popular prize offerings
coupled with nominal player acquisition costs, the RKings’
Tournament Platform is highly scalable; and we plan to introduce it
into additional regulated markets worldwide, beginning with Mexico
in the current quarter.”
Brian Goodman concluded, “We enter the remainder
of this fiscal year with two robust operating divisions and a
strong balance sheet. As stated previously, we continue to evaluate
new opportunities in both the B2B and B2C spaces that will further
accelerate GMGI’s overall revenue growth and – in accordance with
our acquisition strategy – are always accretive to earnings.”
For additional information on Golden Matrix’s
financial performance, please refer to the company's Form 10-Q for
the second quarter ended April 30, 2022, available at
https://www.nasdaq.com/market-activity/stocks/gmgi/sec-filings or
www.sec.gov.
A summary of the Company's performance and
highlights can be found at www.goldenmatrix.com/highlights.
About Golden
MatrixGolden Matrix Group, based in Las Vegas, Nevada, 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% 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 U.S. law.
About RKingsBased
in Northern Ireland, RKingsCompetitions 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
StatementsCertain 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 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 and/or acquisitions;
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 and market conditions 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 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. 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 "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 Oct.
31, 2021. 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.
Golden
Matrix Group, Inc and Subsidiaries |
Consolidated
Balance Sheets |
|
|
|
|
As
of |
As
of |
|
April
30, |
October
31, |
|
2022 |
2021 |
|
(Unaudited) |
(Audited) |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
Cash and cash equivalents |
$ |
15,811,213 |
|
$ |
16,797,656 |
|
Accounts receivable, net |
|
2,230,013 |
|
|
1,762,725 |
|
Accounts receivable – related parties |
|
643,180 |
|
|
1,306,896 |
|
Prepaid expenses |
|
269,128 |
|
|
114,426 |
|
Short-term deposit |
|
58,539 |
|
|
61,799 |
|
Inventory, prizes |
|
918,703 |
|
|
- |
|
Total current assets |
$ |
19,930,776 |
|
$ |
20,043,502 |
|
|
|
|
Non-current
assets: |
|
|
Property, plant and equipment |
|
49,400 |
|
|
- |
|
Intangible assets |
|
2,584,709 |
|
|
135,263 |
|
Operating lease right-of-use assets |
|
217,310 |
|
|
280,183 |
|
Goodwill |
|
10,718,824 |
|
|
- |
|
Total non-current assets |
|
13,570,243 |
|
|
415,446 |
|
Total assets |
$ |
33,501,019 |
|
$ |
20,458,948 |
|
|
|
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
Accounts payable and accrued liabilities |
|
2,018,139 |
|
|
1,074,786 |
|
Accounts payable-related party |
|
85,819 |
|
|
105,062 |
|
Accrued income tax liability |
|
716,560 |
|
|
- |
|
Deferred revenues |
|
197,213 |
|
|
- |
|
Deferred tax liability |
|
4,808 |
|
|
- |
|
Accrued interest |
|
123 |
|
|
123 |
|
Customer deposit |
|
116,051 |
|
|
68,635 |
|
Contingent liability |
|
1,257,229 |
|
|
- |
|
Current portion of operating lease liabilities |
|
100,272 |
|
|
100,209 |
|
Total current liabilities |
|
4,496,214 |
|
|
1,348,815 |
|
|
|
|
Non-current
liabilities: |
|
|
Non-current portion of operating lease liability |
|
121,312 |
|
|
182,024 |
|
Total non-current liabilities |
|
121,312 |
|
|
182,024 |
|
Total liabilities |
$ |
4,617,526 |
|
$ |
1,530,839 |
|
|
|
|
Shareholders’ equity: |
|
|
Preferred stock, $0.00001 par value; 20,000,000 shares
authorized |
|
- |
|
|
- |
|
Preferred stock, Series B: $0.00001 par value, 1,000 shares
designated, 1,000 and 1,000 shares issued and outstanding,
respectively |
|
- |
|
|
- |
|
Common stock: $0.00001 par value; 250,000,000 and 40,000,000 shares
