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.
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.
|GOLDEN MATRIX GROUP, INC.|
|Consolidated Statements of Operations and Comprehensive Loss|
|Three months ended||Nine months ended|
|April 30,||April 30,|
|Sales- related party||$||345,148||$||30,000||$||405,148||$||90,000|
|Costs and expenses|
|Accounting and audit fees||3,750||4,000||18,910||36,400|
|G&A expenses- related party||229,800||57,031||350,400||189,317|
|Total operating expenses||(365,135||)||(62,712||)||(567,894||)||(301,599||)|
|Loss from operations||(19,987||)||(32,712||)||(162,746||)||(211,599||)|
|Other income (expense)|
|Gain on extinguishment of debt||–||–||814||806,867|
|Fair value change of derivative liability||15,824||270,448||(114,064||)||1,414,761|
|Interest on convertible notes||(31,085||)||(37,508||)||(132,811||)||(384,237||)|
|Total other income (expense)||(15,261||)||232,940||(246,061||)||1,837,391|
|Net Income (Loss)||$||(35,248||)||$||200,228||$||(408,807||)||$||1,625,792|
|Weighted average number of common shares outstanding -Basic||1,479,677,984||73,820,366||767,756,060||29,842,948|
|Weighted average number of common shares outstanding -Diluted||1,479,677,984||1,299,167,314||767,756,060||1,220,360,207|
|Net income/(loss) per common share – Basic||0.00||0.00||0.00||0.05|
|Net income/(loss) per common share – Diluted||0.00||0.00||0.00|
|The accompanying notes are an integral part of these financial statements|
|GOLDEN MATRIX GROUP, INC.|
|Consolidated Balance Sheets|
|As of||As of|
|Cash and cash equivalents||$||89,941||$||25,167|
|Accounts receivable – related party||250,648||62,500|
|Total current assets||340,589||87,667|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||$||13,951||$||21,093|
|Accounts payable – related party||416,207||384,984|
|Advance from shareholders||1,000||1,000|
|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|
|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|