Motorsport Games Inc. (NASDAQ:MSGM) Q2 2022 Earnings Conference Call August 10, 2022 5:00 PM ET Company Participants Ken Godskind - Director of Operations Dmitry Kozko - Executive Chairman and CEO Jonathan New - Chief Financial Officer Conference Call Participants Jason Tilchen - Canaccord Genuity Michael Kupinski - NOBLE Capital Markets Operator Thank you for standing by, and welcome to Motorsport Games Incorporated Second Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, today's conferenc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-39868 Motorsport Games Inc. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 86-1791356 | | --- | --- | | ...

Financial Data and Key Metrics Changes - Q1 2022 revenues were $3.3 million, a 34% increase from $2.5 million in Q1 2021, driven by additional gaming sales and esports revenue [17] - Q1 2022 net loss was $16 million, compared to a net loss of $14.1 million in Q1 2021, primarily due to a decrease in general and administrative expenses offset by write-downs for goodwill and intangible assets [17] - Adjusted EBITDA loss for Q1 2022 was $5.6 million, an increase from a loss of $2.8 million in Q1 2021, attributed to a reduction in EBITDA and add-backs related to the IPO [18] Business Line Data and Key Metrics Changes - rFactor 2 contributed 16% of total Q1 2022 revenue, with esports revenue accounting for 11% of total revenues, primarily from the 24-hour Le Mans event [17] - The company is focusing on diversifying revenue streams, which is beginning to show in financial performance [17] Market Data and Key Metrics Changes - The company reported approximately $9 million in available cash on hand, reflecting ongoing liquidity concerns [12][14] - The company is exploring various funding options to resolve liquidity issues, including raising debt or equity [14] Company Strategy and Development Direction - The company is committed to improving the quality of its games and experiences, with a focus on long-term licenses and partnerships with NASCAR, INDYCAR, BTCC, and Le Mans [8][9] - A new NASCAR title is expected to be released in mid-2023, with plans to align future releases closer to the actual racing season [22] - The company is also planning to introduce a brand new NASCAR title for the Nintendo Switch platform in fall 2022 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that gaming could be a preferred entertainment option during economic downturns, potentially benefiting the business [30] - The company is actively hiring to expand development resources and improve game quality, despite ongoing geopolitical challenges [27] Other Important Information - The company is currently debt-free and is exploring options to ensure sufficient capital for product development [14] - The company is focusing on its core console products while planning to allocate more resources to mobile game production in the future [11] Q&A Session Summary Question: When can we expect the release of NASCAR 2023? - The company is targeting a mid-2023 release for the NASCAR 2023 title, aiming to align releases with the actual race season [22] Question: Can you elaborate on liquidity options and expense reduction? - The company is considering raising debt or equity and may slow the expansion of development resources, which could delay future title releases [24] Question: Are you adding personnel or shifting resources? - The company is expanding its internal resources and hiring more talent across all departments, with no material interruptions in development operations in Russia [27] Question: What is the expected burn rate going forward? - The burn rate has been consistent, and the company aims to maintain or reduce it as they move forward [29] Question: How might an economic downturn affect the gaming industry? - Management believes that during economic downturns, people may turn to gaming as an affordable entertainment option, which could be beneficial for the business [30]

