Motorsport Games Inc (MSGM) 2023 Q1 法說會逐字稿

Thank you for standing by, and welcome to Motorsport Games Inc.'s first-quarter 2023 earnings call. All participants will be in listen-only mode. (Operator Instructions) As a reminder, today's conference is being recorded.

感謝您的耐心等待，歡迎參加 Motorsport Games Inc. 的 2023 年第一季度財報電話會議。所有參與者都將處於僅聽模式。 （操作員指示）提醒一下，今天的會議正在錄製中。

I would like to turn the conference over to Ken Godskind from Motorsport Games. Please go ahead.

我想將會議交給 Motorsport Games 的 Ken Godskind。請繼續。

Thank you, and welcome to Motorsport Games' first-quarter 2023 earnings conference call and webcast. On today's call is Motorsport Games' Chief Executive Officer, Stephen Hood; and Chief Financial Officer, Jason Potter. By now, everyone should have access to the company's first-quarter 2023 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，歡迎參加 Motorsport Games 的 2023 年第一季度收益電話會議和網絡廣播。出席今天電話會議的是 Motorsport Games 首席執行官 Stephen Hood；和首席財務官傑森·波特。到目前為止，每個人都應該可以訪問該公司今天收盤後發布的 2023 年第一季度收益新聞稿。您可在 Motorsport Games 網站 www.motorsportgames.com 的投資者關係部分獲取此信息。

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. 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.

在本次電話會議期間，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。除法律要求外，公司不承擔更新本次電話會議中所做的任何前瞻性陳述或更新或更改其前瞻性陳述的義務，無論是由於新信息、未來事件還是其他原因。

Please refer to today's press release and the company's filings with the SEC, including its most recent quarterly report on Form 10Q for the quarter ended March 31, 2023, 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.

請參閱今天的新聞稿和該公司向 SEC 提交的文件，包括截至 2023 年 3 月 31 日的季度的最新 10Q 季度報告，詳細討論了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 first-quarter 2023 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，我們在討論 2023 年第一季度財務業績時將提及某些非 GAAP 財務指標，例如調整後 EBITDA。您將在今天早些時候發布的新聞稿中找到這些非公認會計準則衡量標準與其最直接可比的公認會計準則衡量標準以及其他相關披露的調節表。

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

現在我想將電話轉給 Motorsport Games 首席執行官斯蒂芬·胡德 (Stephen Hood)。斯蒂芬？

Thank you, everyone, for joining the call today. I'd first like to tackle head-on a question some of you like to have around my return to the business some 14 months after my departure. Having put a lot of energy into the formation of Motorsport Games, I've always believed in the opportunity.

謝謝大家今天加入電話會議。首先，我想直接回答一些人在我離開公司約 14 個月後重返公司時提出的一個問題。我在賽車運動比賽的組建上投入了大量的精力，我一直相信這個機會。

When I was approached about a potential return and my availability, I reviewed the opportunity and came to the realization that things could be improved, and success attained. With a heavy focus on delivery of quality products, service, and entertainment features, I believe we can point the company in the right direction.

當有人向我詢問潛在的回報和我的空閒時間時，我回顧了這個機會，並意識到事情可以改進，並取得了成功。通過高度重視提供優質產品、服務和娛樂功能，我相信我們可以為公司指明正確的方向。

In only a few weeks since my return, it has been apparent the entire team across the Motorsport Games business are energized about what we can deliver if we are united and decisive. I am firm in my belief about what can be achieved and hope to be a catalyst in the change of fortunes for the Motorsport Games business.

在我回來後的短短幾週內，很明顯，賽車運動遊戲業務的整個團隊都充滿活力，相信如果我們團結一致、果斷行事，我們就能實現什麼目標。我堅信自己能夠取得的成就，並希望成為改變賽車遊戲業務命運的催化劑。

My background is in game development. I understand the requirements, infrastructure, and innovation necessary to compete in this space, but I also understand that we first need to deliver products to market. This opening period is one of rapid review, reorganization, and tactical progress.

我的背景是遊戲開發。我了解在這個領域競爭所需的要求、基礎設施和創新，但我也了解我們首先需要將產品推向市場。這一時期是快速回顧、重組和戰術進步的時期。

My review of the business increased remarkably on April 19 when I assumed the role of Chief Executive Officer. This position provides me with the authority necessary to leave no stone unturned when refactoring the business short, medium, and long-term effectiveness. As a result, from the full support of my leadership team, we have made the decision to close two micro studios in Orlando, Florida; and (inaudible), Georgia.

