Golden Matrix Group Inc
For the period ended Jan 31, 2024. Filed Mar 14, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 31, 2024 · Filed Mar 14, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1A. Risk Factors
Our business is subject to numerous risks and uncertainties, including those described below and elsewhere in this Report. These risks include, but are not limited to, the following:
Risks Related to the Company’s Need for Additional Funding and Demand For Products and Services
| · | our need for significant additional financing to grow and expand our operations, the availability and terms of such financing, and potential dilution which may be caused by such financing, if obtained through the sale of equity or convertible securities; |
| · | the impact of pandemics and epidemics on the Company; |
| · | the potential effect of economic downturns and market conditions, including recessions, on the Company’s operations and prospects as a result of increased inflation, increasing interest rates, global conflicts and other events; |
| · | general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products; and |
| · | our limited operating history. |
| · | our reliance on suppliers of third-party gaming content and the cost of such content; |
| · | the ability of the Company to manage growth; |
| · | the ability of the Company to compete in its market and develop, market or sell new products or adopt new technology; |
| · | disruptions caused by acquisitions; |
| · | the risks associated with gaming fraud, user cheating and cyber-attacks; |
| · | risks relating to inventory management; |
| · | risks associated with systems failures, disruptions and failures of technology and infrastructure on which the Company’s programs rely, as well as cybersecurity and hacking risks; |
| · | 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; |
| · | cyber security risks that could result in damage to our reputation and/or subject us to fines, payment of damages, lawsuits and restrictions on our use of data and systems failures and resulting interruptions in the availability of our websites, applications, products, or services that could harm our business; and |
| · | our non-U.S. operations. |
Risks Relating to Regulation
| · | the effect of future regulation, the Company’s ability to comply with regulations (current and future) and potential penalties in the event it fails to comply with such regulations; and |
| · | material increases to our taxes or the adoption of new taxes or the authorization of new or increased forms of gaming could have a material adverse effect on our future financial results. |
Risks Related to Intellectual Property and Technology
| · | we may be subject to claims of intellectual property infringement or invalidity and adverse outcomes of litigation could unfavorably affect our operating results; and |
| · | the Company’s ability to protect proprietary information. |
Risks Relating to our Management
| · | the Company’s reliance on its management; |
| · | the fact that the Company’s Chief Executive Officer has voting control over the Company; and |
| · | related party relationships, as well as conflicts of interest related thereto. |
Risks Related to International Operations
| · | The risks related to international operations, in particular in countries outside of the United States, could negatively affect the Company’s results; and |
| · | foreign exchange risks. |
Risks Relating to our Common Stock and Securities
| · | dilution caused by efforts to obtain additional financing; |
| · | our ability to issue common and preferred stock without further shareholder approval; |
| · | the lack of a market for our securities and the volatility in the trading prices thereof caused thereby; |
| · | no assurance that we will be able to comply with Nasdaq’s continued listing standards; and |
| · | dilution caused by the sale of common stock or convertible securities. |
Risks relating to the Meridian Purchase Agreement
| · | dilution and a change of control which will result from the closing of the Meridian Purchase Agreement; |
| · | costs, fees and expenses, and the timing associated with, the Meridian Purchase Agreement; |
| · | the Company’s ability to meet conditions to closing the Meridian Purchase Agreement, including required funding, the terms and availability of such funding, and the ability of the parties to the Meridian Purchase Agreement to terminate such agreement, and potential break-fees due in connection therewith; |
| · | uncertainties while the Meridian Purchase Agreement is pending; and |
| · | risks related to the ability of the combined company to recognize the benefits of the acquisition. |
Other risks
| · | risks related to our governing documents and indemnification obligations; |
| · | risks related to future acquisitions; |
| · | risks related to inventory impropriety; |
| · | risks related to behavior and acts by management and/or employees to the detriment of the Company; |
| · | risks related to significant sales by officers, directors and third parties; and |
| · | Other risks disclosed below. |
There have been no material changes from the risk factors previously disclosed in Part I, Item 1A of the Company’s Form 10-K for the year ended October 31, 2023, filed with the Commission on January 17, 2024 (the “Form 10-K”), under the heading “Risk Factors”, which includes more detailed information regarding the summary risk factors described above, and investors should review the risks provided in the Form 10-K, prior to making an investment in the Company. The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in the Form 10-K, under “Risk Factors”, any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial conditions and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.