Motorsport Games Q1 net loss $5.3M; revenue down 48% YoY; warns cash insufficient for 2023

Motorsport Games Inc.

2024-Q1 EPS reported -$2.33 revenue$1,729,355

Net loss of $5.3M ($2.33/share) vs $16.0M ($12.97/share) in Q1 2022; Adjusted EBITDA loss $4.3M vs $5.6M.
Revenue fell 48% to $1.7M from $3.3M, driven by lower digital and physical sales.
Cash and equivalents $5.8M at Mar 31, 2023; further down to $4.9M at Apr 30, 2023.
Company states it lacks sufficient cash to fund operations for remainder of 2023 and will need additional financing.
Raised $11.3M in registered direct offerings in Feb 2023; completed debt-for-equity exchanges with Motorsport Network.

item 2.02 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.9

Motorsport Games Inc. reported first fiscal quarter ended March 31, 2023 results: revenue $1.7 million, net income $5.3 million, EPS $2.33 per share.

Period: first fiscal quarter ended March 31, 2023
Revenue: $1.7 million
Net income: $5.3 million
EPS: $2.33 per share
Result: reported results

Exact text from the filing

The Company reported a net loss for the first quarter of 2023 (“2023”) of $5.3 million, or $2.33 per share, compared to a net loss of $16.0 million, or $12.97, for the first quarter of 2022 (“2022”). The Company also reported an Adjusted EBITDA loss for 2023 of $4.3 million, compared to an Adjusted EBITDA loss of $5.6 million for the same period in the prior year. The Company benefited from no impairment losses in 2023, compared to $9.3 million of impairment losses in 2022, with the remaining $1.4 million reduction in net loss primarily due to reduced external marketing spend and lower payroll costs in 2023 when compared to 2022, as a result of the actions taken under the Company’s previously announced 2022 Restructuring Program. Revenue for 2023 was $1.7 million compared to $3.3 million for the same period in the prior year, a reduction of $1.6 million, or 48%. The Company experienced less favorable pricing and lower volume of digital sales in its existing product portfolio, as well a

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Source: SEC EDGAR

accession 0001493152-23-016398

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