Motorsport Games Inc (MSGM) 2023 Q2 法說會逐字稿

Thank you for standing by, and welcome to Motorsport Games Inc.'s second-quarter 2023 earnings call. As a reminder, this conference is being recorded. (Operator Instructions)

感謝您的耐心等待，歡迎參加 Motorsport Games Inc. 的 2023 年第二季度財報電話會議。提醒一下，本次會議正在錄製中。 （操作員說明）

I'd now like to turn the conference over to Ben Rossiter-Turner from Motorsport Games. Please go ahead.

現在我想將會議交給 Motorsport Games 的 Ben Rossiter-Turner。請繼續。

Thank you, and welcome to Motorsport Games second-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 second-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 2023 年第二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提交的 2023 年第二季度收益新聞稿。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 statement 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 quarterly report on Form 10-Q for the quarter ended June 30, 2023, for a detailed discussion of certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today.

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聲明或更新或更改其前瞻性聲明的義務，無論是由於新信息、未來事件還是其他原因。請參閱今天的新聞稿和公司向 SEC 提交的文件，包括截至 2023 年 6 月 30 日的季度的最新 10-Q 季度報告，詳細討論可能導致實際結果與預期結果存在重大差異的某些風險今天發表的任何前瞻性陳述中明示或暗示的。

In today's conference call, we will refer to certain non-GAAP financial measures such as adjusted EBITDA. As we discuss the second-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，我們將提及某些非公認會計準則財務指標，例如調整後的 EBITDA。當我們討論 2023 年第二季度財務業績時，您會發現這些非 GAAP 衡量標準與其最直接可比的 GAAP 衡量標準以及今天早些時候發布的新聞稿中的其他相關披露進行了調節。

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)。史蒂芬.

I extend my gratitude to all participants for joining this conference call today. The preceding quarter has been marked by an intense period of activity conducted discreetly behind the scene. Our focus has encompassed a comprehensive evaluation of our projects, processes, corporate culture, and objectives. This endeavor aligns with strategic direction I emphasized upon my return in April.

我對今天參加本次電話會議的所有參與者表示感謝。上一季度的特點是幕後謹慎進行的密集活動。我們的重點包括對我們的項目、流程、企業文化和目標的全面評估。這一努力與我四月份回國時強調的戰略方向一致。

During the initial phase, we implemented strategic measures aimed at streamlining our satellite studios, accelerating the simplification of our organizational structure for the 2022 Restructuring Plan, and instilling a heightened sense of purpose throughout the organization. Consequently, I am pleased to report the successful completion, preparation, and subsequent market launch of a highly anticipated update for our NASCAR Heat 5 product titled the Next Gen Car Update, accessible on Xbox, PlayStation, and PC platform. This upgrade has significantly surpassed our expectations, having sold over 34,000 units to date. This performance suggests the potential for it to become our top grossing DLC by year's end, underscoring the enduring appeal of our NASCAR product offerings, despite the natural aging of the product line.

在初始階段，我們實施了戰略措施，旨在精簡衛星工作室，加快2022年重組計劃的組織結構簡化，並在整個組織中灌輸高度的使命感。因此，我很高興地向大家報告，我們的NASCAR Heat 5 產品備受期待的更新（名為“下一代汽車更新”）已成功完成、準備並隨後上市，可在Xbox、PlayStation 和PC 平台上訪問。此次升級大大超出了我們的預期，迄今為止已售出超過 34,000 台。這一表現表明它有可能在年底成為我們最暢銷的 DLC，凸顯了我們的 NASCAR 產品系列的持久吸引力，儘管產品線自然老化。

Additionally, we released an update for our Nintendo Switch product, NASCAR Rivals, which introduced local multiplayer functionality. This enhancement is expected to foster greater social interaction and renew the interest in the product.

