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Golden Matrix Group, Inc. (ticker: GMGI) has released its quarterly report for the second quarter of 2023.
The report highlights an increase in cash generated from operating activities compared to the same period in 2022. The company’s financial statements show a positive trend in cash flows, although there are some challenges and uncertainties that could impact its future operations.
During the six months ended April 30, 2023
Golden Matrix Group generated $737,124 in cash from operating activities, compared to $2,605,796 in the same period last year. This increase was mainly due to non-cash expenses related to stock-based compensation, amortization expenses on intangible assets, and unrealized foreign exchange gains on contingent liability. The company also saw an increase in accounts payable and accrued liabilities, which contributed to the positive cash flow.
Golden Matrix Group experienced a decrease in cash used in investing activities during the first half of 2023
with a total of $96,062. This decrease was primarily due to lower payments related to website development costs and the consideration to acquire GMG Assets. In contrast, the company had higher cash used in investing activities of $3,462,017 in the same period last year, mainly due to the cash consideration paid to acquire an 80% interest in RKings.
In terms of financing activities
Golden Matrix Group reported a cash used of $32,322 for the purchase of treasury stock during the six months ended April 30, 2023. In comparison, there was no cash provided by financing activities during the same period last year.
Overall, Golden Matrix Group had a net increase in cash of $804,140 for the first half of 2023.
This increase was primarily attributed to cash provided by operating activities, offset by cash used in investing and financing activities. The company’s financial statements also mentioned certain uncertainties and risks such as potential cash insufficiency, dilution to shareholders, and the need to scale down operations if additional funding is not obtained.
Additionally, the quarterly report highlighted a dispute with one of the sellers of RKings regarding the Holdback Amount of approximately $628,220.
Golden Matrix Group alleges that the amount was forfeited, while the seller claims it is still owed. The company is currently pursuing legal action to resolve the dispute.
In conclusion
the Q2 2023 report from Golden Matrix Group shows an increase in cash generated from operating activities, indicating a positive trend in the company’s financial performance. However, the report also highlights challenges and uncertainties that could impact its future operations. Investors and stakeholders should carefully evaluate the risks and uncertainties outlined in the report before making any investment decisions related to Golden Matrix Group, Inc.
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