Here are 1-2 brief analogies for Motorsport Games (MSGM):

• Electronic Arts (EA) but exclusively for motorsports video games.
• Activision Blizzard (ATVI) focused solely on racing game development and esports.

• Racing Video Games: Digital and physical interactive entertainment software featuring officially licensed motorsport competitions and vehicles.
• Esports Competition Organization: Services related to planning, operating, and broadcasting official motorsport-themed virtual racing events and series.
• Professional Racing Simulation Software: High-fidelity simulation platforms used by professional drivers, racing teams, and automotive industries for training, development, and research.

Motorsport Games (MSGM) primarily sells its video game products through major digital storefronts and retailers, which act as its direct customers. According to its SEC filings, the company derives a significant portion of its revenue from a few key distribution partners.

Major Customers:

• Microsoft Corporation (symbol: MSFT) - For distribution on the Xbox platform.
• Sony Interactive Entertainment LLC (a subsidiary of Sony Group Corporation, symbol: SONY) - For distribution on the PlayStation platform.
• Valve Corporation (private company) - For PC distribution, primarily through its Steam platform.

• NASCAR
• Fédération Internationale de l'Automobile (FIA)
• Sony Group Corporation (Symbol: SONY)
• Microsoft Corporation (Symbol: MSFT)
• Unity Technologies (Symbol: U)
• Epic Games
• Valve Corporation
• Nintendo Co., Ltd. (Symbol: NTDOY)

Stephen Hood, Chief Executive Officer

Stephen Hood became CEO and President of Motorsport Games in April 2023. He previously served as President of Motorsport Games from April 2019 to January 2022. Hood is a BAFTA award-winning developer, recognized for his work on games such as 'The Movies' (Best Simulation) and 'Formula One 2010' (Best Sports Game). His extensive experience in the video game industry includes leadership roles at various studios, such as Creative Director and Chief Game Designer at Codemasters (known for the Formula 1 game series), Executive Producer and Creative Director at Dovetail Games, Design Manager at Ideaworks Game Studio, and Senior Designer at Lionhead Studios.

Stanley Beckley, Chief Financial Officer

Stanley Beckley serves as the Chief Financial Officer for Motorsport Games. He has over two decades of experience leading finance and accounting teams and handling technical accounting matters. Prior to joining Motorsport Games, Beckley spent nine years as a Senior Manager in the Audit Practice at KPMG. He also worked for almost four years as a Corporate Controller for H.I.G. Capital, a global private equity firm. Additionally, he has held positions as Chief Accounting Officer of Driven Lifestyle Group LLC and Chief Financial Officer for CDR Companies. Beckley holds Bachelor's and Master's degrees in Accounting from Florida International University and is a Certified Public Accountant in Florida and Virginia, as well as a Certified Fraud Examiner and Chartered Certified Accountant.

The key risks to Motorsport Games (MSGM) are as follows, listed from most significant to less significant:

1. Financial Instability and Going Concern Doubts: Motorsport Games has faced significant financial challenges, including substantial losses and a critically low cash reserve, leading management to acknowledge "substantial doubt" about its ability to continue operations. In 2023, the company reported a loss of $14.3 million, contributing to an accumulated deficit of $87 million. As of March 29, 2024, it had only $1.3 million cash on hand with a monthly burn rate of $1.1 million. While some recent financial reports for Q4 2024 and Q2/Q3 2025 show improvements in revenue and a reduction in net losses, and even net income in some quarters, the company's historical financial struggles, negative cash flows from operations, and a significant stock price drop in late 2025 reflecting renewed concerns about profitability persist. The company's Altman Z-Score of -7.12 indicates a potential risk of bankruptcy within the next two years.
2. Loss of Key Licenses and Revenue Dependence: A significant risk for Motorsport Games is the loss of key licensing agreements, particularly the NASCAR license, which accounted for 73% of its revenue in 2023. The company has historically pursued numerous licenses, leading to rapid expansion but also to challenges in delivering quality products. The ability to maintain existing and secure additional licenses with various racing series remains a critical factor for the company's revenue streams.
3. Historical Product Quality Issues and Reputation: Motorsport Games has a history of releasing "undercooked" games, most notably NASCAR 21: Ignition, which has negatively impacted its reputation within the sim racing community. This history of product quality issues and delays in bringing titles to a finished state can deter potential customers and affect future sales, making it difficult to compete in the highly competitive interactive media industry. Additionally, the company has faced legal issues, including lawsuits for unpaid wages, which further contribute to financial strain and reputational damage.

The clearest emerging threat to Motorsport Games (MSGM) is the imminent risk of non-renewal or termination of their critical, exclusive motorsport licensing agreements (e.g., NASCAR, IndyCar, 24 Hours of Le Mans).