4 月 19 日，當我擔任首席執行官時，我對業務的審查顯著增加。這個職位為我提供了在重構業務短期、中期和長期有效性時千方百計所需的權力。因此，在我的領導團隊的全力支持下，我們決定關閉佛羅里達州奧蘭多的兩個微型工作室；和（聽不清）佐治亞州。

This results in a minor headcount reduction, but more importantly, it allows us to architect and manage our development resources in a more effective manner. View of physical studios at least while we refactor and deliver initial releases will cap out the distractions apparent during our rapid multi-site growth period, which was somewhat forced upon our business during the COVID pandemic. Now that we're out of this period, we should double down on known talent locations, improve visibility of development, and generate a greater sense of team across the organization.

這會導致人員數量略有減少，但更重要的是，它使我們能夠以更有效的方式構建和管理我們的開發資源。至少在我們重構和交付初始版本時，實體工作室的視圖將消除我們多站點快速增長期間明顯的干擾，這在某種程度上是在新冠疫情期間強加給我們業務的。現在我們已經走出了這個時期，我們應該加倍努力尋找已知的人才地點，提高發展的可見性，並在整個組織中培養更強的團隊意識。

Focus extends across all our activities, and as such, I am instilling a culture of togetherness and optimism from the top down. I've seen from afar how our team has been hurt by the inevitable consumer reaction to products like NASCAR Ignition, a title that does not reveal the capability of those few remaining with us on this journey. Indeed, I believe we are going to turn a corner, and with the right products, we now have those who understandably questioned our delivery.

重點貫穿我們所有的活動，因此，我從上到下灌輸一種團結和樂觀的文化。我從遠處看到我們的團隊受到了消費者對《NASCAR Ignition》等產品不可避免的反應的傷害，這款遊戲並沒有揭示在這段旅程中留下的少數人的能力。事實上，我相信我們將會扭轉局面，有了正確的產品，我們現在就有了那些對我們的交付提出質疑的人，這是可以理解的。

We have been deploying resources towards well-regarded legacy platforms such as the NASCAR Heat franchise aggressively bringing it closer to season currency. In the coming days, we will update the product for the 2022 season complete with next-gen cars for our fans to enjoy. We are also working on a review of plans to maintain further support of existing franchise titles whilst progressing with development around future NASCAR games.

我們一直在向備受推崇的傳統平台（例如 NASCAR Heat 特許經營權）部署資源，積極使其更接近賽季貨幣。在接下來的幾天裡，我們將更新 2022 年賽季的產品，並提供下一代賽車供我們的車迷享用。我們還在努力審查計劃，以維持對現有特許經營遊戲的進一步支持，同時推進未來 NASCAR 遊戲的開發。

I've seen enough since my return to understand that our primary opportunities revolve around our plans with long-term franchise games like British Touring Car Championship, IndyCar, innovative opportunities with Le Mans, which includes the World Endurance Championship and service amplifiers like our evolving competition system, which we intend to eventually become an important piece of our strategy in the future.

自從我回來後，我已經看到了足夠多的東西，明白我們的主要機會圍繞著我們的長期特許經營計劃，如英國房車錦標賽、印地賽車、勒芒的創新機會，其中包括世界耐力錦標賽和我們不斷發展的服務放大器競爭體系，我們希望最終成為我們未來戰略的重要組成部分。

(Inaudible) the third is the development that have yet to be showcased by the company. Our planned IndyCar title that allows us to move into single-seater racing, an area I know very well and is in development by Australian development studio. This team together with our team position our KartKraft in 2021.

（聽不清）第三個是公司尚未展示的發展。我們計劃的印地賽車遊戲允許我們進入單座賽車領域，這是我非常熟悉的領域，並且正在由澳大利亞開發工作室開發。該團隊與我們的團隊一起為 2021 年的 KartKraft 定位。

It is especially rewarding to see how these long-term plays begin to come to fruition around the title I have personally hoped to see the light of day since I got into playing video games way back. With the right design, support, and marketing, we believe IndyCar could become the (inaudible) single-seat gaming. I believe our partners at IndyCar will come away impressed at our next progress reveal.

自從我很久以前開始玩電子遊戲以來，我個人就希望看到這些長期遊戲如何開始取得成果，這是特別值得的。通過正確的設計、支持和營銷，我們相信印地賽車可以成為（聽不清）單座遊戲。我相信印地賽車的合作夥伴會對我們的下一次進展展示印象深刻。

Great games are not delivered overnight, and there is still much to do on the road to our upcoming releases. So we are taking prior lessons into account for the good of our future product strategy. Of equal importance is the longer-term opportunity around development of our game platform designed to improve upon the capability and stability of our current racing-focused efforts. We believe this will provide us with the technology from which we can push on developing additional titles. We must move on from the technology and its delivery of entertainment.

