Majority of Motorsport Games' Board Resigns Amid Funding Dispute

Motorsport Games, the developer behind NASCAR Rivals, has experienced a significant shake-up in its board of directors. According to an SEC filing, independent board members Peter Moore, Neil Anderson, and Francesco Piovanetti resigned on November 9 due to disagreements with Motorsport Games' majority shareholder, Motorsport Network, regarding proposals for raising funds. Motorsport Network had requested their resignation two days prior. Additionally, Motorsport Network president James Allen stepped down to facilitate the appointment of a new board. As a result, Motorsport Games CEO Dmitry Kozko was left as the sole remaining board member. However, the company's interim CFO, John Delta, resigned to take on one of the independent director roles, and Kozko assumed the interim CFO duties. The departures have rendered Motorsport Games non-compliant with NASDAQ listing standards, which require a majority of the board to be independent directors. The company has 45 days to address this issue. Funding is a pressing concern for Motorsport Games, as it informed investors in August that it lacked the necessary funds to sustain itself for another year and would explore alternative arrangements. The company has been operating at a loss since 2019, with net losses of $33.7 million in 2021, more than double its revenue of $15.1 million. The situation appears to be worsening, with the company's half-year results for 2022 showing net losses of $23.4 million on revenues of just $5.3 million.