Motorsport Games Inc.

Thank you for standing by, and welcome to Motorsport Games, Inc.' 's second quarter 2023 earnings call. As a reminder, this conference is being recorded. At this time, all participants are in listen-only mode, and a question-and-answer session will follow the formal presentation. If anyone needs any assistance during the conference, please press star zero on your telephone keypad. I would now like to turn the conference over to Ben Roster-Turner from Motorsport Games. Please go ahead.

Thank you and welcome to Motorsport Games second quarter 2023 earnings conference call and webcast. On today's call is Motorsport Games Chief Executive Officer Stephen Hood and Chief Financial Officer Jason Potter. By now, everyone should have access to the company's second quarter 2023 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 meaning of the U.S. 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 update or 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 its most recent quarterly report on Form 10Q for the quarter ended June 30, 2023. for a detailed discussion of certain 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 2023 financial results, you will find a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures, as well as other related disclosures in the press release issued earlier today. And now I'd like to turn over the call to Stephen Hood, Chief Executive Officer of Motorsport Games. Stephen.

I extend my gratitude to all the participants for joining this conference call today. The preceding quarter has been marked by an intense period of activity conducted discreetly behind the scenes. Our focus has encompassed a comprehensive evaluation of our projects, processes, corporate culture, and objectives. This endeavor aligns with the strategic direction I emphasized upon my return in April. During the initial phase, we implemented strategic measures aimed at streamlining our satellite studios, accelerating the simplification of our organizational structure per the 2022 restructuring plan, and instilling a heightened sense of purpose throughout the organization. Consequently, I am pleased to report the successful completion, preparation, and subsequent market launch of a highly anticipated update for our NASCAR Heat 5 product, titled the Next Gen Car Update, accessible on Xbox, PlayStation, and PC platform. This update has significantly surpassed our expectations, having sold over 34,000 units to date. This performance suggests the potential for it to become our top-grossing DLC by year's end, underscoring the enduring appeal of our NASCAR product offerings, despite the natural aging of the product line. Additionally, we released an update for our Nintendo Switch product, NASCAR Rivals, which introduced local multiplayer functionality. This enhancement is expected to foster greater social interaction and renew the interest in the product. During this period, I have undertaken a comprehensive assessment of the company's current standing, competitive positioning, and areas for enhancement. Our forward-looking opportunities are intrinsically influenced by our financial resources and operational capacity in the present context. A pragmatic re-evaluation of the business was sorely needed and critical to our future. Consequently, we have prioritized the cultivation of commercial consideration across all sectors and functions. Our decision-making process now rigorously assesses projects and investments based on realistic return potential, even when the returns are non-direct and contribute to revenue generation indirectly. Activities deemed unlikely to sustain themselves or propel our business forward are subject to detailed scrutiny and possible termination. Our immediate objective centers on resolving our cash flow needs, mitigating expenditure and right-sizing the organization for sustainable operations. We are actively exploring diverse avenues to chart our path forward, and I retain a positive outlook on implementing the necessary adjustment. Notably, initiatives such as those centered around our R factor 2 technology present a pathway to sustainability and expansion. Recent collaborations, including the F1 Arcade project with Kindred and our planned proprietary Le Mans game unveiled in conjunction with the ACO at the Centennial Le Mans event on June 5th, showcase a multi-revenue opportunity that capitalizes on our strengths without overextending our resources. Our ongoing investment in versatile multi-format technology geared toward mainstream gamers, particularly those playing in their living room from game consoles, remains part of our future roadmap, and we are investigating a variety of paths to accelerate our arrival into that market. We believe this will open the door to exciting mass appeal titles that diverge from traditional motorsport licenses. This approach will be complemented by our ownership of both the game and the ecosystem, A synergy that we anticipate can position us to provide a superior experience for our consumers. Through Race Control, previously known under its codename Competition System, this platform is designed to empower us to cater to a broader spectrum of players, seeking accessible, professional, and sociable racing experiences, a segment we believe to be underserved. This broadening of our reach is something I expect to forge ahead with over the coming months. Now, I invite Jason Potter, Chief Financial Officer of Motorsport Games, to delve into the financial results for the second quarter of 2023.