Nvidia’s results, Tesla’s European sales, Japan trade - what’s moving markets
Motorsport Games Inc. (NASDAQ:MSGM), a micro-cap gaming developer with a market value of $3.85 million and annual revenue of $8.46 million, has reached a settlement agreement with Technology In Business B.V. and Luminis International B.V., resolving disputes related to the company’s previous acquisition of Studio397 B.V. from Luminis in April 2021. According to InvestingPro data, the company’s stock has declined over 50% in the past year.
Under the terms of the settlement, Motorsport Games will make a one-time payment of $750,000 to Luminis to cover all amounts due, including deferred payments originally stipulated in the Studio397 Purchase Agreement. The payment will be divided into five equal installments starting on March 5, 2025, with subsequent payments due on April 2, May 5, June 4, and July 3 of the same year. This settlement comes as InvestingPro analysis shows the company’s current ratio at 0.49, indicating potential challenges in meeting short-term obligations.
Upon completion of these payments, all outstanding obligations under the Studio397 Purchase Agreement will be considered settled, and Luminis will release its security interest in the pledged stock of Studio397. However, if Motorsport Games fails to make any of the scheduled payments and does not remedy the breach within five days of receiving written notice, Luminis may terminate the agreement.
This settlement concludes the financial responsibilities stemming from Motorsport Games’ acquisition of Studio397 and eliminates the potential transfer of voting rights to Luminis, which was a condition in the event of nonpayment under the original terms.
The information provided in this article is based on a press release statement from Motorsport Games Inc. and reflects the company’s commitment to resolving past disputes and focusing on future business endeavors. For a comprehensive analysis of MSGM’s financial health, valuation, and growth prospects, investors can access detailed Pro Research Reports and additional insights through InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Motorsport Games Inc. has projected increased revenues for the fourth quarter and the full year of 2024. The company anticipates fourth-quarter revenues to range between $1.8 million and $2.1 million, with annual revenues estimated to reach between $8.5 million and $8.8 million. This marks an improvement from the previous year, where fourth-quarter revenues were $1.7 million and annual revenues were $6.9 million. The company attributes this positive trend to the success of its game, Le Mans Ultimate, and a new subscription service on their RaceControl platform. Despite the revenue increase, Motorsport Games expects to report a net loss for the fourth quarter between $2.5 million and $2.9 million, and for the full year between $2.6 million and $3.0 million, which is an improvement from the $14.3 million net loss reported the previous year. CEO Stephen Hood noted the high player enthusiasm for Le Mans Ultimate and mentioned ongoing discussions with potential investors about strategic partnerships, sales, or mergers. Additionally, the company projects a decline in operating expenses, forecasting fourth-quarter expenses between $2.0 million and $2.4 million, and annual expenses ranging from $11.1 million to $11.5 million. These financial results are preliminary and subject to adjustments, with audited results expected later this quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.