此外，我們還發布了 Nintendo Switch 產品 NASCAR Rivals 的更新，引入了本地多人遊戲功能。這一增強預計將促進更多的社交互動並重新激發人們對產品的興趣。

During this period, I have undertaken a comprehensive assessment of the company's current standing, competitive positioning, and areas for enhancement. Our forward-looking opportunities are intrinsically influenced by our financial resources and operational capacity in the present context. A pragmatic reevaluation of the business was solely needed and critical to our future.

在此期間，我對公司目前的地位、競爭定位和需要改進的地方進行了全面的評估。我們的前瞻性機會本質上受到我們當前背景下的財務資源和運營能力的影響。對業務進行務實的重新評估是我們唯一需要的，而且對我們的未來至關重要。

Consequently, we have prioritized the cultivation of commercial consideration across all sectors and functions. Our decision-making process now rigorously assesses projects and investments based on realistically term potential, even when the returns are non-direct and contribute to revenue generation indirectly.

因此，我們優先考慮在所有部門和職能部門培養商業考慮。我們的決策流程現在根據實際潛力嚴格評估項目和投資，即使回報是非直接的並間接有助於創收。

Activities seemed unlikely to sustain themselves all propel our business forward are subject to detailed scrutiny and possible termination. Our media objective centers on resolving our cash flow needs, mitigating expenditure and rightsizing the organization for sustainable operations. We are actively exploring diverse avenues to chart our path forward and have retained positive outlook on implementing the necessary adjustment.

所有推動我們業務向前發展的活動似乎不太可能持續下去，但都受到詳細審查並可能終止。我們的媒體目標集中在解決現金流需求、減少支出和調整組織規模以實現可持續運營。我們正在積極探索各種途徑來規劃我們的前進道路，並對實施必要的調整保持積極的看法。

Notably, initiatives such as those centered around our rFactor 2 technology present a pathway to sustainability and expansion. Recent collaborations, including the F1 Arcade project with Kindred and our planned proprietary Le Mans game unveiled in conjunction with the ACO at the Centennial Le Mans event on June 5 showcase a multi-revenue opportunity that capitalizes on our strength without overextending our resources.

值得注意的是，諸如以 rFactor 2 技術為中心的舉措為可持續發展和擴張提供了途徑。最近的合作，包括與Kindred 合作的F1 Arcade 項目，以及我們計劃在6 月5 日的勒芒百年紀念活動上與ACO 聯合推出的專有勒芒遊戲，展示了一個多收入機會，既可以利用我們的實力，又不會過度擴展我們的資源。

Our ongoing investment in versatile multi-format technology geared towards mainstream gamers, particularly, those playing in their living room and game consoles remains part of our future roadmap. And we are investigating a variety of paths to accelerate our arrival into that market. We believe this will open the door to exciting massive-deal titles that diverge from traditional Motorsport licenses.

我們對面向主流遊戲玩家（特別是在客廳和遊戲機中玩遊戲的玩家）的多功能多格式技術的持續投資仍然是我們未來路線圖的一部分。我們正在研究各種途徑來加速我們進入該市場。我們相信，這將為與傳統賽車運動許可證不同的令人興奮的大規模交易遊戲打開大門。

This approach will be complemented by our ownership of both the game and the ecosystem, a synergy that we anticipate can position us to provide a superior experience for our consumer. Through RaceControl, previously known under its code name Competition System, this platform is designed to empower us to cater to a broader spectrum of players, taking accessible, professional, and sociable racing experiences, a segment we believe to be underserved. This broadening of our reach is something I expect to forge ahead with over the coming month.

我們對遊戲和生態系統的所有權將補充這種方法，我們預計這種協同作用可以使我們為消費者提供卓越的體驗。通過RaceControl（之前的代號為“競賽系統”），該平台旨在使我們能夠迎合更廣泛的玩家群體，獲得可訪問、專業和社交的賽車體驗，而我們認為這是一個尚未得到充分服務的細分市場。我希望在下個月繼續擴大我們的業務範圍。

Now, I invite Jason Potter, Chief Financial Officer of Motorsport Games, to delve into the financial results for the second quarter of 2023.

