Motorsport Games Inc (MSGM) 2022 Q4 法說會逐字稿

Thank you for standing by, and welcome to Motorsport Games' fourth-quarter and full-year 2022 earnings conference call and webcast. On today's call are Dmitry Kozko, Motorsport Games' Executive Chairman and CEO; and Jason Potter, Chief Financial Officer. I will now hand it over to Ken Godskind of Motorsport Games.

感謝您的支持，歡迎收看 Motorsport Games 的第四季度和 2022 年全年收益電話會議和網絡直播。參加今天電話會議的有 Motorsport Games 執行主席兼首席執行官德米特里·科茲科 (Dmitry Kozko)；和首席財務官 Jason Potter。我現在將把它交給 Motorsport Games 的 Ken Godskind。

Thank you, operator. By now, everyone should have access to the company's fourth-quarter and full-year 2022 earnings press release filed today after market close. This is available on the Investor Relations section of Motorsport Games' website at www.motorsportgames.com.

謝謝你，運營商。到目前為止，每個人都應該可以訪問公司今天收盤後提交的第四季度和 2022 年全年收益新聞稿。這可以在 Motorsport Games 網站 www.motorsportgames.com 的投資者關係部分找到。

During the course of this call, management may make forward-looking statements within the meaning of the US federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

在此電話會議期間，管理層可能會做出美國聯邦證券法含義內的前瞻性陳述。這些陳述基於管理層當前的預期和信念，涉及可能導致實際結果與這些前瞻性陳述中描述的結果存在重大差異的風險和不確定性。

Except as required by law, the company undertakes no obligation to update any forward-looking statements made on this call or to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to today's press release and the company's filings with the SEC, including its most recent annual report on Form 10-K for the year ended December 31, 2022, for a detailed discussion of certain of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

除非法律要求，否則公司沒有義務更新就本次電話會議所做的任何前瞻性陳述，也沒有義務更新或更改其前瞻性陳述，無論是由於新信息、未來事件或其他原因。請參閱今天的新聞稿和公司向美國證券交易委員會提交的文件，包括其截至 2022 年 12 月 31 日止年度的最新 10-K 表格年度報告，以詳細討論可能導致實際結果不同的某些風險實質上來自今天所做的任何前瞻性陳述中明示或暗示的內容。

In today's conference call, we will refer to certain non-GAAP financial measures such as adjusted EBITDA as we discuss the fourth-quarter and full-year 2022 financial results. You will find a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as other related disclosures in the press release issued earlier today.

在今天的電話會議中，我們將在討論第四季度和 2022 年全年財務業績時參考某些非 GAAP 財務指標，例如調整後的 EBITDA。您將在今天早些時候發布的新聞稿中找到這些非 GAAP 措施與其最直接可比的 GAAP 措施以及其他相關披露的調節。

And now, I'd like to turn the call over to Dmitry Kozko, Chief Executive Officer of Motorsport Games. Dmitry?

現在，我想把電話轉給 Motorsport Games 的首席執行官 Dmitry Kozko。德米特里？

Thank you, everyone, for joining us on the call and following our journey. It's no secret it's been a tough one for us between the ongoing war in Ukraine that led us to shutting down of our Moscow studio while trying to help those team members that wanted to get out of the country to get out to overall operational challenges as we continue to focus on improving our liquidity position.

感謝大家加入我們的電話會議並跟隨我們的旅程。眾所周知，烏克蘭持續的戰爭導致我們關閉莫斯科工作室，同時試圖幫助那些想離開該國的團隊成員應對整體運營挑戰，這對我們來說是一個艱難的時刻。繼續專注於改善我們的流動性狀況。

But what's amazing is to witness the resilience our team has demonstrated through all of it as we continue to strive towards making the thrill of Motorsport accessible to everyone by creating the highest quality, most sophisticated, and innovative experiences for racers, gamers, and fans.

但令人驚奇的是，當我們繼續努力通過為賽車手、遊戲玩家和車迷創造最高品質、最複雜和創新的體驗，讓每個人都能享受到賽車運動的快感時，我們的團隊在這一切中展現出的韌性令人驚奇。

Since our last few earnings calls, we continued to focus on efficiency and reducing costs where possible without sacrificing the quality of our future games. We are still a product-driven business, thus it's crucial to continue to invest in our games and complementary e-sport programs.

自從我們最近幾次財報電話會議以來，我們繼續關注效率並儘可能降低成本，同時不犧牲我們未來游戲的質量。我們仍然是一家以產品為導向的企業，因此繼續投資於我們的遊戲和配套的電子競技項目至關重要。

As previously announced, we've recently completed various equity offerings, including three registered direct offerings that resulted in more than $11.3 million in aggregate gross proceeds. Each of these registered direct offerings were structured to comply with the SEC's baby shelf rules in order to maximize the amount available to us under our effective S-3 registration statements.

