Golden Matrix (GMGI) - 2019 Q4 - Annual Report

PART I. FINANCIAL INFORMATION Presents the company's unaudited financial statements, management's analysis, market risk disclosures, and internal controls for the reporting period Financial Statements (Unaudited) Presents the unaudited consolidated financial statements, highlighting significant revenue growth, increased net income, and improved financial position for the period ended October 31, 2019 Consolidated Balance Sheets Details the company's financial position as of October 31, 2019, showing increased assets, reduced liabilities, and improved shareholders' equity Consolidated Balance Sheet Highlights (Unaudited) | Financial Metric | Oct 31, 2019 (USD) | July 31, 2019 (USD) | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $2,305,117 | $1,731,095 | | Total current assets | $3,375,417 | $3,005,050 | | Total assets | $3,375,417 | $3,005,050 | | Liabilities & Equity | | | | Total current liabilities | $1,638,943 | $1,826,722 | | Total liabilities | $1,638,943 | $1,971,722 | | Total shareholders' equity | $1,736,474 | $1,033,328 | Consolidated Statements of Operations Presents the company's financial performance for the three months ended October 31, 2019, demonstrating significant revenue growth and increased net income Consolidated Statements of Operations (Three months ended October 31) | Metric | 2019 (USD) | 2018 (USD) | | :--- | :--- | :--- | | Revenues | $881,845 | $638,695 | | Gross Profit | $849,652 | $569,171 | | Income from operations | $548,826 | $356,644 | | Net Income | $545,888 | $331,999 | | Basic & Diluted EPS | $0.00 | $0.00 | Consolidated Statement of Shareholders' Equity Outlines the changes in shareholders' equity, showing an increase to $1,736,474 as of October 31, 2019, driven by net income and stock-based compensation - Total shareholders' equity grew to $1,736,474 as of October 31, 2019[19] - The primary drivers for the increase in equity were net income of $545,888 and fair value of options/warrants issued for services amounting to $152,872[19] Consolidated Statements of Cash Flow Details the company's cash flows for the three months ended October 31, 2019, showing strong operating cash generation and an overall increase in cash and cash equivalents Cash Flow Summary (Three months ended October 31) | Cash Flow Activity | 2019 (USD) | 2018 (USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $972,335 | $234,246 | | Net cash (used in) financing activities | ($398,313) | ($102,420) | | Net increase in cash and cash equivalents | $574,022 | $133,826 | | Cash and cash equivalents at end of period | $2,305,117 | $580,407 | Notes to the Consolidated Financial Statements Provides detailed explanations of accounting policies, going concern issues, debt, related-party transactions, and significant customer concentration - The company had an accumulated deficit of $25.9 million as of October 31, 2019, which raises substantial doubt about its ability to continue as a going concern, though it generated a net profit of $545,888 during the quarter[43] - The company has significant related-party transactions, including revenues from and payables to entities controlled by the CEO, Anthony Goodman[70][71][81] - For the three months ended October 31, 2019, 100% of revenues came from two customers: Articulate Pty Ltd (59%) and Red Label Technology Pty Ltd (41%)[111] Management's Discussion and Analysis of Financial Condition and Results of Operations Discusses the company's business transformation, analyzes financial performance for the quarter, and highlights improved liquidity and cash flow from operations - The company shifted its business focus from mining and exploration to software technology, specifically social online gaming platforms for the Asian market[118][136] Q1 FY2020 vs Q1 FY2019 Performance | Metric | Three months ended Oct 31, 2019 (USD) | Three months ended Oct 31, 2018 (USD) | | :--- | :--- | :--- | | Total Revenues | $881,845 | $638,695 | | Net Income | $545,888 | $331,999 | | Cash at end of period | $2,305,117 | $580,407 | - The increase in net income was primarily attributed to a significant rise in revenue from third-party customers[137][147] - Cash from operating activities increased to $972,335 from $234,246 year-over-year, mainly due to increased payments received from customers[148] Quantitative and Qualitative Disclosures About Market Risk States that as a smaller reporting company, the company is exempt from providing market risk disclosures - As a smaller reporting company defined by Rule 12b-2 of the Securities Exchange Act of 1934, the company is not required to provide disclosures about market risk[152] Controls and Procedures Reports that disclosure controls and procedures were ineffective as of July 31, 2019, due to material weaknesses in board independence and audit committee expertise - Management concluded that disclosure controls and procedures were not effective as of July 31, 2019[153] - Material weaknesses cited include the Board of Directors having no independent members and no director qualifying as an audit committee financial expert[153] - There were no significant changes in internal controls during the quarter ended October 31, 2019[154] PART II. OTHER INFORMATION Provides additional information including legal proceedings, risk factors, equity sales, defaults, mine safety, and a list of exhibits Legal Proceedings Confirms the absence of any known legal disputes at the time of filing - The Company has no known legal disputes at this time[157] Risk Factors Notes that as a smaller reporting company, the company is not required to provide risk factor disclosures - The company is a smaller reporting company and is not required to provide risk factor disclosures[158] Unregistered Sales of Equity Securities and Use of Proceeds Reports no unregistered sales of equity securities during the reporting period - None reported for the period[159] Defaults Upon Senior Securities Confirms the absence of any outstanding senior securities - The Company has no senior securities outstanding[160] Mine Safety Disclosures States that this item is not applicable to the company's current business operations - Not Applicable[161] Other Information Indicates no other material information to report for the period - None[162] Exhibits Lists the exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data - Exhibits filed include corporate governance documents, CEO/CFO certifications, and XBRL interactive data files[164]