現在，我邀請 Motorsport Games 首席財務官 Jason Potter 深入探討 2023 年第二季度的財務業績。

Thank you, Stephen, and good evening, everyone. As in previous earning calls, I won't be offering any forward-looking guidance today. Instead, I will focus on providing an update on our financial results and highlights from the second-quarter 2023.

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 2023 年第二季度財務業績和亮點的最新情況。

Revenues were 1.7 million, down 0.3 million or 13% when compared to the same period in the prior year. Less favorable pricing and volume of digital and mobile game sales, lower revenues earned through the development of simulation platform to a third party, and lower revenues earned through esports sponsorships. The primary drivers to the reduction in revenues, which were partially offset by lower sales allowances and reserves when compared to Q2 2022.

收入為170萬，比去年同期減少30萬，降幅13%。數字遊戲和手機遊戲銷售的定價和銷量較差，通過向第三方開發模擬平台獲得的收入較低，以及通過電子競技贊助獲得的收入較低。收入減少的主要驅動因素，與 2022 年第二季度相比，銷售補貼和儲備金的減少部分抵消了收入減少的影響。

Net loss for the quarter was 8.2 million, an increase of 0.7 million when compared to the same period in the prior year. The change in net loss was primarily driven by a noncash asset impairment loss of 4 million recognized in the second quarter of 2023, which was partially offset by a 2.2 million reduction in marketing development, general and administrative expenses, as well as a 0.4 million in fair value gains and change in the carrying value of certain liability classified warrants, as well as favorable foreign currency gain.

該季度淨虧損為820萬美元，較上年同期增加70萬美元。淨虧損的變化主要是由於2023 年第二季度確認的400 萬美元非現金資產減值損失造成的，該損失被營銷開發、一般和管理費用減少220 萬美元以及40 萬美元的財務費用減少部分抵消。公允價值收益和某些負債分類認股權證的賬面價值變化，以及有利的外幣收益。

Consequently, EPS in the quarter was negative $3.02 compared to negative $6.34 for the same period in the prior year. Reduction in overhead spend was in part driven by actions taken under the company's 2022 restructuring program, which has helped us lower overhead costs by approximately 4.9 million on an annualized basis as of June 30, 2023, exceeding our target of 4 million in annualized savings by the end of December 31, 2023. These savings were achieved through changes in global headcount, reducing certain overhead expenditure, and improvements in our internal processing.

因此，本季度每股收益為負 3.02 美元，而上年同期為負 6.34 美元。管理費用的減少在一定程度上是由於公司2022 年重組計劃所採取的行動所推動的，截至2023 年6 月30 日，該計劃已幫助我們將年化管理成本降低了約490 萬美元，超出了我們每年節省400 萬美元的目標。截至 2023 年 12 月 31 日。這些節省是通過全球員工人數的變化、減少某些間接費用以及改進我們的內部流程來實現的。

We are reporting an adjusted EBITDA loss of 2.7 million for the second-quarter '23 compared to adjusted EBITDA loss of 6 million for the same period in the prior year. The improvements in adjusted EBITDA loss and the same as we've discussed in respect to the change in the loss to the period and comparative quarter.

我們報告 2023 年第二季度調整後 EBITDA 損失為 270 萬美元，而上年同期調整後 EBITDA 損失為 600 萬美元。調整後 EBITDA 損失的改善與我們討論的同期和比較季度損失變化相同。

On a year-to-date basis, revenues were 3.5 million, down 1.9 million when compared to the same period in the prior year, primarily due to the same factors discussed in respect to the quarterly performance. Net loss was 13.5 million for the year-to-date period compared to 23.5 million in the same period in the prior year. Year-to-date adjusted EBITDA was 6.9 million, down from 11.5 million for the same period last year.

年初至今，收入為 350 萬美元，比上年同期減少 190 萬美元，主要是由於與季度業績討論相同的因素。今年迄今淨虧損為 1,350 萬歐元，而上年同期淨虧損為 2,350 萬歐元。年初至今調整後 EBITDA 為 690 萬美元，低於去年同期的 1150 萬美元。

Non-cash asset impairment losses of 4 million and 9.4 million for the six months ended June 30, 2023, and '22 respectively. Account for a significant portion of the difference between net loss and adjusted EBITDA for the respective periods. EPS loss for the year-to-date period was $5.42 compared to $19.32 for the same period in the prior year.