偉大的遊戲不可能一蹴而就，在我們即將發布的遊戲之路上還有很多工作要做。因此，為了我們未來的產品戰略，我們正在考慮以前的教訓。同樣重要的是圍繞我們的遊戲平台開發的長期機會，該平台旨在提高我們當前以賽車為中心的工作的能力和穩定性。我們相信這將為我們提供技術來推動開發更多遊戲。我們必須從技術及其娛樂方式中繼續前進。

Our planned Le Mans title allows us to utilize the very best components of our top tier of rFactor 2 simulation title and align into an opportunity we believe exists in the racing genre. Think of any popular game these days, and you're invariably the teams of (inaudible) are working together to achieve objectives.

我們計劃的勒芒遊戲使我們能夠利用頂級 rFactor 2 模擬遊戲的最佳組件，並與我們相信賽車類型中存在的機會相結合。想想當今任何流行的遊戲，（聽不清）團隊總是在共同努力實現目標。

The racing genre has for decades promoted a sense of ultra-competitiveness that I feel prevents rapid growth of the segment. Le Mans and indeed the World Endurance Championship revolves around teamwork. It is therefore fitting that our long-planned move into team racing begins with the release of our competition systems into the rFactor 2 simulation style-game. We're going to see a huge growth period, thanks to third-party community platform support as well as our formal quarterly content release strategy.

幾十年來，賽車類型一直宣揚著一種超級競爭感，我認為這阻礙了該細分市場的快速增長。勒芒乃至世界耐力錦標賽都以團隊合作為核心。因此，我們長期計劃的進軍團隊競賽的第一步就是將我們的競賽系統發佈到 rFactor 2 模擬遊戲中。由於第三方社區平台的支持以及我們正式的季度內容髮布策略，我們將看到一個巨大的增長期。

From there, we will gather valuable consumer feedback ahead of a wider release alongside the upcoming Le Mans game, which in turn should provide us with a valuable insight into the concept of team play within the racing genre. Beyond our projects with NASCAR, the development of IndyCar, Le Mans, and our aforementioned competition system will provide a valuable step forward in our company. We must think differently and consider how the racing game of tomorrow can expect to enjoy their hobbies.

從那時起，我們將在即將到來的勒芒比賽的更廣泛發布之前收集有價值的消費者反饋，這反過來應該為我們提供對賽車類型中團隊合作概念的寶貴見解。除了我們與 NASCAR 的項目之外，印地賽車、勒芒以及我們上述競賽體系的發展也將為我們公司向前邁出寶貴的一步。我們必須以不同的方式思考，並考慮明天的賽車遊戲如何才能享受他們的愛好。

Our customer is co-audience, and we intend to win them back and impress. We will do that by providing wonderful experiences that do not require us to follow in the slipstream of our various competitors but instead producing overall entertainment ecosystem that will benefit their ability to access and enjoy more of what we know makes us stronger so special.

我們的客戶是共同觀眾，我們打算贏回他們並給他們留下深刻印象。我們將通過提供精彩的體驗來做到這一點，這些體驗不需要我們追隨各個競爭對手的潮流，而是創造整體的娛樂生態系統，這將有利於他們訪問和享受更多我們知道使我們變得更強大、更特別的東西的能力。

In some areas, I can say that we are further ahead than I might have imagined prior to my return. I'm bringing about greater operational focus and decisiveness to ensure that these projects are given the oxygen they require to be successful. The next 12 to 18 months will be a defining period for the company, and one of the teams across Motorsport Games and I will relish. In order to deliver on these opportunities tomorrow, we're willing to make difficult decisions today.

在某些領域，我可以說我們比我回來之前想像的還要領先。我將提高運營重點和果斷性，以確保這些項目獲得成功所需的氧氣。接下來的 12 到 18 個月將是公司的決定性時期，我和 Motorsport Games 的團隊之一將會很高興。為了明天抓住這些機會，我們願意今天做出艱難的決定。

At this time, I'd like to hand it over to Jason Potter, Motorsport Games' Chief Financial Officer, to go over our Q1 2023 financial results.

現在，我想將其交給 Motorsport Games 首席財務官 Jason Potter 來審核我們 2023 年第一季度的財務業績。

Thank you, Stephen, and good evening, everyone. As in previous earnings calls, I won't be offering any forward-looking guidance today. Instead, I will focus on providing an update on our financial results and the highlights from first quarter 2023. Unless stated otherwise, all results discussed relate to Q1 '23 and the comparative period of Q1 '22.

謝謝你，斯蒂芬，大家晚上好。與之前的財報電話會議一樣，我今天不會提供任何前瞻性指導。相反，我將重點介紹我們的財務業績的最新情況以及 2023 年第一季度的亮點。除非另有說明，否則討論的所有結果均涉及 23 年第一季度和 22 年第一季度的比較期間。

Our Q1 '23, revenues were $1.7 million, a reduction of $1.6 million or 48% when compared to the same period in the prior year. Our gaming segment accounted for $1.5 million of the decrease, primarily due to less favorable pricing and volume of digital sales in our existing product portfolio with only one major console release in 2022 compared to two in 2021 which has negatively impacted our ongoing physical retail sales.

