Motorsport Games Inc (MSGM) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to motorsports game Quarter 2024 earnings call. As a reminder, today's conference is being recorded.

感謝您的支持，歡迎參加賽車運動遊戲 2024 年季度財報電話會議。提醒一下，今天的會議正在錄製中。

I would now like to turn the conference over to Ben for us at Turner from motor sport games. Please go ahead.

我現在想把會議交給特納賽車運動比賽的本。請繼續。

Thank you, and welcome to NEXT book gains First Quarter 2024 Earnings Conference Call and Webcast. On today's call is multiple games, Chief Executive Officer, Stephen Hoge, and Interim Chief Financial Officer, and Stan. Exactly By now, everyone should have access to the company's first quarter 2024 earnings press release filed today after market close. This is available on the Investor Relations section of virtual games website at w. w. w. dot motorsport games.com.

謝謝，歡迎收看下一本《2024 年第一季財報電話會議及網路廣播》。今天的電話會議由多家遊戲公司的執行長 Stephen Hoge 和臨時財務長 Stan 參加。到目前為止，每個人都應該可以閱讀該公司今天收盤後發布的 2024 年第一季財報新聞稿。您可在虛擬遊戲網站 w 的投資者關係部分取得此資訊。 w。 w。點賽車運動 games.com。

During the course of this call, management may make forward-looking statements within the meaning of 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 Company's filings with the SEC, including its most recent quarterly report on Form 10 Q for the quarter ended March 31st, 2024. For a detailed discussion on certain risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statement made today.

在本次電話會議期間，管理階層可能會做出美國聯邦證券法意義內的前瞻性陳述。這些陳述是基於管理階層目前的預期和信念，涉及可能導致實際結果與這些前瞻性陳述中描述的結果有重大差異的風險和不確定性。除法律要求外，本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，無論是由於新資訊、未來事件或其他原因。請參閱今天的新聞稿和公司向 SEC 提交的文件，包括截至 2024 年 3 月 31 日的季度的最新 10 Q 表格季度報告。有關可能導致實際結果與今天所做的任何前瞻性聲明中明示或暗示的結果存在重大差異的某些風險的詳細討論。

In today's conference call, we will refer to certain non-GAAP financial measures such as adjusted EBITDA as we discuss the first quarter 2024 financial results. You'll find a reconciliation of these non-GAAP measures to the 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 2024 年第一季財務業績時將提及某些非 GAAP 財務指標，例如調整後 EBITDA。您將在今天稍早發布的新聞稿中找到這些非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準以及其他相關揭露的調整表。

And now I'd like to turn the call to Stephen Holt, Chief Executive Officer of Mexico games. Stephen?

現在我想把電話轉給墨西哥遊戲公司執行長史蒂芬霍特。史蒂芬？

Thank you, everyone, for joining this conference call today. I'm very pleased to be here and to talk to you about our achievements in Q1 2024. During the last call, I spoke about the release of the month ultimate in February, but we can now share greater insight into the financial and business impact of this important product release. Thanks to the tireless work of the team at Studio 3.7. And with the help of our partners that the ACO the organization behind the 24 hours of Lamont, I'm pleased to announce that public reception to and that the sales of the game exceeded our business forecast. Given the turnaround time from project start to release was less than 12 months, we can be very happy with the initial positive results to our first internally developed game launch with a difficult release of our Masco commission title over two years ago. A great deal has changed throughout the Company since my return in April of last year, and I'm incredibly proud of the energy and determination of everyone within the business, putting together to deliver and continue expansion of this great game. We have proven and we have what it takes to bring a quality product to market at a great reception.

感謝大家參加今天的電話會議。我很高興來到這裡與您談論我們在 2024 年第一季的成就。在上次電話會議中，我談到了 2 月的終極版發布，但我們現在可以更深入地了解這項重要產品發布的財務和業務影響。感謝 Studio 3.7 團隊的不懈努力。在我們的合作夥伴 ACO（《拉蒙特 24 小時》背後的組織）的幫助下，我很高興地宣布，遊戲的公眾接受度和銷售量超出了我們的業務預測。鑑於從專案啟動到發布的周轉時間不到 12 個月，我們對我們的首款內部開發遊戲的初步積極成果感到非常滿意，兩年前我們的 Masco 委託遊戲艱難地發布了。自從我去年四月回歸以來，整個公司發生了很大的變化，我對公司內每個人的精力和決心感到無比自豪，他們齊心協力交付並繼續擴展這款偉大的遊戲。我們已經證明，我們有能力將優質產品推向市場並受到熱烈歡迎。

Much of this is down to a deep understanding of the technology employed level among ultimate technology we own as well as a vibrancy and determination across the organization to do what we are laser focused on delivering innovative entertainment.

