Motorsport Games Inc.

Thank you for standing by and welcome to the Motorsport Games Inc. Second Quarter 2021 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand over to Ashley DeSimone of Integrated Corporate Relations. Please go ahead.

Thank you, Operator, and welcome everyone to Motorsport Games' second quarter 2021 conference call and webcast. On today's call are Dimitri Cusco, Motorsport Games Executive Chairman and Chief Executive Officer, Steven Hood, President, and John New, Chief Financial Officer. By now, everyone should have access to the company's second quarter earnings press release, filed today after market close. This is available on the investor relations section of Motorsport Games' website at www.motorsportgames.com. During the course of this call, management may make forward-looking statements within the meeting of the 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 alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to today's press release and the company's filings with the SEC, including the company's most recent annual report on Form 10-K and the company's quarterly report on Form 10-Q. for the period ended June 30th, 2021, for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. In today's conference call, we will refer to certain non-GAAP financial measures, such as adjusted EBITDA, as we discuss the second quarter 2021 financial results. You will find a reconciliation of these non-GAAP measures to our actual GAAP results as well as to other related disclosures in the press release issued earlier today. And now I'd like to turn the call over to Dimitri Kosko, Chief Executive Officer of Motorsport Games. Dimitri?

Thank you, and hello, everyone. It's a pleasure to be speaking with you as we report another successful quarter of making meaningful progress towards our set-forward vision, as well as some exciting updates for Motorsport Games. please check out our investor video posted on the landing page of our website, which contains some very appealing visuals from our new, highly anticipated NASCAR 21 ignition game. We hope these quarterly videos continue to give you the sense of Motorsport Games' progress towards our vision of being the household brand name for racing games and esports. Before I dive into details, I want to say a quick thank you to our shareholders and racing fans who have been patiently waiting for the release of our upcoming NASCAR 21 title. Thank you for taking the time to learn our story and be part of this amazing journey. For all our new shareholders, let me quickly reiterate who we are and what drives us. We are an award-winning, global-leading racing game developer, publisher, and an esport ecosystem provider of official motorsport racing series throughout the world. Our mission at Motorsport Games is to create and spread the joy through racing games, starting with our unique access to our parent companies, approximately 60 million monthly active users, and beyond. We set out to achieve this mission by developing and publishing racing games and immersive esport experiences for the world's most iconic races and brands who trust us with their valuable IP, and often in a long-term partnership like the one we have with NASCAR, and, as of recently, IndyCar. These are just examples of several iconic brands we work with today, with others including ACO, which represents 24-hour Le Mans, and British Touring Car Championship. As we acquire more IP, we plan to leverage these iconic brands to build out our core business. We're now operating on global scale, across six offices, with more than 147 team members as a quarter end in US, UK, Russia, Australia, and the Netherlands. Our talented team of developers and artists are relentlessly collaborating to bring innovative experiences to our racing games and esports. This global studio presence is one of many differentiating factors as we continue to seek additional IP opportunities to expand our fan base and continue to grow as leaders across virtual racing days around the world. We continue to assemble strategic assets that we believe we need to elevate us from being a single franchise company to a multi-franchise game publisher, developer, and an esport ecosystem provider. With that being said, we're so excited that earlier today we made an official announcement that our newly built NASCAR franchise video game, NASCAR 21 Ignition, will be released on October 28th. This date nicely coincides with the exciting finale of the NASCAR season, while also allowing us some added time to make additional improvements to the game. It is extremely important to us that we bring the best possible product to our racing fans, and we're confident our fans will enjoy this gaming experience. Digital pre-sales for the games are launching as early as tomorrow, which will provide insight into pent-up demand that is expressed by our fan base on multiple social channels. From where we stand today, we believe market demand for this game is very strong. We of course communicate regularly with our distributors, and recently our largest distributor provided an estimate which is projected to put the day one order of NASCAR 21 physical discs as the largest order ever received by Motorsport Games for its published games. NASCAR 21 Ignition is also a perfect example of Motorsport Games' primary growth strategy, which is to create racing games that we could scale by expanding our portfolio of brands into multiple franchises with multiple games each, paired with a dedicated eSport offering. Starting with our NASCAR partnership, we have a chance to launch games across more platforms, including Nintendo Switch. This is the first time we're expanding to the Switch platform, and an upcoming NASCAR Switch game has just been submitted to LotCheck. We're incredibly excited for you to see the results once the game is released in Q4 of this year, shortly after we release NASCAR 21 Ignition. In the same vein, in July 2021, we have successfully signed a long-term partnership to release official IndyCar Series games and esports events, introducing a brand new community of passionate racing fans to our motorsport games family of products. With this partnership, we're able to add an open-wheel racing series to our portfolio, thus expanding the racing disciplines to create additional motorsport video games for all fans alike. Our plan is to deliver a high-quality, realistic, and exciting IndyCar racing experience that fans have long been waiting for across a variety of platforms, devices, and formats. The debut IndyCar title is expected to launch in 2023 on Xbox and PlayStation consoles, as well as PC. We expect that the IndyCar Series eSport event could kick off as early as fourth quarter of this year to start generating demand for the upcoming IndyCar title. We're also evolving the CarCraft brand into a fully developed racing game. Right now, the game sits as an early release. Every month, starting September, we will be updating and adding new features to the game that we hope will in time result in a go-to kart racing game. KartKraft is the perfect stepping stone into the world of virtual motorsport, much like the real world, where recognizable racing stars started their careers in karting. Moving on to the topic of previous acquisitions and their integrations, since completing the acquisition of Studio 397, and acquiring their hyper-realistic technology platform, RFactor 2, we have been able to accelerate the integration of this technology into the new NASCAR 21 ignition game and our upcoming Le Mans and BTCC titles. Furthermore, this technology has provided us the ability to launch eSport offerings prior to the release of any game titles and even generate game sales revenue from the sale of such content using the RFactor 2 platform. We cannot understate the growing importance of esports to our business, which has funneled new users across product base and driven higher fan engagement and new potential revenue streams from sponsorships. We continue to dedicate ourselves to being the leading player in racing esports scene, and we believe that our combination of world-class events around unmatched iconic IP and effective user engagement with our fans will help us get there. A few weeks ago, we saw a finale of NASCAR Ultimate Summer Showdown Esports Series, where we saw tremendous turnout from racers from all over the world participating. And we also launched Formula Pro Series on our Factor 2 with world-class esport team participation from the likes of Red Bull Racing, Mercedes-AMG Petronas, Williams, Team Redline, Wolves, Team Fordzilla, and many more. We're looking forward to the future of esport events later this year, including official events for BTCC, Le Mans, and now IndyCar. And with the Artifactor 2 technology, we intend to release an IndyCar game pack that will allow our fans not only to participate in an upcoming official IndyCar esport event, but also test drive the IndyCar experience while we work on the official dedicated game. And now Stephen is going to say a few words about our product development.