正如之前宣布的那樣，我們最近完成了各種股權發行，包括三筆註冊直接發行，總收益超過 1130 萬美元。這些已註冊的直接發行中的每一個都符合美國證券交易委員會的嬰兒貨架規則，以便在我們有效的 S-3 註冊聲明下最大限度地增加我們可用的數量。

We're also able to reach an agreement with our majority shareholder, Motorsport Network, to exchange all of our outstanding debt of nearly $4 million with Motorsport Network into the shares of our common stock. I personally believe this reinforces the commitment that our majority shareholder has in Motorsport Games as well provide us relief on our balance sheet.

我們還能夠與我們的大股東 Motorsport Network 達成協議，將我們與 Motorsport Network 近 400 萬美元的所有未償債務交換為我們的普通股。我個人認為，這加強了我們的大股東對 Motorsport Games 的承諾，並減輕了我們資產負債表的壓力。

Additionally, at the end of January, we received the notice from NASDAQ that we regained compliance for continuing NASDAQ listing. I'm proud of how we were able to complete these recent capital raise transactions in the light of the challenging economic environment. However, we continue to explore additional funding in the form of potential equity and our debt financing arrangements to further improve the liquidity position of our company.

此外，在 1 月底，我們收到納斯達克的通知，我們恢復了繼續在納斯達克上市的合規性。我為我們能夠在充滿挑戰的經濟環境下完成這些最近的融資交易而感到自豪。然而，我們繼續探索以潛在股權和債務融資安排的形式提供額外資金，以進一步改善公司的流動性狀況。

Let's talk about our Q4 of last year and 2022 in general. Despite the challenges we experienced with our 2021 Ignition release in 2021, in 2022, we're still able to make strides in our product release schedule. We started the year with the much-requested UI refresh to our industry-leading rFactor 2 platform, followed by consistent quarterly content drops that helped us grow rFactor 2 install base and rFactor 2 revenue year over year. rFactor 2 became the official simulation platform of Formula E, and our partners at Kindred Labs were able to launch their amazing F1 arcade center in London using our beloved rFactor 2 platform.

讓我們談談我們去年第四季度和 2022 年的總體情況。儘管我們在 2021 年發布 2021 Ignition 時遇到了挑戰，但在 2022 年，我們仍然能夠在產品發佈時間表上取得長足進步。今年伊始，我們對行業領先的 rFactor 2 平台進行了要求很高的 UI 更新，隨後持續的季度內容下降幫助我們實現了 rFactor 2 安裝基礎和 rFactor 2 收入的逐年增長。 rFactor 2 成為 Formula E 的官方模擬平台，我們在 Kindred Labs 的合作夥伴能夠使用我們鍾愛的 rFactor 2 平台在倫敦推出他們令人驚嘆的 F1 街機中心。

Aligned with exciting times in the NASCAR world in 2022, we also launched the next-gen cars for test drives within our game. We further continue to invest in our NASCAR fan base by offering them something that we have never done, which was to provide the 2022 season expansion DLC update to existing NASCAR 21 admission holders for absolutely free. And this came after we were able to make the NASCAR 21 Ignition compatible for the new-gen consoles.

為了迎接 2022 年 NASCAR 世界的激動人心的時刻，我們還在遊戲中推出了用於試駕的下一代汽車。我們通過向他們提供我們從未做過的事情，進一步繼續投資於我們的 NASCAR 粉絲群，即完全免費向現有 NASCAR 21 入場持有人提供 2022 賽季擴展 DLC 更新。這是在我們能夠使 NASCAR 21 Ignition 與新一代遊戲機兼容之後出現的。

Additionally, we brought our NASCAR 21 Ignition game and our karting simulator game, KartKraft, for the first time to NVIDIA GeForce now, allowing people to enjoy these experiences by leveraging cloud through selected mobile and smart TV devices. And we finished up the year in our NASCAR franchise by releasing the new NASCAR game for the Nintendo Switch platform that we called NASCAR Rivals, which was our official game of the 2022 NASCAR Cup Series season.

此外，我們現在首次將我們的 NASCAR 21 Ignition 遊戲和我們的卡丁車模擬器遊戲 KartKraft 帶到 NVIDIA GeForce，讓人們通過選定的移動和智能電視設備利用雲享受這些體驗。我們通過為 Nintendo Switch 平台發布新的 NASCAR 遊戲，我們稱之為 NASCAR Rivals，結束了我們 NASCAR 特許經營權的一年，這是我們 2022 年 NASCAR 杯系列賽賽季的官方遊戲。

Today, we continue to focus on the development of our INDYCAR, NASCAR, and Le Mans gaming experiences. We recently attracted expert advisors in the gaming space to help consult on our games being developed, which we believe will further enhance our ability to meet our and our fans' expectations for these games.

