2023 Q1 Form 10-Q Financial Statement

#000149315223016408 Filed on May 11, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q1
Revenue $1.729M $3.322M
YoY Change -47.94% 34.49%
Cost Of Revenue $1.249M $2.014M
YoY Change -37.99% 157.58%
Gross Profit $480.6K $1.308M
YoY Change -63.25% -22.6%
Gross Profit Margin 27.79% 39.38%
Selling, General & Admin $3.398M $5.112M
YoY Change -33.53% -67.63%
% of Gross Profit 706.91% 390.8%
Research & Development $2.397M $2.404M
YoY Change -0.3% 92.29%
% of Gross Profit 498.76% 183.82%
Depreciation & Amortization $502.4K $577.5K
YoY Change -13.01% 312.51%
% of Gross Profit 104.52% 44.15%
Operating Expenses $5.892M $2.404M
YoY Change 145.06% 92.29%
Operating Profit -$5.411M -$1.096M
YoY Change 393.58% -349.38%
Interest Expense $199.1K $201.6K
YoY Change -1.23% 68.64%
% of Operating Profit
Other Income/Expense, Net $351.3K -$162.1K
YoY Change -316.73% -505.25%
Pretax Income -$5.259M -$15.97M
YoY Change -67.06% 13.32%
Income Tax
% Of Pretax Income
Net Earnings -$5.101M -$15.97M
YoY Change -68.05% 13.36%
Net Earnings / Revenue -294.96% -480.68%
Basic Earnings Per Share -$2.33 -$12.97
Diluted Earnings Per Share -$2.33 -$810.6K
COMMON SHARES
Basic Shares Outstanding 2.192M shares
Diluted Shares Outstanding 2.192M shares

Balance Sheet

Concept 2023 Q1 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.795M $12.37M
YoY Change -53.15% -75.16%
Cash & Equivalents $5.800M $12.37M
Short-Term Investments
Other Short-Term Assets $1.280M $1.708M
YoY Change -25.09% 98.64%
Inventory
Prepaid Expenses
Receivables $899.9K $2.754M
Other Receivables $66.30K $39.24K
Total Short-Term Assets $8.041M $16.87M
YoY Change -52.33% -69.99%
LONG-TERM ASSETS
Property, Plant & Equipment $466.1K $1.404M
YoY Change -66.81% 538.32%
Goodwill
YoY Change
Intangibles $13.01M
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $14.06M $16.71M
YoY Change -15.89% 71.59%
TOTAL ASSETS
Total Short-Term Assets $8.041M $16.87M
Total Long-Term Assets $14.06M $16.71M
Total Assets $22.10M $33.58M
YoY Change -34.2% -49.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.040M $592.7K
YoY Change 75.53% 41.11%
Accrued Expenses $2.983M $2.781M
YoY Change 7.27% 13.98%
Deferred Revenue
YoY Change
Short-Term Debt $167.9K $117.2K
YoY Change 43.29% -87.8%
Long-Term Debt Due $254.5K $210.0K
YoY Change 21.18%
Total Short-Term Liabilities $6.932M $6.768M
YoY Change 2.43% 77.64%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $3.518M $4.630M
YoY Change -24.01% 408.81%
Total Long-Term Liabilities $3.518M $4.630M
YoY Change -24.01% 408.81%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.932M $6.768M
Total Long-Term Liabilities $3.518M $4.630M
Total Liabilities $10.80M $11.77M
YoY Change -8.26% 35.62%
SHAREHOLDERS EQUITY
Retained Earnings -$79.10M
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $11.12M $21.81M
YoY Change
Total Liabilities & Shareholders Equity $22.10M $33.58M
YoY Change -34.2% -49.08%

Cashflow Statement

Concept 2023 Q1 2022 Q1
OPERATING ACTIVITIES
Net Income -$5.101M -$15.97M
YoY Change -68.05% 13.36%
Depreciation, Depletion And Amortization $502.4K $577.5K
YoY Change -13.01% 312.51%
Cash From Operating Activities -$5.700M -$5.589M
YoY Change 1.98% -18.17%
INVESTING ACTIVITIES
Capital Expenditures $15.06K -$101.0K
YoY Change -114.91% -8.18%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change -100.0%
Cash From Investing Activities -$15.06K -$101.0K
YoY Change -85.09% -89.48%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $644.7K $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $10.71M 148.2K
YoY Change 7130.53% -99.72%
NET CHANGE
Cash From Operating Activities -$5.700M -5.589M
Cash From Investing Activities -$15.06K -101.0K
Cash From Financing Activities $10.71M 148.2K
Net Change In Cash $4.815M -5.542M
YoY Change -186.89% -112.09%
FREE CASH FLOW
Cash From Operating Activities -$5.700M -$5.589M
Capital Expenditures $15.06K -$101.0K
Free Cash Flow -$5.715M -$5.488M
YoY Change 4.14% -18.33%