這在很大程度上要歸功於對我們擁有的終極技術中所採用的技術水平的深刻理解，以及整個組織的活力和決心，以實現我們專注於提供創新娛樂的目標。

This was an important milestone for our business and sets us up for the future. Lumen ultimate is based on a licensed series featuring desirable racing pedigree sports cars series undergoing a timely Renaissance with incredible manufacturing entries into the real world sport automotive giants such as Ferrari, Porsche and Cadillac and competing at the top end of the sports, all of whom have been incredibly supportive June, the creation of this game. It is our belief that this game now offers a potential springboard from which to launch future downloadable content or DLC, as well as development of a console port with the right partner to address what we know to be a much larger game audience for the title with the right focus and ongoing development, we believe we could have a valuable gaming franchise ahead of us, one that leverages the technology services and know-how we have within our business development of lumen. Ultimate continues the pace. We are crafting a game into a unique and exciting proposition to a wide range of players in June this year, the month of the favorable to 24 hours of Le Monde race. We anticipate a unique marketing window will be further amplified by the visibility the ACO are expected to provide with racing fans around the world watching the greatest endurance events. We expect our game will feature throughout the week-long Festival of racing. At the same time, we plan to update the game with a free uptake. So below the line between Solo and online play in a world of infinite choice and countless apps, games and entertainment services vying for consumer attention. We intend to update them on maintenance with the cooperative feature not typically found within racing games. Our cohort features designed to enable up to three friends as many drivers as there are 13 realized for the month to play two chapters of a race taking tends to drive the car in an ever-evolving story against a teams. We believe this feature will enable a wider section of racing games to enjoy the unique and payment of insurance agency without the burden of being online at the same time with their friends. We all have busy lives and Lamont ultimate will fit into that so that you can play when you want and still be part of the conversation with friends. Additionally, we are investigating and developing a number of concepts to enhance our ecosystem through the use of AI or artificial intelligence. Once the technology sector is awash with stories of cost saving opportunities through the use of AI. We already run an efficient operation. And as such, we have been exploring how a I might benefit of storytelling and representation of the people within the sport we recreate today. The games industry uses basic A. parameters and decision making to drive cars around the track and avoid obstacles. But we are working on bringing the virtual drivers up to a whole new level of realism enjoys its complete skills and dynamic decision-making abilities that will bring players closer to real life than ever before. Players will find themselves more interest in the story that runs deep through motorsport, and they will find themselves subject to virtual media attention QAD's and reported on by a reporters and commentators. All of this will be enhanced by our ecosystem, which puts as much focused on the pre and post race as the lease itself. Much of our future development or complementary service business team is built around our vision for accessible yet highly realistic racing experiences, experiences that can be enjoyed with friends players feel part of the racing story we also plan to introduce new content to begin for the current game contains the tracks and cars from the prior season, the centenary of the mine last year we know from our player base. They want to see the game updated to include the changes for the season. We plan on releasing a steady flow of content through the second part of this year. The initial piece of this new content will be free as will other select items. A thank you to the community that has given us great support to purchase fair gain during early access, we expect premium paid content will then be made available shortly thereafter, which we believe will offset the cost of ongoing development and broaden the appeal and uniqueness of our officially licensed title. Furthermore, we are bringing a subscription service to both our Factor two and among alternate products, leveraging our risk control platform, which has over 100,000 registered users and playing within our ecosystem. A gradual ramp of subscriptions is expected as we build the value proposition players looking to get even more entertainment out of this exciting experience, although we believe the free component of the online waste control offering will continue. It is up to us to convince players of the value presented by a subscription service with the gains technologies, online service and our plans for them on virtual one of the biggest recent e-sports events in the world, we believe we finally have the pieces in place to see and derive greater revenues from complementary services built around our core games. Aside from the success of our recent game release, we continue to make progress towards business efficiently and an improvement of our balance sheet. We recently announced the settlement of the previous license dispute liability with ARCTOCA. Tokyo Limited, exclusive promoter of the DTCC. which is the British touring car championships for significantly reduced figure. We also entered into a new licensing deal with them, which we expect will lead to further releases of official PTCC. downloadable content for our Factor two. This deal is beneficial to both parties, and we are grateful to our partners that we put historical changes chip, and we are pleased to be working with. Again, this was a positive step, one of many undertaken over the last several months. Additionally, last week, we sold the assets relating to traction our previous motorsport and racing games community content platform to a third party for $250,000 in total consideration. As previously announced, we had closed its outlet in Q three 2023. And the sale of this asset brings more focus for the Company on creating high-quality leasing gains along with additional working capital. We retain the rights to use the channels for future among virtual e-sports events to ensure that they receive the reach they deserve when award winning competition.

