Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the
“Company”) today reported financial results for its third quarter
ended September 30, 2022 (“Q3 2022”). The Company has also posted
to the Company’s investor relations website a Q3 2022 Quarter
End Review video and a Q3 2022 earnings slide deck, which highlight
certain key milestones that occurred in the period, as well as an
updated Investor Presentation.
Dmitry Kozko, Chief Executive Officer of
Motorsport Games, commented, “During Q3 2022, Motorsport Games
announced our official game of the 2022 NASCAR Cup Series season
for Nintendo Switch, NASCAR Rivals. Launched in October, NASCAR
Rivals helps fans take the competition of NASCAR with them anywhere
they go. The 2022 Season Update DLC for NASCAR 21: Ignition was
also released in October, bringing the full line-up of 2022
drivers, teams and paint-schemes along with three Next Gen cars.
For our racing simulation fans, we delivered the quarterly feature
update and content for rFactor 2. September brought the start of
the 2022-23 Le Mans Virtual Series with the 8 Hours of Bahrain in
September. Our teams brought the thrill and excitement of
motorsports to fans with on-site activations and hot-lap
competitions at INDYCAR and BTCC races, as well as at the SALT
conference in New York City.”
Kozko added, “As previously announced in
September 2022, we implemented the 2022 Restructuring Program to
improve operating costs, which is expected to generate annualized
cost reductions of approximately $4 million by the end of 2023. The
goal of the 2022 Restructuring Program is to build a stronger
global business operation, enhance the Company’s cost efficiency
and improve the Company’s operating margins. Also, on November 10,
2022, we completed a 1-for-10 reverse stock split in an effort to
re-gain compliance with NASDAQ’s minimum closing bid price
requirement for continued listing. Developing consumer-preferred
products continue to be the main focus for the Company and our
resilient team.”
Third Quarter 2022 Business
Update
● |
Some of the Most Elite Esports and Motorsports Teams
Included in the Roster for Opening Rounds of the 2022-23 Le Mans
Virtual Series: The 5-round season, which includes the 24
Hours of Le Mans Virtual as its grand finale on January 14-15,
2023, will see participants such as Max Verstappen, Romain
Grosjean, Daniel Juncadella and Rudy van Buren. The series opened
with the 8 Hours of Bahrain in September 2022. All 5 rounds of the
coming series will be held online on the rFactor 2 platform
allowing teams to compete virtually on simulators located around
the world for a total prize fund of US $250,000. |
|
|
● |
rFactor 2 Quarterly Content Update Released: In
August 2022, the Company released updates that add to the realism
of the racing simulation, and new cars and tracks. Real Road 2.0
and new traction and ABS features increase the immersive aspects of
driving with rFactor 2. A new track and several new cars including
2 more BTCC cars were made available in the Steam Store. |
Financial Results for the Three Months Ended September
30, 2022
Revenues for Q3 2022 were $1.2 million, as
compared to $2.1 million for Q3 2021. The $0.9 million, or 43%,
decrease in Q3 2022 revenues when compared to Q3 2021 reflects $0.6
million in lower digital game sales, driven by lower volumes of
sales and less favorable pricing, and an out-of-period adjustment
of $0.3 million correcting an immaterial overstatement of revenue
in the three months ended June 30, 2022.
Q3 2022 net loss was $8.5 million, a $1.8
million increase compared to the Q3 2021 net loss of $6.7 million.
The increase in net loss was driven by: (i) a $0.1 million increase
in sales and marketing spend; (ii) a $0.8 million increase in
foreign currency losses; (iii) a $0.6 million decrease in gross
profit; (iv) a $0.1 million increase in interest expense; and (v)
an increase of $1.0 million in loss contingency reserves, relating
to a legal proceeding. The increases in Q3 2022 expenses described
above were partially offset by: (i) a $0.4 million decrease in
development expenses; (ii) a $0.2 million decrease in other
expenses; and (iii) a $0.1 million decrease in general and
administrative expenses.
Q3 2022 Adjusted EBITDA loss(1) was $6.5
million, a $1 million increase in loss when compared to Q3 2021
Adjusted EBITDA loss of $5.5 million. The increase in Adjusted
EBITDA loss(1) was primarily driven by the same factors causing the
increase in Q3 2022 net loss.