Revenue and Sales Performance - For the three months ended March 31, 2022, Motorsport Games generated approximately 28% of total revenue from a single distribution partner for physical disk products [165]. - The company reported that 61% of revenue from sales of video games for consoles and PCs was through digital channels for the year ended December 31, 2021, increasing to 65% for the three months ended March 31, 2022 [168]. - Total revenues for the three months ended March 31, 2022, were $3,321,789, a 34% increase from $2,474,132 in the same period of 2021, driven by higher game sales and esports sponsorships [183]. - Gaming segment revenues increased to $2,958,388, up from $2,450,213, while esports segment revenues rose to $363,401 from $23,919, reflecting a significant growth in esports activities [183]. - The sales of products for Microsoft Windows via Steam comprised approximately 17% of total revenue for the three-month period ended March 31, 2022, compared to 8% for the same period in 2021 [167]. Game Development and Releases - As of March 31, 2022, Motorsport Games had a total headcount of 194 employees, with 134 dedicated to game development [157]. - The company released NASCAR 21: Ignition on October 28, 2021, and the full release of the KartKraft kart racing simulator on January 26, 2022 [164]. - Motorsport Games aims to expand its license arrangements to other internationally recognized racing series, with anticipated releases for INDYCAR, BTCC, and Le Mans games in 2023 and 2024 [164]. - The company has diversified its product offerings, reducing the percentage of revenues from NASCAR, with additional revenue streams from KartKraft and rFactor2 [164]. Financial Performance and Expenses - Cost of revenues surged to $2,013,806, a 158% increase from $781,808, primarily due to higher amortization of intangible assets and increased production costs [184]. - Gross profit decreased to $1,307,983, down 23% from $1,692,324, with gaming segment gross profit margin dropping from 71% to 53% [186]. - Development expenses rose by 92% to $2,404,338, reflecting increased costs for future game releases [189]. - General and administrative expenses decreased significantly to $3,423,153 from $14,764,038, largely due to non-recurring IPO-related expenses in 2021 [190]. - The company reported a net loss of approximately $16.0 million for the three months ended March 31, 2022, with an accumulated deficit of $53.1 million [203]. Cash Flow and Liquidity - As of March 31, 2022, cash and cash equivalents were $12,367,235, down from $17,819,640 at the end of 2021 [201]. - The company plans to explore additional funding options to support future liquidity needs and has reevaluated its product roadmap to improve cash flow [205][206]. - Net cash used in operating activities for Q1 2022 was $5,589,106, compared to $6,834,752 in Q1 2021, primarily due to a net loss of $15,967,045 in 2022 [213]. - Net cash used in investing activities for Q1 2022 was $101,004, primarily for purchases of property and equipment, while Q1 2021 saw $956,501 used, including $1,000,000 for the acquisition of KartKraft [214]. - Net cash provided by financing activities in Q1 2022 was $148,152, significantly lower than $53,633,631 in Q1 2021, which included $63,073,783 from the IPO [215]. Business Risks and Concerns - The ongoing COVID-19 pandemic has created significant business uncertainty, impacting global supply chains and consumer spending, but the company does not currently expect a material impact on future operations [161]. - The company has raised substantial doubt about its ability to continue as a going concern due to available cash on hand to fund operations over the next year [211]. - The company may need to seek additional capital contributions or loans, or reduce discretionary spending to meet cash requirements [212]. - The company has a $12 million line of credit with Motorsport Network, with no activity under this line as of March 31, 2022, and a balance of $0 [216][217]. - Impairment losses totaled $9,279,322 for goodwill and intangible assets, reflecting changes in the product roadmap and market conditions [191][192][193].

motorsport GAMES C"(0) ML Q4 2021 Results March 30, 2022 MHEAT 2 In ESAce BP WHEATS IGNITION LE MANS y 8 2) N Company Highlights 3 西 At the center of large, fast-growing motorsport, gaming and esports categories 万 Strategic, long-term partnerships with iconic racing brands 西 Leveraging exclusive partnerships for multiple products and revenue streams 万 Pole position in virtual racing esports Integrating acquired technologies and processes into our scalable internal development platform Q4 2021 Highlights 4 | ...

Motorsport Games Inc. (NASDAQ:MSGM) Q4 2021 Earnings Conference Call March 30, 2022 5:00 PM ET Company Participants Dmitry Kozko ??? Executive Chairman and Chief Executive Officer Jon New ??? Chief Financial Officer Ashley DeSimone ??? Integrated Corporate Relations Conference Call Participants Mike Hickey ??? The Benchmark Company Michael Graham ??? Canaccord Genuity Inc. Michael Kupinski ??? Noble Financial Capital Markets Franco Granda ??? D.A. Davidson Operator Greetings. And welcome to Motorsport Games ...

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-39868 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K Motorsport Games Inc. (Exact Name of Registrant as Specified in Its Charter) | Delaware | 86-1791356 | | --- | --- ...

motorsport GAMES Click to add CPOW V Q3 2021 Results November 4, 2021 ITHEAT 2 tt 82 62 Pice BP IIIHEATS IGNITION LE MANS LEGAL DISCLOSURES This presentation has been prepared by Motorsport Games Inc. ("Motorsport Games," "us," "our," "we" or the "Company"). For additional information regarding the Company, we urge you to read our reports filed with the Securities and Exchange Commission (the "SEC"), including our Quarterly Report on Form 10-Qfor the quarter ended September 30, 2021. Cautionary Note Regardi ...

Motorsport Games Inc. (NASDAQ:MSGM) Q3 2021 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Ashley DeSimone - Integrated Corporate Relations Dmitry Kozko - Executive Chairman and CEO Stephen Hood - President Jon New - CFO Conference Call Participants Michael Graham - Canaccord Franco Granda - D.A. Davidson Mike Hickey - Benchmark Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are desi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number: 001-39868 Motorsport Games Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 86-1791 ...