這是我們業務的一個重要里程碑，為我們的未來奠定了基礎。Lumen Ultimate 基於授權系列，具有令人嚮往的賽車血統跑車系列，該系列經歷了及時的複興，以令人難以置信的製造方式進入了現實世界的運動汽車巨頭，如法拉利、保時捷和凱迪拉克，並在運動的最高端競爭，所有這些June 都非常支持這款遊戲的創作。我們相信，這款遊戲現在提供了一個潛在的跳板，可以從中推出未來的可下載內容或DLC，並與合適的合作夥伴一起開發控制台端口，以滿足我們所知的該遊戲的更大遊戲受眾群體的需求。Ultimate繼續前進的步伐。今年 6 月，也就是 Le Monde 24 小時耐力賽的有利月份，我們正在將一款遊戲打造成一款獨特且令人興奮的遊戲，供廣大玩家體驗。我們預計，ACO 將為世界各地觀看最偉大耐力賽事的賽車迷提供更高的知名度，進一步擴大獨特的行銷窗口。我們預計我們的遊戲將貫穿整個為期一周的賽車節。同時，我們計劃以免費方式更新遊戲。因此，在一個充滿無限選擇和無數應用程式、遊戲和娛樂服務爭奪消費者註意力的世界中，單人和線上遊戲之間的界線以下。我們打算透過賽車遊戲中不常見的合作功能來更新它們的維護。我們的隊列功能旨在讓多達 3 位朋友（相當於本月實現的 13 名車手）參加一場比賽的兩個章節，傾向於駕駛賽車與一支車隊對抗一個不斷發展的故事。我們相信這項功能將使更廣泛的賽車遊戲能夠享受保險代理的獨特和支付功能，而無需與朋友同時在線的負擔。我們都有忙碌的生活，而 Lamont Ultimate 將融入其中，以便您可以在需要時玩遊戲，同時仍然可以參與與朋友的對話。此外，我們正在研究和開發一些概念，以透過使用人工智慧來增強我們的生態系統。一旦科技產業充斥著透過使用人工智慧節省成本的機會的故事。我們已經進行了高效率的營運。因此，我們一直在探索如何從我們今天重新創造的運動中講故事和代表人物中受益。遊戲產業使用基本參數和決策來駕駛汽車繞著賽道行駛並避開障礙物。但我們正在努力將虛擬駕駛員的真實感提升到一個全新的水平，享受其完整的技能和動態決策能力，這將使玩家比以往更接近現實生活。玩家會發現自己對貫穿賽車運動的故事更加感興趣，他們會發現自己受到虛擬媒體 QAD 的關注並受到記者和評論員的報導。所有這一切都將透過我們的生態系統得到增強，該生態系統與租賃本身一樣關注賽前和賽後。我們未來的開發或補充服務業務團隊的大部分內容都是圍繞我們的願景而建立的，即提供可訪問且高度逼真的賽車體驗，這些體驗可以與朋友一起享受，玩家感覺自己是賽車故事的一部分，我們還計劃為當前遊戲引入新內容包含上一季的賽道和賽車，以及我們從玩家群中了解到的去年礦井百年紀念。他們希望看到遊戲更新以包含本賽季的變化。我們計劃在今年下半年發布穩定的內容流。這個新內容的第一部分將免費，其他精選項目也是如此。感謝社區對我們在早期訪問期間購買公平收益的大力支持，我們預計此後不久將提供優質付費內容，我們相信這將抵消持續開發的成本並擴大遊戲的吸引力和獨特性我們的官方授權標題。此外，我們也利用我們的風險控制平台為我們的因子二和替代產品提供訂閱服務，該平台擁有超過 10 萬名註冊用戶，並在我們的生態系統中發揮作用。儘管我們相信線上廢棄物控制產品的免費部分將繼續存在，但隨著我們建立價值主張玩家希望從這種令人興奮的體驗中獲得更多娛樂，預計訂閱量將逐漸增加。我們有責任讓玩家相信訂閱服務所帶來的價值，包括增益技術、線上服務以及我們在虛擬世界上近期最大的電子競技賽事之一上為他們提供的計劃，我們相信我們終於成功了以便從圍繞我們的核心遊戲建構的補充服務中獲得更大的收入。除了我們最近發布的遊戲成功之外，我們還繼續在高效業務和改善資產負債表方面取得進展。我們最近宣布與 ARCTOCA 解決先前的授權糾紛責任。Tokyo Limited，DTCC 的獨家發起人。其中英國房車錦標賽的數字明顯減少。我們還與他們達成了一項新的許可協議，我們預計這將導致官方 PTCC 的進一步發布。我們的第二個因素的可下載內容。這筆交易對雙方都有利，我們感謝我們的合作夥伴為我們放置了歷史變革的晶片，我們很高興與之合作。這又是一個積極的步驟，也是過去幾個月採取的眾多步驟之一。此外，上週，我們將與先前的賽車運動和賽車遊戲社群內容平台牽引相關的資產以總價 25 萬美元的價格出售給第三方。正如先前宣布的，我們已於 2023 年第三季關閉其門市。該資產的出售使公司更加專注於創造高品質的租賃收益以及額外的營運資金。我們保留未來使用虛擬電競賽事管道的權利，以確保他們在獲獎比賽中獲得應有的影響力。

You can.

你可以。

In the past, I've made a number of references to what we believe to be a somewhat fragmented simulation landscape where established game developers bring products to market, which are being kept current and made more accessible by smaller oftentimes and teams with additional content and services from new cars to trucks, learning aids, news and discussion platforms, promoting a center community and even cost setups, the latter enabling players to focus on driving and less.

過去，我曾多次提到我們認為有些分散的模擬環境，成熟的遊戲開發人員將產品推向市場，這些產品保持最新狀態，並通過較小的經常性和具有附加內容和團隊的團隊更容易訪問。

So on the engineering element of motorsports, we are now gearing up to provide access to our ecosystem and games to official partnerships, integrating supplies of services and content. We ourselves do not intend to devote resources to building. This should provide a cleaner, more acceptable environment for customers and bring additional revenue into reach. But perhaps more importantly, it will enable us to elevate the experience across our games. Just recently, we signed cockpit up specialist Coach, Dave Academy as a preferred supplier of alternative setups from them on ultimate offer directly from within the game. We expect other service providers to come on board. Once this partnership is fully rolled out in the summer, these partnerships could provide another source of revenue for the business and elevate our ecosystem to be best in class. We're innovators within our space, join forces, much sport games, Studio 3.7 to make sim racing stronger tomorrow in time, we would expect to bring online and marketplace for new content and services that are considered noncompetitive rather additive to our business objectives in the years.

