GGTOOR, Inc. (OTCMKTS:GTOR) Announces Management Report for the Week Ended September 17, 2022

Rhea-AI Summary

GGTOOR, Inc. (OTCMKTS:GTOR) announced on September 20, 2022, that auditing issues have delayed financial audits. CEO John V. Whitman Jr. revealed that the previous auditor, Accell Audit and Compliance, estimated an additional cost of $48,750 for the completion of two years of audits. Whitman has decided to engage BDO, a major accounting firm, to ensure accuracy and compliance with regulatory requirements. Additionally, partnership with Ballin' In The Metaverse has been terminated due to financing issues, while Nerdland is nearing funding completion. Player registrations continue to grow across various gaming tournaments.

Positive

• Engaging BDO as new independent auditors for accurate financial oversight.
• Strong growth in player registrations, with 1,100 new sign-ups recently.
• Successful tournaments with significant participation, including a notable 89% increase in Blood Bowl 2 series registrations.

Negative

• Audit delays have extended the timeline for financial reporting.
• Termination of the contract with Ballin' In The Metaverse due to financing challenges.

THOMASVILLE, GA, Sept. 20, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- GGTOOR, Inc., (OTCMKTS:GTOR) (“GGTOOR, Inc.”, “GTOR”, or the “Company”), an emerging leader in the eSports markets, announces the Company CEO, John V Whitman Jr., received an email on September 13, 2022, at 4:13 pm EST, from Chris Hiestand, managing director of Accell Audit and Compliance, the Company’s independent auditors.

Chris Hiestand said, “I’ve had many discussions with our partner group and the good news is that we believe there is a path to be able to audit this information, but unfortunately, it’s going to take a lot more time than we originally estimated.  I’ve attached a detailed breakdown of how we came to the estimate.  As discussed last time we talked, we have already spent a significant amount of time researching and understanding the issues and complexities of your accounting (META valuation, derivatives, warrants, etc.), but we’re not including that time in our estimate.  Based on the attached budget summary, we believe, at a minimum, the audits (2 full years and opening balance sheet) will take about 275 hours at our blended rate of $250/hour, which would be $68,750.  This does not include any specialist that would need to be engaged.  I understand that this is quite a bit more than what we originally discussed, but once we got into the details and quantified the complexities, this is our best estimate.  If you want to move forward, I have another partner that is going to assist and can get things moving forward right away.  If you don’t, I understand, and we will refund your retainer and assist you however necessary to help transition your audit.”

John V Whitman Jr., GGToor CEO, had this to say, “On June 2, 2022, the Company wired an audit retainer of $15,000 to Accell which was 75% of the $20,000 Accell agreed it would charge to complete the audit work required. I announced on August 23, 2022, the only roadblock Chris Hiestand believed stood in the way of him completing the audit work which included the treatment of the $102,300,000 purchase from TCG.World, was receiving payment of $7.2 million from the Nerdland sale. Chris committed he would wrap up audits the last week of August and issue the audit not later than September 16, 2022. Until I received his email on September 13, 2022, at 4:13 pm EST, I had no advance warning the audits would not be delivered unless I agreed to pay them a minimum of $48,750 more than what we agreed. I informed Mr. Hiestand his services would no longer be required and to return the Company’s retainer.

“I have made the decision to request BDO become our new independent auditors. An initial discussion with BDO has taken place and an NDA has been signed. BDO is reviewing financial information on the Company and a decision is expected this week. I realize hiring one of the largest accounting firms in the world will be expensive, however when the audits are complete all regulatory agencies and shareholders will respect the results of the audits. I also believe they will have experience dealing with NFTs, META valuations and all other complex accounting issues that auditing GGToor presents. I have no idea if BDO will allow the TCG purchase to remain on the balance sheet as an asset, but at this stage I only care that the Company’s audits get completed and are an accurate representation of the books and records of the Company. I will inform the public the minute BDO has been retained. My instructions to them will be to complete the audits as quickly as possible since Accell Audit and Compliance virtually wasted four months of our extremely valuable time.” 