The following table provides a reconciliation
from net loss to Adjusted EBITDA(1) for Q3 2022 and Q3 2021,
respectively:
|
|
Three Months EndedSeptember 30, 2022 |
|
|
Three Months EndedSeptember 30, 2021 |
|
Net Loss |
|
$ |
(8,536,715 |
) |
|
$ |
(6,658,629 |
) |
Interest expense |
|
|
244,953 |
|
|
|
160,310 |
|
Depreciation and
Amortization |
|
|
504,831 |
|
|
|
557,924 |
|
EBITDA |
|
|
(7,786,931 |
) |
|
|
(5,940,395 |
) |
Acquisition-related
expenses |
|
|
93,286 |
|
|
|
193,099 |
|
Loss contingency expenses |
|
|
1,000,000 |
|
|
|
- |
|
Stock-based compensation |
|
|
228,712 |
|
|
|
292,173 |
|
Adjusted EBITDA |
|
$ |
(6,464,933 |
) |
|
$ |
(5,455,123 |
) |
Financial Results for the Nine Months
Ended September 30, 2022
Revenues were $6.6 million and $6.9 million for
the nine months ended September 30, 2022 (“Q3 YTD 2022”) and 2021
(“Q3 YTD 2021”), respectively, a decrease of $0.3 million, or 4%,
as compared to the prior period. Gaming segment revenues decreased
by $0.8 million, or 12%, to $5.9 million for Q3 YTD 2022, as
compared to $6.7 million for Q3 YTD 2021, while our Esports segment
revenues increased by $0.5 million for Q3 YTD 2022, as compared to
Q3 YTD 2021. The decrease in our Gaming segment revenues was
primarily due to lower retail revenues of $0.6 million, driven by
higher retail pricing concessions, as well as a decrease in digital
and mobile game sales of $0.8 million that was caused by lower
volumes and pricing. These decreases were partially offset by $0.6
million in additional revenues earned through the development of
simulation platforms for third parties. The increase in our Esports
segment revenues was due to $0.5 million of higher sponsorship
revenues from our Le Mans Virtual Series event, which concluded its
2021-22 season in January 2022 and commenced its 2022-23 season in
September 2022, as well as the 24 Hours of Le Mans Live event held
in June 2022.
Net loss for Q3 YTD 2022 was $32 million, an
increase of $5.3 million, as compared to net loss of $26.7 million
for Q3 YTD 2021. The increase in net loss was driven by: (i) a $9.4
million increase in goodwill and intangible asset impairment; (ii)
a $1.6 million increase in development expenditures; (iii) a $1.6
million increase in sales and marketing spend; (iv) a $1.4 million
decrease in gains from equity method investment; (v) a $1.7 million
increase in foreign currency losses; (vi) a $1.1 million decrease
in gross profit; (vii) a $0.3 million increase in interest expense;
and (viii) a $1.0 million increase in loss contingency reserves,
relating to a legal proceeding. These increases were offset by
$12.8 million of lower general and administrative expenses.
For Q3 YTD 2022, Adjusted EBITDA loss(1) was $18
million, a $6 million increase, when compared to the $12.0 million
Adjusted EBITDA loss for Q3 YTD 2021. The increase in Adjusted
EBITDA loss(1) was primarily driven by the same factors as the
increase in net loss for Q3 YTD 2022, when compared to Q3 YTD
2021.
The following table provides a reconciliation
from net loss to Adjusted EBITDA(1) for Q3 YTD 2022 and Q3 YTD
2021:
|
|
Nine Months EndedSeptember 30,
2022 |
|
|
Nine Months EndedSeptember 30,
2021 |
|
Net Loss |
|
$ |
(31,991,431 |
) |
|
$ |
(26,704,996 |
) |
Interest expense |
|
|
638,211 |
|
|
|
311,748 |
|
Depreciation and
Amortization |
|
|
1,576,003 |
|
|
|
1,217,234 |
|
EBITDA |
|
|
(29,777,217 |
) |
|
|
(25,176,014 |
) |
IPO-related expenses |
|
|
- |
|
|
|
2,947,192 |
|
Acquisition-related
expenses |
|
|
557,601 |
|
|
|
2,123,665 |
|
Gain attributable to equity
method investment |
|
|
- |
|
|
|
(1,370,837 |
) |
Impairment of goodwill and
intangible assets |
|
|
9,428,370 |
|
|
|
- |
|
Loss contingency expenses |
|
|
1,000,000 |
|
|
|
- |
|
Stock-based compensation |
|
|
820,315 |
|
|
|
9,485,363 |
|
Adjusted EBITDA |
|
$ |
(17,970,931 |
) |
|
$ |
(11,990,631 |
) |
Cash Flow and Liquidity
For the nine months ended September 30, 2022,
the Company had negative cash flows from operations of
approximately $16.9 million. The Company expects to continue to
incur significant operating expenses and, as a result, the Company
will need to grow revenues to reach profitability and positive cash
flows. The Company expects to continue to incur losses for the
foreseeable future as it continues to develop its product portfolio
and invest in developing new video game titles. As of October 31,
2022, the Company has cash and cash equivalents available of
approximately $1.8 million. Based on the cash and cash equivalents
available as of October 31, 2022, and the Company’s average cash
burn, we do not believe we have sufficient cash on hand to fund our
operations for the remainder of 2022 and that additional funding
will be required in order to continue operations and we will need
to supplement our available liquidity with additional debt and/or
equity financing, cash generated by cost control initiatives,
and/or additional changes to our product roadmap to reduce working
capital requirements.
