Latest news with #StephenHood
Yahoo
12-05-2025
- Automotive
- Yahoo
Motorsport Games Inc (MSGM) Q1 2025 Earnings Call Highlights: Navigating Financial Challenges ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motorsport Games Inc (NASDAQ:MSGM) received a $2.5 million investment from virtual reality headset manufacturers Pymax, providing significant financial support. Net revenues from the Le Mans Ultimate Racing title increased by $0.4 million in Q1 2025 compared to the same period in the prior year. The company reported an improvement in net income, achieving a net income of $1.0 billion compared to a net loss of $1.7 million in the prior year. Motorsport Games Inc (NASDAQ:MSGM) has improved cash flow from operations, generating an average positive cash flow of approximately $0.1 million per month. The company is exploring new opportunities, including bringing the Le Mans Ultimate game to PlayStation and Xbox consoles, which could expand its audience. Total revenues for Q1 2025 were down by 41.9% compared to the same period in the prior year, primarily due to a decrease in NASCAR-related revenues. The company is no longer authorized to sell NASCAR-related gaming titles starting in 2025, impacting revenue streams. Despite improvements, Motorsport Games Inc (NASDAQ:MSGM) expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio. The company is exploring additional funding options to address liquidity shortfalls, indicating ongoing financial challenges. There is a decrease in revenues from the rFactor 2 title by $0.2 million, contributing to the overall revenue decline. Warning! GuruFocus has detected 5 Warning Signs with MSGM. Q: Can you provide more details on the recent $2.5 million investment and its impact on the company? A: Stephen Hood, CEO: The investment was led by virtual reality headset manufacturers Pymax and has provided significant additional breathing room for our business. It has allowed us to further develop our products and assess future potential. This investment has also increased market confidence, with shares trading more than 2.5 times higher than before the announcement. Q: What are the key financial results for Q1 2025? A: Stanley Beckley, CFO: Revenues for the quarter were $1.8 million, down 41.9% from the prior year, primarily due to a decrease in NASCAR-related revenues. However, net income improved to $1.0 million compared to a net loss of $1.7 million in the prior year, driven by reduced operating expenses and other operating income. Q: How is the Le Mans Ultimate Racing title performing? A: Stephen Hood, CEO: Net revenues from the Le Mans Ultimate Racing title were $0.4 million higher in Q1 2025 compared to the same period last year, despite Q1 2024 being the release quarter. This is a positive result, and we plan to release future updates, including team and driver swap functionality, which will enhance the gaming experience. Q: What are the company's plans for expanding the Le Mans Ultimate audience? A: Stephen Hood, CEO: We expect the game to move from early access to a full release this year, unlocking new sales and marketing tactics. We are also exploring console opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions underway with potential collaborators. Q: How is the company's liquidity position? A: Stanley Beckley, CFO: As of March 31, 2025, we had cash and cash equivalents of $1.1 million, which increased to $3.1 million by April 30, 2025, due to net proceeds from a private placement. We continue to explore options to address liquidity shortfalls, including potential equity and debt financing arrangements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
12-05-2025
- Automotive
- Yahoo
Motorsport Games Inc (MSGM) Q1 2025 Earnings Call Highlights: Navigating Financial Challenges ...
Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Motorsport Games Inc (NASDAQ:MSGM) received a $2.5 million investment from virtual reality headset manufacturers Pymax, providing significant financial support. Net revenues from the Le Mans Ultimate Racing title increased by $0.4 million in Q1 2025 compared to the same period in the prior year. The company reported an improvement in net income, achieving a net income of $1.0 billion compared to a net loss of $1.7 million in the prior year. Motorsport Games Inc (NASDAQ:MSGM) has improved cash flow from operations, generating an average positive cash flow of approximately $0.1 million per month. The company is exploring new opportunities, including bringing the Le Mans Ultimate game to PlayStation and Xbox consoles, which could expand its audience. Total revenues for Q1 2025 were down by 41.9% compared to the same period in the prior year, primarily due to a decrease in NASCAR-related revenues. The company is no longer authorized to sell NASCAR-related gaming titles starting in 2025, impacting revenue streams. Despite improvements, Motorsport Games Inc (NASDAQ:MSGM) expects to have a net cash outflow from operations for the foreseeable future as it continues to develop its product portfolio. The company is exploring additional funding options to address liquidity shortfalls, indicating ongoing financial challenges. There is a decrease in revenues from the rFactor 2 title by $0.2 million, contributing to the overall revenue decline. Warning! GuruFocus has detected 5 Warning Signs with MSGM. Q: Can you provide more details on the recent $2.5 million investment and its impact on the company? A: Stephen Hood, CEO: The investment was led by virtual reality headset manufacturers Pymax and has provided significant additional breathing room for our business. It has allowed us to further develop our products and assess future potential. This investment has also increased market confidence, with shares trading more than 2.5 times higher than before the announcement. Q: What are the key financial results for Q1 2025? A: Stanley Beckley, CFO: Revenues for the quarter were $1.8 million, down 41.9% from the prior year, primarily due to a decrease in NASCAR-related revenues. However, net income improved to $1.0 million compared