截至2023年6月30日和2022年6月30日止六個月的非現金資產減值損失分別為400萬和940萬。佔各期間淨虧損和調整後 EBITDA 之間差異的很大一部分。今年迄今的每股收益虧損為 5.42 美元，而上年同期為 19.32 美元。

Moving on to liquidity, this continues to be a key area of focus for the company. As of June 30, 2023, we had cash and cash equivalents of 2 million down from 5.8 million as of March 31, 2023. Net cash used in operations for the six months ended June 30, 2023, is approximately 8.9 million, representing an average monthly net cash burn of 1.5 million, down 0.1 million when compared to the average monthly cash burn of 1.6 million through the year ended December 31, 2022. And on July 31, 2023, our cash and cash equivalents position reduced by 0.6 million to 1.4 million, which we believe is insufficient to fund our operations for the remainder of 2023, and that additional funding will be required in order to continue operation.

轉向流動性，這仍然是公司關注的一個關鍵領域。截至2023年6月30日，我們的現金和現金等價物為200萬現金和現金等價物，較截至2023年3月31日的580萬減少。截至2023年6月30日的六個月運營中使用的淨現金約為890萬，相當於平均水平截至2022 年12 月31 日止年度，每月淨現金消耗量為150 萬美元，比每月平均現金消耗量160 萬美元減少10 萬美元。截至2023 年7 月31 日，我們的現金和現金等價物頭寸減少60 萬美元，至1.4我們認為這不足以為我們 2023 年剩餘時間的運營提供資金，並且需要額外資金才能繼續運營。

In order to address this liquidity shortfall, we are effectively exploring several options, including, but not limited to additional funding in the form of potential equity and/or debt financing arrangements or similar transactions. Strategic alternatives for its business including, but not limited to, the sale or licensing of our assets. And three, asset-cost reduction and restructuring initiatives.

為了解決這種流動性短缺問題，我們正在有效地探索多種選擇，包括但不限於以潛在股權和/或債務融資安排或類似交易的形式提供額外資金。其業務的戰略選擇包括但不限於出售或許可我們的資產。第三，資產成本降低和重組舉措。

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

感謝大家抽出寶貴的時間。現在，我將把電話轉回給斯蒂芬，讓他作結束語。

In closing, I would like to thank our shareholders for their ongoing support. Thank you for joining us today. And now, let's go to questions. Operator?

最後，我要感謝我們的股東一直以來的支持。感謝您今天加入我們。現在，讓我們開始提問。操作員？

Thank you. (Operator Instructions) Jason Tilchen, Canaccord Genuity.

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

Great, good afternoon, thanks for taking the question. I was hoping that maybe you could spend a minute just talking about as you're building out the racing franchise. In particular, the Le Mans game that's coming out this December, what are some of the characteristics that you think are going to differentiate either from a future perspective, from a visual perspective, these titles from some of the other racing games that are out there made by other publishers? Thanks.

很好，下午好，感謝您提出問題。我希望您能花一點時間談談您正在建立的賽車系列。特別是今年 12 月即將推出的勒芒比賽，您認為從未來的角度、從視覺的角度來看，這些遊戲與其他一些賽車遊戲的區別是什麼？其他出版商製作的？謝謝。

Hi Jason, it's Stephen here. Very good question, one that I'm excited to answer. I think when you're looking at the racing market, typically, developers look at the on-track action by which I mean driving a vehicle around a track or through an environment, and of course, that's a key focus.

嗨，傑森，我是斯蒂芬。這是一個很好的問題，我很高興能回答這個問題。我認為，當你關注賽車市場時，開發人員通常會關注賽道上的動作，我的意思是駕駛車輛繞賽道或穿過環境，當然，這是一個關鍵焦點。

But in order for us to, in my mind, positively differentiate, we're looking at what are the motivations for people to play racing games? And how do you positively differentiate in that market?