The Company’s future liquidity and capital
requirements include funds to support the planned costs to operate
its business, including amounts required to fund working capital,
support the development and introduction of new products, maintain
existing game titles and certain capital expenditures. The adequacy
of the Company’s available funds generally depends on many factors,
including its ability to successfully develop consumer-preferred
new products or enhancements to its existing products, continued
development and expansion of the Company’s esports platform and its
ability to collaborate with and/or acquire other companies or
technologies to enhance or complement the Company’s product and
service offerings.
The Company is currently seeking additional
funds through a variety of arrangements and through maintaining and
enhancing strong cost controls. There can be no assurances that the
sources of liquidity referred to above will provide the Company
with sufficient liquidity to meet its ongoing cash requirements as,
among other things, the Company’s liquidity can be impacted by a
number of factors, including the Company’s level of sales and
expenditures, as well as accounts receivable, sales allowances,
prepaid manufacturing expenses and accrued expenses.
2022 Restructuring Program
Update
To date, the Company has incurred restructuring
costs of approximately $0.1 million in connection with its
previously announced 2022 Restructuring Program, which primarily
consist of severance payments, and expects total restructuring
costs to fall within the previously estimated range of $0.1 million
to $0.3 million. By implementing the 2022 Restructuring Program,
the Company expects to eliminate approximately 20% of its overhead
costs worldwide and deliver approximately $4 million of total
annualized cost reductions by the end of 2023. As a result of the
restructuring efforts, the Company has achieved annualized savings
of approximately $2.5 million to date and is continuing its efforts
to achieve further cost reductions.
(1)Use of Non-GAAP
Financial Measures
Adjusted EBITDA (the “Non-GAAP Measure”) is not
a financial measure defined by U.S. generally accepted accounting
principles (“U.S. GAAP”). See the reconciliations of the Non-GAAP
Measure to its most directly comparable U.S. GAAP measure in the
financial tables above.
Adjusted EBITDA, a measure used by management to
assess the Company’s operating performance, is defined as EBITDA,
which is net (loss) plus interest (income) expense, depreciation
and amortization, less income tax benefit (if any), adjusted to
exclude: (i) IPO-related expenses; (ii) acquisition related
expenses; (iii) gain attributable to equity method investment
resulting from the acquisition of additional equity interest in Le
Mans Esports Series Ltd.; (iv) stock-based compensation expenses;
(v) impairment of goodwill and intangible assets; (vi) loss
contingency expenses relating to a legal proceeding; and (vii)
other charges or gains resulting from non-recurring events, if
any.
The Company uses the Non-GAAP Measure to manage
its business and evaluate its financial performance, as Adjusted
EBITDA eliminates items that affect comparability between periods
that the Company believes are not representative of its core
ongoing operating business. Additionally, management believes that
using the Non-GAAP Measure is useful to its investors because it
enhances investors’ understanding and assessment of the Company’s
normalized operating performance and facilitates comparisons to
prior periods and its competitors’ results (who may define Adjusted
EBITDA differently).
The Non-GAAP Measure is not a recognized term
under U.S. GAAP and does not purport to be an alternative to
revenue, income/loss from operations, net (loss) income, or cash
flows from operations or as a measure of liquidity or any other
performance measure derived in accordance with U.S. GAAP.
Additionally, the Non-GAAP Measure is not intended to be a measure
of free cash flows available for management’s discretionary use, as
it does not consider certain cash requirements, such as interest
payments, tax payments, working capital requirements and debt
service requirements. The Non-GAAP Measure has limitations as an
analytical tool, and investors should not consider it in isolation
or as a substitute for the Company’s results as reported under U.S.
