Factors other than those referred to above could also cause the Company's results to differ materially from expected results. Additional examples of such risks and uncertainties include, but are not limited to: (i) the Company's ability (or inability) to maintain existing, and to secure additional, licenses and other agreements with various racing series; (ii) the Company's ability to successfully manage and integrate any joint ventures, acquisitions of businesses, solutions or technologies; (iii) unanticipated operating costs, transaction costs and actual or contingent liabilities; (iv) the ability to attract and retain qualified employees and key personnel; (v) adverse effects of increased competition; (vi) changes in consumer behavior, including as a result of general economic factors, such as increased inflation, higher energy prices and higher interest rates; (vii) the Company's inability to protect its intellectual property; and/or (vii) local, industry and general business and economic conditions.
Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the Company's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, its Quarterly Reports on Form 10-Q filed with the SEC during 2024, as well as in its subsequent filings with the SEC. The Company anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. The Company assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company's plans and expectations as of any subsequent date.
Website and Social Media Disclosure
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
Websites Social Media
motorsportgames.com Twitter: @msportgames
Instagram: msportgames
Facebook: Motorsport Games
LinkedIn: Motorsport Games
The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.
Contacts:
Investors:
Investors@motorsportgames.com
Media:
PR@motorsportgames.com
Appendix:
The following tables provide a comparative summary of the Company's financial results for the periods presented:
MOTORSPORT GAMES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2024 2023 2024 2023
----------- ----------- ----------- ------------
Revenues $ 1,802,946 $ 1,693,871 $ 6,713,635 $ 5,162,356
Cost of revenues 716,723 831,479 2,154,997 2,946,382
---------- ---------- ---------- -----------
Gross profit 1,086,223 862,392 4,558,638 2,215,974
---------- ---------- ---------- -----------
Operating
expenses:
Sales and
marketing [1] 175,532 358,120 631,467 1,411,318
Development [2] 848,528 1,566,839 2,780,630 5,751,741
Impairment of
intangible
assets - - - 4,004,627
General and
administrative
[3] 1,946,897 1,526,614 5,548,989 7,459,957
Depreciation and
amortization 47,151 75,614 184,013 277,822
---------- ---------- ---------- -----------
Total operating
expenses 3,018,108 3,527,187 9,145,099 18,905,465
Gain from
settlement of
license
liabilities - - 3,248,000 -
Other operating
income - - 250,000 -
---------- ---------- ---------- -----------
Loss from
operations (1,931,885) (2,664,795) (1,088,461) (16,689,491)
Interest expense (29,852) (230,190) (90,480) (674,060)
Other income
(expense), net 1,388,712 (639,147) 1,010,001 369,345
---------- ---------- ---------- -----------
Net loss (573,025) (3,534,132) (168,940) (16,994,206)
Less: Net (loss)
income
attributable to
non-controlling
interest (582,852) 29,375 (1,270,382) 98,356
---------- ---------- ---------- -----------
Net income (loss)
attributable to
Motorsport Games
Inc. $ 9,827 $(3,563,507) $ 1,101,442 $(17,092,562)
========== ========== ========== ===========
Net income (loss)
per Class A
common share
attributable to
Motorsport Games
Inc.:
Basic and Diluted $ 0.00 $ (1.31) $ 0.39 $ (6.73)
Weighted-average
shares of Class A
common stock
outstanding:
Basic and Diluted 3,024,366 2,720,328 2,823,274 2,538,863
[1] Includes related party expenses of $0 and $0 for the three months ended September 30, 2024 and 2023, respectively, and $0 and $17,076 for the nine months ended September 30, 2024 and 2023, respectively.
[2] Includes related party expenses of $0 and $15,439 for the three months ended September 30, 2024 and 2023, respectively, and $0 and $46,361 for the nine months ended September 30, 2024 and 2023, respectively.
[3] Includes related party expenses of 37,500 and $116,530 for the three months ended September 30, 2024 and 2023, respectively, and $188,772 and $298,190 for the nine months ended September 30, 2024 and 2023, respectively.
A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/70e0f341-d4f7-44fc-9928-92dad825399f
(END) Dow Jones Newswires
November 14, 2024 16:10 ET (21:10 GMT)
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