Motorsport Games Inc. Q4 FY2024 earnings call

• Headcount reductions were implemented, and the company analyzed costs associated with headcount and licensing deals to right-size the business while maintaining product quality.
• Le Mans Ultimate saw positive momentum with updates, including a significant update in December 2024 that boosted player numbers to levels not seen since initial launch, and another notable spike in February 2025. Player retention also improved.
• Launched a subscription service via racecontrol.gg in December 2024, which generated over $120,000 in gross revenues in the first 21 days and had nearly 6,000 active subscribers as of today.
• Announced a settlement with Luminis that improved the financial position by $180,000 and resolved issues related to ownership of Studio 397 and its technology. Also received a positive ruling in Innovate Corporation litigation, alleviating some legal fee liabilities.
• DLC for Le Mans Ultimate, like the 2024 Pack 3, drove uptake, and upcoming features like livery creation and driver swaps were mentioned.
• Conversations with potential investors, publishers, and partners for future projects, including console ports, are ongoing.

For the fourth quarter, revenues were $2.0 million, up $0.3 million (13%) compared to the prior year, driven by higher digital game sales from the release of Le Mans Ultimate in February 2024. For the full year 2024, revenues were $8.7 million, up $1.8 million from the prior year. This was primarily due to $3.0 million in digital game and downloadable content sales from Le Mans Ultimate released in February 2024, offset by lower revenues from NASCAR ($0.5 million) and net loss ($0.4 million).

Stanley Beckley stated he would not offer forward-looking guidance today. He provided an update on financial results and noted that based on cash position, additional funding may be required to continue operations, with the company actively exploring options like equity, debt financing, and strategic alternatives.

• Based on cash position and average monthly cash burn, there is not sufficient cash on hand to fund operations over the next year, so additional funding is required.
• The company is actively exploring several options to address the cash shortfall, including potential equity and debt financing, as well as strategic alternatives like selling assets and licensing.

Q: Are there any formal questions and answers?

A: It appears that we have no questions at this time. That will conclude today's Motorsport Games, Inc.'s fourth quarter and full year 2024 earnings call. Thank you for your participation. You may disconnect at any time.