Motorsport Games(MSGM) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2025 was approximately $1.8 million, a decrease of 41.9% compared to approximately $3.0 million in Q1 2024[6] - Gross profit for Q1 2025 was $1.3 million, down from $2.4 million in the same period last year, with a gross profit margin decrease to 73.5% from 78.0%[6] - Net income for Q1 2025 was $1.0 million, an improvement of $2.7 million compared to a net loss of $1.7 million in Q1 2024[7] - Adjusted EBITDA for Q1 2025 was $0.6 million, an improvement of $1.6 million from an Adjusted EBITDA loss of $1.0 million in Q1 2024[8] - Revenues for Q1 2025 were $1,758,453, a decrease of 42% compared to $3,029,036 in Q1 2024[34] - Gross profit for Q1 2025 was $1,293,067, down from $2,362,409 in Q1 2024, reflecting a decline of 45%[34] - Total operating expenses in Q1 2025 were $1,886,262, a reduction of 47% from $3,577,733 in Q1 2024[34] - The net income attributable to Motorsport Games Inc. for Q1 2025 was $1,041,058, compared to a net loss of $1,664,956 in Q1 2024[34] - Basic and diluted net income per share for Q1 2025 was $0.33, a significant improvement from a loss of $0.61 per share in Q1 2024[34] - The company reported a loss from operations of $93,195 in Q1 2025, an improvement from a loss of $1,215,324 in Q1 2024[34] Funding and Liquidity - The company raised $2.5 million in gross proceeds from a private placement of Class A common stock, which closed on April 11, 2025[9] - Cash and cash equivalents increased from approximately $1.1 million as of March 31, 2025, to $3.1 million as of April 30, 2025[11] - The company is exploring options for additional funding, including potential equity and debt financing arrangements[13] - The company continues to seek strategic alternatives to improve liquidity, including the potential sale or licensing of certain assets[17] - The company aims to improve liquidity through cost reduction and restructuring initiatives[27] Operational Changes - The workforce reduction in October 2024 impacted approximately 38% of the company's employees, aimed at reducing year-over-year operating expenses[14] - The company anticipates challenges in achieving growth plans and objectives due to various risks and uncertainties, including market conditions and operational costs[28] Product Development - The company plans a significant update for the Le Mans Ultimate game on June 10, 2025, featuring new game features and the final 2024 season content pack[4] - The company plans to release significant updates for the Le Mans Ultimate game, including new features and the final 2024 content pack[27]