因此，在賽車運動的工程元素方面，我們現在正準備向官方合作夥伴提供我們的生態系統和遊戲的存取權限，整合服務和內容的供應。我們自己並不打算投入資源來建設。這將為客戶提供一個更清潔、更容易接受的環境，並帶來額外的收入。但也許更重要的是，它將使我們能夠提升遊戲體驗。就在最近，我們與駕駛艙專家教練 Dave Academy 簽約，作為他們的替代設置的首選供應商，直接從遊戲內提供最終報價。我們希望其他服務提供者也加入進來。一旦這種合作關係在夏季全面推出，這些合作夥伴關係可以為業務提供另一個收入來源，並將我們的生態系統提升為一流的。我們是我們領域的創新者，聯合起來，很多體育遊戲，Studio 3.7 使模擬賽車明天變得更強大，我們希望將新內容和服務引入在線和市場，這些內容和服務被認為是非競爭性的，而不是對我們的業務目標的補充。

Since I returned to the company to a business, which at times struggled with identity and purpose, we have made tremendous progress. We have strategically repositioned the Company around choosing IT and our best development team, enhanced focus eradicated unnecessary spending and put in place cost control measures all whilst resolving certain outstanding liabilities relating to our prior licenses, we have launched a successful game, a partnership with Amazon arcade and Kindred concepts that results in recurring license revenue for our technology and expertise and believe we have several potential near-term revenue opportunities that are additive to our core focus, which we anticipate coming online over the course of 2024. It has not been easy, but it has been rewarding for us all.

自從我回到公司，我們的企業有時會在身份和目標上掙扎，但我們取得了巨大的進步。我們圍繞著選擇IT 和我們最好的開發團隊對公司進行了策略性重新定位，加強了重點，消除了不必要的支出，並採取了成本控制措施，同時解決了與我們之前的許可相關的某些未償債務，我們推出了一款成功的遊戲，與亞馬遜建立了合作夥伴關係街機和Kindred 概念為我們的技術和專業知識帶來了經常性的許可收入，並相信我們有幾個潛在的近期收入機會，這些機會可以補充我們的核心重點，我們預計在2024 年上線。這並不容易，但對我們所有人來說都是有益的。

And we feel there is more to come.

我們覺得還會有更多的事情發生。

Our goal is to be a developer and publisher of highly innovative experiences. We're connected to and in homes by our ecosystem at the heart of which is the rapidly growing voice control service.

我們的目標是成為高度創新體驗的開發商和發行商。我們透過生態系統與家庭相連，其核心是快速成長的語音控制服務。

Now I would like to invite Stanley Blackley, our Interim Chief Financial Officer, to talk about the financial results for the first quarter of 2024.

現在我想邀請我們的臨時財務長史丹利·布萊克利（Stanley Blackley）談談2024年第一季的財務表現。

Thank you, Stephen, and good evening, everyone. As with the previous earnings calls, I will be offering any forward-looking guidance today. Instead, I will focus on providing an update on our financial results and highlights from the first quarter of 2024. So revenues for the quarter was 3 million, up by 1.3 million or 75.2% when compared to the same period in the prior year. Higher digital game sales were the primary drivers for this increase, primarily as a result of the release of Lumin automated game on PC in February 2024. This was further driven by an increase in revenues earned through the development of simulation platforms for third parties. Net loss for the quarter was 1.7 million, an improvement of 3.6 million when compared to the same period in the prior year. The decrease in net loss was primarily driven by higher gross profit and lower operating expenses required to develop and release additional new games. Consequently, EPS for the quarter was negative 0.60 compared to negative 2.23 for the same period in the prior year, we are reporting an adjusted EBITDA loss of $0.4 million for the first quarter of 2024 compared to an adjusted EBITDA loss of 4.2 million for the same period in the prior year. The improvement in adjusted EBITDA loss at the same as those discussed in respect of the change in net income for the period and comparative quarter as well as a decrease in stock-based compensation compared to the prior year period.

謝謝你，史蒂芬，大家晚上好。與之前的財報電話會議一樣，我今天將提供前瞻性指導。相反，我將重點介紹 2024 年第一季的財務表現和亮點的最新情況。因此，該季度的營收為 300 萬美元，比去年同期成長 130 萬美元，即 75.2%。數位遊戲銷量的成長是這一成長的主要驅動力，這主要是由於 2024 年 2 月在 PC 上發布了 Lumin 自動遊戲。透過為第三方開發模擬平台而獲得的收入增加進一步推動了這一成長。本季淨虧損為 170 萬美元，較上年同期減少 360 萬美元。淨虧損的減少主要是由於毛利增加以及開發和發行更多新遊戲所需的營運費用減少所致。因此，本季每股收益為負 0.60，而上年同期為負 2.23，我們報告 2024 年第一季調整後 EBITDA 損失為 40 萬美元，而同期調整後 EBITDA 損失為 420 萬美元上一年期間。調整後 EBITDA 損失的改善與本期和比較季度淨利潤變化以及股票薪酬與上年同期相比減少的情況相同。

As it relates to liquidity continues to be a key area of focus for the Company. Net cash used in operations for the three months ended March 31st, 2024, was approximately 0.5 million, representing an average monthly net cash burn from operations of $0.3 million, down 1.6 million when compared to the average monthly cash burn of 1.9 million for the three months ended March 31st, 2023. As of March 31st, 2024, the Company had cash and cash equivalents of 1.2 million, which we believe is sufficient to fund our operations over the next year and that additional funding will be required in order to continue operations.

