PALO ALTO, Calif., March 30, 2022 /PRNewswire/ -- Mega Matrix
Corp. (f/k/a AeroCentury Corp.) (the "Company") (NYSE American:
MTMT), today announced its financial results for its fiscal year
ended December 31, 2021.
Financial Highlights:
- Net income in the fiscal year of 2021 was $14.7 million as compared to a net loss of
$42.2 million in the fiscal year of
2020.
- The Company recorded $27.7
million of reorganization gains in the fiscal year of
2021.
- The Company adopted fresh start reporting adjustments on
October 1, 2021, following its
emergence from bankruptcy.
Yucheng Hu, the Company's Chief
Executive Officer, said: "After the completion of our
reorganization, we have been planning and implementing our
Metaverse and Gamefi business. In October
2021, we incorporated our wholly owned subsidiary, Mega
Metaverse Corp. ("MEGA"), through which we launched our GameFi
business in the metaverse ecosystem in December 2021. MEGA's metaverse "alSpace"
received its first player registrations during the first week of
January 2022, in connection with the
initial test-play period for its first mini game "Mano". To better
reflect our expansion into the Metaverse and GameFi business, we have also changed our
name from "AeroCentury Corp." to "Mega Matrix Corp.". In connection
our name change, the Company is now trading on the NYSE American
under our new ticker symbol, "MTMT"
. Our goal is to provide the diversification in our revenue streams
and to provide potential high growth earnings to our
shareholders."
Fiscal Year 2021 Financial Results
Net income in fiscal year 2021 was $14.7
million as compared to a net loss of $42.2 million in fiscal year 2020.
Revenues and other income decreased by 62% to $6.1 million in the fiscal year of 2021 from
$16.2 million in the fiscal year of
2020. The decrease was primarily attributable to a decrease in
operating lease revenues as a result of reduced rent income from
the sale of aircraft during the fourth quarter of 2020 and the
whole year of 2021.
In the fiscal year of 2021, we had total operating expenses of
$19.2 million as compared to
$62.0 million in fiscal year of 2020,
primarily comprised of interest expense, professional fees and
administrative expenses, depreciation expenses and impairment in
value of aircraft after the assets used to settle the liabilities
subject to compromise, less interest expense accrued on the Drake
Indebtedness after the Company's Chapter 11 filing in late
March 2021 and the decreased
depreciation expenses.
About Mega Matrix Corp.: Mega Matrix Corp. (f/k/a
AeroCentury Corp.) 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, to a
lesser extent, will continue to focus on third-party management
service contracts for aircraft operations through our majority
owned subsidiary JetFleet, which was part of our 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 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 "Risk Factors" 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, the Company
operates in a competitive and evolving industry in which new risks
emerge from time to time, and it is not possible for the Company to
predict all of the risks it may face, nor can it assess the impact
of all factors on its business or the extent to which any factor or
combination of factors could cause actual results to differ from
expectations. 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.")
CONSOLIDATED
BALANCE SHEETS
(US Dollar, except
for share and per share data, unless otherwise