今天，我們繼續專注於開發我們的 INDYCAR、NASCAR 和 Le Mans 遊戲體驗。我們最近吸引了遊戲領域的專家顧問來幫助諮詢我們正在開發的遊戲，我們相信這將進一步提高我們滿足我們和我們的粉絲對這些遊戲的期望的能力。

Of course, raising the quality bar will require further time and resources being invested into these fantastic franchises, which we believe will translate into delays in our product release schedule. However, when we will ultimately release these games, we believe they will be worth the wait. This year, we plan to bring 2023 season updates to our NASCAR game for all major platforms such as PlayStation, Xbox, PC, Nintendo Switch, and mobile, allowing fans to enjoy the latest 2023 season excitement.

當然，提高質量標準將需要更多的時間和資源投入到這些出色的特許經營權中，我們相信這將轉化為我們產品發佈時間表的延遲。然而，當我們最終發布這些遊戲時，我們相信它們將是值得等待的。今年，我們計劃為 PlayStation、Xbox、PC、Nintendo Switch 和移動設備等所有主要平台的 NASCAR 遊戲帶來 2023 賽季更新，讓粉絲們享受最新的 2023 賽季激情。

For INDYCAR our game, we continue to make strides in our development efforts, but we do not believe we will be in a satisfactory position to release it to the community this year. The INDYCAR community has not had a dedicated INDYCAR game in over a decade. And we want to make sure that our INDYCAR game is on par with other major racing games out there, with enough features to keep INDYCAR and other fans excited.

對於 INDYCAR 我們的遊戲，我們繼續在開發工作中取得長足進步，但我們認為今年我們無法將其發佈到社區。 INDYCAR 社區已經有十多年沒有專門的 INDYCAR 遊戲了。我們希望確保我們的 INDYCAR 遊戲與其他主要賽車遊戲不相上下，具有足夠的功能讓 INDYCAR 和其他車迷興奮不已。

As the head of Motorsport Games, I have been honored to lead this company from its inception, nurturing the idea, betting the vision, guiding it through a successful IPO, providing the necessary resources to make key technology and team acquisitions grow and scale. Today, Motorsport Games is a multi-franchise company boasting a diverse portfolio of official racing games in development for some of the world's most renowned brands in racing and the foundation built on a cutting-edge technology for the masses.

作為 Motorsport Games 的負責人，我很榮幸能夠從公司成立之初就領導這家公司，培養理念，押注願景，引導公司成功完成 IPO，提供必要的資源以實現關鍵技術和團隊收購的發展壯大。如今，Motorsport Games 是一家擁有多個特許經營權的公司，擁有為一些世界上最知名的賽車品牌開發的各種官方賽車遊戲組合，並以面向大眾的尖端技術為基礎。

This unique combination is what we believe will drive our industry forward and already fuels our team's pursuit of creating the most immersive and engaging racing games. I'm also incredibly excited to welcome Jason Potter as our company's recently appointed new CFO. Jason is very familiar with Motorsport Games as he held various roles with Motorsport Network since September 2021, including as Chief Accounting Officer and in fact, has been Secretary and Treasurer for Motorsport Games since January of this year.

我們相信這種獨特的組合將推動我們的行業向前發展，並且已經推動了我們團隊對創造最具沉浸感和吸引力的賽車遊戲的追求。我也非常高興地歡迎 Jason Potter 成為我們公司最近任命的新 CFO。 Jason 對 Motorsport Games 非常熟悉，因為自 2021 年 9 月以來，他在 Motorsport Network 擔任過各種職務，包括擔任首席會計官，事實上，自今年 1 月以來，他一直擔任 Motorsport Games 的秘書兼財務主管。

Further, Jason continues to serve as Chief Accounting Officer of the Network, but prior to joining the Network, he held a position of a Director in the audit practice of PricewaterhouseCoopers between June 2018 and September 2021 and a Senior Manager at PwC's national office between June 2016 and June 2018. And at this time, I'd like to hand it over to Jason Potter, Motorsport Games' Chief Financial Officer, to go over our Q4 and 2022 year-end financial results.

