You know that due to its relevance in the simulators world, we keep track of all the companies that develop them. Motorsport Games (hereinafter MSGM) has an update after their report for the last quarter of 2023.
Despite the note containing data that escapes me (it’s not my thing) and not being able to read financial reports well yet, some clues about the company’s future are given in the text based on what happened in the last year. The most important one seems to be the complete save due to having received part of the money from the sale of the NASCAR license, which allows the company to continue.
The second and most important one seems to be this:
As of April 1, 2024, the Company’s cash and cash equivalents has decreased to $1.3million. Based on this cash and cash equivalents position, and the Company’s average cash burn, the Company does not believe it has sufficient cash on hand to fund its operations for the remainder of 2024 and that additional funding will be required in order to continue operations. In order to address its liquidity short fall, the Company is actively exploring several options, including, but not limited to: i) additional funding in the form of potential equity and/or debt financing arrangements or similar transactions; ii) other strategic alternatives for its business, including, but not limited to, the sale or licensing of the Company’s assets in addition to its recent sale of its NASCAR license; and iii) further cost reduction and restructuring initiatives.
The last point that may point to a glimmer of hope for some is that sales of Le Mans Ultimate have exceeded the expected expectations, having sold in 36 hours what was expected in the first 10 days. More than 55,000 units have been sold, with over 100,000 registered players, and it will be part of all Le Mans events this year, relegating rFactor 2 to the shelf.
On the horizon, the threat of delisting from the Nasdaq index continues due to not meeting the minimums.
This website uses affiliate links which may earn a commission at no additional cost to you.