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CY2022Q1 MSGM Sales Return And Price Protection Reserves
SalesReturnAndPriceProtectionReserves
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CY2023Q1 us-gaap Increase Decrease In Accounts Receivable
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CY2022Q1 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
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CY2023Q1 us-gaap Increase Decrease In Due From Related Parties
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CY2023Q1 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
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CY2022Q1 us-gaap Increase Decrease In Operating Lease Liability
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CY2023Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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225562 usd
CY2022Q1 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
541640 usd
CY2023Q1 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-1331386 usd
CY2022Q1 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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CY2023Q1 us-gaap Increase Decrease In Due To Related Parties
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CY2023Q1 us-gaap Increase Decrease In Other Noncurrent Liabilities
IncreaseDecreaseInOtherNoncurrentLiabilities
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CY2022Q1 us-gaap Increase Decrease In Other Noncurrent Liabilities
IncreaseDecreaseInOtherNoncurrentLiabilities
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CY2023Q1 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-315824 usd
CY2022Q1 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
-882896 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5683701 usd
CY2022Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5589106 usd
CY2023Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
15057 usd
CY2022Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
101004 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2022Q1 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
148152 usd
CY2023Q1 MSGM Repayments Of Purchase Commitment Liabilities
RepaymentsOfPurchaseCommitmentLiabilities
250000 usd
CY2023Q1 MSGM Payment Of License Liabilities
PaymentOfLicenseLiabilities
87500 usd
CY2023Q1 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
644694 usd
CY2023Q1 MSGM Issuance Of Common Stock
IssuanceOfCommonStock
10404840 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2022Q1 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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CY2023Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022Q1 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
4815250 usd
CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2022Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
12367235 usd
CY2023Q1 us-gaap Interest Paid Net
InterestPaidNet
9508 usd
CY2023Q1 MSGM Shares Issued For Extinguishment Of Related Party Loan
SharesIssuedForExtinguishmentOfRelatedPartyLoan
-3948566 usd
CY2023Q1 MSGM Extinguishment Of Related Party Loan
ExtinguishmentOfRelatedPartyLoan
3948566 usd
CY2023Q1 MSGM Issuance Of Warrants In Connection With Registered Direct Offerings
IssuanceOfWarrantsInConnectionWithRegisteredDirectOfferings
478000 usd
CY2023Q1 us-gaap Profit Loss
ProfitLoss
-5300000 usd
CY2023Q1 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5700000 usd
CY2023Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-79100000 usd
CY2023Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
5800000 usd
CY2023Q1 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84E_eus-gaap--UseOfEstimates_zhhZCyInxjue" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span id="xdx_864_zno2HxGTLR39" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span style="text-decoration: underline">Use of Estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Motorsport Games Inc. and Subsidiaries</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Unaudited Condensed Consolidated Financial Statements</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s significant estimates used in these consolidated financial statements include, but are not limited to, revenue recognition criteria, including allowances for returns and price protection, as well as current expected credit losses, valuation allowance of deferred income taxes, valuation of acquired companies and equity method investments, the recognition and disclosure of contingent liabilities, goodwill and intangible assets impairment testing, and stock-based compensation valuation. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and may cause actual results to differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></span></p>
CY2023Q1 us-gaap Interest Payable Current
InterestPayableCurrent
0 usd
CY2022Q4 us-gaap Interest Payable Current
InterestPayableCurrent
96667 usd
CY2023Q1 us-gaap Line Of Credit
LineOfCredit
12000000 usd
CY2023Q1 MSGM Payment To Related Parties
PaymentToRelatedParties
100000 usd
CY2023Q1 us-gaap Revenue Recognition Sales Returns
RevenueRecognitionSalesReturns
