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Golden Matrix Reports Twelfth Consecutive Profitable Quarter, Record Revenues for Fiscal Q2 Ended July 31, 2021

  • Record quarterly revenues (Q '22) of $3,251,182, an increase of 211% compared with revenues of $1,045,425 in the like year-ago quarter, and a 23% improvement on revenues of $2,639,402 in the prior (Q1 '22) quarter  
  • Net income of $481,189 versus net income of $127,872 in Q1 '22  
  • Adjusted EBITDA of $667,158, when excluding interest expense, interest income, amortization expense and stock-based compensation expense*  
  • Record revenues of $5,890,584 for the first six months of fiscal '22, an increase of 231% on revenues of $1,780,189 in the first six months of fiscal ‘21  
  • Cash and cash equivalents of $13,879,617, current assets of $16,792,363 and total assets of $17,239,995 as of July 31, 2021  
  • Total current liabilities of $1,434,096 and $211,915 of long-term liabilities as of July 31, 2021  
  • Company rolls out fully functional seamless aggregation platform, allowing entry into significant global markets  

LAS VEGAS, NV / ACCESSWIRE / September 10, 2021 / Golden Matrix Group Inc. (OTC PINK:GMGI) , a developer and licensor of online gaming platforms, systems and gaming content, today reported that it achieved its twelfth consecutive quarter of profitability and record revenues exceeding $3.2 million in the second fiscal quarter ended July 31, 2021.

The tripling in Q2 revenues over the revenues recorded in fiscal Q2 ‘21 was primarily a result of GMGI's increased number of both gaming operator customers and registered players with these customers. The improvement in Q2 revenue was also attributable to strong revenue contributions from non-related-party distributors, which, as was the case in Q1 2022, accounted for an increase in cost of goods sold and a decrease in gross profit margin. Additionally, the issuance of consultant stock options in March 2021 resulted in an increase in cost of goods sold for Q2 2022.

Additionally, "Due to GMGI's recent deployment of its seamless aggregate gaming platform, and the company's projected resulting expansion into new global markets, GMGI's margins are expected to improve over time", said CEO Brian Goodman.

Mr. Goodman added that "GMGI's repeating quarterly profitability stretching over three years, and its solid balance sheet - with almost $13.9 million in cash and cash equivalents - is helping the company build awareness among new potential gaming operator customers. As a result, whereas company revenues have thus far come almost exclusively from the Asia Pacific region, GMGI now hopes to begin receiving revenue stemming from licensing agreements with gaming operators in Europe and the Americas."

"We're increasingly confident that, mainly due to our new aggregate platform, which offers gaming operators a single source for over 10,000 games of every variety, Golden Matrix will begin, this fiscal year, to significantly expand its user base and global footprint. This, in turn, is expected to enable the company to realize corresponding improvements to its revenues and profits during this calendar year and beyond," Mr. Goodman said.

"And, with our growing financial strength, we plan to continue to evaluate potential partnerships and acquisitions that are projected to both further accelerate revenue and be accretive to earnings," added Mr. Goodman.

For the first six months of fiscal 2022, the company had net income of $609,000 and revenues of $5.9 million, compared with net income of $315,000 and revenues of $1.8 million during the same period in fiscal 2021.

For additional information on Golden Matrix's Q2 2022 performance, please refer to the Company's Quarterly Report on Form 10-Q for Q2 2022, which can be found at or . A summary of the Company's performance and highlights can be found at .

* Adjusted EBITDA is a non-GAAP financial measure. See also "Non-GAAP Financial Measures" and "Reconciliation of Net Income attributable to Golden Matrix Group Inc., to Adjusted Earnings excluding Interest Expense, Interest Income, Amortization Expense and Stock-based Compensation Expense" included at the end of this release.

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  
Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws ("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; disruptions caused by acquisitions; 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; 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. The Company undertakes no obligation to publicly update or revise any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its Securities and Exchange Commission (SEC) filings, except as required by law. 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, filed with the SEC and available at . Forward-looking statements speak only as of the date they are made.

Non-GAAP Financial Measures    
Adjusted EBITDA, which is disclosed below, is a "non-GAAP financial measure" presented as a supplemental measure of the Company's performance. Adjusted EBITDA is not presented in accordance with accounting principles generally accepted in the United States, or GAAP. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and stock-based compensation. Adjusted EBITDA is presented because we believe it provides additional useful information to investors due to the various noncash items during the period. Adjusted EBITDA is not recognized in accordance with GAAP, is unaudited, and has limitations as an analytical tool, and you should not consider it in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. Some of these limitations are: Adjusted EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments; Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs; Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments; although depreciation and amortization are noncash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and other companies in this industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. The Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. For more information on these non-GAAP financial measures, please see the section titled "Reconciliation of Net Income attributable to Golden Matrix Group Inc., to Adjusted Earnings excluding Interest Expense, Interest Income, Amortization Expense and Stock-based Compensation Expense" included at the end of this release.

