EIGHTH CONSECUTIVE QUARTER OF PROFITABILITY

• Revenues (Q2 ’21) of $1,045,425 compared with revenues of $792,807 in like year-ago quarter
• Excluding stock-based compensation, profit of $453,194 versus profit of $443,125 in Q2 ’20
• Net income of $85,625 versus net income of $736,795 in Q2 ’20
• Cash and cash equivalents of $2,905,477, up from $1,856,505 as of January 31, 2020
• Total assets of $4,775,291, up from $3,706,719 as of January 31, 2020
• Subsequent events: Cash and total assets increased by more than $1.7 million in August through private placement transaction; company applies for uplisting to Nasdaq Capital Market

LAS VEGAS, Sept. 08, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Golden Matrix Group Inc. (OTC: GMGI), a developer and licenser of social gaming platforms, systems and gaming content, today reported its first quarter exceeding $1 million in revenues and its eighth consecutive quarter of profitability.

Golden Matrix revenues are derived primarily from licensing fees received from gaming operators located in the Asia Pacific (APAC) region and integrated with the company’s state-of-the-art GM-X platform. The company’s strong revenue growth in the second quarter resulted from steady increases in both the number of active operators and players. Currently there are 430 active operators and about 3.3 million registered users across all gaming operator/GM-X platforms.

According to CEO Brian Goodman, “We are pleased with the July quarter performance, particularly during these challenging times, as land-based casino operators have recognized the need to develop a stronger online presence. Our dynamic GM-X system offers thousands of games that are extremely popular with our rapidly growing user base, and we expect market share in the APAC region to increase as we launch new product offerings.”

“We have recently launched into new and exciting vertical markets that are already generating additional revenue streams. And while the margins on these markets are lower than our core business margins, the revenues they generate will be exponentially higher and continue to scale, and margins are expected to increase over time.”

Mr. Goodman noted that, over the past few months, the company has strengthened its balance sheet, expanded the board of directors, and upgraded corporate governance. “We have made great strides in preparing the company to qualify for Nasdaq, and we believe the uplisting of GMGI shares to a national exchange in coordination with our anticipated growth will have a positive impact on shareholder value.”

“The gaming industry as a whole,” concluded Mr. Goodman, “is experiencing rapid growth and offers huge opportunity worldwide, aided by the continuing shift in legislation to allow online betting. GMGI’s superior end-to-end solution for online gaming operators, flexible platform with highly scalable products, unique IP, and marketing and loyalty tools have given the company a competitive advantage in its current markets; and now, supported by a strong cash position, Golden Matrix is well-positioned to enter new vertical markets globally and pursue strategic acquisitions that are accretive to earnings.”

For additional information on Golden Matrix’s Q1 performance, please refer to the Company’s 10-Q 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 (the “Act”), such as statements relating to financial results and plans for future development activities and are thus prospective. These forward-looking statements include without limitation those about the company’s expectations regarding the planned uplisting to the NASDQ Capital Market. In particular, when used in the preceding discussion, the words “believes,” “hopes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of the company, its divisions and concepts to be materially different than those expressed or implied in such statements. These risk factors and others are included from time to time in documents the company files with the Securities and Exchange Commission, including, but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. 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.

Golden Matrix Group, Inc.
Consolidated Balance Sheet
     
  As of  As of 
  July 31, 2020 January 31, 2020
  (Unaudited) (Audited)
ASSETS    
Current assets:    
  Cash and cash equivalents 2,905,477 1,856,505
  Account receivable, net 685,098 791,340
  Account receivable – related party, net 1,174,058 1,058,874
  Prepaid expense 10,658
        Total current assets 4,775,291 3,706,719
Total Assets 4,775,291 3,706,719
     
LIABILITIES AND SHAREHOLDERS EQUITY    
Current liabilities:    
  Accounts payable and accrued liabilities 262,077 25,621
  Accounts payable – related parties 817,633 660,682
  Advances from shareholders 1,000 1,000
  Accrued interest 3,350 41,964
  Settlement payable – related party – in default  9,303 145,000
  Settlement payable – related party  145,000 145,000
  Convertible notes payable, net of discounts 30,000
  Convertible notes payable, net- in default 10,000 10,000
  Promissory note – related party  174,254
  Contingent liability 29,988
  Customer deposit 5,000
        Total Current liabilities 1,283,351 1,233,521
Total liabilities  1,283,351 1,233,521
     
Shareholder’s 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, 19,039,098 and 18,968,792 shares issued and outstanding, respectively 190 190
Additional paid-in capital 28,648,030 27,944,652
Accumulated other comprehensive loss  (683) (683)
Accumulated deficit (25,155,597) (25,470,961)
        Total shareholders’ equity 3,491,940 2,473,198
Total liabilities and shareholders’ equity 4,775,291 3,706,719
     
Golden Matrix Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss 
Unaudited
  Three months ended July 31,   Six months ended July 31,
  2020 2019   2020 2019
Revenues 514,056 287,247   717,255 450,019
Revenues-related party 531,369 505,560   1,062,934 1,079,957
Cost of goods sold (394,732) 331,353   (426,228) 116,504
Gross profit 650,693 1,124,160   1,353,961 1,646,480
           
Operating expenses          
  G&A expense 105,222 82,554   215,862 187,963
  G&A expense- related party 405,373 95,169   743,019 204,070
  Bad debt expense 168,557   168,557
  Loss on contingent liability – related party   6,791
  Professional fees 46,733 22,580   67,121 30,563
Total operating expenses 557,328 368,860   1,026,002 597,944
Gain from operations 93,365 755,300   327,959 1,048,536
           
Other income (expense)          
  Interest expense (3,663) (20,188)   (9,814) (37,356)
  Interest earned 232 5,774   1,528 8,120
  Foreign exchange gain (loss) (4,309)   (4,309)
  Gain (loss) on derivative liability (4,091)   (3,182)
Total other income (expense) (7,740) (18,505)   (12,595) (32,418)
Net income 85,625 736,795   315,364 1,016,118
           
Per share information          
Net earnings per common share – basic 0.00 0.04   0.02 0.05
Net earnings per common share – diluted 0.00 0.03   0.01 0.04
Weighted average number of common shares outstanding – basic  19,032,833 18,968,792   19,001,164 18,946,692
Weighted average number of common shares outstanding – diluted 31,670,820 27,985,931   31,477,386 27,883,077

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Golden Matrix Group
info@goldenmatrix.com
Tel: (702) 318-7548
www.goldenmatrix.com