stated)
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
December 31,
|
|
|
September 29,
|
|
|
December 31,
|
|
|
2021
|
|
|
2021
|
|
|
2020
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,380,700
|
|
|
$
|
10,527,200
|
|
|
$
|
2,408,700
|
Accounts
receivable
|
|
|
-
|
|
|
|
-
|
|
|
|
256,600
|
Finance leases
receivable, net
|
|
|
-
|
|
|
|
450,000
|
|
|
|
2,547,000
|
Aircraft held for
lease, net
|
|
|
-
|
|
|
|
-
|
|
|
|
45,763,100
|
Property, equipment
and furnishings, net
|
|
|
-
|
|
|
|
-
|
|
|
|
14,900
|
Office lease right of
use, net
|
|
|
-
|
|
|
|
-
|
|
|
|
142,400
|
Deferred tax
asset
|
|
|
-
|
|
|
|
-
|
|
|
|
1,150,900
|
Taxes
receivable
|
|
|
1,235,200
|
|
|
|
1,234,500
|
|
|
|
-
|
Prepaid expenses and
other assets
|
|
|
645,100
|
|
|
|
1,884,400
|
|
|
|
255,300
|
Goodwill
|
|
|
4,688,600
|
|
|
|
-
|
|
|
|
-
|
Deposit for
intangible assets
|
|
|
1,000,000
|
|
|
|
-
|
|
|
|
-
|
Assets held for
sale
|
|
|
-
|
|
|
|
31,149,300
|
|
|
|
40,838,900
|
Total
assets
|
|
$
|
14,949,600
|
|
|
$
|
45,245,400
|
|
|
$
|
93,377,800
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
2,961,300
|
|
|
$
|
1,513,700
|
|
|
$
|
367,700
|
Accrued
payroll
|
|
|
161,300
|
|
|
|
232,100
|
|
|
|
190,100
|
Notes payable and
accrued interest, net
|
|
|
-
|
|
|
|
-
|
|
|
|
88,793,200
|
Derivative
termination liability
|
|
|
-
|
|
|
|
-
|
|
|
|
3,075,300
|
Lease
liability
|
|
|
-
|
|
|
|
-
|
|
|
|
172,000
|
Maintenance
reserves
|
|
|
-
|
|
|
|
-
|
|
|
|
2,000,600
|
Accrued maintenance
costs
|
|
|
-
|
|
|
|
-
|
|
|
|
46,100
|
Security
deposits
|
|
|
-
|
|
|
|
-
|
|
|
|
716,000
|
Unearned
revenues
|
|
|
-
|
|
|
|
-
|
|
|
|
1,027,400
|
Income taxes
payable
|
|
|
13,700
|
|
|
|
19,600
|
|
|
|
900
|
Deferred tax
liabilities
|
|
|
-
|
|
|
|
114,500
|
|
|
|
-
|
Subscription fee
advanced from the Plan
Sponsor
|
|
|
-
|
|
|
|
10,953,100
|
|
|
|
-
|
Liabilities held for
sale
|
|
|
-
|
|
|
|
-
|
|
|
|
14,604,800
|
Liabilities subject
to compromise
|
|
|
-
|
|
|
|
42,029,100
|
|
|
|
-
|
Total
liabilities
|
|
|
3,136,300
|
|
|
|
54,862,100
|
|
|
|
110,994,100
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
(deficit):
|
|
|
|
|
|
|
|
|
|
|
|
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,
13,000,000 and 10,000,000 shares
authorized , 22,084,055, 7,729,420 and
7,729,420 shares outstanding at December
31, 2021, September 29, 2021 and
December 31, 2020*
|
|
|
22,100
|
|
|
|
7,700
|
|
|
|
7,700
|
Paid-in
capital*
|
|
|
16,982,700
|
|
|
|
16,811,900
|
|
|
|
16,776,900
|
Accumulated
deficit
|
|
|
(4,954,400)
|
|
|
|
(23,399,000)
|
|
|
|
(31,361,600)
|
Accumulated other
comprehensive loss
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,000)
|
|
|
|
12,050,400
|
|
|
|
(6,579,400)
|
|
|
|
(14,579,000)
|
Treasury stock at
cost, 0, 213,332 and 213,332
shares at December 31, 2021, September
29, 2021 and December 31, 2020
|
|
|
-
|
|
|
|
(3,037,300)
|
|
|
|
(3,037,300)
|
Total Mega Matrix
Corp. (formerly
"AeroCentury Corp.") stockholders' equity
(deficit)
|
|
|
12,050,400
|
|
|
|
(9,616,700)
|
|
|
|
(17,616,300)
|
Non-controlling interests
|
|
|
(237,100)
|
|
|
|
-
|
|
|
|
-
|
Total
Equity (Deficit)
|
|
|
11,813,300
|
|
|
|
(9,616,700)
|
|
|
|
(17,616,300)
|
Total
liabilities and equity (deficit)
|
|
$
|
14,949,600
|
|
|
$
|
45,245,400
|
|
|
$
|
93,377,800
|
|
*
Retrospectively restated to give effect to five for one forward
stock split effective December 30, 2021.
|
MEGA MATRIX
CORP.
(formerly
"AeroCentury Corp.")