由於它與流動性有關，因此仍然是公司關注的關鍵領域。截至2024 年3 月31 日的三個月營運中使用的淨現金約為50 萬美元，相當於每月平均營運現金消耗淨額為30 萬美元，比這三個月的平均每月現金消耗額190 萬美元減少了160 萬美元。截至2024年3月31日，公司擁有現金和現金等價物120萬美元，我們相信這足以為我們明年的營運提供資金，並且需要額外的資金才能繼續營運。

In order to address this liquidity shortfall, we are actively exploring several options, including, but not limited to traditional funding in the form of potential equity and or debt financing arrangements or similar transactions, strategic alternatives for our business, including but not limited to the sale or licensing of our assets in addition to the recent sales of Alaska licenses and traction and further cost reduction and restructuring initiatives.

為了解決這種流動性短缺問題，我們正在積極探索多種選擇，包括但不限於潛在股權和/或債務融資安排或類似交易形式的傳統融資，我們業務的戰略替代方案，包括但不限於除了最近出售阿拉斯加許可證和牽引力以及進一步降低成本和重組措施之外，我們還出售或授權我們的資產。

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

感謝大家抽出寶貴的時間。現在我將把電話轉回給史蒂芬，讓他發表結束語。

Thank you, Stanley, and thank you to those joining us today. We've worked hard over the last 12 months, and the result is an upturn in our Q1 results. We still have some way to go, but I would hope you'd agree. We've turned the page and have positive momentum. We're excited about the remainder of this year and in particular the upcoming the money than in June.

謝謝你，史丹利，也謝謝今天加入我們的人們。我們在過去 12 個月裡努力工作，結果是我們第一季的業績出現了好轉。我們還有很長的路要走，但我希望你能同意。我們已經翻過新的一頁並擁有積極的勢頭。我們對今年剩餘時間感到興奮，尤其是即將到來的六月資金。

Thank you.

謝謝。

At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star and one. If you would like to ask a question.

此時，如果您想提問，請按電話鍵盤上的星號和一。您可以隨時按二號星將自己從佇列中刪除。再說一次，這是明星和一號。如果您想問問題。

We will take our first question from Jason culture with Concord. Your line is open.

我們將從 Jason 文化和 Concord 提出第一個問題。您的線路已開通。

Thanks for taking the question and congrats on the strong launch for month Ultimate. I think one question I had on the remarks you gave there in terms of the console opportunity. I'm curious, what does that sort of look like? Where is that in the priority list. Do you currently have the capabilities in-house to sort of develop the console version of this game and what the timeline may look like for eventually?

感謝您提出問題，並恭喜 Ultimate 月的強勢推出。我想我對你在控制台機會方面發表的言論有一個疑問。我很好奇，那是什麼樣子的？它在優先列表中的哪裡？目前你們內部是否有能力開發該遊戲的主機版本以及最終的時間表是什麼？

I cannot launch.

我無法啟動。

Yes, Stephen, very good question.

是的，史蒂芬，非常好的問題。

I think one of the things that I should be clear in my remarks and earlier are the intent to focus and the development team that we have internally right now in studio, Trina and seven have been the wonderful team that has managed to develop them on ultimate in what I consider to be record time and to really kind of them high quality level.

我認為我在之前的演講中應該明確的一件事是我們的重點意圖，以及我們工作室、Trina 和七號工作室內部的開發團隊是一支出色的團隊，他們成功地在終極版上開發了它們。

And that as much of that has come down to the focus that we have slavishly demanded of everybody in the business.

這很大程度上取決於我們對業務中每個人的盲目要求。

And I think the near-term opportunity around console development is something that I don't think we have to bring internal in its entirety. What I would intend to do and certainly one of the things that we've been discussing with external potential partners is on leveraging some of the resource and the technical know-how that we have internally, but ensure that the heritage is done externally, there are many many partners that we can count can go to in our space right now, they have the ability to bring these products across to console.

我認為圍繞主機開發的近期機會我認為我們不必將其全部引入內部。我打算做的事情，當然也是我們一直在與外部潛在合作夥伴討論的事情之一，就是利用我們內部擁有的一些資源和技術知識，但確保遺產是在外部完成的我們可以算出現在有很多合作夥伴可以進入我們的領域，他們有能力將這些產品帶到控制台。

So I don't want the expense of managing the entire thing internally.

所以我不想要在內部管理整件事的費用。

I think we do it cost effectively and professionally by relying on and utilizing other partners in the industry space and give you some color too.

我認為我們透過依賴和利用行業領域的其他合作夥伴，以成本有效且專業的方式做到這一點，並為您提供一些色彩。

Yes, answer to your question.