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Golden Matrix Group  
Contact: Scott Yan

Golden Matrix Group, Inc.

Consolidated Balance Sheets

 As of  As of 

 July 31, 2021  January 31, 2021 

 (Unaudited)  (Audited) 
Current assets:
Cash and cash equivalents
  13,879,617   11,706,349 
Account receivable, net
  1,382,917   1,040,410 
Account receivable - related parties
  1,408,536   656,805 
Prepaid expenses
  60,963   410,983 
Short-term deposit
Total current assets
  16,792,363   13,814,547 

Non-current assets
Intangible assets - net of amortization of $24,131 and $0
  149,869   - 
Operating lease right-of-use assets
  297,763   - 
Total non-current assets
  447,632   - 
Total assets
  17,239,995   13,814,547 

Current liabilities:
Accounts payable and accrued liabilities
  1,123,757   78,913 
Accounts payable - related parties
  207,668   208,521 
Advances from shareholders
  96   99 
Accrued interest
  123   123 
Customer deposit
  15,803   149,640 
Consideration payable - related party
  -   115,314 
Current portion of operating lease liabilities
  86,649   - 
Total current liabilities
  1,434,096   552,610 

Non-current liabilities:
Non-current operating lease liabilities
  211,915   - 
Total non-current liabilities
  211,915   - 
Total liabilities
  1,646,011   552,610 

Shareholders' equity:
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
  -   - 
Common stock: $0.00001 par value, 40,000,000 shares authorized, 23,769,894 and 22,741,665 shares issued and outstanding, respectively
  238   227 
Additional paid-in capital
  40,050,930   38,320,729 
Stock payable
  6,000   7,420 
Stock payable - related parties
  -   7,420 
Accumulated other comprehensive income (loss)
  636   (978)
Accumulated deficit
  (24,463,820)  (25,072,881)
Total shareholders' equity
  15,593,984   13,261,937 
Total liabilities and shareholders' equity
  17,239,995   13,814,547 


Golden Matrix Group, Inc.  
Consolidated Statements of Operations

 Three months ended July 31,  Six months ended July 31,  

 2021  2020  2021  2020  
  2,694,439   514,056   4,663,853   717,255  
Revenues-related party
  556,743   531,369   1,226,731   1,062,934  
Cost of goods sold
  (2,043,440)  (394,732)  (3,536,483)  (426,228) 
Gross profit
  1,207,742   650,693   2,354,101   1,353,961  

Operating expenses
General and administrative (G&A) expense
  340,894   105,222   668,605   215,862  
G&A expense- related party
  224,266   405,373   786,610   743,019  
Professional fees
  63,770   46,733   157,377   67,121  
Research and development expense
  68,046   -   89,264   -  
Total operating expenses
  696,976   557,328   1,701,856   1,026,002  
Gain from operations
  510,766   93,365   652,245   327,959  

Other income (expense)
Interest expense
  -   (3,663)  -   (9,814) 
Interest earned
  45   232   85   1,528  
Foreign exchange loss
  (29,622)  (4,309)  (43,269)  (4,309) 
Total other expense
  (29,577)  (7,740)  (43,184)  (12,595) 
Net income
  481,189   85,625   609,061   315,364  

Other comprehensive income
Foreign currency translation adjustment
  427   0   1,614   0  
Total comprehensive income
  481,616   85,625   610,675   315,364  

Per share information
Net earnings per common share - basic
  0.02   0.00   0.03   0.02  
Net earnings per common share - diluted
  0.01   0.00   0.02   0.01  
Weighted average number of common shares outstanding - basic
  23,404,205   19,032,832   23,175,644   19,001,164  
Weighted average number of common shares outstanding - diluted
  34,741,973   31,670,820   34,480,621   31,477,386  


Golden Matrix Group, Inc.
Reconciliation of Net Income attributable to Golden Matrix Group Inc., to adjusted Earnings excluding interest 
Expense, Interest Income, amortization expense and Stock based compensation expense

 Three Months Ended  Three Months Ended 

 July 31, 2021  July 31, 2020 
GAAP Net Income
  481,189   85,625 
+ Interest Expense
  -   3,663 
- Interest Income
  (45)  (232)
+ Amortization expense
  14,605   - 
+ Stock-Based Compensation Expense
  171,409   367,569 
Non-GAAP Adjusted EBIDTA
  667,158   456,625 


SOURCE: Golden Matrix Group Inc.

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