LAS VEGAS, June 03, 2022 (GLOBE NEWSWIRE) — 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 Matrix
Golden 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 RKings
Based 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 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 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  
           

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Golden Matrix Group
Contact: Scott Yan

[email protected]

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[email protected]

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