我們 23 年第一季度的收入為 170 萬美元，與去年同期相比減少了 160 萬美元，即 48%。我們的遊戲部門減少了 150 萬美元，主要是由於我們現有產品組合中的定價和數字銷售量較差，2022 年僅發布一款主要遊戲機，而 2021 年發布了兩款，這對我們持續的實體零售銷售產生了負面影響。

Our e-sports segment revenues were consistent year over year with $14.3 million in Q1 '23 compared to $0.4 million in Q1 '22. Net loss for Q1 '23 was $5.3 million compared to $16 million from Q1 '22, an improvement of $10.7 million. We benefited from low impairment losses in the current quarter, whereas we recorded $9.3 million in impairment losses in Q1 '22. The remaining reduction in net loss of $1.4 million was primarily driven by reduced external marketing spend and lower payroll costs as a result of the actions taken under our previously announced 2022 restructuring program.

我們的電子競技部門收入與去年同期持平，23 年第一季度為 1,430 萬美元，而 22 年第一季度為 40 萬美元。 23 年第一季度的淨虧損為 530 萬美元，比 22 年第一季度的 1600 萬美元減少了 1070 萬美元。我們受益於當前季度的低減值損失，而 22 年第一季度的減值損失為 930 萬美元。淨虧損剩餘的 140 萬美元減少主要是由於我們之前宣布的 2022 年重組計劃所採取的行動導致外部營銷支出減少和工資成本降低。

Under the 2022 restructuring program, we have lowered our overhead costs by approximately $3.9 million on an annualized basis as of the end of Q1 2023. These savings were driven by changes in global headcount from reducing staff and overhead expenditures, another result of a more disciplined in our spending and after (inaudible) internal processes.

根據 2022 年重組計劃，截至 2023 年第一季度末，我們的管理費用按年計算減少了約 390 萬美元。這些節省是由於減少員工和管理費用而導致的全球員工人數變化所致，這是更嚴格的紀律的另一個結果。在我們的支出和（聽不清）內部流程之後。

Speaking of internal processes, we have previously disclosed material weaknesses in our internal control over financial reporting, not SEC filings, including our most recently filed Form 10K for the year ended December 31, 2022. We have taken a number of actions to remediate these deficiencies and are pleased to conclude two to three previously identified material weaknesses have been remediated as of March 31, 2023. We will continue to take the necessary steps to remediate the remaining material weakness, which will consider remediated only when applicable controls are in place, operate effectively for a sufficient period of time, and we conclude through testing that these controls operated as intended.

說到內部流程，我們之前已披露了財務報告內部控制的重大缺陷，但未向 SEC 備案，包括我們最近提交的截至 2022 年 12 月 31 日的年度 10K 表格。我們已採取多項措施來糾正這些缺陷並很高興地得出結論，截至 2023 年 3 月 31 日，之前發現的兩到三個重大缺陷已得到修復。我們將繼續採取必要措施來修復剩餘的重大缺陷，只有在適用的控制措施到位、運行的情況下才會考慮修復在足夠長的時間內有效，我們通過測試得出結論，這些控制措施按預期運行。

Returning to our fiscal results for Q1 '23, we are reporting an adjusted EBITDA loss of $4.3 million compared to an adjusted EBITDA loss of $5.6 million for the same period in the prior year. The improvements in adjusted EBITDA loss are the same as those discussed in respect to the change in net loss for the period and comparative quarter. Consequently, EPS for Q1 '23 was negative $2.33 compared with a negative $12.97 for Q1 '22.

回到我們 23 年第一季度的財務業績，我們報告調整後 EBITDA 損失為 430 萬美元，而上年同期調整後 EBITDA 損失為 560 萬美元。調整後 EBITDA 虧損的改善與本期和比較季度淨虧損變化所討論的改善相同。因此，23 年第一季度的每股收益為負 2.33 美元，而 22 年第一季度的每股收益為負 12.97 美元。

Liquidity continues to be a key focus. As of March 31, 2023, we had a cash and cash equivalents of $5.8 million, an increase of $4.8 million when compared to December 31, 2022, which was primarily driven by three registered product offerings completed in February '23.

