Mega Matrix Announces 2021 Financial Highlights

PALO ALTO,Calif.,March 31,2022 --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

December31,

September29,

December31,

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

-

-

2,600

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

shares authorized,no shares issued and

outstanding

-

-

-

Common stock,40,

13,000 and 10,000 shares

authorized,22,084,055,7,729,420 and

7,420 shares outstanding at December

31,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)

(14,000)

Treasury stock at cost,213,332 and 213,332

shares at December 31,September

29,2021 and December 31,2020

-

(3,037,300)

(3,300)

Total Mega Matrix Corp. (formerly

"AeroCentury Corp.") stockholders' equity

(deficit)

12,400

(9,616,700)

(17,300)

Non-controlling interests

(237,100)

-

-

Total Equity (Deficit)

11,813,300

(9,300)

Total liabilities and equity (deficit)

$

14,800

* Retrospectively restated to give effect to five for one forward stock split effective December30,2021.

MEGA MATRIX CORP.

(formerly "AeroCentury Corp.")

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE

INCOME (LOSS)

(US Dollar,unless otherwise stated)

Successor

Predecessor

September30,

2021 through

December31,

2021

Period from

January 1,

2021through

September29,

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

1,966,819,300

Professional fees,general and administrative

and other

3,600

3,708,500

4,617,300

Depreciation

-

1,176,200

Bad debt expense

300,147,503,000

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

$

(3,600)

$

18,842,400

$

(42,700)

(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*

22,055

7,420

7,420

Diluted*

22,420

Net (loss) income

$

(4,700)

$

18,400

$

(42,700)

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

-

2,368,800

Total comprehensive (loss) income

(4,700)

18,400

(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

$

(3,400

$

(40,900)

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

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