GAAP. Management compensates for the limitations of using non-GAAP
financial measures by using them to supplement U.S. GAAP results to
provide a more complete understanding of the factors and trends
affecting the business than would be presented by using only
measures in accordance with U.S. GAAP. Because not all companies
use identical calculations, the Company’s measures may not be
comparable to other similarly titled measures of other companies.
Reconciliations of the Non-GAAP Measure to net loss, its most
directly comparable financial measure, calculated and presented in
accordance with U.S. GAAP, are presented in the tables above.
Conference Call and Webcast
Details
The Company will host a conference call and
webcast at 5:00 p.m. ET today, November 18, 2022, to discuss its
financial results. The live conference call can be accessed by
dialing 1-877-407-0784 from the U.S. or 1-201-689-8560.
Alternatively, participants may access the live webcast on the
Motorsport Games Investor Relations website at
https://ir.motorsportgames.com under “Events.”
About Motorsport Games
Motorsport Games, a Motorsport Network company,
is a leading racing game developer, publisher and esports ecosystem
provider of official motorsport racing series throughout the world.
Combining innovative and engaging video games with exciting esports
competitions and content for racing fans and gamers, Motorsport
Games strives to make the joy of racing accessible to everyone. The
Company is the officially licensed video game developer and
publisher for iconic motorsport racing series across PC,
PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR,
INDYCAR, 24 Hours of Le Mans and the British Touring Car
Championship (“BTCC”), as well as the industry leading rFactor 2
and KartKraft simulations. rFactor 2 also serves as the official
sim racing platform of Formula E, while also powering F1 Arcade
through a partnership with Kindred Concepts. Motorsport Games is an
award-winning esports partner of choice for 24 Hours of Le Mans,
Formula E, BTCC, the FIA World Rallycross Championship and the
eNASCAR Heat Pro League, among others. Motorsport Games is building
a virtual racing ecosystem where each product drives excitement,
every esports event is an adventure and every story inspires.
Forward-Looking Statements
Certain statements in this press release, the
related conference call and webcast which are not historical facts
are forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are provided
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Any statements in this press
release, the related conference call and webcast that are not
statements or information of historical fact may be deemed
forward-looking statements. Words such as “continue,” “will,”
“may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, but are not
limited to, statements concerning: (i) Motorsport Games’ future
business, future results of operations and/or financial condition;
(ii) the expected future impact of new or planned products,
features, events or other offerings and the timing of launching
such products, features, events and offerings, including, without
limitation our expectations regarding the remaining rounds of the
Le Mans Virtual Series; (iii) the expected future impact of
implementing management strategies and the impact of other industry
trends; (iv) our expectation that we will continue to incur
significant operating expenses and will continue to incur losses
for the foreseeable future as we continue to develop our product
portfolio and invest in developing new video game titles; (v) our
liquidity and capital requirements, including, without limitation,
our ability to continue as a going concern, our belief we will not
have sufficient cash on hand to fund our operations for the
remainder of 2022 based on the cash and cash equivalents available
as of October 31, 2022 and our average cash burn, our belief that
additional funding will be required in order to continue
operations, and our expectation to supplement liquidity with
additional debt and/or equity financing, cash generated by cost
control initiatives, and/or additional changes to our product
roadmap to reduce working capital requirements, as well as
statements regarding our cash flows and anticipated uses of cash;
(vi) our intentions and expectations regarding the 2022
Restructuring Program, including expectations that the program will
eliminate approximately 20% of our overhead costs worldwide and
deliver approximately $4 million of total annualized cost
reductions by the end of 2023; and (vii) our intention of regaining
compliance with NASDAQ’s minimum closing bid price requirement for
continued listing by effecting the reverse stock split. All
forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
many of which are generally outside the control of Motorsport Games
and are difficult to predict. Examples of such risks and
uncertainties include, but are not limited to: (i) difficulties,
delays or less than expected results in achieving the Company’s
growth plans, objectives and expectations, such as due to a slower
than anticipated economic recovery and/or the Company’s inability,
in whole or in part, to continue to execute its business strategies
and plans, such as due to less than anticipated customer acceptance
of the Company’s new game titles, the Company’s experiencing
difficulties or the inability to launch its games as planned, less
than anticipated performance of the games impacting customer
acceptance and sales and/or greater than anticipated costs and
expenses to develop and launch its games, including, without
limitation, higher than expected labor costs and, in addition to