流動性仍然是關注的焦點。截至 2023 年 3 月 31 日，我們的現金和現金等價物為 580 萬美元，與 2022 年 12 月 31 日相比增加了 480 萬美元，這主要是由於 2023 年 2 月完成的三項註冊產品發行所致。

Net cash used in operations during Q1 '23 was approximately $5.7 million, representing a net cash burn of $1.9 million a month, an increase of $0.3 million when compared to the average monthly cash burn of $1.6 million for the year ended December 31, 2022. As of April 30, 2023, our cash and cash equivalents position was reduced by $0.9 million to $4.9 million, which we believe is insufficient to fund our operations for the remainder of 2023. We will need to supplement our available liquidity with additional debt and or equity financing as well as ongoing cost control initiatives.

23 年第一季度運營中使用的淨現金約為 570 萬美元，相當於每月淨現金消耗為 190 萬美元，與截至 2022 年 12 月 31 日的年度平均每月現金消耗 160 萬美元相比增加了 30 萬美元。截至 2023 年 4 月 30 日，我們的現金和現金等價物頭寸減少了 90 萬美元，至 490 萬美元，我們認為這不足以為我們 2023 年剩餘時間的運營提供資金。我們將需要通過額外債務和/或補充我們的可用流動資金股權融資以及持續的成本控制舉措。

Thank you, all, for your time. And now I will turn the call back to Stephen for closing remarks.

謝謝大家抽出時間。現在我將把電話轉回給斯蒂芬，讓他發表結束語。

In closing, I would like to thank our shareholders for their support and encouragement as I assume leadership of the company. There are challenges, but given time and resolution to our liquidity situations, I believe that we can address all of them. We can deliver on the promise I believe in from the very formation of the company.

最後，我要感謝我們的股東在我擔任公司領導期間的支持和鼓勵。挑戰是存在的，但只要有時間並解決我們的流動性問題，我相信我們可以解決所有這些問題。我們可以兌現我從公司成立之初就堅信的承諾。

Thank you for joining us today, and now let's go to questions. Operator?

感謝您今天加入我們，現在我們來提問。操作員？

(Operator Instructions) Jason Tilchen, Canaccord Genuity.

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

Great. Thanks for taking the question, and congrats, Stephen, on taking over as CEO. I think one thing I'm curious about, maybe you could just spend a minute talking about some of the ways that you have either already or that you can improve monetization of the existing game portfolio, while the other new titles that you referenced in the prepared remarks are still in progress. And then I have a follow-up. Thanks.

偉大的。感謝您提出問題，並祝賀斯蒂芬接任首席執行官。我認為我很好奇的一件事是，也許您可以花一分鐘的時間討論一下您已經擁有的一些方法，或者您可以提高現有遊戲組合的貨幣化程度，而您在準備好的發言稿仍在進行中。然後我有一個後續行動。謝謝。

Sure. Hi, Jason. It's a very interesting question. So monetization to me is one of the key points to review the business. So one of the things I'm very keen to do is ensure that the component parts that we have across the organization, certainly the parts that touch the core audience, the player, is appropriately stitched together.

當然。嗨，傑森。這是一個非常有趣的問題。所以對我來說，貨幣化是審查業務的關鍵點之一。因此，我非常想做的一件事就是確保我們整個組織的組成部分，當然是接觸核心受眾、玩家的部分，被適當地縫合在一起。

And by that, I mean, we have properties like our Traxion.GG, which is a great kind of media hub right now, which reports on gaming news and becomes the go-to site for a lot of breaking news right now, actually. We have this upcoming competition system that will be rebranded at some point when it goes through its formal release. We have the gaming licenses we have with NASCAR, British Touring Car, Le Mans, which includes World Endurance Championship, IndyCar.

我的意思是，我們擁有像 Traxion.GG 這樣的資產，它現在是一個很棒的媒體中心，它報導遊戲新聞，實際上現在已經成為許多突發新聞的首選網站。我們即將推出這個競賽系統，該系統將在正式發佈時重新命名。我們擁有 NASCAR、英國房車賽、勒芒，其中包括世界耐力錦標賽、印地賽車的博彩許可證。

What I'm actually looking at is instead of just individually monetizing component of those offerings, traditionally games would have DLC that you could purchase in order to add cars or trucks or other unique elements in terms of content offering. How do we actually stitch these things together so that together, they are able to monetize the overall entertainment experience? And it's a particular area of focus for me, and it's a question that I've been injecting back into the company since returning.

我實際上關注的是，傳統上游戲會包含 DLC，您可以購買這些 DLC，以便在內容提供方面添加汽車或卡車或其他獨特元素，而不是僅僅將這些產品的組件單獨貨幣化。我們實際上如何將這些東西整合在一起，以便它們能夠通過整體娛樂體驗貨幣化？這對我來說是一個特別關注的領域，也是我回國後一直向公司提出的一個問題。

And I think as I've come back somewhat fresh and I have a different perspective on how we move forward, I've been very encouraged by the reception of the teams to understand that we need to work together across departments and offerings in order to monetize the overall effectiveness of that entertainment offering, instead of just the traditional game approach of pumping DLC into product. So I think there's a better way of working on this.