authorized; 28,115,909 and 27,231,401 shares issued and outstanding
respectively |
$ |
281 |
|
$ |
272 |
|
Additional paid-in capital |
|
49,542,802 |
|
|
43,354,366 |
|
Accumulated other comprehensive loss |
|
(54,901 |
) |
|
(1,720 |
) |
Accumulated deficit |
|
(23,488,446 |
) |
|
(24,424,809 |
) |
Total
shareholders’ equity of GMGI |
|
25,999,736 |
|
|
18,928,109 |
|
Noncontrolling interests |
|
2,883,757 |
|
|
- |
|
Total
equity |
|
28,883,493 |
|
|
18,928,109 |
|
Total
liabilities and shareholders’ equity |
$ |
33,501,019 |
|
$ |
20,458,948 |
|
|
|
|
Golden
Matrix Group, Inc and Subsidiary |
Consolidated
Statements of Operations and Comprehensive Income |
(Unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
April 30, |
|
April 30, |
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
Revenues |
$ |
8,273,169 |
|
$ |
1,969,523 |
|
|
$ |
16,915,028 |
|
$ |
3,305,754 |
|
Revenues-related party |
|
209,574 |
|
|
669,988 |
|
|
|
444,820 |
|
|
1,285,163 |
|
Total
revenues |
|
8,482,743 |
|
|
2,639,511 |
|
|
|
17,359,848 |
|
|
4,590,917 |
|
Cost of
goods sold |
|
(5,942,181 |
) |
|
(1,493,145 |
) |
|
|
(12,795,183 |
) |
|
(2,447,927 |
) |
Gross
profit |
|
2,540,562 |
|
|
1,146,366 |
|
|
|
4,564,665 |
|
|
2,142,990 |
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
G&A expense |
|
1,380,706 |
|
|
327,723 |
|
|
|
2,679,592 |
|
|
479,351 |
|
G&A expense- related party |
|
183,600 |
|
|
562,344 |
|
|
|
339,200 |
|
|
1,299,942 |
|
Professional fees |
|
216,522 |
|
|
93,607 |
|
|
|
361,969 |
|
|
142,362 |
|
Research and development expense |
|
1,200 |
|
|
21,218 |
|
|
|
21,412 |
|
|
50,105 |
|
Total
operating expenses |
|
1,782,028 |
|
|
1,004,892 |
|
|
|
3,402,173 |
|
|
1,971,760 |
|
Income from
operations |
|
758,534 |
|
|
141,474 |
|
|
|
1,162,492 |
|
|
171,230 |
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
Interest expense |
|
- |
|
|
- |
|
|
|
- |
|
|
(955 |
) |
Interest earned |
|
542 |
|
|
40 |
|
|
|
983 |
|
|
81 |
|
Foreign exchange gain (loss) |
|
114,153 |
|
|
(13,528 |
) |
|
|
198,829 |
|
|
9,788 |
|
Total other
income (expense) |
|
114,695 |
|
|
(13,488 |
) |
|
|
199,812 |
|
|
8,914 |
|
Net income
before tax |
|
873,229 |
|
|
127,986 |
|
|
|
1,362,304 |
|
|
180,144 |
|
Provision for income taxes |
|
171,780 |
|
|
- |
|
|
|
247,184 |
|
|
- |
|
Net
income |
|
701,449 |
|
|
127,986 |
|
|
|
1,115,120 |
|
|
180,144 |
|
Less: Net
income attributable to noncontrolling interest |
|
114,465 |
|
|
- |
|
|
|
178,757 |
|
|
- |
|
Net income
attributable to GMGI |
$ |
586,984 |
|
$ |
127,986 |
|
|
$ |
936,363 |
|
$ |
180,144 |
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding: |
|
|
|
|
|
Basic |
|
28,089,041 |
|
|
22,939,379 |
|
|
|
27,915,672 |
|
|
22,214,964 |
|
Diluted |
|
35,908,819 |
|
|
34,938,942 |
|
|
|
35,735,450 |
|
|
34,046,878 |
|
Net income
per ordinary share attributable to GMGI: |
|
|
|
|
|
Basic |
$ |
0.02 |
|
$ |
0.01 |
|
|
$ |
0.03 |
|
$ |
0.01 |
|
Diluted |
$ |
0.02 |
|
$ |
0.00 |
|
|
$ |
0.03 |
|
$ |
0.01 |
|
|
|
|
|
|
|
Statement of
Comprehensive Income: |
|
|
|
|
|
Net
income |
$ |
701,449 |
|
$ |
127,986 |
|
|
$ |
1,115,120 |
|
$ |
180,144 |
|
Foreign
currency translation adjustments |
|
(110,235 |
) |
|
1,073 |
|
|
|
(53,181 |
) |
|
778 |
|
Comprehensive income |
|
591,214 |
|
|
129,059 |
|
|
|
1,061,939 |
|
|
180,922 |
|
Less: Net
income attributable to noncontrolling interest |
|
114,465 |
|
|
- |
|
|
|
178,757 |
|
|
- |
|
Comprehensive income attributable to GMGI |
$ |
476,749 |
|
$ |
129,059 |
|
|
$ |
883,182 |
|
$ |
180,922 |
|
|
|
|
|
|
|
Connect with us:Twitter
- https://twitter.com/GMGI_OfficialInstagram
- https://www.instagram.com/goldenmatrixgroup/
Golden Matrix Group Contact: Scott Yan
info@goldenmatrix.com
Corporate Communications:InvestorBrandNetwork
(IBN)Los Angeles,
Californiawww.InvestorBrandNetwork.com310.299.1717
OfficeEditor@InvestorBrandNetwork.com
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