此外，Jason 繼續擔任網絡的首席會計官，但在加入網絡之前，他於 2018 年 6 月至 2021 年 9 月期間擔任普華永道審計業務總監，並於 6 月期間擔任普華永道國家辦事處的高級經理2016 年和 2018 年 6 月。此時，我想把它交給 Motorsport Games 的首席財務官 Jason Potter，回顧一下我們第四季度和 2022 年的年終財務業績。

Thank you, Dmitry. I would like to share summary financial highlights for the fourth-quarter and year ended December 31, 2022. Starting with Q4 '22 results, our revenues were $3.8 million compared to $8.2 million in Q4 '21. The $4.4 million or 54% decrease was primarily due to us releasing one new NASCAR game in Q4 '22 compared to two new NASCAR games in Q4 '21.

謝謝你，德米特里。我想分享截至 2022 年 12 月 31 日的第四季度和年度的財務摘要摘要。從 22 年第四季度的結果開始，我們的收入為 380 萬美元，而 21 年第四季度為 820 萬美元。 440 萬美元或 54% 的減少主要是由於我們在 22 年第 4 季度發布了一款新的 NASCAR 遊戲，而在 21 年第 4 季度發布了兩款新的 NASCAR 遊戲。

Net loss was $4.8 million and $7 million for Q4 '22 and '21, respectively, an improvement of $2.2 million or 31%. The reduction in net losses was primarily attributable to a $1.9 million reduction in sales and marketing expenses; a $0.8 million reduction in development expense; a $3.4 million reduction in cost of revenues, which were primarily due to lower royalties and production costs; a $0.1 million decrease in impairment losses from our intangible assets; and a $0.9 million increase in foreign currency gains.

22 年第四季度和 21 年第四季度的淨虧損分別為 480 萬美元和 700 萬美元，增加了 220 萬美元或 31%。淨虧損減少主要是由於銷售和營銷費用減少了 190 萬美元；開發費用減少 80 萬美元；收入成本減少 340 萬美元，這主要是由於特許權使用費和生產成本降低；我們的無形資產減值損失減少 10 萬美元；外匯收益增加 90 萬美元。

These were partially offset by a $4.4 million decrease in revenues, a $0.1 million increase in expenses relating to ongoing litigation, a $0.2 million increase in general and administrative expenses, and a $0.3 million increase in the interest accretion expense.

這些被收入減少 440 萬美元、與正在進行的訴訟相關的費用增加 10 萬美元、一般和行政費用增加 20 萬美元以及利息增加費用增加 30 萬美元部分抵消。

Adjusted EBITDA loss for Q4 '22 was $3.5 million compared to an adjusted EBITDA loss of $5.4 million for Q4 '21. The change in adjusted EBITDA loss of $1.9 million was primarily due to the same factors driving the previously discussed change in net loss for Q4 '22 compared to Q4 '21.

22 年第 4 季度調整後的 EBITDA 虧損為 350 萬美元，而 21 年第 4 季度調整後的 EBITDA 虧損為 540 萬美元。調整後 EBITDA 虧損 190 萬美元的變化主要是由於與之前討論的 22 年第四季度相比 21 年第四季度淨虧損變化的驅動因素相同。

Turning our attention to the full-year results, revenues were $10.3 million and $15.1 million for the year ended December 31, '22 and '21, respectively, a decrease year over year of $4.8 million or 31.5%. Gaming segment revenues decreased by $5.1 million or 35.9% to $9.2 million for the year ended December 31, '22 compared to $14.3 million for the year ended December 31, '21.

將注意力轉向全年業績，截至 2022 年和 21 年 12 月 31 日止年度的收入分別為 1030 萬美元和 1510 萬美元，同比減少 480 萬美元或 31.5%。截至 2022 年 12 月 31 日止年度，博彩部門收入減少 510 萬美元或 35.9% 至 920 萬美元，而截至 2021 年 12 月 31 日止年度為 1430 萬美元。

The decrease in our gaming segment revenue is primarily due to $2.4 million in lower digital and mobile games sales and $3.4 million in lower retail game sales. This was primarily driven by the release of one NASCAR game in '22 compared to two in 2021, which resulted in lower volumes of sales.

我們遊戲部門收入的減少主要是由於數字和手機遊戲銷售額下降 240 萬美元以及零售遊戲銷售額下降 340 萬美元。這主要是由於 22 年發布了一款 NASCAR 遊戲，而 2021 年發布了兩款，導致銷量下降。

In addition, we experienced less favorable pricing and higher-than-expected retail pricing concessions from existing games in our product portfolio. These declines were partially offset by a $0.6 million in revenues and through the development of simulation platforms for third parties and a $0.1 million increase in license fee revenues.

此外，我們的產品組合中現有遊戲的定價較不優惠，零售定價優惠高於預期。這些下降部分被 60 萬美元的收入和通過為第三方開發模擬平台以及 10 萬美元的許可費收入增加所抵消。

E-sports segment revenues increased by $0.4 million or 46.1% to $1.2 million for the year ended December 31, '22 compared to $0.8 million for the year ended December 31, '21. The increase in e-sports segment revenue was primarily due to higher sponsorship revenue from the Le Mans Virtual Series, which started its '22, '23 season in September 2022.

