Ninth consecutive quarter of profitability
- Revenues (Q3 '21) of $1,491,464 compared with revenues of $881,845 in like year-ago quarter
- Net income of $30,558 versus net income of $545,888 in Q3 '20
- Adjusted earnings of $569,190 when excluding non-cash stock-based compensation of $538,632
- Cash and cash equivalents of $5,009,996, up from $1,856,505 as of January 31, 2020
- Total assets of $6,811,829, up from $3,706,719 as of January 31, 2020
- Expansion into new markets through distribution agreements with Amelco and Playtech
- Application submitted for uplisting to Nasdaq Capital Market
LAS VEGAS, NV / ACCESSWIRE / December 11, 2020 / Golden Matrix Group Inc. (OTC PINK:GMGI), a developer and licenser of social gaming platforms, systems and gaming content, today reported that its third fiscal quarter ended October 31, 2020 achieved almost $1.5 million in revenues and represents the company's ninth consecutive quarter of profitability.
The company said acceletration in total revenues was supported by strong revenue contributions from a non-related-party distributor, which also accounted for an increase in cost of goods sold and a decrease in overall gross profit. "Although the margins are lower than our historical business margins," said CEO Brian Goodman, "the revenues they generate will be exponentially higher and continue to scale, and margins are expected to increase over time."
Mr. Goodman noted that GMGI achieved profitability in Q3 with strong positive cash flow and a balance sheet that continues to improve with each quarter. As a result - and with the completion during the quarter of a non-brokered $1.8 million private placement - the company's cash position has increased to just over $5.0 million, up 170 percent from $1.9 million at fiscal year-end January 31, 2020. Total assets grew to $6.8 million, up 86 percent from $3.7 million during the first nine months of fiscal 2021.
As previously announced, Golden Matrix entered into strategic distribution and marketing pacts with two of the industry's leading sports betting and gambling software and trading services providers: Amelco UK Limited in October and Playtech plc (LSE:PTEC.L; OTC:PYTCF) in November. "We are extremely excited about these new opportunities for the Golden Matrix brand as we continue to grow our core business," said Mr. Goodman. "The integration with Amelco's sports betting platform and the cross-distribution of content with Playtech are expected to be completed shortly and producing added revenues and profits beginning in early 2021. Currently, we are also in discussions with other successful industry players, and only considering those transactions or acquisitions that can complement and add profitably to our core organic growth.
"In addition to strengthening the balance sheet during the quarter and beginning our entry into new vertical markets through these key partnerships, we continued to expand the board of directors and upgrade corporate governance. We have made our application to the Nasdaq Capital Market, and we believe the uplisting of GMGI shares to a national exchange - in coordination with our anticipated growth - will have a positive impact on shareholder value."
For additional information on Golden Matrix's Q3 2021 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 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 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.
Connect with us:
Twitter - https://twitter.com/GMGI_Group
Instagram - https://www.instagram.com/goldenmatrixgroup/"
Golden Matrix Group
Contact: Scott Yan
[email protected]
www.goldenmatrix.com
Golden Matrix Group, Inc.
