According to Motorsport Games' latest financial report, things aren't looking for the company
, by Quentin
Despite cutting ocsts and a slight increase in revenues for the third quarter of 2024, Motorsport Games remains in a critical situation. Although the company has reported sales of $1.8 million, up $100,000 on the previous year, it also suffered net loss of $600,000 in the quarter. The company has made no secret of its worries for the future.
As of October 31, 2024, Motorsport Games had only $500,000 in liquid assets, and there is no guarantee that it will be able to raise the funds and investments needed to survive.
Here's what the company had to say in its report:
"We have incurred significant losses since our inception, and we expect to continue to incur losses for the foreseeable future. Accordingly, our financial condition raises substantial doubt regarding our ability to continue as a going concern."
Motorsport Games' total deficit now stands at $86.3 million. In addition, the company still has to pay $600,000 for the Studio 397 acquisition from back in 2021. In addition, it will lose the right to sell the NASCAR games as of December 31, 2024, due to the agreement that transferred the NASCAR license to iRacing.
Source: ir.motorsportgames.com