是的，回答你的問題。

Yes, absolutely. That makes sense. And another thing you touched on in the prepared remarks, but I saw the opportunity around subscriptions. Just hoping you could maybe dive a little bit more into sort of the differences between what sort of is offered in the free risk control currently and what sort of a subscription would look like and how you sort of view that opportunity both within launch ultimate and then sort of obviously, from a broader perspective as well?

是的，一點沒錯。這就說得通了。您在準備好的演講中提到了另一件事，但我看到了訂閱方面的機會。只是希望您可以更深入地了解當前免費風險控制中提供的類型與訂閱類型之間的差異，以及您如何看待最終發布和隨後發布的機會從更廣泛的角度來看，這也是顯而易見的嗎？

Yes, sure. I mean, one of the commitments we made to the home.

是的，當然。我的意思是，這是我們對家的承諾之一。

The community that are playing Limon smoke right now is that the competitors are price-conscious. I think we've come out of the gates with a very attractive product at a very attractive price point, and that's done wonders for us and certainly So positive community sentiment, one of the things that we're intent on doing is still providing a free gateway into the titles. We are very confident in the experience and entertainment value of them on alternate doesn't make any sense for us to put bricks kind of pay. We will have 100 users. We know that if we start experiencing the momentum, I want to come back for more.

現在玩檸檬煙的社區是競爭對手對價格敏感。我認為我們已經以非常有吸引力的價格推出了一款非常有吸引力的產品，這為我們創造了奇蹟，當然也為我們帶來了積極的社區情緒，我們打算做的一件事仍然是提供免費進入標題。我們對他們的體驗和娛樂價值非常有信心，對我們來說，投入磚頭式的報酬沒有任何意義。我們將有 100 個用戶。我們知道，如果我們開始體驗這種勢頭，我想回來獲得更多。

What we're trying to do is ensure that that value proposition is really attractive to users that want to get even more entertainment value from the product.

我們正在努力做的是確保該價值主張對於想要從產品中獲得更多娛樂價值的用戶來說確實具有吸引力。

And one of the things that we're trying to do is and encourage groups of players to compete and participate together that is really important in the recent space where most of the time only one person can win and friends become enemies. We're encouraging groups of friends to play online which is very common in a young system and popular console and PC games today, but not really in the racing space, we're trying to correct that the one of the upsells is if you decide to take one of these subscription tiers and you willing to participate in this kind of recurring opportunity, we are going to amplify the sense of being part of a team, you will have heard me reference in some of the IT systems that we're looking to employ that tell a story around your participation in the race. These things will become available to you if one of the people in the group decides to subscribe.

我們正在嘗試做的事情之一是鼓勵一群玩家一起競爭和參與，這在最近的空間中非常重要，因為大多數時候只有一個人可以獲勝，朋友會成為敵人。我們鼓勵一群朋友一起玩線上遊戲，這在當今的年輕系統和流行的遊戲機和電腦遊戲中很常見，但在賽車領域並非如此，我們正在嘗試糾正這一點，即如果您決定增加銷售，請採取這些訂閱等級之一並且您願意參與這種重複機會，我們將增強作為團隊一員的感覺，您將在我們正在尋找的一些IT 系統中聽到我的引用利用它來講述您參加比賽的故事。如果群組中的某個人決定訂閱，您將可以使用這些內容。

So we're looking at the bigger resource and pick a pocket of a group rather than necessarily individuals.

因此，我們正在尋找更大的資源，並從一群人而不是個人中掏腰包。

So we're looking at very innovative ways of trying to make the subscription a must-have for people that really want to get more from this experience. But we are not making it a requirement to participate and contribute online if that makes sense.

因此，我們正在尋找非常創新的方法，試圖使訂閱成為那些真正想從這種體驗中獲得更多東西的人的必備品。但如果有意義的話，我們不會將線上參與和貢獻作為一項要求。

Yes, absolutely. That's very helpful. And then one last question I had is in terms of the overall cost savings. Obviously, we saw a significant year-over-year improvement on the net EBITDA loss. I'm just curious sort of in terms of obviously the 2022 restructuring and then some of the moves you made in the second half of last year, just sort of in terms of the full impact of those savings relative to what we saw in Q1. Is there sort of more further improvement in terms of cost savings from here? Or have we sort of reached a point where the made moves that have already been made are now fully sort of fully reflected in the financial performance, why?

是的，一點沒錯。這非常有幫助。我的最後一個問題是總體成本節省。顯然，我們看到 EBITDA 淨虧損年比顯著改善。我只是好奇 2022 年的重組以及去年下半年採取的一些舉措，以及這些節省相對於我們在第一季看到的全部影響。在節省成本方面是否還有進一步的改善？或者我們已經達到了這樣的程度：已經採取的舉措現在已經完全反映在財務業績中，為什麼？

Yes, I think that's what I'm Stanley on. So in the 2022 restructuring program that you mentioned, I think on by the end of 2023. We have fully realized the benefit of that farm. As we disclosed in our Form 10 K, we had on restructuring that impacted on Australian development studios and the unions and employees as well through Q4 of 2023. I think at this point on, you know, for Q1, they're down to a monthly operating cash burn of about $300,000, significantly lower than Q1 of last year. I think at this point is sort of fully realized as the benefits of the restructuring program, but we still continue to. So we'll look at all the ways where we can come in on recycling expenses where it makes sense to do so. And it's feasible without that 100 business Great.