我認為，由於我回來的時候有些新鮮，而且我對我們如何前進有不同的看法，團隊的接待讓我深受鼓舞，他們明白我們需要跨部門和產品合作，以便將該娛樂產品的整體效果貨幣化，而不僅僅是將 DLC 注入產品的傳統遊戲方法。所以我認為有更好的方法來解決這個問題。

And I think over the next few weeks, I suspect we'll have some very interesting answers to that. The component pieces are there. And what I'm doing is energizing the team in order to make it a reality.

我認為在接下來的幾週內，我懷疑我們將會對此得到一些非常有趣的答案。組件就在那裡。我正在做的就是激勵團隊，使之成為現實。

Great. That's really helpful. In terms of the way the cash burn was described, the sort of run rate of maybe $1.9 million per month in the first quarter and then the implied cash burn in April was about half of that. So I'm just curious, was there anything one-time in terms of what happened in April or has the cash burn declined? And following up on that, is there anything you can share in terms of any updates on when you expect to raise additional capital? Thank you.

偉大的。這真的很有幫助。就現金消耗的描述方式而言，第一季度的運行率可能為每月 190 萬美元，然後 4 月份隱含的現金消耗約為該數字的一半。所以我很好奇，四月份發生的事情是否是一次性的，或者現金消耗是否有所下降？接下來，您有什麼可以分享的關於您預計何時籌集額外資金的最新消息嗎？謝謝。

Hey, Jason. It's Jason here. So thanks for the question. I think what we saw in Q1 is we did see a bit of catch-up in terms of bringing down some of the AP position that we've accumulated, some of the accrued positions that we've accumulated as we kind of managed our working capital position very closely towards the back end of Q4.

嘿，傑森。傑森在這裡。謝謝你的提問。我認為我們在第一季度看到的是，我們確實看到了一些追趕的情況，即降低了我們積累的一些 AP 職位，以及我們在管理工作時積累的一些應計職位資本狀況非常接近第四季度末。

And following the RDOs in February, we were able to kind of catch up on some of those payments that we've been managing. And so that's why we see a bit of a higher burn in the first three months of the year. And then we see that drop off in April, where we've kind of caught up with that position. And we start to see some of the benefits of the 2020 restructuring program come into play, where we could use some of overhead, at this point around $3.9 million on an annualized basis kind of kicking in.

在 2 月份的 RDO 之後，我們能夠趕上我們一直在管理的一些付款。這就是為什麼我們在今年前三個月看到燃燒率較高的原因。然後我們看到四月份的情況有所下降，我們已經趕上了這個位置。我們開始看到 2020 年重組計劃的一些好處開始發揮作用，我們可以使用一些管理費用，目前按年化計算約為 390 萬美元。

So I think we'll continue to see some of that benefit on a go forward. Obviously, we'll continue to see some lumpiness in -- when we have royalty commitments, mostly put things kicking in, but we should hopefully start seeing a little bit of a reduction in the overall cash burn in future periods.

因此，我認為我們將繼續看到其中的一些好處。顯然，當我們做出特許權使用費承諾時，我們將繼續看到一些不穩定的情況，主要是讓事情開始發揮作用，但我們希望在未來一段時間內開始看到總體現金消耗有所減少。

In terms of financing efforts that we continue to explore both equity and debt financing. Right now, we don't have anything incremental to announce beyond the ATM facility that we put in place at the end of Q1. The existing actually line of credit that we got in place end of Q4, but otherwise, we do continue to explore other options for them try and solve that longer-term liquidity issue.

在融資方面，我們繼續探索股權融資和債權融資。目前，除了我們在第一季度末建立的 ATM 設施之外，我們沒有任何增量可以宣布。我們在第四季度末獲得了現有的實際信貸額度，但除此之外，我們確實繼續為他們探索其他選擇，試圖解決長期流動性問題。

Great. That's very helpful. And just one last one from me. Anything that you can share about any planned changes to sort of timeline for game launches that were scheduled for mid-next year in terms of IndyCar, maybe being first? Any changes to that timeline and anything you can share on that front? Thank you.

偉大的。這非常有幫助。還有我的最後一張。關於印地賽車計劃於明年中旬發布的遊戲時間安排的任何計劃更改，您可以分享一下嗎？也許是第一個？該時間表有什麼變化嗎？您可以在這方面分享什麼嗎？謝謝。

Hi. I'll take this one, Jason. No planned changes at present. I think the important thing based on the currently publicly stated release windows for the products is my task right now is to shore up those projects and ensure that they are given the opportunity to succeed. And there's probably a shift in focus with my arrival simply because of my background.

