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Motorsport Games Inc. Announces Preliminary Financial Results for Q2 2024
MIAMI, July 10, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM), a racing game developer and publisher, today disclosed its preliminary
About this update from Motorsport Games Inc.
[{"type":"text","content":"MIAMI, July 10, 2024 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM), a racing game developer and publisher, today disclosed its preliminary financial results on an unaudited basis for the quarter ending June 30, 2024. The company anticipates reporting net income ranging between $1.6 million and $1.8 million for the quarter ending June 30, 2024, compared to a net loss of $8.2 million reported during the same period in the previous year. This expected increase in net income is primarily due to: Recognition of a $2.5 million gain stemming from a Settlement and Licensing Agreement with INDYCAR LLC, executed on May 17, 2024.A gain of $0.6 million related to the Settlement Agreement with BARC (TOCA) LIMITED, the exclusive promoter of the British Touring Car Championship, signed on April 12, 2024.Recording of a $250,000 gain from the sale on April 26, 2024 to Traxion.GG Limited of non-core assets, generating $200,000 in cash and $50,000 worth of marketing services to be provided by Traxion.GG Limited. Net loss from operations for the quarter ending June 30, 2024 are expected to be between $1.2 million and $1.4 million, compared to a net loss from operations of $8.6 million reported during the same period in the prior year. Additionally, Motorsport Games expects to report revenues for the six months ended June 30, 2024 to be between $4.7 million and $4.9 million, an increase from $3.5 million in the comparable prior-year period. Stephen Hood, CEO of Motorsport Games, stated, “These preliminary results reflect our focused strategy aimed at strengthening our financial position by reducing costs, streamlining operations and focusing on enhancing shareholder value. Our team is dedicated to sustaining this positive trajectory and furthering our concerted efforts in the racing game market with Le Mans Ultimate and our partnership with Kindred Concepts (F1® Arcade).” These preliminary results are based on the most current information available to management and are subject to completion of the financial closing procedures. Further, these preliminary estimates are not a comprehensive statement or estimate of the Company’s financial results or financial condition as of and for the quarter ended June 30, 2024. The unaudited preliminary financial information included herein has been prepared by, and is the responsibility of, management. ...