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
(US Dollar, except
for share and per share data, unless otherwise
stated)
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
September 30,
2021 through
December 31,
2021
|
|
|
Period from
January 1,
2021 through
September 29,
2021
|
|
|
Year ended
December 31,
2020
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
Operating lease
revenue
|
|
$
|
540,000
|
|
|
$
|
5,753,900
|
|
|
$
|
15,468,100
|
Maintenance reserves
revenue, net
|
|
|
-
|
|
|
|
-
|
|
|
|
221,400
|
Finance lease
revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
56,200
|
Net (loss)/gain on
disposal of assets
|
|
|
-
|
|
|
|
(194,900)
|
|
|
|
133,000
|
Other
income
|
|
|
900
|
|
|
|
2,700
|
|
|
|
278,000
|
|
|
|
540,900
|
|
|
|
5,561,700
|
|
|
|
16,156,700
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Impairment in value
of aircraft
|
|
|
-
|
|
|
|
4,204,400
|
|
|
|
28,751,800
|
Interest
|
|
|
540,000
|
|
|
|
1,966,700
|
|
|
|
16,819,300
|
Professional fees,
general and administrative
and other
|
|
|
3,204,600
|
|
|
|
3,708,500
|
|
|
|
4,617,300
|
Depreciation
|
|
|
-
|
|
|
|
1,176,100
|
|
|
|
7,027,200
|
Bad debt
expense
|
|
|
300,000
|
|
|
|
1,147,000
|
|
|
|
1,503,000
|
Salaries and employee
benefits
|
|
|
713,600
|
|
|
|
1,441,900
|
|
|
|
2,043,700
|
Insurance
|
|
|
86,200
|
|
|
|
661,600
|
|
|
|
797,600
|
PPP Loan
forgiveness
|
|
|
-
|
|
|
|
(279,200)
|
|
|
|
-
|
Maintenance
|
|
|
-
|
|
|
|
224,100
|
|
|
|
302,000
|
Other
taxes
|
|
|
-
|
|
|
|
76,700
|
|
|
|
103,200
|
Loss from
operations
|
|
|
4,844,400
|
|
|
|
14,327,800
|
|
|
|
61,965,100
|
Reorganization gains,
net
|
|
|
-
|
|
|
|
27,738,300
|
|
|
|
-
|
(Loss) Income
before income tax
provision/(benefit)
|
|
|
(4,303,500)
|
|
|
|
18,972,200
|
|
|
|
(45,808,400)
|
Income tax
provision/(benefit)
|
|
|
(111,800)
|
|
|
|
129,800
|
|
|
|
(3,564,700)
|
Net (loss)
income
|
|
$
|
(4,191,700)
|
|
|
$
|
18,900,100
|
|
|
$
|
(42,243,700)
|
Less: Net loss
attributable to non-
controlling interests
|
|
|
(237,100)
|
|
|
|
-
|
|
|
|
-
|
Net (loss) income
attributable to Mega Matrix
Corp. (formerly "AeroCentury Corp.")'s
shareholders
|
|
$
|
(3,954,600)
|
|
|
$
|
18,842,400
|
|
|
$
|
(42,243,700)
|
(Loss) earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic*
|
|
$
|
(0.18)
|
|
|
$
|
2.44
|
|
|
$
|
(5.47)
|
Diluted*
|
|
$
|
(0.18)
|
|
|
$
|
2.44
|
|
|
$
|
(5.47)
|
Weighted average
shares used in (loss)
earnings per share computations:
|
|
|
|
|
|
|
|
|
|
|
|
Basic*
|
|
|
22,084,055
|
|
|
|
7,729,420
|
|
|
|
7,729,420
|
Diluted*
|
|
|
22,084,055
|
|
|
|
7,729,420
|
|
|
|
7,729,420
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(4,191,700)
|
|
|
$
|
18,842,400
|
|
|
$
|
(42,243,700)
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on
derivative instruments
|
|
|
-
|
|
|
|
-
|
|
|
|
(575,000)
|
Reclassification of net unrealized losses
on
derivative instruments to interest expense
|
|
|
-
|
|
|
|
2,600
|
|
|
|
2,318,600
|
Tax expense related
to items of other
comprehensive loss
|
|
|
-
|
|
|
|
(600)
|
|
|
|
(374,800)
|
Other comprehensive
income
|
|
|
-
|
|
|
|
2,000
|
|
|
|
1,368,800
|
Total
comprehensive (loss) income
|
|
|
(4,191,700)
|
|
|
|
18,844,400
|
|
|
|
(40,874,900)
|
Less:
comprehensive loss attributable to
noncontrolling interests
|
|
|
(237,100)
|
|
|
|
-
|
|
|
|
-
|
Total
comprehensive (loss) income
attributable to Mega Matrix
Corp. (formerly "AeroCentury Corp.")'s
shareholders
|
|
$
|
(3,954,600)
|
|
|
$
|
18,844,400
|
|
|
$
|
(40,874,900)
|
|
*
Retrospectively restated to give effect to five for one forward
stock split effective December 30, 2021.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/mega-matrix-announces-2021-financial-highlights-301514234.html
SOURCE Mega Matrix Corp.