Motorsport Games Inc. Q3 FY2024 earnings call

• Development team at Studio 397 continued to deliver improved player experiences with cost optimization. - In September, Le Mans Ultimate received a big update including a co-op mode and save/resume race feature. - Expected to deliver real-time driver swaps in Q1 2025. - Part 2 of 2024 season pass for Le Mans Ultimate completed the Hypercar grid. - Partnership with Kindred Concepts expanded with F1 Arcade's fourth venue. - Race control platform extension for optional subscription service to go live next month, with rFactor 2 data showing GT3 series cars are popular and expected to translate to Le Mans Ultimate.

Revenues for the third quarter of 2024 were $1.8 million, which is an increase of $0.1 million or 6.4% compared to the same period in the prior year. The increase in revenues was primarily due to higher digital game sales from the release of Le Mans Ultimate on PC in February 2024. The net loss for the quarter was $0.6 million, a significant improvement from the net loss of $3.5 million in the same period prior year. Adjusted EBITDA for the third quarter was $0.1 million compared to an adjusted EBITDA loss of $2.5 million in the prior year period.

Stanley Beckley stated that he won't be offering any forward-looking guidance today. Instead, he focused on providing an update on financial results and liquidity. The company noted that based on cash position and average monthly cash burn, additional funding will be required to continue operations, and they are exploring options like equity/debt financing, strategic alternatives, etc.

• The company does not believe there is sufficient cash on hand to fund operations over the next year, so additional funding is required. - Actively exploring several options to address liquidity shortfall, including potential equity and/or debt financing, strategic alternatives like asset sale/licensing, release of NASCAR license contractions, and further cost reduction/restructuring initiatives.