This threat is emerging due to a confluence of factors:

• Consistent failure to deliver high-quality, timely game releases: MSGM has a documented history of releasing games with significant quality issues and has repeatedly delayed anticipated titles (e.g., NASCAR 23/24), undermining consumer trust and the value derived from these licenses.
• Severe and ongoing financial instability: The company has issued "going concern" warnings in its financial reports, indicating substantial doubt about its ability to continue operations. This financial precariousness jeopardizes their capacity to fund game development and meet contractual obligations for their licenses.

These operational and financial failures put MSGM at a high and increasing risk of losing the foundational agreements that are essential to its business model. Without these exclusive licenses, the company's ability to compete in the motorsport gaming market would be severely compromised, akin to Blockbuster failing to secure content distribution in the face of Netflix's emerging streaming model.

Motorsport Games (MSGM) operates primarily in two main addressable markets: racing video games and esports experiences. The addressable market sizes for these segments are as follows:

Racing Video Games

• The global racing games market was valued at approximately USD 5.23 billion in 2024 and is projected to reach USD 9.45 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 10.36%.
• North America holds a significant share of the global racing games market, accounting for approximately 45%.
• The Asia-Pacific region is a rapidly growing market for racing games, contributing approximately 20% to the global share.

Esports Experiences

• The global esports market was valued at an estimated USD 2.08 billion in 2024 and is projected to grow to USD 10.06 billion by 2033, demonstrating a CAGR of 17.05% during the period of 2025-2033.
• Another estimate places the global esports market size at USD 2.13 billion in 2024, with a projection to reach USD 7.46 billion by 2030, growing at a CAGR of 23.1% from 2025 to 2030.
• In 2024, North America accounted for a substantial share of the esports market, exceeding 30%.
• The Asia-Pacific region also represents a significant portion of the esports market, holding a 30.0% market share in 2024. Another source indicates that Asia–Pacific represented 57.3% of the esports market in 2024.

Motorsport Games (NASDAQ: MSGM) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and product expansions.

Here are the key expected drivers:

1. Console Expansion of Le Mans Ultimate: A significant driver of future revenue is the planned launch of a console version of "Le Mans Ultimate." The company announced that a port for PlayStation and Xbox gaming consoles is in early production, with an estimated delivery between late 2026 and early 2027. This expansion to major console platforms is expected to broaden the game's reach and customer base considerably.
2. Continued Growth and Content for Le Mans Ultimate (PC): "Le Mans Ultimate," the official game of the FIA World Endurance Championship and 24 Hours of Le Mans, has already proven to be a primary revenue generator since its PC release in February 2024 and full 1.0 release in July 2025. The game's success is attributed to positive community reception and the release of new downloadable content (DLC), such as the European Le Mans Series content in Q3 2025, which included new circuits and cars. Ongoing development, updates, and new content releases for the PC version are anticipated to sustain and grow its revenue contribution.
3. Expansion of SaaS Initiatives: Motorsport Games reported that its SaaS (Software as a Service) initiatives contributed to a substantial year-over-year revenue increase in Q3 2025. While specific details on these initiatives are limited in public reports, the company's focus on SaaS indicates a strategy to generate recurring revenue streams, which can provide a more predictable and scalable growth path.
4. Development of Additional Titles from Studio 397: The company is exploring the development of additional titles from its internal development team, Studio 397. This suggests a pipeline of new products beyond "Le Mans Ultimate," which could contribute to revenue growth in the medium term as new games are launched. These potential new offerings, possibly supported by strategic investments to bolster console development capabilities, represent opportunities to diversify and expand their game portfolio.

Share Issuance

• Motorsport Games completed an Initial Public Offering (IPO) in January 2021, raising $69 million.
• The company effected a 1-for-10 reverse stock split on November 10, 2022.
• In April 2025, Motorsport Games executed a private placement that yielded approximately $2.35 million in net proceeds.

Inbound Investments

• Motorsport Games secured a $2.5 million investment from virtual reality technology company Pimax on April 15, 2025.

Outbound Investments

• In January 2021, funds from the IPO were used to acquire the remaining equity interest of 704Games, and to acquire KartKraft and Studio 397.
• Motorsport Games increased its ownership interest in a joint venture with Automobile Club de l'Ouest (ACO) to 51% from 45% in January 2021, securing exclusive video game development and publishing rights for the 24 Hours of Le Mans race and the FIA World Endurance Championship for ten years.

Capital Expenditures

• For the last 12 months (up to November 2025), capital expenditures were approximately -$3,735.