是的，我想這就是我史丹利的觀點。所以你提到的2022年重整計劃，我考慮到2023年底。我們充分認識到那個農場的好處。正如我們在 10 K 表格中所揭露的那樣，我們進行了重組，這對澳洲開發工作室、工會和員工以及 2023 年第四季都有影響。我認為目前第一季的營運現金消耗已降至約 30 萬美元，明顯低於去年第一季。我認為此時重組計劃的好處已經完全實現，但我們仍然會繼續這樣做。因此，我們將研究所有可以在有意義的情況下減少回收費用的方法。沒有那 100 個業務也是可行的。

Thanks very much for taking the questions.

非常感謝您提出問題。

Thank you.

謝謝。

We'll take our next question from Michael Kupinski with NOBLE Capital Markets. Your line is open.

我們將回答 NOBLE Capital Markets 的 Michael Kupinski 提出的下一個問題。您的線路已開通。

Thank you and congratulations on your quarter and your release.

謝謝您並祝賀您的季度和釋放。

Stephen, I was wondering if you can review for me the roadmap again for the release of games DLCs and the subscription service in particular, like what would be what quarters would you be able to kind of identify when those will be available?

史蒂芬，我想知道您是否可以再次為我回顧一下遊戲 DLC 的發布路線圖，特別是訂閱服務，例如您能確定哪些季度將提供這些內容？

So on what are the real key is when the first pizza containerized and we're looking to coincide that with the Lamont event in June. So our next month is not far away at all of that for us is the next stepping stone in the progress and the road map of Lumwana ultimate experience?

因此，真正的關鍵是第一個披薩何時裝箱，我們希望與六月的拉蒙特活動一致。那麼，我們的下個月並不遙遠，這對我們來說是進步的下一個墊腳石，也是 Lumwana 終極體驗的路線圖？

Well, you've heard me reference it has the 2023 season content and they're understandably our audience is saying, well, we're watching the 24 season. Now we want the product to be as current as possible, especially as their new cars and manufacturers come to us for driver changes and whatnot that people are looking to see reflected and the calendar and the circuits and whatnot. So the first piece of content comes online in June, and that's pretty much on every two or three months. We're looking to launch additional content ideally impact. So there may be new car rising in June. After that, we're looking at new circuits. And then we start to update the content to make it more current to the 24 season with the different categories of cars that are online. So for us, and it's really about trying to conclude this year and ensure that by the end of 24, we have the entirety of the 2024 calendar circuit and the cars incorporated in the product. So that really gives us six months to be rolling this out.

好吧，你已經聽我提到它有 2023 年季的內容，我們的觀眾會說，好吧，我們正在看 24 季，這是可以理解的。現在，我們希望產品盡可能最新，特別是當他們的新車和製造商來找我們更換車手以及人們希望看到的反映以及日曆和賽道等等時。因此，第一個內容會在六月上線，幾乎每兩三個月就會上線一次。我們希望推出更多具有理想影響力的內容。所以6月可能還會有新車漲。之後，我們正在研究新的電路。然後我們開始更新內容，使其更符合 24 賽季的線上不同類別的汽車。所以對我們來說，真正的目標是努力結束今年，並確保到 24 年底，我們擁有完整的 2024 年日曆賽道和納入產品中的賽車。所以這確實給了我們六個月的時間來推出這個專案。

And we think there's a great urgency in that arm because we have the entirety of the 23 things, if not as if we came out of that very, very thin game with very limited content.

我們認為該部門非常緊迫，因為我們擁有全部 23 個東西，即使我們不是從內容非常有限的非常非常薄的遊戲中脫穎而出的。

There's an enormous amount of content in terms of attraction in the cars and the variety on offer for established flow of new people coming in over time, but June is when it really starts so on we're about five weeks away from this data capture.

就汽車的吸引力以及隨著時間的推移為已建立的新人流提供的多樣性而言，有大量的內容，但六月是它真正開始的時候，所以我們距離數據採集還有大約五週的時間。

And when do you anticipate the subscription service to be launched as a subscription service, I think is a case of from post-Lehman.

您預計訂閱服務什麼時候會作為訂閱服務推出，我認為是後雷曼兄弟時期的一個例子。

We're starting to talk about it now. It tends to be a very sensitive subject in recent space for some odd reason. And for us, this is not really kind of pushing the OEs to spend unnecessarily. We know that as we end the ecosystem and we put enormous resources into building this ecosystem so that we have to gain. We have the online funnel in voice control and we have the services and the features being plugged into that ecosystem. Experience so that you and your friends can really feel as though you're a part of a story, feel like superstars in this, those features come up, you come in at the expense and we're looking for places to invest in next-gen with U.S. business. Subscription is probably I'm being well coming online around July or August this year.

我們現在開始談論它。由於某些奇怪的原因，它在最近的空間中往往是一個非常敏感的話題。對我們來說，這並沒有真正推動營運商進行不必要的支出。我們知道，當我們結束生態系統時，我們投入大量資源來建立這個生態系統，這樣我們就必須受益。我們擁有語音控制的線上管道，並且我們擁有插入該生態系統的服務和功能。體驗，讓您和您的朋友真正感覺自己是故事的一部分，感覺自己像超級明星，這些功能出現，您付出代價，我們正在尋找下一步投資的地方 - Gen 與美國企業。訂閱可能會在今年七月或八月左右上線。

Yes.