RJ White, founder and Chairman of Ballin’ In The Metaverse, has informed the Company it has been unable to secure acceptable financing to complete its purchase of a parcel in GGTOORCITY valued at $1.8 million. The Contract between GGToor and BITM has been terminated due to their inability to secure funding. Ms. White informed the Company this decision was more of a legal move she had to make to protect Ballin’ In The Metaverse from future litigation involving the termination of BITM President, Cory Warfield. Ms. White said, “Not securing funding was the only legal way I could get out of the contract between GGToor and BITM which was signed by myself and Cory Warfield. My commitment remains strong to continue attempting to purchasing a parcel in GGTOORCITY, but I need time to restructure BITM.”

Nerdland is progressing with its funding. A Zoom call has been scheduled with Nerdland’s funder on September 20, 2022, at 10:00 am EST, with management from GGToor, and numerous other vendors that will be major contributors to the success of Nerdland. Management of Nerdland believes this important call is one of the final steps before a closing will take place. 

The Company’s core business continues to grow. The Company drew over 1,100 player registrations and crowned 7 new champions this past week! The Company ran its first tournament for the recently released new game, YGO Cross Duel, and returned Garena Free Fire back to the roster after several months off rotation, and the community took note, with 484 player registrations to this game alone! The Company saw several ongoing series enjoy solid growth, with Pokemon TCG Online player registrations growing 31% over last month's event, Minion Masters seeking a 60% spike, and the new Blood Bowl 2 series growing a whopping 89% for its second event, after joining the roster for the first time last month!

Want to participate? If you want to bring your team or friends to GGToor.com or be a Tournament Organizer, we can support you and help you grow; you can reach a worldwide audience of similar-minded individuals that like to compete and have fun! You can be sure that GGToor.com is here to grow with you. Just follow the link to sign up as an organizer https://GGToor.com/organizerlogin.php If you have any questions about our events visit our socials; Discord https://discord.gg/GUhyZxFH8Q, Twitter https://twitter.com/GGToor/, twitch https://www.twitch.tv/GGToor, Facebook: https://www.facebook.com/gaming/eShadowGaming and Youtube: https://www.youtube.com/channel/UCTcWVwGhX2XnjB6bn5_3jnw

About GTOR

GGTOOR, Inc., is engaged in the business of eSports. The Company is aggressively entering the Metaverse by having purchased enough virtual land, 4,144 parcels, to form its own virtual city that will be called GGTOORCITY. The Company has held over two hundred sixty video game tournaments and has given away over $100,000 in cash and prizes. GGToor.com is continually being customized and upgraded, with the goal of becoming one of the most comprehensive gaming portals in the world. The Company is now accepting subscriptions from players, gamers, and tournament organizers. To register logon to https://GGToor.com/home.php . 

Forward-Looking Statements. This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections as well as our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of GGTOOR, Inc.

For Additional Information Contact:
John V Whitman Jr.,
John@GGToorcorp.com
https://GGToorcorp.com/

https://GGToor.com/home.php

FAQ

What financial challenges is GGTOOR facing with its audits?

GGTOOR is experiencing delays with its auditing process and an unexpected cost increase of $48,750 from its previous auditor.

Why did GGTOOR terminate its contract with Ballin' In The Metaverse?

The contract was terminated due to Ballin' In The Metaverse's inability to secure financing for a purchase valued at $1.8 million.

What is GGTOOR's strategy for its auditing issues?

GGTOOR has engaged BDO as its new independent auditors to ensure accurate and timely financial audits.

How is GGTOOR performing in player registrations?

GGTOOR reported over 1,100 player registrations recently, indicating strong growth in its gaming community.

What recent tournaments has GGTOOR hosted?

GGTOOR hosted tournaments for games like YGO Cross Duel and Garena Free Fire, attracting significant participant interest.