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$Motorsport Games (MSGM.US)$ Third Quarter 2024 Business Update
● Net income attributable to Motorsport Games Inc. of $0.01 million in Q3 2024 compared to a net loss of $3.6 million in Q3 2023, an improvement of $3.6 million.
● Net income attributable to Class A common stock was $0.00 per share in Q3 2024, compared to a net loss per share of $1.31 in Q3 2023.
● Released Le Mans Ultimate Innovative Co-op Game Mode, Save & Load System and 2024 Pack 2 DLC in September 2024.
● Raised $1.0 million in gross proceeds from an RDO transaction in July 2024.
Select Financial Highlights for the Three Months Ended September 30, 2024

Revenue for the third quarter of 2024 was $1.8 million compared to $1.7 million for the same period in the prior year, an increase of $0.1 million, or 6.4%. Gross profit was $1.1 million compared to $0.9 million for the same period in the prior year, an increase of $0.2 million, while gross profit margin increased to 60.2% from 50.9%.

Net loss for the third quarter of 2024 was $0.6 million, compared to a net loss of $3.5 million for the same period in the prior year, an improvement of $2.9 million. The decrease in net loss is driven by an increase in other income of $2.0 million, which is primarily comprised of foreign currency gains incurred remeasuring transactions denominated in a currency other than U.S. dollars. Net loss also decreased due to a $0.5 million reduction in operating expenses related to headcount reductions and lower general and administrative expenses during the three months ended September 30, 2024 compared to the same prior year period, as well as a $0.2 million improvement in gross profit. Net income attributable to Class A common stock was $0.00 per share for the third quarter of 2024, compared to a net loss of $1.31 for the same period in the prior year.

Adjusted EBITDA(1) for the third quarter of 2024 was $0.1 million, compared to an Adjusted EBITDA loss(1) of $2.5 million for the same period in the prior year. The decrease in Adjusted EBITDA loss(1) of $2.6 million was primarily due to the same factors driving the previously discussed change in net income for the third quarter of 2024 when compared to the same period in the prior year, as well as a decrease in stock-based compensation compared to the prior year period.
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