Mobile Esports (MGAM) - 2023 Q4 - Annual Report

Gaming Audience and Market Growth - The global audience for gaming video content, including esports, reached 1.2 billion viewers in 2020, an 18% increase from 2019[20] - MOGO's esports business is focused on the rapidly-growing Indian market, which is considered one of the largest and fastest-growing esports markets globally[40] Esports Events and Participation - MOGO organized 27 virtual esports tournaments in India from May to December 2021, attracting over 450,000 viewers[21] - The MOGO National Championship 2.0 event in September 2023 featured 16 teams from four geographic regions in India[21] - In 2022, MOGO completed 9 open tournaments over 25 days, 2 inter-university tournaments, and 1 national championship tournament[62] Financials and Funding - MOGO raised over $5 million in 2022, which released SII from its obligation to provide consulting services[26] - MOGO will engage in exclusive negotiations with SII for monetizing esports rights after securing financing of at least $3,500,000[48] - MOGO retains 20% of all Gross Receipts from university esports, with net proceeds allocated 60% to MOGO and 40% to SII[60] - MOGO will pay SII a referral fee of 15% of net revenues from management agreements with athletes[58] Partnerships and Agreements - MOGO issued 2,650,000 restricted common shares to SII as part of the Founders Agreement[25] - MOGO has a non-exclusive license to utilize esports rights granted by SII, including the right to develop and promote esports tournaments[32] - MOGO's partnership with SII includes rights to utilize Team Logos and Name and Likeness for promotional activities[33] - MOGO's consulting services from SII included opportunities in esports within the South Asian region and global university esports[26] - MOGO's esports business began in 2016, partnering with AIU, representing 854 universities, under a 10-year renewable agreement[42] - MOGO has exclusive rights to develop and monetize mobile esports events in collaboration with AIU and EUSAI, which has contracts with 92 leading Indian universities[42] Management and Operations - MOGO is responsible for executing the business plan for esports, including marketing and distribution of MOGO Games and related content[56] - MOGO has retained a team to advise on expanding its esports business, focusing on various revenue streams[66] - MOGO owns all intellectual property rights related to the tournaments and associated marketing[64] - MOGO's management rights for athletes extend until seven years after the management agreement commencement or until the end of the Management Term[57] - MOGO is required to reimburse SII 50% of any excess participation amounts owed to AIU or Participating Universities, up to 20% of the Licensor Participation received[35]