但在我看來，為了讓我們能夠積極差異化，我們正在研究人們玩賽車遊戲的動機是什麼？您如何在該市場中發揮積極的差異化作用？

So one of the weaknesses of racing games today is the inability of developers to get a number of people on track at the same time to participate in a race. In the real world, your motivation is having a career, working your way up the ladder. In the living room or home, in a normal kind of course of life, there are many challenges that get in the way of gaming. And racing requires everybody to be very prepared, and very ready at a very specific time when the race begins, that is a problem for mass-market appeal.

因此，當今賽車遊戲的弱點之一是開發者無法讓許多人同時在賽道上參加比賽。在現實世界中，你的動機是擁有一份職業，努力向上。在客廳或家中，在正常的生活過程中，有許多阻礙遊戲的挑戰。比賽要求每個人都做好充分的準備，並且在比賽開始的特定時間做好準備，這是大眾市場吸引力的一個問題。

So Le Mans, in particular, tackles this by allowing people to participate in a team with friends at a time that is convenient to them. Because if you think about one of the key distinctions of Endurance racing at Le Mans in particular, it's about 18 fighting against others using a single vehicle, so there's more than one driver in the car and it entails driver swaps. We think that's a very, very interesting mechanic that enables groups of friends to play together in a racing game on the same team, whereas most racing games demand that everybody competes against one another. It's dog eat dog, only one person can win.

因此，勒芒特別解決了這個問題，允許人們在方便的時間與朋友一起參加車隊。因為如果你考慮一下勒芒耐力賽的主要區別之一，那就是，一輛車上有 18 名車手與其他車手進行較量，因此賽車上有不止一名車手，這就需要更換車手。我們認為這是一種非常非常有趣的機制，它可以讓一群朋友在同一個團隊中一起玩賽車遊戲，而大多數賽車遊戲要求每個人都相互競爭。這是一場狗咬狗的比賽，只有一個人能贏。

In our world, in Le Mans in Endurance racing, a team of friends, or acquaintances, or partners, or whatever it maybe, whatever the combination ends up being can succeed together. That is a hugely positive distinction in the racing market, and one that sells well with Endurance racing. It's really about the team ethics, if you think about a lot of positively received gains today like future titles, all sorts of things.

在我們的世界裡，在勒芒耐力賽中，一群朋友、熟人、合作夥伴，或者無論什麼，無論最終的組合如何，都可以共同取得成功。這在賽車市場上是一個非常積極的區別，並且在耐力賽中很暢銷。如果你想想今天獲得的許多積極的收穫，比如未來的冠軍，各種各樣的事情，這實際上是關於團隊道德的。

You play in a squad, you play in a team, that does not exist in typical rating games. Le Mans will change that, and it also involves an async mode that enables people to take turns and pass the baton between one another.

你在一個小隊中比賽，你在一個團隊中比賽，這在典型的評級遊戲中是不存在的。勒芒將改變這一點，它還涉及一種異步模式，使人們能夠輪流並在彼此之間傳遞接力棒。

So we think it's a very distinct offering that our consumers have started to pick up on. We haven't really gone into any detail about this. So far, we started teasing it, but the reception is very positive. And we think it's a major differentiator, and actually position us accordingly.

因此，我們認為這是一個非常獨特的產品，我們的消費者已經開始接受。我們還沒有真正深入討論這一點。到目前為止，我們已經開始嘲笑它，但反響非常積極。我們認為這是一個主要的差異化因素，並實際上對我們進行了相應的定位。

Great, that's really helpful. And then, just one going back to the cash position. The cash burn, I think in Q1, you mentioned was about 1.5 million, and then, just doing the math here, the monthly burn in July was about 600,000.

太棒了，這真的很有幫助。然後，只需回到現金位置即可。我想你提到的第一季度的現金消耗約為 150 萬，然後，在這裡算一下，7 月份的每月消耗約為 60 萬。

Can you just talk about if there were any decisions that have been made given where the cash position is? And that, why the burden was slower in July? Or what should we expect for the next few months relative to the timing of a potential decision on what path to go down in terms of resolving liquidity situation? Thank you.