Consolidated Balance Sheets
Unaudited
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As of | As of | ||||||
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October 31,2020 | January 31, 2020 | ||||||
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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
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5,009,996 | 1,856,505 | ||||||
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Account receivable, net
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755,553 | 791,340 | ||||||
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Account receivable - related party, net
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1,046,280 | 1,058,874 | ||||||
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Total current assets
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6,811,829 | 3,706,719 | ||||||
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Total Assets
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6,811,829 | 3,706,719 | ||||||
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LIABILITIES AND SHAREHOLDERS EQUITY
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Current liabilities:
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Accounts payable and accrued liabilities
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243,371 | 25,621 | ||||||
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Accounts payable - related parties
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405,313 | 660,682 | ||||||
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Advances from shareholders
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1,000 | 1,000 | ||||||
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Accrued interest
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123 | 41,964 | ||||||
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Settlement payable - related party - in default
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66,803 | 145,000 | ||||||
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Settlement payable - related party
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- | 145,000 | ||||||
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Convertible notes payable, net of discounts
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- | 30,000 | ||||||
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Convertible notes payable, net- in default
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- | 10,000 | ||||||
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Promissory note - related party
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- | 174,254 | ||||||
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Contingent liability
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29,988 | - | ||||||
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Customer deposit
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211,171 | - | ||||||
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Total Current liabilities
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957,769 | 1,233,521 | ||||||
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Total liabilities
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957,769 | 1,233,521 | ||||||
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Shareholder's equity:
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Preferred stock, Series A: $0.00001 par value;
19,999,000 shares authorized, none outstanding
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- | - | ||||||
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Preferred stock, Series B: $0.00001 par value, 1,000
shares authorized,1,000 and 1,000 shares issued and
outstanding, respectively
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- | - | ||||||
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Common stock: $0.00001 par value, 40,000,000 shares
authorized, 20,743,430 and 18,968,792 shares issued and
outstanding, respectively
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207 | 190 | ||||||
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Additional paid-in capital
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30,979,575 | 27,944,652 | ||||||
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Accumulated other comprehensive loss
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(683) | (683) | ||||||
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Accumulated deficit
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(25,125,039) | (25,470,961) | ||||||
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Total shareholders' equity
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5,854,060 | 2,473,198 | ||||||
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Total liabilities and shareholders' equity
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6,811,829 | 3,706,719 | ||||||
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Three months ended October 31, | Nine months ended October 31, | ||||||||||||||
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2020 | 2019 | 2020 | 2019 | ||||||||||||
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Revenues
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920,696 | 362,276 | 1,637,951 | 812,295 | ||||||||||||
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Revenues-related party
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570,768 | 519,569 | 1,633,702 | 1,599,526 | ||||||||||||
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Cost of goods sold
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(619,042) | (32,193) | (1,045,270) | 84,311 | ||||||||||||
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Gross profit
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872,422 | 849,652 | 2,226,383 | 2,496,132 | ||||||||||||
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Operating expenses
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General and administrative (G&A) expense
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199,103 | 87,346 | 414,965 | 275,309 | ||||||||||||
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G&A expense- related party
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569,823 | 194,665 | 1,312,842 | 398,735 | ||||||||||||
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Bad debt expense
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- | - | - | 168,557 | ||||||||||||
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Loss on contingent liability - related party
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- | - | - | 6,791 | ||||||||||||
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Research and development expense
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18,671 | - | 18,671 | - | ||||||||||||
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Professional fees
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43,215 | 18,815 | 110,336 | 49,378 | ||||||||||||
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Total operating expenses
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830,812 | 300,826 | 1,856,814 | 898,770 | ||||||||||||
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Gain from operations
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41,610 | 548,826 | 369,569 | 1,597,362 | ||||||||||||
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Other income (expense)
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Interest expense
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(1,083) | (16,390) | (10,897) | (53,746) | ||||||||||||
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Interest earned
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42 | 9,286 | 1,570 | 17,406 | ||||||||||||
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Foreign exchange gain (loss)
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(10,011) | - | (14,320) | - | ||||||||||||
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Gain (loss) on derivative liability
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- | 4,166 | - | 984 | ||||||||||||
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Total other income (expense)
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(11,052) | (2,938) | (23,647) | (35,356) | ||||||||||||
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Net income
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30,558 | 545,888 | 345,922 | 1,562,006 | ||||||||||||
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Per share information
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Net earnings per common share - basic
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0.00 | 0.03 | 0.02 | 0.08 | ||||||||||||
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Net earnings per common share - diluted
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0.00 | 0.02 | 0.01 | 0.06 | ||||||||||||
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Weighted average number of common shares
outstanding - basic
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20,267,357 | 18,968,792 | 19,426,309 | 18,954,384 | ||||||||||||
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Weighted average number of common shares
outstanding - diluted
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32,554,229 | 28,004,614 | 31,415,294 | 27,892,724 | ||||||||||||
SOURCE: Golden Matrix Group Inc.