截至 2022 年 12 月 31 日止年度，電子競技部門收入增加 40 萬美元或 46.1% 至 120 萬美元，而截至 2021 年 12 月 31 日止年度為 80 萬美元。電子競技部門收入的增長主要是由於勒芒虛擬系列賽的讚助收入增加，該系列賽於 2022 年 9 月開始其 '22、'23 賽季。

Our net loss was $36.8 million for the year ended December 31, '22, compared to $33.7 million for the year ended December 31, '21, an increase of $3.1 million or 30.7%. The increase in net loss was primarily attributable to a $4.8 million decrease in revenues, a $9.3 million increase in impairment losses relating to our goodwill and indefinite life intangible assets, a $1.4 million increase in expenses relating to our ongoing litigation, a $1.4 million reduction in gains from equity method investments, a $0.8 million increase in development expenses, a $0.6 million increase in interest accretion expense, a $0.1 million increase in depreciation expense, and a $0.8 million increase in foreign currency losses.

截至 2022 年 12 月 31 日止年度，我們的淨虧損為 3680 萬美元，而截至 2021 年 12 月 31 日止年度為 3370 萬美元，增加了 310 萬美元或 30.7%。淨虧損增加的主要原因是收入減少 480 萬美元，與我們的商譽和使用壽命不確定的無形資產相關的減值損失增加 930 萬美元，與我們正在進行的訴訟相關的費用增加 140 萬美元，減少 140 萬美元權益法投資收益，開發費用增加 80 萬美元，利息增加費用增加 60 萬美元，折舊費用增加 10 萬美元，外幣損失增加 80 萬美元。

These were partially offset by a $9 million reduction in stock-based compensation expense; a $4 million decrease in general administration expenses, which was primarily driven by lower payroll expenses; a $2.6 million reduction in the cost of revenues, which was primarily due to lower royalties and production costs; a $0.3 million reduction in sales and marketing expenses; and a $0.2 million increase in sublease rental income.

這些部分被基於股票的補償費用減少 900 萬美元所抵消；一般行政費用減少 400 萬美元，這主要是由於工資費用減少；收入成本減少 260 萬美元，這主要是由於特許權使用費和生產成本降低；銷售和營銷費用減少 30 萬美元；以及轉租租金收入增加 20 萬美元。

Adjusted EBITDA loss was $21.2 million for the year ended December 31, 2022, compared to $17.2 million for the year ended December 31, 2021, an increase of $3.7 million or 21.4%. The increase in adjusted EBITDA loss was primarily driven by the same factors impacting the change in net loss previously discussed.

截至 2022 年 12 月 31 日止年度的調整後 EBITDA 虧損為 2120 萬美元，而截至 2021 年 12 月 31 日止年度為 1720 萬美元，增加 370 萬美元或 21.4%。調整後 EBITDA 損失的增加主要是由影響前面討論的淨損失變化的相同因素驅動的。

For the year ended December 31, 2022, we had an average net cash burn from operations of approximately $1.63 million, down from $1.7 million for the year ended December 31, 2021. As of March 22, 2023, we have approximately $6.5 million of cash and cash equivalents available, which we believe is insufficient to fund our operations for the remainder of 2023.

截至 2022 年 12 月 31 日止年度，我們的平均運營現金消耗淨額約為 163 萬美元，低於截至 2021 年 12 月 31 日止年度的 170 萬美元。截至 2023 年 3 月 22 日，我們擁有約 650 萬美元的現金和可用現金等價物，我們認為這不足以為我們 2023 年剩餘時間的運營提供資金。

We will need to supplement our available liquidity with additional debt and or equity financing as well as ongoing cost control initiatives. At this time, we are not providing forward guidance. I'd now like to turn the call back to Dmitry for closing remarks.

我們將需要通過額外的債務和/或股權融資以及持續的成本控制舉措來補充我們的可用流動性。目前，我們不提供前瞻性指導。我現在想把電話轉回德米特里，讓他發表結束語。

In closing, I want to thank our shareholders for their continuing support and belief in our vision. We went through some tough times as a company, but I'm confident that given the right amount of time, Motorsport Games will thrive and innovate, delivering exciting racing experiences to our fans around the world. Thank you, all, for joining, and let's go to questions.

最後，我要感謝我們的股東一直以來對我們願景的支持和信任。作為一家公司，我們經歷了一些艱難時期，但我相信，在適當的時間裡，Motorsport Games 將蓬勃發展和創新，為世界各地的粉絲提供激動人心的賽車體驗。謝謝大家的加入，讓我們開始提問吧。

(Operator Instructions) Jason Tilchen, Canaccord Genuity.