你好。我要這個，傑森。目前沒有計劃改變。我認為，根據目前公開聲明的產品發布窗口，我現在的任務是支持這些項目並確保它們有成功的機會。由於我的背景，我的到來可能會引起焦點的轉變。

I know games very well it's what I've done for 25 years now. I'm very passionate about product development, but I also appreciate the challenges associated with that. And it's clear at Motorsport Games, we've never tried to go toe-to-toe with some of the giants in the space in terms of development headcount. But I think we are not much more nimble as a result.

我非常了解遊戲，我已經做了 25 年了。我對產品開發充滿熱情，但我也很欣賞與之相關的挑戰。很明顯，在 Motorsport Games，我們從未試圖在開發人員數量方面與該領域的一些巨頭進行正面交鋒。但我認為我們並沒有因此變得更加靈活。

And as long as we are bold and decisive on our decision making, and I think we can become far more efficient. I don't necessarily mean in terms of cash saving and operational efficiency. I mean, the decision making and the progress that we can make in comparison to some of the giants out in the industry.

只要我們的決策大膽而果斷，我認為我們可以變得更加高效。我不一定指的是節省現金和運營效率。我的意思是，與行業中的一些巨頭相比，我們可以做出的決策和取得的進展。

I think it's about utilizing that with the time that we have available to meet our deadlines and deliver the best possible product. And that requires sometimes myself and others within the leadership team getting into the weeds of development in order to ensure that all of the component pieces of development project, the infrastructure around them are working in harmony, ensuring the testing department is working hand in hand with development, ensuring that the PR and the marketing machine is well versed in how to showcase to the best of their ability, the upcoming products.

我認為這是利用我們現有的時間來滿足我們的最後期限並交付最好的產品。有時，這需要我自己和領導團隊中的其他人深入研究開發，以確保開發項目的所有組成部分以及它們周圍的基礎設施協調工作，確保測試部門與測試部門攜手合作。開發，確保公關和營銷機構精通如何充分展示即將推出的產品。

I don't think that's always been in the ideal position and our efficiencies that we can make there. This is where I'm spending a lot of my time. So in answer your question, not intending to change the release windows of the projects, but I am spending a lot of time ensuring that we use that available time wisely. The clock is always ticking in development and as to the excitement, but we've gone great guns to deliver these things.

我認為這並不總是處於理想的位置，我們也無法達到理想的效率。這是我花費大量時間的地方。因此，在回答您的問題時，我無意更改項目的發布窗口，但我花了很多時間確保我們明智地使用可用時間。開發和興奮的時間總是在流逝，但我們已經竭盡全力來交付這些東西。

Great. That's very helpful. Thanks a lot.

偉大的。這非常有幫助。多謝。

Michael Kupinski, Noble Financial Capital Markets.

邁克爾·庫平斯基，Noble Financial Capital Markets。

Thank you, and good evening. Most of my questions have been answered, but just a couple. Was the drop-off in the cash burn in the second quarter that you alluded to, was that already reflective of the closing of some of those micro-offices you mentioned? And how material were those are savings from that?

謝謝你，晚上好。我的大部分問題都已得到解答，但只有幾個問題。您提到的第二季度現金消耗的下降是否已經反映出您提到的一些微型辦公室的關閉？由此節省的資金有多大？

And then if you could just for me -- you may have said this, but I was wondering if you could just clarify for me where have you consolidated the development of the games for the company? What -- can you just kind of run through the offices for me and what they are responsible for?

然後，如果你能為我——你可能已經這麼說了，但我想知道你是否能為我澄清一下，你在哪裡鞏固了公司的遊戲開發？你能幫我介紹一下各個辦公室以及他們負責什麼嗎？

Yeah. Thank you, Michael. This is Jason. I'll pick up the cash burn portion of it, and then I think I'll hand over to him to Stephen in regards to the consolidation of the development efforts. But in terms of the closing of the micro-offices, they really were very small operations for us. So there's not -- we're not expecting it to have a very significant impact on the cash burn.

是的。謝謝你，邁克爾。這是傑森。我將承擔其中燒錢的部分，然後我想我會將他的工作交給斯蒂芬，以鞏固開發工作。但就關閉微型辦公室而言，它們對我們來說確實是非常小的業務。因此，我們預計它不會對現金消耗產生非常重大的影響。

And certainly in the near term, when you have severance costs and things like that associated with closing those offices, that will be a slight pickup from that. But I wouldn't expect that they will have a material impact on the cash burn at all.

當然，在短期內，當你有遣散費以及與關閉這些辦公室相關的費用時，這將會略有回升。但我認為它們根本不會對現金消耗產生實質性影響。

Got you.