您能否談談考慮到現金狀況是否做出了任何決定？那麼，為什麼七月份的負擔較慢呢？或者，相對於解決流動性狀況的潛在決定的時機，我們應該對未來幾個月有何預期？謝謝。

Hi Jason, this is Jason. Thanks for the question. So you're right, the cash burn or net cash burn from operations is a little bit lower in July when compared to the other two months in the quarter. And we did see, on average, just for the three months, net cash burn from operation has dropped about 1.1 million a quarter versus the 1.5 million for the year-to-date.

嗨傑森，我是傑森。謝謝你的提問。所以你是對的，與本季度的其他兩個月相比，7 月份運營的現金消耗或淨現金消耗略低。我們確實看到，平均而言，僅在三個月內，每季度運營產生的淨現金消耗就下降了約 110 萬美元，而今年迄今為止為 150 萬美元。

As you are probably aware, there is always some lumpiness to our cash flows in terms of timing of minimum-royalty-guaranteed payments and the like. And so, what you see in Q2 is some of those payments falling due earlier in the quarter, which drove up a slightly higher cash burn within a particular month. And we're now, gaining some upside from that in July as things started to smooth out.

您可能知道，在最低特許權使用費保證付款的時間等方面，我們的現金流總是有些不穩定。因此，您在第二季度看到的是本季度早些時候到期的一些付款，這導致特定月份內的現金消耗略有增加。現在，隨著事情開始變得順利，我們從 7 月份的情況中獲得了一些好處。

Also, I think you're seeing the benefit from -- we're starting to see some of the benefit from the 2022 Restructuring Program where we've realized about $4.9 million in annualized savings. And so, that's starting to filter through into our cash balance position, and so yeah, we're starting to see a little bit of upside for that.

此外，我認為您已經看到了 2022 年重組計劃帶來的一些好處，我們已經實現了約 490 萬美元的年度節省。因此，這開始滲透到我們的現金餘額狀況中，所以是的，我們開始看到一點好處。

Great. Thank you very much.

偉大的。非常感謝。

Michael Kupinski, Noble Capital Markets.

邁克爾·庫平斯基（Michael Kupinski），諾布爾資本市場。

Thank you. I have a couple of questions here. In terms of Heat 5 and the launch of the DLC in the quarter, was that something that was planned? Because I didn't seem to have that on my radar screen, and that was something that was a surprise to me.

謝謝。我在這裡有幾個問題。就《熱火 5》和本季度 DLC 的推出而言，這是計劃好的事情嗎？因為我的雷達屏幕上似乎沒有這個，這讓我感到驚訝。

Can you talk a little bit about that decision and mainly, because I thought that NASCAR Ignition was going to replace Heat 5, and that you were no longer going to be investing in that particular game given the product cycle? Can you just give us -- give me your thoughts about that? And then, also, what the implications are for NASCAR Ignition given that you've launched the DLC for Heat 5?

你能談談這個決定嗎？主要是因為我認為《NASCAR Ignition》將取代《Heat 5》，而且考慮到產品週期，你將不再投資該特定遊戲？你能告訴我們你對此的想法嗎？另外，鑑於你們推出了 Heat 5 的 DLC，這對 NASCAR Ignition 有何影響？

Hi Michael, it's Stephen. Good question. The NASCAR Heat 5 DLC, the Next Gen Car Update was actually partially completed back in the tail-end of last year. So on my return to the company in April, a few short months ago, I was looking through what we had in the product pipeline, and it struck me that a near-complete content update for a well-regarded if legacy title of NASCAR Heat 5, lots of people still claim NASCAR Heat 5.