（操作員說明）Jason Tilchen，Canaccord Genuity。

Thanks, and congrats on the recent capital raises. I guess the first thing I'm curious about, the cash burn for 2022 per the press release was about $1.6 million per month. And I'm just curious, is it materially different today following some of the cost cutting measures and the restructuring in December? And then I have a follow-up after that.

謝謝，並祝賀最近的融資。我想我首先好奇的是，根據新聞稿，2022 年的現金消耗約為每月 160 萬美元。我很好奇，在 12 月採取了一些成本削減措施和重組之後，今天的情況是否有實質性的不同？然後我有一個後續行動。

Hi, Jason. This is Jason Potter. So the cash burn, so $1.6 million for 2022, we expect that to remain consistent as we go into 2023. We obviously see some drop-off from the restructuring plan efforts in Q4, but what we're experiencing year to date as disclosed with the closing cash position on March 22 is that we're continuing to experience a burn rate in and around $1.6 million.

嗨，傑森。這是傑森·波特。因此，現金消耗，即 2022 年的 160 萬美元，我們預計到 2023 年，這種情況將保持一致。我們顯然看到第四季度的重組計劃工作有所減少，但我們今年迄今所經歷的情況與3 月 22 日的收盤現金頭寸是我們繼續經歷 160 萬美元左右的燒錢率。

Okay. Great. And then the second question is, to what extent has the restructuring or other cost-saving measures impacted the release schedule? And I know in the prepared remarks, Dmitry mentioned that the INDYCAR game won't be released this year. Is there any more color on when this year the NASCAR game will be released and the plans for BTCC? Any additional color there would be greatly appreciated. Thanks a lot.

好的。偉大的。那麼第二個問題是，重組或其他節省成本的措施在多大程度上影響了發佈時間表？我知道在準備好的發言稿中，Dmitry 提到 INDYCAR 遊戲不會在今年發布。今年NASCAR遊戲什麼時候發售，BTCC的計劃有沒有更多的色彩？如果有任何額外的顏色，我們將不勝感激。多謝。

Thanks, Jason, for the question. So first of all, the cost savings that we implemented from last year, as you will see in our 10-K, they are in full effect just as we projected it to be, with an effect that we have previously said that we project the effect to be $2.5 million of savings annualized in 2022. And that is what we experienced already. That did not have any impact on the development cycle or the launch of the product schedule. The cuts were mostly done outside of the product development expenses.

傑森，謝謝你提出這個問題。因此，首先，我們從去年開始實施的成本節約，正如您將在我們的 10-K 中看到的那樣，它們完全符合我們的預期，其效果我們之前說過我們預計到 2022 年每年可節省 250 萬美元。這就是我們已經經歷過的。這對開發週期或產品時間表的發布沒有任何影響。削減主要是在產品開發費用之外進行的。

Now, as far as NASCAR is concerned for this year, what we mentioned is that we would look to bring the 2023 season to pretty much all of the platforms that our products are currently available at. As far as release date for that, we have a lot of historical data that shows us that sometime towards the playoffs part of the season is a good time for us to have our content ready and to bring it to the community. But when we're ready to announce that, we will definitely publicize and showcase where and on which platforms it will be released when.

現在，就 NASCAR 今年而言，我們提到的是，我們希望將 2023 賽季帶到我們產品目前可用的幾乎所有平台上。就發布日期而言，我們有大量歷史數據向我們表明，賽季季后賽的某個時候是我們準備好內容並將其帶給社區的好時機。但是當我們準備好宣布這一點時，我們一定會宣傳和展示它將在何處以及在哪些平台上發布。

Great. And if there's time for one more, just curious if there's any color that you could share on how the Ignition 21 content update, or the Rivals release performed relative to your expectations and how big of an impact that have on gaming segment revenue for the fourth quarter? Thanks.

偉大的。如果還有時間，我很好奇您是否可以分享 Ignition 21 內容更新或 Rivals 版本相對於您的期望的表現以及第四次對遊戲部門收入的影響有多大四分之一？謝謝。

We're more satisfied with our Rivals release than obviously anything that has to do with the 21 Ignition title. I think our move to invest into the community can show them our good faith and also tell them that we take full accountability for the type of release we did in 2021. That was the motive behind the decision of releasing a '22 content to the Ignition holders for free.

