Motorsport Games Faces Nasdaq Delisting
Ticker: MSGM · Form: 8-K · Filed: May 23, 2024 · CIK: 1821175
Sentiment: bearish
Topics: delisting, listing-standards, material-agreement
Related Tickers: MSGM
TL;DR
MSGM might get kicked off Nasdaq, big trouble brewing.
AI Summary
On May 17, 2024, Motorsport Games Inc. filed an 8-K to report a material definitive agreement and a notice of delisting or failure to satisfy a continued listing rule. The company is facing potential delisting from the Nasdaq Capital Market due to non-compliance with listing standards.
Why It Matters
This filing indicates significant financial distress and potential loss of trading venue for Motorsport Games Inc., which could impact its ability to raise capital and its stock value.
Risk Assessment
Risk Level: high — The company is facing delisting from Nasdaq, indicating severe non-compliance with listing rules and potential financial instability.
Key Players & Entities
- Motorsport Games Inc. (company) — Registrant
- Nasdaq Capital Market (company) — Exchange where the company is listed
- May 17, 2024 (date) — Date of earliest event reported
FAQ
What is the primary reason for Motorsport Games Inc. filing this 8-K?
Motorsport Games Inc. filed this 8-K to report a material definitive agreement and a notice of delisting or failure to satisfy a continued listing rule.
What exchange is Motorsport Games Inc. at risk of being delisted from?
Motorsport Games Inc. is at risk of being delisted from the Nasdaq Capital Market.
What is the date of the earliest event reported in this filing?
The date of the earliest event reported is May 17, 2024.
What is the company's principal executive office address?
The company's principal executive office is located at 5972 NE 4th Avenue, Miami, FL 33137.
What is the company's telephone number?
The company's telephone number, including area code, is (305) 507-8799.
Filing Stats: 1,944 words · 8 min read · ~6 pages · Grade level 16.6 · Accepted 2024-05-23 06:15:24
Key Financial Figures
- $0.0001 — hich registered Class A common stock, $0.0001 par value per share MSGM The Nasdaq
- $250,000 — of the Company's payment to INDYCAR of $250,000 on the date of the Agreement and $150,0
- $150,000 — 50,000 on the date of the Agreement and $150,000 within 30 days following the date of ex
- $2,500,000 — holders' equity requirement of at least $2,500,000 for continued inclusion on The Nasdaq C
- $498,897 — ompany reported stockholders' equity of $498,897, which was below the NCM Equity Rule's
- $35 million — value of listed securities of at least $35 million or (ii) net income of $500,000 from con
- $500,000 — least $35 million or (ii) net income of $500,000 from continuing operations in the most
- $2.9 million — CAR, LLC in the amount of approximately $2.9 million was settled for $400,000, which resulte
- $400,000 — roximately $2.9 million was settled for $400,000, which resulted in a gain of approximat
- $2.5 m — ich resulted in a gain of approximately $2.5 million, which in turn resulted in a $2.5
- $2.5 million — .5 million, which in turn resulted in a $2.5 million increase to the Company's stockholders'
Filing Documents
- form8-k.htm (8-K) — 53KB
- ex10-1.htm (EX-10.1) — 80KB
- 0001493152-24-021088.txt ( ) — 321KB
- msgm-20240517.xsd (EX-101.SCH) — 3KB
- msgm-20240517_lab.xml (EX-101.LAB) — 33KB
- msgm-20240517_pre.xml (EX-101.PRE) — 22KB
- form8-k_htm.xml (XML) — 4KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Motorsport Games Inc. Date: May 23, 2024 By: /s/ Stephen Hood Stephen Hood Chief Executive Officer and President 4 EXHIBIT INDEX Exhibit No. Description 10.1* Settlement Agreement and License, dated as of May 17, 2024, between the Company and INDYCAR, LLC 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Portions of the exhibit, marked by brackets, have been omitted because the omitted information (i) is not material and (ii) is the type that the Company treats as private or confidential. 5