嗨，邁克爾，我是斯蒂芬。好問題。 NASCAR Heat 5 DLC（下一代汽車更新）實際上早在去年年底就已部分完成。因此，在我四月回到公司時，也就是短短幾個月前，我正在查看我們的產品管道中的內容，令我震驚的是，對於備受推崇的舊版NASCAR Heat 來說，內容更新已接近完成5、很多人仍然聲稱 NASCAR Heat 5。

It was near complete, and we took the decision to continue development of that content update, which didn't tax us a great deal. It just required some additional coordination across the business to push that live. And we also took that decision in consultation with NASCAR who were keen to see the back catalog remain vibrant. And it didn't take a huge amount of effort or resource to finish up, but it made sense to complete it and put it into the hands of gamers.

它已接近完成，我們決定繼續開發該內容更新，這並沒有給我們帶來太大的負擔。只需要在整個業務範圍內進行一些額外的協調即可推動這一目標的實現。我們還與 NASCAR 協商後做出了這一決定，他們渴望看到舊目錄保持活力。完成它並沒有花費大量的精力或資源，但完成它並將其交到遊戲玩家手中是有意義的。

And that was very well received, as you heard me make a comment to the huge uptake. So there's a clear affinity and love in the NASCAR gaming community for the Heat franchise. It's felt a decent reputation, and that piece of DLC was a good addition by Motorsport Games, I'm sure.

這很受歡迎，正如你聽到我對巨大的採用率發表的評論一樣。因此，NASCAR 遊戲社區對熱火隊有著明顯的親和力和熱愛。它享有不錯的聲譽，而且我敢肯定，Motorsport Games 對該 DLC 進行了很好的補充。

But following that, NASCAR Ignition, yes, was designed to take over the mantle of the Heat franchise. And we don't see the two conflicting with one another right now. Players have remained very true to the Heat games. People still pick up those titles, and it made sense to serve a title that is very vibrant with a piece of DLC that was near ready.

但在那之後，NASCAR Ignition，是的，旨在接管熱火隊的衣缽。我們現在沒有看到兩者相互衝突。球員們對熱火隊的比賽仍然非常忠誠。人們仍然會選擇這些遊戲，並且通過即將準備好的 DLC 來提供充滿活力的遊戲是有意義的。

Seems like a brilliant move. Can you talk a little bit about -- going back to your cash burn, is it possible that you can provide a roadmap for investors when you expect to swing towards cash flow positive? I mean, I know that there's a number of titles that are coming out, but give us your thoughts of when that might be?

看起來是一個絕妙的舉動。您能否談談——回到您的現金消耗問題，當您期望現金流轉向正值時，您是否可以為投資者提供路線圖？我的意思是，我知道有很多遊戲即將問世，但請告訴我們您的想法是什麼時候？

Hi, Michael. Yes, that's something that we're undergoing at the moment doing a broad review across the business, having a look which titles are in production, how they are into development, the cash needs of those products, the viability, and the likely return on revenues. That is something that we've been undertaking for a while now, and I think we're very close to understanding what our potential opportunities are. That needs to be discussed further internally with our Board, and for the benefit of the business, we'll provide a number of options to the Board before we progress.

嗨，邁克爾。是的，我們目前正在對整個業務進行廣泛的審查，看看哪些遊戲正在製作中，它們的開發情況如何，這些產品的現金需求，可行性以及可能的回報收入。這是我們已經進行了一段時間的事情，我認為我們已經非常接近了解我們的潛在機會是什麼。這需要與我們的董事會進行進一步的內部討論，為了業務的利益，我們將在取得進展之前向董事會提供一些選擇。

But I think, I've certainly returned with a great deal of optimism. And I think, there are a number of assets and opportunities in licenses and products that are in development. And when I mentioned products, it's not just actually the core game products. We also have other services that have been in development as well that we're keen to see go live, because they will be complementary to the -- any games and experiences that we launched.