明白你了。

Hi, Michael. It's Stephen here. Just quickly on the studios and the locations, I think they're trying to center them around, I call it known talent locations. There's an incredibly strong talent pool in Europe that we're able to tap into, thanks to our key office in the UK being based in Silverstone by that by the racetrack. Certainly, a lot of talent in the UK, a lot of experienced developers here.

嗨，邁克爾。斯蒂芬在這裡。很快就談到了工作室和地點，我認為他們正試圖將它們集中在周圍，我稱之為已知的人才地點。歐洲有一個非常強大的人才庫可供我們利用，這要歸功於我們在英國的主要辦公室設在賽馬場旁邊的銀石賽道。當然，英國有很多人才，這裡有很多經驗豐富的開發人員。

And with our acquisition of Studio 397 that we made some time ago, that has given us a fantastic network to recruit across Europe. And those European time zones, at least they're conducive to work in harmony in a particular region, on a particular time, on a particular project. So running out about UK operation is a lot of European talent.

隨著我們不久前收購了 Studio 397，這為我們提供了一個在歐洲各地進行招聘的絕佳網絡。而那些歐洲時區，至少有利於在特定地區、特定時間、特定項目上和諧工作。因此，很多歐洲人才都在英國運營。

And second to that, centered around the IndyCar title in particular, is our Australia operation, which centered in Melbourne in Australia. That also has a lot of talent there, particularly because we acquired the remnants of the Black Delta team, the operation that produced KartKraft, and it's been wonderful to see that operation grow. And certainly, since my return, I've been impressed with the rate of growth and talent that's available there.

其次，尤其以印地賽車冠軍為中心的是我們的澳大利亞業務，該業務以澳大利亞墨爾本為中心。那裡也有很多人才，特別是因為我們收購了 Black Delta 團隊的殘餘人員，也就是生產 KartKraft 的公司，看到該公司的發展真是太好了。當然，自從我回來後，我對那裡的增長率和人才印象深刻。

And we have this concept of just trying to center development operations so that it's much easier to monitor progress of development, ensure that we get the right caliber of individuals attached to those known locations that is past a rather large departure from how we started at the beginning of Motorsport Games journey. And one that I think will pay dividends in the long run. So really, it's across Europe right now and Australia.

我們的理念是嘗試集中開發運營，以便更容易監控開發進度，確保我們在那些已知地點配備合適的人員，這些地點與我們一開始的方式有很大的不同。賽車運動遊戲之旅的開始。我認為從長遠來看會帶來紅利。事實上，現在整個歐洲和澳大利亞都是如此。

Completely makes sense. Since there were a lot of moving parts in the quarter, was wondering, does the company still have a line of credit with Motorsport Networks that it could tap into? I know that there was a debt for equity swap there but is that line still open?

完全有道理。由於本季度有很多變化，我想知道該公司是否仍然擁有可以利用的 Motorsport Networks 信用額度？我知道那裡有債轉股，但這條線還開放嗎？

Hi, Michael. Yeah. I mean, the line is still there. So that hasn't been terminated, but as we disclosed in the Form 10Q, we have substantial doubt about whether we'll actually receive funds under that facility. So we're not considering that in our liquidity position. And that's why when I talk about cash and cash equivalents and liquidity, I'm just focusing purely on the cash that we have on hand.

嗨，邁克爾。是的。我的意思是，這條線仍然在那裡。因此，該計劃尚未終止，但正如我們在 10Q 表格中所披露的那樣，我們對我們是否會真正收到該設施下的資金存有很大疑問。因此，我們的流動性狀況並未考慮這一點。這就是為什麼當我談論現金和現金等價物以及流動性時，我只關注我們手頭的現金。

Got you. Okay. That's all I have. Thank you.

明白你了。好的。這就是我的全部。謝謝。

Thank you. That does conclude our question-and-answer session. I would like to turn the call back for closing remarks. Thank you.

謝謝。我們的問答環節到此結束。我想轉回電話進行結束語。謝謝。

Thank you. I would just like to thank everybody on the call today. I am particularly pleased and proud to be back at Motorsport Games. I feel incredibly energized. We're up for the challenge, and I think we're able to do great things together.

謝謝。我只想感謝今天參加電話會議的所有人。能夠重返賽車運動會，我感到特別高興和自豪。我感到難以置信的精力充沛。我們已經準備好迎接挑戰，我認為我們能夠共同做出偉大的事情。

And I look forward to more of these conversations and, indeed, our one-to-one conversations with you all at various stages over the coming months and hopefully years. Thank you very much. Thank you.

我期待著更多這樣的對話，事實上，我們在未來幾個月甚至幾年的不同階段與你們進行一對一的對話。非常感謝。謝謝。

Thank you. That concludes our conference for today. Thank you for participating. You may now disconnect.

謝謝。我們今天的會議到此結束。感謝您的參與。您現在可以斷開連接。