Golden Matrix Reports Third Quarter 2018 Sales of $345,148 vs. $30,000 in Q3 2017

LAS VEGAS, June 18, 2018 (GLOBE NEWSWIRE) — Golden Matrix Group Inc. (OTCPK:GMGI), a developer and marketer of social gaming platforms, today announced that for the third quarter ended April 30, 2018, the company had sales of $345,148, derived primarily from licensing fees received from social gaming operators located in the Asia Pacific (APAC) region. This represents more than a ten-fold improvement on sales of $30,000 in the comparable third quarter of 2017.

For the third quarter of 2018, the company reported a net loss of $35,248, or $0.00 per diluted share, compared with net income of $200,228, or $0.00 per diluted share, in the like year-ago quarter.

Golden Matrix CEO, Anthony Goodman, noted that the income (loss) reported in Q3 ’18 was adversely impacted by two noncash charges related to the acquisition of proprietary gaming technology by the Company – along with a licensing and distribution agreement to monetize its deployment. These charges were an amortization expense of $68,126 related to stock options granted in the 2018 Equity Incentive Plan and G&A related-party expenses of $229,800 for stock issued to acquire the proprietary technology. The charges are non-recurring and not expected to impact operating results of subsequent quarters.

Mr. Goodman noted that sales generated in Q3 ’18 are primarily a result of only two months of activities from the newly acquired technology. “We are confident that the current and future quarters will be generating solid, recurring monthly sales and positive cash flow, and we expect our ongoing marketing efforts to add more social gaming operators and contribute to profitable operating results.”

The CEO added that net income of $200,228 in Q3 2017 – on sales of only $30,000 – resulted from the non-cash adjustment of $270,448 related to the fair value change of derivative liability. The adjustment in Q3’18, by comparison, was only $15,824.

As previously reported, Golden Matrix entered into an Asset Purchase Agreement on February 28, 2018 to acquire the unique gaming technology, along with certain intellectual property and know-how, from Luxor Capital LLC; and, on March 1, 2018, the company entered into a definitive license and distribution agreement with Articulate Pty Ltd. Both Luxor Capital LLC and Articulate Pty Ltd are affiliates of Mr. Goodman.

For the nine months ended April 30, 2018, Golden Matrix reported $405,148 in total sales and a net loss of $408,807, or $0.00 per diluted share, compared with $90,000 in total sales and net income of $1,625,792, or $0.05 per diluted share, during the comparable year-ago period. Last year’s positive nine-month income resulted primarily from a gain of $806,867 on the extinguishment of debt and $1,414,761 related to the fair value change of derivative liability.

On June 7, 2018, the Company entered into subscription agreement with certain individual investors in which the Company sold 300,000,000 shares of restricted common stock, and received non-brokered gross proceeds of $120,000.

For additional information on Golden Matrix’s Q3 2018 performance, please refer to the Company’s 10-Q filing on the SEC’s website.

About Golden Matrix Group Inc.

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.

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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    Consolidated Statements of Operations and Comprehensive Loss  
      Three months ended Nine months ended  
      April 30, April 30,  
        2018     2017     2018     2017    
    Sales- related party $   345,148   $   30,000   $   405,148   $   90,000    
    Costs and expenses          
      Accounting and audit fees   3,750     4,000     18,910     36,400    
      Amortization expense   68,126         91,886        
      G&A expenses   54,153       –     80,178     50,299    
      G&A expenses- related party   229,800     57,031     350,400     189,317    
      Professional fees   9,306     1,681     26,520     25,583    
    Total operating expenses   (365,135 )   (62,712 )   (567,894 )   (301,599 )  
    Loss from operations   (19,987 )   (32,712 )   (162,746 )   (211,599 )  
    Other income (expense)          
      Gain on extinguishment of debt      –        –      814     806,867    
      Fair value change of derivative liability   15,824     270,448     (114,064 )   1,414,761    
      Interest on convertible notes   (31,085 )   (37,508 )   (132,811 )   (384,237 )  
    Total other income (expense)   (15,261 )   232,940     (246,061 )   1,837,391    
    Net Income (Loss) $    (35,248 ) $    200,228   $    (408,807 ) $    1,625,792    
    Weighted average number of common shares outstanding -Basic   1,479,677,984     73,820,366     767,756,060     29,842,948    
    Weighted average number of common shares outstanding -Diluted   1,479,677,984     1,299,167,314     767,756,060     1,220,360,207    
    Net income/(loss) per common share  – Basic   0.00     0.00     0.00     0.05    
    Net income/(loss) per common share  – Diluted     0.00     0.00     0.00    
    The accompanying notes are an integral part of these financial statements  


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    Consolidated Balance Sheets  
      As of As of  
      30-Apr-18 31-Jul-17  
    Current assets:      
      Cash and cash equivalents $   89,941   $   25,167    
      Accounts receivable – related party   250,648     62,500    
      Total current assets   340,589     87,667    
    TOTAL ASSETS $   340,589   $   87,667    
    Current liabilities:      
    Accounts payable and accrued liabilities $ 13,951   $ 21,093    
    Accounts payable – related party   416,207     384,984    
    Advance from shareholders   1,000     1,000    
    Accrued interest   161,003     147,408    
    Convertible notes payable, net of discount   30,000     51,776    
    Convertible notes payable , net– in default   40,214     85,664    
    Convertible notes payable – related party   795,712     795,712    
    Derivative liabilities- note conversion features   101,905     136,177    
      Total Current liabilities   1,559,992     1,623,814    
    TOTAL LIABILITIES $   1,559,992   $   1,623,814    
    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; 1,000 shares authorized; 1,000 and 1,000 shares issued and outstanding, respectively