Golden Matrix Reports Net Income of $1.77 Million on $2.88 Million in Revenues for Fiscal 2019
Las Vegas, NV - (NewMediaWire) - October 23, 2019 - Golden Matrix Group Inc. (OTC: GMGI) a technology-driven company that designs and develops social gaming platforms, systems and content, today announced that for fiscal 2019 ended July 31, the company reported net income of $1,769,908, on revenues of $2,882,213. This compares with a net loss of $1,318,373, on revenues $915,804.
Revenues in 2019 - derived primarily from licensing fees received from gaming operators located in the Asia Pacific (APAC) region - were generated during the entire year, whereas revenues in 2018 were generated only during the last five months of the fiscal year and subsequent to the acquisition of the company’s proprietary gaming technology.
Golden Matrix achieved a 63 percent operating margin in fiscal 2019. Net cash provided by operating activities was $1,451,934 versus $302,716 in fiscal 2018. Cash and cash equivalents of $1,731,095 at year-end 2019 was a 288 percent increase on $446,581 at year-end 2018.
“We are extremely pleased with the company’s continued revenue and profit growth,” said Golden Matrix CEO Brian Goodman. “It clearly demonstrates the acceptance and reputation of GMGI’s powerful state-of-the-art gaming platform and popular gaming content.”
Mr. Goodman noted that the Company now has more than 1.5 million registered users across all gaming operator platforms and is currently integrating additional operators to expand this usage.
“The GMGI business model is highly scalable,” said Mr. Goodman, “and the company’s goal in fiscal 2020 is to expand our customer base globally as we integrate additional operators, appoint more distributors and launch new synergistic products. We are committed to generating consistent long-term performance with sustainable growth in revenue while maintaining marginal increases in expenses.”
For additional information on Golden Matrix’s fiscal 2019 performance, please refer to the Company's 10-K 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.
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Golden Matrix Group
Scott Yan
Golden Matrix Group, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||
For the three months ended | For the three months ended | For Year Ended | For Year Ended | ||
Jul-31-2019 | Jul-31-2018 | Jul-31-2019 | Jul-31-2018 | ||
Revenues-related party | 505,560 | 510,656 | 2,429,442 | 915,804 | |
Revenues | 287,247 | - | 452,771 | ||
Cost of goods sold | 331,353 | (72,003) | (21,998) | (72,003) | |
Gross profit | 1,124,160 | 438,653 | 2,860,215 | 843,801 | |
Costs and expenses | |||||
Accounting and audit fees | 16,000 | 5,000 | 40,877 | 23,910 | |
Amortization expense | 37,683 | 37,223 | 206,842 | 129,109 | |
G&A expenses | 82,554 | 105,862 | 321,339 | 186,040 | |
G&A expenses Related | 57,486 | (141,300) | 199,648 | 209,100 | |
Bad debt expenses | 168,557 | 168,557 | |||
Loss on contigent liability - related party | - | 1,242,812 | 90,873 | 1,242,812 | |
Professional fees | 6,580 | 17,257 | 19,754 | 43,777 | |
Total operating expenses | 368,860 | 1,266,854 | 1,047,890 | 1,834,748 | |
Gain (Loss) from operations | 755,300 | (828,201) | 1,812,325 | (990,947) | |
Other income (expense) | |||||
Interest Earned | 5,774 | - | 8,120 | - | |
Gain(Loss) on extigushment of debt | - | (685) | (106) | 129 | |
Fair value change of derivative liability | (4,091) | (51,450) | (5,081) | (165,514) | |
Interest Expense | (20,188) | (29,230) | (45,350) | (162,041) | |
Total other income (expense) | (18,505) | (81,365) | (42,417) | (327,426) | |
Net Income (Loss) | 736,795 | (909,566) | 1,769,908 | (1,318,373) | |
Per share information | |||||
Basic, weighted number of common | |||||
shares outstanding | 2,845,318,757 | 2,296,791,627 | 2,814,601,020 | 1,159,457,924 | |
Diluted weighted number of common | |||||
shares outstanding | 4,197,614,436 | 2,296,791,627 | 4,138,911,172 | 1,159,457,924 | |
Net profit/(loss) per common share-basic | 0.00 | (0.00) | 0.00 | (0.00) | |
Net profit/(loss) per common share-diluted | 0.00 | (0.00) | 0.00 | (0.00) | |
Golden Matrix Group, Inc. | ||
Consolidated Balance Sheets | ||
(Audited) | ||
As of | As of | |
Jul 31,2019 | Jul 31,2018 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | 1,731,095 | 446,581 |
Account receivable, net | 264,558 | 10,005 |
Account receivable-RP | 1,009,397 | 362,288 |
Prepaid Expenses | - | 1,000 |
Total current assets | 3,005,050 | 819,874 |
Total Assets | 3,005,050 | 819,874 |
LIABILITIES AND SHAREHOLDERS EQUITY | ||
Current liabilities: | ||
Accounts payable and accrued liabilities | 41,104 | 14,391 |
Accounts payable-related party | 526,541 | 376,217 |
Advance from shareholder | 1,000 | 1,000 |
Accrued interest | 24,510 | 155,384 |
Settlement payable -related parties | 145,000 | 9,302 |
Convertible notes payable, net of discount | 30,000 | 30,000 |
Convertible notes payable, net of discount-in default | 10,000 | 11,929 |
Notes payable - related party | - | 495,712 |
Contingent liability | - | 1,055,312 |
Promissory Note - related party | 1,033,567 | |
Derivative liabilities note conversion feature | 15,000 | 11,930 |
Total Current liabilities | 1,826,722 | 2,161,177 |
Settlement Payable related parties long-term: | 145,000 | - |
Total Non-Current liabilities | 145,000 | - |
TOTAL LIABILITIES | 1,971,722 | 2,161,177 |
Shareholder's equity (deficit): | ||
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 2,622,904,757 shares issued and outstanding respectively | 28,453 | 26,229 |
Additional paid in capital | 27,443,293 | 26,840,794 |
Accumulated other comprehensive loss | (683) | (683) |
Retained earnings (accumulated deficit) | (26,437,735) | (28,207,643) |
Total shareholders' equity (deficit) | 1,033,328 | (1,341,303) |
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | 3,005,050 | 819,874 |