是的。

And then I know there generally is a bell curve to sales. I was just wondering, can you give us a sense how long the tail has been for the sale of months into the second quarter.

然後我知道銷售通常存在鐘形曲線。我只是想知道，您能否讓我們了解第二季度幾個月的銷售尾部有多長。

I will admit Lamons.

我會承認拉蒙斯。

We knew that out of the gate of the tonsil we'd have on originally, we thought it would be a hub services and access title on not an existing franchise from based on a sport that hasn't had a video game in place for many, many years. But actually out of the gate, is it interest stormed away is superb for us. Now we're expecting and understand that those sales did as we head into Limon. So we see that being the next peak and out of anything that drops off over time because we haven't been injecting the product with new content. But what we have been doing is injecting fixes and improvements and occasionally new features that really ramps up next month. So we expect the next spike and that's going to be critical for us in terms of marketing visibility, the player uptake numbers coming into the product and the general Vibe around that experience, that demand is going to be enormously beneficial to us, we expect.

我們知道，從我們最初擁有的扁桃體的大門來看，我們認為這將是一個中心服務和訪問標題，而不是基於一項尚未為許多人提供視頻遊戲的運動的現有特許經營權， 很多年。但實際上走出大門，興趣一掃而空，對我們來說是極好的。現在，當我們進入利蒙時，我們預計並了解這些銷售情況。因此，我們認為這是下一個峰值，並且不會隨著時間的推移而下降，因為我們沒有向產品注入新內容。但我們一直在做的是注入修復和改進，偶爾會有新功能，這些功能將在下個月真正增加。因此，我們預計會出現下一個高峰，這對我們來說至關重要，包括行銷知名度、產品的玩家使用人數以及圍繞該體驗的整體氛圍，我們預計，這種需求將對我們非常有利。

And then my follow-up question, do do racing games to offer themselves to modifications by user content creators. I was just wondering if MOBs are an opportunity for it for for you in English?

然後是我的後續問題，是否製作賽車遊戲以接受用戶內容創作者的修改。我只是想知道 MOB 對你來說是否是一個機會？

Yes, yes, good question.

是的，是的，好問題。

I'm not in the restaurant space for some titles. You can consider to be the lifeblood of Tyson's, but typically the titles that have been dormant for a while by leveraging the developers, they move onto the next shiny thing and filling in the pricing of stand-alone users tend to fill that gap. And there are a lot of talented people out there that need amazing content for legacy titles because we're so new there really isn't any I'm not content from them on ultimate. And that's not a path that we're proactively trying to encourage primarily because it's new, but also you've got to understand we have the R Factor two platform in our portfolio that has a lot of user-generated content, much of which gets sold through the steam stall or free modifications available elsewhere. And that's a fertile ground.

我不在餐廳空間裡觀看某些作品。你可以認為這是泰森的命脈，但通常透過利用開發商，已經休眠了一段時間的遊戲，他們會轉向下一個閃亮的東西，並填補獨立用戶的定價往往會填補這一空白。而且有很多有才華的人需要舊遊戲的精彩內容，因為我們太新了，真的沒有任何我對他們的終極內容不滿意。這並不是我們積極鼓勵的一條道路，主要是因為它是新的，但你也必須明白，我們的產品組合中有R Factor 2 平台，該平台包含大量用戶生成的內容，其中大部分內容都是由用戶產生的。這是一片肥沃的土壤。

It's got a long history of this.

這已經有很長的歷史了。

Newmont ultimate is built to be much cleaner, and I talked about the ecosystem, but really it's about the experience being much cleaner and a fresh for users because in our attitude that's been around for a long, long time, the quality can vary massively massively in terms of the user-generated content. And so on and it probably way positive sell by date to somebody uses. But the momentum, it is a shiny new thing that has a far higher kind of standard and we're really selling a premium product and the experience has to be first rate. And that means we curate that content and all that content right now comes from within on multiple games to catch up.

紐蒙特終極版的設計目標是更加清潔，我談到了生態系統，但實際上，這對用戶來說是更加清潔和新鮮的體驗，因為按照我們長期以來的態度，質量可能會有很大差異就使用者產生的內容而言。依此類推，它可能會以積極的方式出售給某人使用。但勢頭，它是一個閃亮的新事物，具有更高的標準，我們確實銷售優質產品，體驗必須是一流的。這意味著我們會策劃這些內容，而現在所有這些內容都來自多個遊戲的內部，以便趕上。

Well, good luck.

好吧，祝你好運。

Thank you.

謝謝。

Thank you.

謝謝。

No further questions in the queue at this time. I will turn the program back over to Mr. Herbert for any additional remarks.

目前隊列中沒有其他問題。我會將程序轉回給赫伯特先生以徵求補充意見。

Thank you.

謝謝。

And I'd just like to close by I'm offering my thanks for everybody attending this call.

最後我想對參加這次電話會議的所有人表示感謝。

Much appreciated.

非常感激。

We are feeling very positive about what key one that we do see it as a stepping stone. And I'm glad to thank you again for your time.

我們對我們確實將其視為墊腳石的關鍵因素感到非常積極。我很高興再次感謝您抽出時間。

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。

A wonderful day.

美好的一天。