EX-99.1 2 ea160017ex99-1_megamatrix.htm PRESS RELEASE DATED MAY 16, 2022

Exhibit 99.1

 

MEGA MATRIX CORP. Reports Fiscal First Quarter 2022 Financial Results

 

PALO ALTO, California, May 16, 2022 /PRNewswire/ -- Mega Matrix Corp. (“MTMT” or the “Company”) (NYSE American: MTMT), today announced its financial results for the fiscal first quarter ended March 31, 2022.

 

In late March 2022, the Company released its first NFT game “Mano” through Mega Metaverse Corp., its wholly owned subsidiary (“Mega”), in Mega’s metaverse universe platform “alSpace”. Mano is a competitive idle role-playing game (RPG) deploying the concept of GameFi in the innovative combination of NFTs (non-fungible token) and DeFi (decentralized finance) based on blockchain technology, with a “Play-to-earn” business model that the players can earn while they play in alSpace.

 

Financial Highlights

 

-Among the total revenues of $0.4 million for the first quarter of 2022, the Company generated revenues of $0.3 million in transaction fees from Mano.

 

-Net loss in the first quarter of 2022 was $0.7 million as compared to a net loss of $5.4 million in the same period in 2021.

 

Yucheng Hu, the Company’s Chief Executive Officer, said: “We are very pleased to announce the Company’s financial results for the first quarter of 2022. We launched our GameFi business in late March 2022 and have started to generate revenues for the first quarter of 2022. We will be focusing on the development of new games and on the diversification of our services related to NFTs and our metaverse platform “aLSpace”. We aim to further support the crypto-ecosystem and continue to add value to our shareholder and our players.”

 

About Mega Matrix: Mega Matrix Corp. (the “Company”) is a holding company located in Palo Alto, California, with two subsidiaries: Mega Metaverse Corp., a California corporation (“Mega”) and JetFleet Management Corp. a California corporation (“JetFleet”). The Company focuses on its GameFi business through Mega and will continue to focus on third-party management service contracts for aircraft operations through its majority owned subsidiary JetFleet, which was part of the Company’s legacy business. For more information, please visit: http://www.mtmtgroup.com

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forwardlooking statements. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees for future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company’s profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the Company’s ability to develop a new business in the GameFi industry; the ongoing development of the GameFi industry and the ability of the Company and its subsidiary to continue development of such games; the ability of the Company to continue compliance with the development of applicable regulatory regulations in connection with blockchain, digital asset and the GameFi industry; and the possibility that the Company’s GameFi business may be adversely affected by other economic, business, and/or competitive factors. . The forward-looking statements in this press release and the Company’s future results of operations are subject to additional risks and uncertainties set forth under the heading “Factors that May Affect Future Results and Liquidity” in documents filed by the Company with the Securities and Exchange Commission, including the Company’s quarterly reports on Form 10-Q and the Company’s latest annual report on Form 10-K, and are based on information available to the Company on the date hereof. In addition, such risks and uncertainties include the Company’s inability to predict or control bankruptcy proceedings and the uncertainties surrounding the ability to generate cash proceeds through the sale or other monetization of the Company’s assets. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.

 

 

 

MEGA MATRIX CORP.

(formerly “AeroCentury Corp.”)

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(US Dollar, except for share and per share data, unless otherwise stated)

 

   March 31,   December 31, 
   2022   2021 
ASSETS        
Cash and cash equivalents  $5,006,900   $7,380,700 
Digital assets   319,700    - 
Finance leases receivable, net   200,000    - 
Taxes receivable   1,201,000    1,235,200 
Prepaid expenses and other assets   561,700    645,100 
Goodwill   4,688,600    4,688,600 
Intangible assets   972,200    - 
Deposit for intangible assets   -    1,000,000 
Total assets  $12,950,100   $14,949,600 
           
LIABILITIES AND EQUITY          
Liabilities:          
Accounts payable and accrued expenses  $1,568,100   $2,961,300 
Accrued payroll   164,800    161,300 
Income taxes payable   15,200    13,700 
Total liabilities   1,748,100    3,136,300 
           
Commitments and contingencies          
           
Equity:          
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding   -    - 
Common stock, $0.001 par value, 40,000,000 shares authorized, 22,084,055 and 22,084,055 shares outstanding at March 31, 2022 and December 31, 2021   22,100    22,100 
Paid-in capital   16,982,700    16,982,700 
Accumulated deficit   (5,490,700)   (4,954,400)
Total Mega Matrix Corp. (formerly “AeroCentury Corp.”) stockholders’ equity   11,514,100    12,050,400 
Non-controlling interests   (312,100)   (237,100)
Total equity   11,202,000    11,813,300 
Total liabilities and equity  $12,950,100   $14,949,600 

  

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MEGA MATRIX CORP.

(formerly “AeroCentury Corp.”)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(US Dollar, except for share and per share data, unless otherwise stated)

 

   Successor   Predecessor 
   Three Months Ended March 31,
2022		   Three Months Ended March 31,
2021		 
Revenues and other income:        
Gamefi revenue  $323,600   $- 
Operating lease revenue   120,000    2,737,200 
Net loss on disposal of assets   -    (201,700)
Other losses   -    (1,300)
    443,600    2,534,200 
Cost of revenues   (27,800)   - 
Gross profit   415,800    2,534,200 
           
Expenses:          
Impairment in value of aircraft   -    1,940,400 
Interest   120,000    1,914,700 
Professional fees, general and administrative and other   551,900    1,595,100 
Depreciation   -    699,300 
(Reversal) provision of bad debt expense   (300,000)   821,000 
Salaries and employee benefits   632,500    506,300 
Insurance   86,200    247,900 
Maintenance   -    145,000 
Other taxes   -    25,600 
Total expenses   1,090,600    7,895,300 
           
Loss before income tax provision   (674,800)   (5,361,100)
           
Income tax provision   (1,500)   (49,200)
Net loss  $(676,300)  $(5,410,300)
Less: Net loss attributable to non-controlling interests   140,000    - 
Net loss attributable to Mega Matrix Corp. (formerly “AeroCentury Corp.”)’s shareholders  $(536,300)  $(5,410,300)
Loss per share:          
Basic*  $(0.02)  $(0.70)
Diluted*  $(0.02)  $(0.70)
Weighted average shares used in loss per share computations:          
Basic*   22,084,055    7,729,420 
Diluted*   22,084,055    7,729,420 
           
Net loss  $(676,300)  $(5,410,300)
Other comprehensive income (loss):          
Reclassification of net unrealized losses on derivative instruments to interest expense   -    2,600 
Tax expense related to items of other comprehensive loss   -    (600)
Other comprehensive income   -    2,000 
Total comprehensive loss   (676,300)   (5,408,300)
Less: comprehensive loss attributable to non-controlling interests   140,000    - 
Total comprehensive loss attributable to Mega Matrix Corp. (formerly “AeroCentury Corp.”)’s shareholders  $(536,300)  $(5,408,300)

 

* Retrospectively restated to give effect to five for one forward stock split effective December 30, 2021.

 

 

 

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