<p id="xdx_84A_eus-gaap--RevenueRecognitionSalesReturns_z1oXBkzICsd5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_864_zmnCBwUM80p4">Allowances for Returns and Price Protection</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company may permit product returns from, or grant price protection to, its customers under certain conditions. Price protection represents the Company’s practice of providing channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the original wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Allowances for returns and price protection are considered variable consideration under ASC 606. The Company reduces revenue for estimated future returns and price protections that may occur with distributors and retailers (“channel partners”). See Note 2 – <i>Basis of Presentation and Summary of Significant Accounting Policies – Accounts Receivable</i> in the 2022 Form 10-K for additional details.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">When evaluating the adequacy of allowances for returns and price protection, the Company analyzes the following: historical credit allowances, current sell-through of channel partners’ inventory of the Company’s products, current trends in retail and the video game industry, changes in customer demand, acceptance of products, and other related factors. In addition, the Company monitors the volume of sales to its channel partners and their inventories, as substantial overstocking in the distribution channel could result in higher-than-expected returns or higher price protection in subsequent periods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company recognized an expense of approximately $<span id="xdx_903_ecustom--SalesReturnsAndPriceProtectionReserves_pn5n6_c20230101__20230331_zy2yPS8RVBM" title="Sales return and price protection reserves">0.3</span> million and $<span id="xdx_905_ecustom--SalesReturnsAndPriceProtectionReserves_pn5n6_c20220101__20220331_zDdlXfC2vHEa" title="Sales return and price protection reserves">0.2</span> million for sales returns and price protections as a reduction of revenues for the three months ended March 31, 2023 and 2022, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q1 MSGM Sales Returns And Price Protection Reserves
SalesReturnsAndPriceProtectionReserves
300000 usd
CY2022Q1 MSGM Sales Returns And Price Protection Reserves
SalesReturnsAndPriceProtectionReserves
200000 usd
CY2023Q1 us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<p id="xdx_849_eus-gaap--RevenueRecognitionDeferredRevenue_zX6x3Xm5G9bd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zKCM5SXgFJFf">Deferred Revenue</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s deferred revenue, or contract liability, is classified as current and is included within accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets (Also refer Note 4 – <i>Accrued Expenses and Other Current Liabilities</i>). Revenue collected in advance of the event is recorded as deferred revenue until the event occurs. Development and coding revenues are also recorded as deferred revenue until the Company’s performance obligation is performed.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Revenue recognized in the period from amounts included in contract liability at the beginning of the period was approximately $<span id="xdx_903_eus-gaap--DeferredRevenueRevenueRecognized1_pn5n6_c20230101__20230331__us-gaap--BalanceSheetLocationAxis__custom--ContractLiabilityMember_z2N9ocMMkA1c" title="Revenue recognized">0.3 million</span> and $<span id="xdx_901_eus-gaap--DeferredRevenueRevenueRecognized1_pn5n6_c20220101__20220331__us-gaap--BalanceSheetLocationAxis__custom--ContractLiabilityMember_zI6pZXwv6Uo6" title="Revenue recognized">0.5 million</span> for the three months ended March 31, 2023 and 2022, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q1 MSGM Payment To Related Parties
PaymentToRelatedParties
100000 usd
CY2022 MSGM Payment To Related Parties
PaymentToRelatedParties
800000 usd
CY2023Q1 us-gaap Common Stock Voting Rights
CommonStockVotingRights
Holders of Class A and Class B common stock are entitled to one-vote and ten-votes, respectively, for each share held on all matters submitted to a vote of stockholders
CY2022Q4 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
the Company amended its certificate of incorporation to effectuate a reverse split of the issued and outstanding shares of Class A common stock and Class B common stock at a ratio of 1-for-10
CY2023Q1 MSGM Transaction Fee Percentage
TransactionFeePercentage
0.070 pure
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
81541 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
96984 shares
CY2022Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
13360230 usd
CY2023Q1 MSGM Amortization Of Intangible Asset
AmortizationOfIntangibleAsset
439640 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Foreign Currency Translation Gain Loss
FiniteLivedIntangibleAssetsForeignCurrencyTranslationGainLoss
87471 usd
CY2023Q1 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
13008061 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
5057048 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
5507845 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
1318924 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
1652026 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
1568894 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
1322107 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
482338 usd
CY2023Q1 MSGM Finite Lived Intangible Assets Amortization Expense After Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFour
1702871 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
8047160 usd
CY2023Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
400000 usd
CY2022Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
500000 usd
CY2022Q1 us-gaap Cost Of Revenue
CostOfRevenue
2013806 usd
CY2023Q1 us-gaap Gross Profit
GrossProfit
480619 usd
CY2022Q1 us-gaap Gross Profit
GrossProfit
1307983 usd
CY2023Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-5411389 usd
CY2022Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-15603350 usd
CY2023Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
97354 usd
CY2023Q1 us-gaap Accrued Royalties Current
AccruedRoyaltiesCurrent
465244 usd
CY2022Q4 us-gaap Accrued Royalties Current
AccruedRoyaltiesCurrent
274085 usd
