Motorsport Games Inc Stock Price, News & Analysis

Motorsport Games (NASDAQ: MSGM) reported a 54% decline in Q4 2022 revenue, totaling $3.8 million, down from $8.2 million year-over-year. Despite a net loss of $4.8 million (improved from $7 million last year), gross profit margin rose to 60.6%. For the full year 2022, revenue decreased by 31.5% to $10.3 million. The company’s cash reserves stand at approximately $6.5 million, raising concerns over its liquidity for the remainder of 2023. Motorsport Games aims to cut 20% of overhead costs and expects total annualized cost reductions of $4 million by year-end 2023.

Motorsport Games (NASDAQ: MSGM) will announce its financial results for Q4 2022 and the full fiscal year on March 24, 2023, after market close. The company, known for developing and publishing racing games, will hold a conference call at 5:00 p.m. ET to discuss these results. Motorsport Games is an established player in the esports ecosystem, providing official motorsport racing series video games globally. They hold licenses for major racing events including NASCAR and INDYCAR and aim to enhance fan engagement through innovative gaming and esports.

Motorsport Games (NASDAQ: MSGM) announced the successful completion of the Le Mans Virtual Series, which ran from September 2022 to January 2023. The series achieved a cumulative audience reach of over 8.5 million across TV, OTT, and digital platforms. Key highlights include 36 million social media impressions, 10 million video views, and participation from drivers representing 41 countries. Despite some technical issues during the finale, the event saw an impressive turnout of 45 cars and a prize pool of $250,000. The series reflects the growing popularity of endurance sim racing, with plans for an official Le Mans Esports game at the end of this year.

Motorsport Games (NASDAQ: MSGM) recently announced a quarterly update for rFactor 2, featuring significant enhancements, including the addition of the Honda Civic Type R and the Long Beach Grand Prix circuit. The update aims to elevate the player experience with improved graphics and new gameplay features.

New updates include a GT3 tire model, BTCC hybrid boost for 2022, and package management improvements. The pricing for the new content is set at €4.99 for the Honda Civic BTCC and €8.99 for the Long Beach Grand Prix Circuit.

Motorsport Games announced a registered direct offering of 232,188 shares of its Class A common stock at $17.39 per share, set to close around February 7, 2023. This transaction is expected to generate approximately $4.03 million in gross proceeds before costs. The funds will be allocated for game development, working capital, and general corporate purposes. The offering complies with Nasdaq rules and utilizes a previously filed registration statement.

H.C. Wainwright & Co. is the exclusive placement agent for this offering.

Motorsport Games (NASDAQ: MSGM) announced the successful closing of two registered direct offerings, raising approximately $7.29 million. The offerings included the sale of 183,020 shares at $21.40 each and 144,366 shares at $23.50 each, occurring on February 2 and February 3, 2023, respectively. The company plans to utilize the net proceeds for game development, working capital, and general corporate purposes. Offered shares were registered under Form S-3, with associated prospectus supplements available on the SEC's website. H.C. Wainwright & Co. served as the placement agent for these offerings.

Motorsport Games (NASDAQ: MSGM) announced a debt-for-equity exchange agreement with its majority stockholder, Motorsport Network, LLC, to repay $2,948,565.99, settling its remaining debt under a $12 million line of credit. The agreement allows Motorsport Network to demand a registration statement with the SEC to register the resale of shares acquired. Additional details will be provided in a Current Report on Form 8-K. Motorsport Games develops and publishes official motorsport video games and creates esports ecosystems for various racing series globally, such as NASCAR and INDYCAR.

Motorsport Games has entered into a definitive agreement to offer 183,020 shares of its Class A common stock at $21.40 per share, generating approximately $3.9 million in gross proceeds. The offering, managed by H.C. Wainwright & Co., is expected to close around February 3, 2023, subject to customary conditions. The funds raised will be allocated towards the development of multiple games, working capital, and general corporate purposes. The shares are being offered under a previously filed shelf registration statement with the SEC. This move aims to bolster the company’s gaming portfolio and sustain operational growth.