但我認為，我確實帶著極大的樂觀回來了。我認為，正在開發的許可證和產品中有許多資產和機會。當我提到產品時，它實際上不僅僅是核心遊戲產品。我們還有其他正在開發的服務，我們渴望看到它們上線，因為它們將與我們推出的任何遊戲和體驗相補充。

When I talk about the ecosystem, it's about not just delivering the game, but having an ecosystem that enables players to come together, gel, enjoy the entertainment experience. With a view to the business, further monetizing that audience and promoting DLC and driving additional revenue from our gaming audience. All of that is coming to fruition, and we're just going to be very careful and select about where we go next, with the idea that the business becomes sustainable and viable for the future. So we tread lightly, but I think in this next quarter, we'll have resolved all of those outstanding conversations, and we'll very firmly know where we're headed and what the upside is.

當我談論生態系統時，我指的不僅僅是交付遊戲，而是擁有一個讓玩家能夠聚集在一起、凝聚在一起、享受娛樂體驗的生態系統。著眼於業務，進一步通過該受眾群體貨幣化並推廣 DLC，並從我們的遊戲受眾群體中獲得額外收入。所有這些都即將實現，我們將非常謹慎地選擇下一步的發展方向，並相信業務在未來將變得可持續且可行。因此，我們謹慎行事，但我認為在下個季度，我們將解決所有這些懸而未決的對話，我們將非常堅定地知道我們的前進方向以及好處是什麼。

Going back to my previous question, are there things in the vault, so to speak, that you can launch, that you're contemplating or moving forward with? That maybe, that outside of the Le Mans and other titles that you're planning on publishing, that there are other things like Heat 5 with the DLC that you might be able to launch inexpensively and generate a favorable return on?

回到我之前的問題，可以說，金庫中是否有您可以啟動、正在考慮或繼續推進的東西？也許，除了勒芒和您計劃發布的其他遊戲之外，還有其他類似《Heat 5》及其 DLC 的遊戲，您可以以較低的成本發布並產生良好的回報？

I think there are a number of opportunities. I mean, quite clearly, nothing comes for free, and we have to be very considerate about where we invest our resources going forward the products that we do and allow it to continue. We're going to undergo a comprehensive review on those products, and I think we've got a good idea of where we need to be in the near, medium and long term. And my view is, there are many opportunities.

我認為有很多機會。我的意思是，很明顯，沒有什麼是免費的，我們必須非常考慮我們將資源投入到我們所做的產品中，並允許它繼續下去。我們將對這些產品進行全面審查，我認為我們已經清楚地了解了近期、中期和長期的目標。我的觀點是，有很多機會。

I made reference to doing mass market, arriving on consoles, being in the living room. We're ultimately trying to provide an entertainment experience. I mean people believe that racing games are typically the preservable PC niche, and I think there's a very vibrant market there. But we know that if we can open the doors and reach a mainstream gamer interested in vehicles, cars, driving, let alone racing, we will stand a chance of reaching additional consumers and driving additional revenues.

我提到了做大眾市場、到達遊戲機、在客廳。我們最終試圖提供娛樂體驗。我的意思是，人們認為賽車遊戲通常是 PC 領域的一個可以保留的市場，而且我認為那裡有一個非常活躍的市場。但我們知道，如果我們能夠打開大門並吸引對車輛、汽車、駕駛（更不用說賽車）感興趣的主流遊戲玩家，我們將有機會吸引更多消費者並帶來額外收入。

So there are many opportunities there, we just need to settle on which of those we're going to go after. But I am interested in near-term projects. I don't wish to invest significantly in things that we're going to take years to come to fruition. I think there are some exciting opportunities there that we need to validate.

所以那裡有很多機會，我們只需要確定我們要追求哪些。但我對近期項目感興趣。我不想在需要數年時間才能實現的事情上投入大量資金。我認為我們需要驗證一些令人興奮的機會。

Thank you. That's all I have.

謝謝。這就是我的全部。

Thank you. There are no further questions at this time. I'd like to turn the call back to management for closing comments.

謝謝。目前沒有其他問題。我想將電話轉回管理層以徵求結束意見。

Thank you very much for everybody's time today. Much appreciate the questions. And I thank you very much for your participation in this call. Thank you.

非常感謝大家今天抽出時間。非常感謝您提出的問題。我非常感謝您參與本次電話會議。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。