我們對 Rivals 的發布比對 21 Ignition 標題的任何事情都更滿意。我認為我們投資社區的舉動可以向他們展示我們的誠意，並告訴他們我們對 2021 年所做的發布類型負全部責任。這就是決定向 Ignition 發布 '22 內容的動機持有人免費。

So of course, it's easier to convert somebody when you are giving them something for free. So I cannot say that that's impacted us materially from revenue. That to us was an investment back into the community and sort of a small gesture of apology that we understand that we need to hold ourselves to a much higher standards.

所以當然，當你免費給他們一些東西時，更容易改變他們的信仰。所以我不能說這對我們的收入產生了重大影響。對我們來說，這是對社區的投資，也是一種小小的道歉姿態，我們明白我們需要讓自己達到更高的標準。

Now, as far as Rivals is concerned, Rivals is a very good release for the Nintendo Switch platform. But of course, the Nintendo Switch installed base is not at least in the territories where we have the most penetration, is not as significant as the major consoles. So we cannot expect the results similar to PlayStation Plus, Xbox for us far when majority of the sales come here from United States. It did meet our expectation in terms of the sales were derived from there, but of course, never satisfied and trying to continue to bring something more to the community that they would be able to value, therefore make additional purchase.

現在，就 Rivals 而言，Rivals 是 Nintendo Switch 平台的一個非常好的版本。但當然，Nintendo Switch 的安裝基礎至少不在我們滲透率最高的地區，不如主要遊戲機那麼重要。因此，當大部分銷售額來自美國時，我們不能指望像 PlayStation Plus、Xbox 那樣的結果。它確實滿足了我們的預期，因為銷售來自那裡，但當然，我們從未滿足並試圖繼續為社區帶來更多他們能夠重視的東西，因此進行額外購買。

Great. Thanks a lot for the color.

偉大的。非常感謝你的顏色。

Michael Kupinski, Noble Financial Capital Markets.

Noble Financial Capital Markets 的 Michael Kupinski。

Thanks for taking my questions, and congratulations, Jason. A couple of things here. If we look at obviously INDYCAR being pushed into next year, I was just wondering in terms of the cash investment that you're making right now. Are there any other games that might be delayed into 2024 outside of INDYCAR that you're -- release schedules that might slip?

謝謝你回答我的問題，祝賀你，Jason。這裡有幾件事。如果我們明顯地看到 INDYCAR 被推到明年，我只是想知道你現在正在進行的現金投資。在 INDYCAR 之外，是否有任何其他遊戲可能會推遲到 2024 年——發佈時間表可能會推遲？

Hi, Michael. Thank you for the question. So I think one point that we really want to make clear, that we touched on in our call is that we really took a step back and took a serious look at the quality of products we deliver, especially when it comes to an INDYCAR product for the point that, that community hasn't seen the game, hasn't seen the gaming experience in over a decade. And a lot has changed in the gaming space since the last time there was an indie gaming type of experience, right? A dedicated one.

嗨，邁克爾。感謝你的提問。因此，我認為我們真正想澄清的一點是，我們在電話會議中提到的一點是，我們確實後退了一步，認真審視了我們提供的產品質量，尤其是當涉及到 INDYCAR 產品時關鍵是，那個社區已經十多年沒有看過遊戲了，也沒有看到過遊戲體驗。自從上次出現獨立遊戲類型的體驗以來，遊戲領域發生了很多變化，對吧？一個專用的。

So we want to make sure that the standard that the INDYCAR community is looking for in their product is surpassed, right? We want to make sure that we exceed their expectation. And our track record with Ignition doesn't show that capability so far. So we essentially have to take even a higher standard to ourselves to make sure that when we do release that game, it starts a proper momentum.

所以我們想確保超越 INDYCAR 社區在他們的產品中尋找的標準，對嗎？我們要確保我們超出他們的期望。到目前為止，我們對 Ignition 的跟踪記錄並未顯示出這種能力。因此，我們基本上必須對自己採取更高的標準，以確保當我們發布該遊戲時，它會啟動適當的勢頭。

So for us, it's an investment for the long run of making a decision even though we are seeing the game in the proper stage right now. There is moving cars; there's tracks. There's certain elements that are supposed to be in the game, but we just do not believe that it's up to par for what the community will expect. And we want to wow, them, right? And we understand that taking extra time and extra investment into that will ultimately, in the long run, pay off for us.

所以對我們來說，這是一項做出長期決定的投資，即使我們現在看到遊戲處於適當的階段。有移動的汽車；有軌道。遊戲中應該有某些元素，但我們只是不相信它達到了社區所期望的水平。我們想哇，他們，對吧？我們明白，從長遠來看，為此付出額外的時間和額外的投資最終會為我們帶來回報。

And as far as NASCAR is concerned or other franchises, as you talk about what else could be moving, we're going to looking at everything with the same exact blend. NASCAR community deserves a great gaming experience. We understand we did not meet nowhere close to our own expectations on the Ignition release, hence why we continue to sell our previous-year titles. And we want to continue to update content around our portfolio of there.