CY2023Q1 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
726224 usd
CY2022Q4 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
720470 usd
CY2023Q1 MSGM Accrued Development Costs Current
AccruedDevelopmentCostsCurrent
207861 usd
CY2022Q4 MSGM Accrued Development Costs Current
AccruedDevelopmentCostsCurrent
172164 usd
CY2023Q1 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
49659 usd
CY2022Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
149842 usd
CY2023Q1 MSGM Accrued Payroll
AccruedPayroll
319604 usd
CY2022Q4 MSGM Accrued Payroll
AccruedPayroll
372358 usd
CY2023Q1 MSGM Deferred Revenue Accrued
DeferredRevenueAccrued
50026 usd
CY2022Q4 MSGM Deferred Revenue Accrued
DeferredRevenueAccrued
311945 usd
CY2023Q1 MSGM Loss Contingency Reserves Accured
LossContingencyReservesAccured
924307 usd
CY2022Q4 MSGM Loss Contingency Reserves Accured
LossContingencyReservesAccured
1100000 usd
CY2023Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
240503 usd
CY2022Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
315560 usd
CY2023Q1 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
2983428 usd
CY2022Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
3416424 usd
CY2022Q3 us-gaap Line Of Credit
LineOfCredit
12000000 usd
CY2022Q3 us-gaap Line Of Credit
LineOfCredit
12000000 usd
CY2023Q1 us-gaap Deconsolidation Related Party Description
DeconsolidationRelatedPartyDescription
(i) the Company enters into a new financing arrangement (whether debt, equity or otherwise) under which the Company is then able to draw or provides the Company with available cash in excess of amounts required in the Company’s reasonable judgment to run its operations in the ordinary course of business; (ii) the Company generates from operations available cash in excess of amounts required in the Company’s reasonable judgment to run its operations in the ordinary course of business; or (iii) the Company’s independent auditors issue an unqualified opinion on its financial statements and the Company’s repayment of the advances, in whole or in part, would not otherwise cause the independent auditor to issue a going concern qualified opinion. Upon the occurrence of any of the foregoing events, the Company shall prepay on such date principal amount of the September 2022 Cash Advance and other advances under the $12 million Line of Credit then outstanding in an amount equal to such available excess cash or, in the case of (iii) above, the amount that would not cause the Company’s independent auditor to issue a going concern qualified opinion, together with interest accrued but unpaid on the unpaid September 2022 Cash Advance and other advances, which repayment obligation shall continue until all such advances under the $12 million Line of Credit are paid in full. The entire aggregate principal amount of the September 2022 Cash Advance and the other advances under the $12 million Line of Credit, together with interest accrued but unpaid thereon, shall also become immediately and automatically due and payable, and the $12 million Line of Credit shall immediately and automatically terminate, in each case without any action required by Motorsport Network, if (i) the Company experience an event of default under any other debt instrument, agreement or arrangement; or (ii) any final judgment or final judgments for the payment of money in excess (net of amounts covered by third-party insurance with insurance carriers who have not disclaimed liability with respect to such judgment or judgments) of $500,000 or its foreign currency equivalent is entered against the Company or any subsidiary and is not discharged and either (a) an enforcement proceeding has been commenced by any creditor upon such judgment or decree or (b) there is a period of 60 days following the entry of such judgment or decree during which such judgment or decree is not discharged, waived or the execution thereof stayed and, in the case of (b), such default continues for 60 consecutive days
CY2023Q1 us-gaap Line Of Credit
LineOfCredit
12000000 usd
CY2022Q4 us-gaap Line Of Credit
LineOfCredit
12000000 usd
CY2023Q1 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
0 usd
CY2022Q4 us-gaap Lines Of Credit Current
LinesOfCreditCurrent
3670000 usd
CY2023Q1 us-gaap Share Based Compensation
ShareBasedCompensation
249233 usd
CY2022Q1 us-gaap Share Based Compensation
ShareBasedCompensation
353030 usd
CY2023Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
700000 usd
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P2Y
CY2023Q1 us-gaap Other Receivables
OtherReceivables
8000000 eur
CY2023Q1 us-gaap Other Receivables
OtherReceivables
8700000 usd
CY2023Q4 us-gaap Other Commitment
OtherCommitment
28300000 usd
CY2023Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2022Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1729355 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
3321789 usd
CY2023Q1 us-gaap Cost Of Revenue
CostOfRevenue
1248736 usd
CY2022Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
116071 usd
CY2023Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-199120 usd
CY2022Q1 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-201596 usd
CY2023Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
351317 usd
CY2022Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-162099 usd
CY2023Q1 us-gaap Profit Loss
ProfitLoss
-5259192 usd
CY2022Q1 us-gaap Profit Loss
ProfitLoss
-15967045 usd
CY2023Q1 us-gaap Assets
Assets
22097812 usd
CY2022Q4 us-gaap Assets
Assets
18897792 usd

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0001493152-23-016408-index.html Edgar Link pending
0001493152-23-016408.txt Edgar Link pending
0001493152-23-016408-xbrl.zip Edgar Link pending
ex31-1.htm Edgar Link pending
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