to a net loss of $1.7 million in the prior year, driven by reduced operating expenses and other operating income. Q: How is the Le Mans Ultimate Racing title performing? A: Stephen Hood, CEO: Net revenues from the Le Mans Ultimate Racing title were $0.4 million higher in Q1 2025 compared to the same period last year, despite Q1 2024 being the release quarter. This is a positive result, and we plan to release future updates, including team and driver swap functionality, which will enhance the gaming experience. Q: What are the company's plans for expanding the Le Mans Ultimate audience? A: Stephen Hood, CEO: We expect the game to move from early access to a full release this year, unlocking new sales and marketing tactics. We are also exploring console opportunities to bring Le Mans Ultimate to PlayStation and Xbox, with discussions underway with potential collaborators. Q: How is the company's liquidity position? A: Stanley Beckley, CFO: As of March 31, 2025, we had cash and cash equivalents of $1.1 million, which increased to $3.1 million by April 30, 2025, due to net proceeds from a private placement. We continue to explore options to address liquidity shortfalls, including potential equity and debt financing arrangements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
18-04-2025
- Automotive
- Yahoo
Motorsport Games Stock Jumps 146% After $2.5 Million Investment Led by Pimax
Motorsport Games (MSGM, Financials) shares surged 145.5% to close at $2.75 on April 17 at 5:08 p.m. ET, before falling 4.39% to $2.63 in after-hours trading, following the company's announcement that it raised approximately $2.5 million through a private placement led by virtual reality company Pimax, according to a statement from Motorsport Games. Warning! GuruFocus has detected 4 Warning Signs with MSGM. The company, which develops racing simulation games including Le Mans Ultimate, entered into a definitive agreement on April 11 with institutional and accredited investors, including an affiliate of Pimax Innovation Inc., to issue nearly 1.9 million shares of Class A common stock and a pre-funded warrant to purchase up to about 378,000 additional shares. The shares were priced at $1.10 each, while the pre-funded warrants carried an exercise price of $0.0001 per share. Motorsport Games said the offering represented a 33% premium over its April 10 closing price. The company closed on $2.4 million of the transaction on April 11, with an additional $100,000 expected to close on April 15. The proceeds are intended to bolster working capital, fund corporate expenses, accelerate product development, and help the company regain compliance with the Nasdaq Capital Market's minimum stockholders' equity requirement. As part of the agreement, investors who purchased at least 50.1% of the securities will have the right to appoint a Class II director to Motorsport Games' board, with a term ending at the 2026 annual meeting. They will also have the right to appoint an individual to the management team, subject to board approval. Motorsport Games Chief Executive Officer Stephen Hood said in the statement that the investment, made at a premium, could boost shareholder confidence. He added that synergies with Pimax could improve the virtual reality offerings of Motorsport Games' racing titles. Pimax Founder and Chairman Robin Weng said sim racing players are a vital part of the company's community and that Pimax plans to deepen its focus on immersive virtual reality experiences for this user base. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Motorsport Games Inc (MSGM) Q4 2024 Earnings Call Highlights: Revenue Growth Amidst Financial ...
Revenue (Q4 2024): $2.0 million, up 13% from the same period in the prior year. Net Loss (Q4 2024): $2.9 million, compared to net income of $2.7 million in the prior year. Adjusted EBITDA Loss (Q4 2024): $2.5 million, compared to an adjusted EBITDA of $0.4 million in the prior year. Full Year Revenue (2024): $8.7 million, up $1.8 million from the prior year. Full Year Net Loss (2024): $3.0 million, compared to $14.3 million in 2023. Adjusted EBITDA Loss (2024): $3.9 million, improved from $9.3 million in 2023. Net Cash Used in Operations (2024): Approximately $3.2 million, with an average monthly net cash burn of $0.3 million. Cash and Cash Equivalents (Dec 31, 2024): $0.9 million, increased to $1.2 million by February 28, 2025. Subscription Service Revenue (First 21 Days): Over $120,000 in gross revenues. Active Subscribers: Nearly 6,000 as of the latest update. Warning! GuruFocus has detected 3 Warning Signs with MSGM. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Le Mans Ultimate launched with strong potential and received positive feedback from consumers and industry influencers. Significant update to Le Mans Ultimate in December led to a surge in player numbers and positive reception. Organic growth achieved without investment in paid marketing, demonstrating strong word-of-mouth influence. Introduction of a subscription service via generated over $120,000 in gross revenues in the first 21 days. Settlement with Luminous improved financial position by $180,000 and resolved a long-standing issue. Net loss for the fourth quarter of 2024 was $2.9 million, a significant decrease compared to the prior year's net income. Adjusted EBITDA loss for the fourth quarter of 2024 was $2.5 million, compared to a positive adjusted EBITDA in the prior year. Cash position remains a concern with only $1.2 million as of February 28, 2025, insufficient to fund operations over the next year. Exploration of additional funding options indicates ongoing liquidity challenges. Net cash used in operations for 2024 was approximately $3.2 million, highlighting continued financial strain. Q: Can you provide an update on the financial performance for the fourth quarter and full year 2024? A: Stanley Beckley, Chief Financial Officer, reported that revenues for the fourth quarter were $2.0 million, a 13% increase compared to the same period last year, driven by higher digital game sales from the release of Le