The authors of NASCAR 21: Ignition have serious financial problems. They can be closed
The management of Motorsport Games reported that the company is running out of money. The available funds will most likely not be enough until the end of 2024. Therefore, now the top management is considering options for its future and does not exclude that Motorsport Games will cease to exist soon.
NASCAR 21: Ignition
The management of Motorsport Games talked about the gloomy prospect in the financial report for 2023.
However, the developers hope to correct the situation. One option is to get additional funding. To do this, Motorsport Games can sell some assets or a stake in the company, take out a loan or attract investments. Motorsport Games is also considering further cost reductions and restructuring.
According to the report, Motorsport Games closed 2023 with a net loss of $14.3 million. In 2022, it was even bigger — $36.8 million. The accumulated deficit increased from $74 million to $87 million over the year. The company's revenue fell from $10.3 million to $6.9 million. On April 1, 2024, the company had only $1.3 million in its account.
Motorsport Games figures for the fourth quarter and the whole of 2023
Motorsport Games has been in a difficult position for quite some time. In the summer of 2022, she faced the possibility of delisting from NASDAQ after her shares began to cost less than a dollar. In November of the same year, the entire board of directors of Motorsport Games resigned. She later found herself at the center of a scandal over unpaid salaries to Russian employees, and then embarked on a global restructuring.
In October 2023, things got worse to the point that Motorsport Games decided to sell the license to develop games under the NASCAR brand to iRacing for $ 6 million. It is noteworthy that Motorsport Games earns mainly from these games. In 2023, they accounted for 72% of the company's revenue.