the factors set forth in (ii) through (vii) below, the Company’s
continuing financial condition and ability to obtain additional
debt and/or equity financing to meet its liquidity requirements,
such as the going concern qualification on the Company’s annual
audited financial statements posing difficulties in obtaining new
financing on terms acceptable to the Company, or at all; (ii)
difficulties, delays in or unanticipated events that may impact the
timing and scope of new or planned products, features, events or
other offerings, such as due to difficulties or delays in using its
product development personnel in Russia due to the Russia invasion
of Ukraine and the related sanctions and/or more restrictive
sanctions rendering transacting in the region more difficult or
costly and/or difficulties and/or delays arising out of any
resurgence of the ongoing and prolonged COVID-19 pandemic; (iii)
less than expected benefits from implementing the Company’s
management strategies and/or adverse economic, market and
geopolitical conditions that negatively impact industry trends,
such as significant changes in the labor markets, an extended or
higher than expected inflationary environment (such as the impact
on consumer discretionary spending as a result of significant
increases in energy and gas prices which have been increasing since
early in 2020), a higher interest rate environment, tax increases
impacting consumer discretionary spending and or quantitative
easing that results in higher interest rates that negatively impact
consumers’ discretionary spending, or adverse developments relating
to the Russia invasion of Ukraine; (iv) greater than anticipated
negative operating cash flows such as due to higher than expected
development costs, higher interest rates and/or higher inflation,
or failure to achieve the expected savings under the 2022
Restructuring Program; (v) difficulties and/or delays in resolving
our liquidity and capital requirements, including without
limitation, difficulties in securing funding that is on
commercially acceptable terms to us or at all, such as our
inability to complete in whole or in part any potential debt and/or
equity financing transactions, as well as any inability to achieve
cost reductions, including, without limitation, those which we
expect to achieve through the 2022 Restructuring Program; (vi)
unexpected developments with respect to the reverse stock split,
including, without limitation, future decreases in the price of the
Company’s Class A common stock whether due to, among other things,
the announcement of the reverse stock split, the Company’s
inability to make its Class A common stock more attractive to a
broader range of institutional or other investors or an inability
to increase the stock price in an amount sufficient to satisfy
compliance with the NASDAQ’s minimum closing bid price requirement
for continued listing; and/or (vii) difficulties, delays or our
inability to successfully complete the 2022 Restructuring Program,
in whole or in part, which could result in less than expected
operating and financial benefits from such actions, as well as
delays in completing the 2022 Restructuring Program, which could
reduce the benefits realized from such activities; higher than
anticipated restructuring charges and/or payments and/or changes in
the expected timing of such charges and/or payments; and/or less
than anticipated annualized cost reductions from the 2022
Restructuring Program and/or changes in the timing of realizing
such cost reductions, such as due to less than anticipated
liquidity to fund such activities and/or more than expected costs
to achieve the expected cost reductions. Factors other than those
referred to above could also cause Motorsport Games’ results to
differ materially from expected results. Additional examples of
such risks and uncertainties include, but are not limited to: (i)
delays and higher than anticipated expenses related to the ongoing
and prolonged COVID-19 pandemic, any resurgence of COVID-19 and the
Russia invasion of Ukraine; (ii) Motorsport Games’ ability (or
inability) to maintain existing, and to secure additional, licenses
and other agreements with various racing series; (iii) Motorsport
Games’ ability to successfully manage and integrate any joint
ventures, acquisitions of businesses, solutions or technologies;
(iv) unanticipated operating costs, transaction costs and actual or
contingent liabilities; (v) the ability to attract and retain
qualified employees and key personnel; (vi) adverse effects of
increased competition; (vii) changes in consumer behavior,
including as a result of general economic factors, such as
increased inflation, higher energy prices and higher interest
rates; (viii) Motorsport Games’ inability to protect its
intellectual property; and/or (ix) local, industry and general
business and economic conditions. Additional factors that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements can be found in
Motorsport Games’ filings with the SEC, including its Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, its
Quarterly Reports on Form 10-Q filed with the SEC during 2022, as
well as in its subsequent filings with the SEC. Motorsport Games
anticipates that subsequent events and developments may cause its
plans, intentions and expectations to change. Motorsport Games
assumes no obligation, and it specifically disclaims any intention
or obligation, to update any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
expressly required by law. Forward-looking statements speak only as
of the date they are made and should not be relied upon as
representing Motorsport Games’ plans and expectations as of any
subsequent date.