就 NASCAR 或其他特許經營權而言，當你談論其他可能發生的變化時，我們將以完全相同的方式看待所有事情。 NASCAR 社區值得擁有出色的遊戲體驗。我們知道我們在 Ignition 發行版上沒有達到我們自己的預期，因此我們繼續銷售前一年的遊戲。我們希望繼續更新我們在那裡的產品組合的內容。

But as far as taking a decision to launch a game, that is a dedicated and exciting experience for the NASCAR or other communities. We're going to hold off on making an official announcement on those release dates until we feel absolutely confident and probably already with some insight from the community or stakeholders that the game is starting to take shape that would impress the rest of the community.

但就決定推出一款遊戲而言，這對 NASCAR 或其他社區來說是一種專注而令人興奮的體驗。我們將推遲發布這些發布日期的官方公告，直到我們感到絕對有信心並且可能已經從社區或利益相關者那裡獲得了一些洞察力，即遊戲開始成形，這會給社區的其他人留下深刻印象。

Thanks for the color. Obviously, the burn rate, cash burn rate not dropping off the indicates that you are making additional investments in the game that probably more than what you would normally anticipate that you would be making at this juncture.

謝謝你的顏色。顯然，燒錢率、現金燒錢率沒有下降表明你正在對遊戲進行額外投資，這可能比你通常預期的要多。

I was just wondering in terms of just the road map is funding and obviously, you had a significant improvement of your balance sheet recently, and that's terrific. But as we move forward, what are the options that you might pursue in terms of investment in the game should funding become restrictive?

我只是想知道路線圖是資金，顯然，你最近的資產負債表有了顯著改善，這太棒了。但是隨著我們的前進，如果資金變得有限，您在遊戲投資方面可能會採取哪些選擇？

So let's take for a second a view that a lot of these titles that we're working on, right, like the Le Mans title, the INDYCAR title, and the BTCC experience, those are inaugural experiences right? So launching the game experience from the beginning is the most heaviest or let's say, the biggest investment that is required as you're -- essentially, you're building the tracks. You're building the car models. You're building a lot of stuff that's necessary has the foundational elements of a great gaming experience.

因此，讓我們再看一下我們正在開發的很多這些頭銜，對吧，比如勒芒冠軍頭銜、印地賽車冠軍頭銜和 BTCC 體驗，這些都是開創性的體驗，對嗎？因此，從一開始就推出遊戲體驗是最繁重的，或者說，這是您所需的最大投資——本質上，您正在構建軌道。您正在構建汽車模型。您正在構建許多必要的東西，這些東西具有出色遊戲體驗的基本元素。

So hence why you see the burn is reflective of that, right? When we're talking about laser scanning every INDYCAR track and recreating it to an accuracy that will impress those that will take their virtual car for spend there, that takes an investment. And that's what we never wanted to slow down. Even though when we talk about reducing expenses as a company, we always looked at other areas outside of our game development budgets where we could do that.

因此，為什麼你看到燒傷反映了這一點，對吧？當我們談論激光掃描每條 INDYCAR 賽道並將其重新創建到能夠打動那些願意將他們的虛擬汽車在那裡消費的人的準確性時，這需要投資。這就是我們從來不想放慢速度的事情。即使當我們談論作為一家公司減少開支時，我們總是在我們的遊戲開發預算之外尋找我們可以做到這一點的其他領域。

And even though you could see the burn rates are staying pretty steadily, I definitely could say that the ratio of where we're investing the money is shifting, and it has started shifting over time. So as the time goes on, of course, as we've complete the build of the tracks or others, you could see that we won't necessarily need to recreate the track again, right? So there could be some efficiencies from even development stand point of view, but only after we reach a certain quality metric. Until then, we continue to invest in just gaming experiences to bring it to the highest possible fidelity.

儘管你可以看到燒錢率保持穩定，但我可以肯定地說，我們投資資金的比例正在發生變化，而且隨著時間的推移它已經開始發生變化。所以隨著時間的推移，當然，當我們完成軌道或其他軌道的構建時，您會看到我們不一定需要再次重新創建軌道，對嗎？因此，即使從開發的角度來看，也可能會有一些效率，但前提是我們達到了某個質量指標。在那之前，我們將繼續投資於遊戲體驗，以使其達到盡可能高的保真度。

Great. Thanks, Dmitry. Appreciate that. That's all I have.

偉大的。謝謝，德米特里。感謝。這就是我的全部。

As there are no further questions at this time, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

由於此時沒有其他問題，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。