Mans Ultimate. However, the net loss for the quarter was $2.9 million, compared to a net income of $2.7 million in the prior year, primarily due to increased other expenses and the absence of a $3.0 million gain from a NASCAR license sale in 2023. Q: How has the launch of Le Mans Ultimate impacted the company's performance? A: Stephen Hood, Chief Executive Officer, highlighted that Le Mans Ultimate has been positively received, with significant updates leading to increased player numbers and sales. The game has gained traction without paid marketing, relying on organic word of mouth. This success has improved the company's financial health and opened new opportunities for partnerships and potential console ports. Q: What are the company's plans for future growth and development? A: Stephen Hood mentioned that Motorsport Games is exploring strategic alternatives, including potential equity and debt financing, as well as the sale or licensing of assets. The company is also focused on expanding its subscription service and exploring console ports for Le Mans Ultimate, driven by strong player demand. Q: Can you elaborate on the company's liquidity position and cash flow management? A: Stanley Beckley stated that as of December 31, 2024, the company had $0.9 million in cash, which increased to $1.2 million by February 28, 2025. Despite a reduced average monthly cash burn, additional funding will be required to sustain operations over the next year. The company is actively exploring funding options to address this liquidity shortfall. Q: What strategic initiatives have been implemented to improve the company's financial position? A: Stephen Hood noted that the company has undertaken cost reductions and restructuring initiatives, including headcount reductions and strategic licensing deals. Additionally, the recent settlement with Luminous and a favorable legal ruling have improved the financial position, reducing liabilities and enhancing stockholders' equity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
07-03-2025
- Automotive
- Yahoo
Motorsport Games Inc. Announces Summary Judgment in its Favor in Dispute with Innovate 2 Corp
MSGM Summary Judgement in Dispute with Innovate 2 Corp MIAMI, March 07, 2025 (GLOBE NEWSWIRE) -- Motorsport Games Inc. (NASDAQ: MSGM), a racing game developer and publisher, announces that on February 26, 2025, the U.S. District Court for the District of Delaware (the 'Court') granted the summary judgment motion in favor of Motorsport Games Inc. (the 'Company') and the other defendants, the Company's former Chief Executive Officer and Executive Chairman, the Company's former Chief Financial Officer, and the Manager of Driven Lifestyle Group LLC., in the case titled Innovate 2 Corp., Motorsport Games Inc., et al., No. 1:21-cv-165-SB. The judgment entered by the Court held in favor of the Company and the other defendants on all counts and granted the Company summary judgment against Innovate 2 Corp. on the Company's claim for breach of the stock purchase agreement entered into between the parties. The Court ordered the parties to submit a joint status report on March 12, 2025 regarding the remaining issues in the case, including Motorsport's damages on its counterclaim. Stephen Hood, President and Chief Executive Officer of Motorsport Games Inc. commented, 'It is pleasing to receive this judgement from the Court in this matter. The Company and its former representatives have always maintained they acted in good faith and the Judge's ruling supports this.' 'Our restructured Company is pleased to put this matter behind us and continue to focus on making great racing game experiences, such as Le Mans Ultimate, as we continue to build on its promising foundation.' About Motorsport Games: Motorsport Games is a racing game developer, publisher and esports ecosystem provider of official motorsport racing series. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make racing games that are authentically close to reality. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including the 24 Hours of Le Mans and the FIA World Endurance Championship, recently releasing Le Mans Ultimate in Early Access. Motorsport Games also owns the industry leading rFactor 2 and KartKraft simulation platforms. rFactor 2 also serves as the official sim racing platform of Formula E, while also powering F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is also an award-winning esports partner of choice for the 24 Hours of Le Mans, creating the renowned Le Mans Virtual Series. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure, and every race inspires. For more information about Motorsport Games visit: Forward-Looking Statements Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as 'continue,' 'will,' 'may,' 'could,' 'should,' 'expect,' 'expected,' 'plans,' 'intend,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, the statements concerning making great racing game experiences, continuing to build on Le Mans Ultimate's promising foundation and making racing games that are authentically close to reality. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation, the ability to make racing games that are authentically close to reality. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games' filings with the Securities and Exchange Commission (the 'SEC'), including its Annual Report on Form 10-K for the fiscal year ended December 312023, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games 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 Motorsport Games' plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games' website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release. Website and Social Media Disclosure Investors and others should note that we announce material financial information to our investors using our investor relations website ( 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): Website Social Media 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@ Media: PR@ A photo accompanying this announcement is available at in to access your portfolio