Website and Social Media
Disclosure
Investors and others should note that we
announce material financial information to our investors using our
investor relations website (ir.motorsportgames.com), SEC filings,
press releases, public conference calls and webcasts. We use these
channels, as well as social media and blogs, to communicate with
our investors and the public about our company and our products. It
is possible that the information we post on our websites, social
media and blogs could be deemed to be material information.
Therefore, we encourage investors, the media and others interested
in our company to review the information we post on the websites,
social media channels and blogs, including the following (which
list we will update from time to time on our investor relations
website):
Websites |
Social
Media |
motorsportgames.com |
Twitter: @msportgames &
@traxiongg |
|
|
traxion.gg |
Instagram: msportgames &
traxiongg |
motorsport.com |
Facebook: Motorsport Games &
traxiongg |
|
|
|
LinkedIn: Motorsport Games |
|
|
|
Twitch: traxiongg |
|
|
|
Reddit: traxiongg |
The contents of these websites and social media
channels are not part of, nor will they be incorporated by
reference into, this press release.
Contacts:
Investors:Investors@motorsportgames.com
Media:
ASTRSK PRmotorsportgames@astrskpr.com
Appendix:
The following table provide a comparative
summary of the Company’s financial results for the periods
presented:
MOTORSPORT GAMES INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months EndedSeptember
30, |
|
|
Nine Months EndedSeptember
30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
$ |
1,223,142 |
|
|
$ |
2,138,466 |
|
|
$ |
6,553,918 |
|
|
$ |
6,851,525 |
|
Cost of revenues |
|
|
602,856 |
|
|
|
949,139 |
|
|
|
3,472,819 |
|
|
|
2,637,250 |
|
Gross profit |
|
|
620,286 |
|
|
|
1,189,327 |
|
|
|
3,081,099 |
|
|
|
4,214,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
1,440,659 |
|
|
|
1,348,773 |
|
|
|
4,669,328 |
|
|
|
3,077,213 |
|
Development |
|
|
2,631,066 |
|
|
|
3,015,233 |
|
|
|
7,717,046 |
|
|
|
6,083,773 |
|
General and administrative |
|
|
4,008,335 |
|
|
|
3,130,944 |
|
|
|
10,781,098 |
|
|
|
22,612,162 |
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
4,788,268 |
|
|
|
- |
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
4,640,102 |
|
|
|
- |
|
Depreciation and amortization |
|
|
92,703 |
|
|
|
81,874 |
|
|
|
326,499 |
|
|
|
179,097 |
|
Total operating expenses |
|
|
8,172,763 |
|
|
|
7,576,824 |
|
|
|
32,922,341 |
|
|
|
31,952,245 |
|
Loss from operations |
|
|
(7,552,477 |
) |
|
|
(6,387,497 |
) |
|
|
(29,841,242 |
) |
|
|
(27,737,970 |
) |
Interest expense |
|
|
(244,953 |
) |
|
|
(160,310 |
) |
|
|
(638,211 |
) |
|
|
(311,748 |
) |
Gain attributable to equity method investment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,370,837 |
|
Other expense, net |
|
|
(739,285 |
) |
|
|
(110,822 |
) |
|
|
(1,511,978 |
) |
|
|
(26,115 |
) |
Net loss |
|
|
(8,536,715 |
) |
|
|
(6,658,629 |
) |
|
|
(31,991,431 |
) |
|
|
(26,704,996 |
) |
Less: Net loss attributable to non-controlling interest |
|
|
(21,431 |
) |
|
|
(99,114 |
) |
|
|
(933,234 |
) |
|
|
(553,413 |
) |
Net loss attributable to Motorsport Games
Inc. |
|
$ |
(8,515,284 |
) |
|
$ |
(6,559,515 |
) |
|
$ |
(31,058,197 |
) |
|
$ |
(26,151,583 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Class
A common stock per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(7.29 |
) |
|
$ |
(5.64 |
) |
|
$ |
(26.61 |
) |
|
$ |
(23.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of
Class A common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
1,167,359 |
|
|
|
1,163,590 |
|
|
|
1,167,178 |
|
|
|
1,128,576 |
|
NOTE: All share data and share-based
calculations set forth in this table have been adjusted to reflect
the company’s 1-for-10 reverse stock split completed on November
10, 2022 on a retroactive basis for the periods presented.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3101dab4-8eb2-43ce-b490-45d3e2590b10
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