secwatch.observer — SEC 8-K summary
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Issuer:     Motorsport Games Inc. (MSGM)
CIK:        0001821175
Form:       8-K
Filed at:   2023-10-05T23:59:59+00:00
Accession:  0001493152-23-035756
Event type: m_and_a
Sentiment:  negative
Materiality: 0.85
Item codes: 1.01, 2.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Motorsport Games sells NASCAR simulation license to iRacing for $5M plus deferred payments
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- Sold NASCAR sim-style console license to iRacing for $5M cash at closing plus up to $1M deferred ($500k at 6 months, $500k by Dec 2024).
- Net proceeds used to pay NASCAR minimum guarantees: $656k for 2023 and $598k for 2024; company retains limited license to sell legacy games until Dec 2024.
- Pro forma shows cash increase of ~$3.8M (to $5.8M) and reduction in net loss by $2.99M for FY2022 and H1 2023.
- Company will focus on remaining assets: INDYCAR, rFactor 2, KartKraft, BTCC; plans a comprehensive commercial review of all projects.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/0001493152-23-035756-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1821175/000149315223035756/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-035756

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