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Golden Matrix Group Inc. (GMGI-0.98%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details the acquisition of MeridianBet Group, completed on April 9, 2024, which was accounted for as a reverse merger. This acquisition has significantly impacted the company's financial statements, with MeridianBet Group being deemed the accounting acquirer.
Golden Matrix reported revenues of $40,992,329 for the quarter, a substantial increase from $22,209,657 in the same quarter of the previous year. This growth was primarily driven by the acquisition of Golden Matrix, which contributed $15,236,661 to revenues.
Cost of goods sold for the quarter was $18,589,162, up from $6,116,688 in the previous year, largely due to the acquisition. Gross profit for the quarter was $22,403,167, compared to $16,092,969 in the previous year.
General and administrative expenses increased to $23,379,550 from $12,863,262, primarily due to stock-based compensation and professional fees related to the acquisition.
The company reported a net loss of $3,295,629 for the quarter, compared to a net income of $3,520,060 in the previous year. This loss was attributed to increased general and administrative expenses and provision for income taxes.
Net income attributable to noncontrolling interest was $109,935, up from $41,771 in the previous year, reflecting the profits from newly acquired subsidiaries.
Golden Matrix's cash position as of September 30, 2024, was $38,404,951, with a working capital deficit of $12,722,152 due to post-closing share consideration liabilities.
The filing also discusses the issuance of convertible notes and warrants, which may result in future dilution of existing shareholders.
Golden Matrix continues to focus on expanding its global reach by obtaining gaming licenses in new markets and enhancing its product offerings through technological advancements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Golden Matrix Group Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.