Motorsport Games Inc. (NASDAQ:MSGM) Q3 2022 Earnings Call Transcript

Operator: Thank you. And the next question comes from the line of Michael Kupinski with Noble Capital Markets. Please proceed with your question.

Michael Kupinski: Thank you. Most of my questions were already addressed, but I have a couple. In terms of the fact that you have such iconic titles, are you seeing any interest from other larger gaming companies in terms of the business, are they pinging you at this point? Just wondering if there are other options outside of the ones that you just identified in terms of debt, changes in the product roadmaps, in terms of equity offerings and other, if that’s an option as well?

Dmitry Kozko: Thanks, Michael, for the question. One thing that I could say is that all the, let’s call it usual suspects or the larger players in industry, are aware of us. We have had some form of communications with quite a few of them. And we are exploring different types of options. I cannot particularly say which options they are with them. I wouldn’t say there’s anything definitive. But if there’s some sort of proposals that would come from their side, we would definitely explore.

Michael Kupinski: And would those also include partnership agreements?

Dmitry Kozko: Sure. We have explored, not just with gaming companies, potential partnership agreements that could help us provide additional liquidity, but we also explored such conversations with distributors and other partners who would value having us as a partner because of the iconic brands, like you mentioned, that we carry and are stewards of.

Michael Kupinski: And Dmitry, when would you determine to delay product releases to time, the prospect of kind of minimizing some of the cash burn? And also would — at this point, I would assume that you’re limited in terms of that potential strategy, kind of alleviate the issues that you have for this year. I would assume you’re really talking more so about 2023 and beyond? Am I wrong about that.

Dmitry Kozko: You’re right, we’re focused on 2023 and the delivery of products. So, all resources are geared towards whichever would help us release quality gaming experiences on our projected time. Anything else right now could take a backseat. It’s not a priority of the business. Hence, part of it participated in our restructuring plan already, which everything that we wanted to take into effect this year, we already did. And the future effects would come from efficiencies that we’re currently working on. So, we’ll continue to explore those things. But I do not foresee to omit — certain things that would go towards that delay of the products.

Michael Kupinski: Have you taken any further aggressive action to reduce costs in let’s say the last month or — you mentioned about trying to reduce the cash burn of course, but has there been any other actions that are taken more recently regarding that?

Dmitry Kozko: No, not in particular, everything that we anticipated with our 2022 restructuring plan has been already executed. Of course, we’ll continue to explore additional areas of savings to reduce our cash burn potentially further. However, the Company is currently in its lean position and focused on the development resources. And in those particular departments, we are expanding and investing in. So, anything towards the better good of our product and future product roadmap is where the focus and resources are all going. So, we would not look for making any reduction in those areas because that’s quite honestly our livelihood, right? We are product based company, and we have to bring those good products to market. And until we do so, we will continue to invest, so we’re incentivized to bring them as soon as possible, but at the same time, not sacrifice quality or the gaming experience that our fans would enjoy.

Michael Kupinski: And Dmitry, can you remind me, do you have in your product roadmap any additional products for this year, or are most of that being concentrated in 2023 at this point?