Form 8-K - Current report
November 02 2023 - 3:30PM
Edgar (US Regulatory)
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0001821175
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2023-10-29
2023-10-29
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UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): October
29, 2023
Motorsport
Games Inc.
(Exact
name of registrant as specified in its charter)
Delaware |
|
001-39868 |
|
86-1791356 |
(State
or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(I.R.S.
Employer
Identification No.) |
5972
NE 4th Avenue
Miami,
FL
|
|
33137 |
(Address
of principal executive offices) |
|
(Zip
Code) |
Registrant’s
telephone number, including area code: (305)
507-8799
N/A
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Class
A common stock, $0.0001 par value per share |
|
MSGM |
|
The
Nasdaq
Stock
Market LLC
(The
Nasdaq Capital Market) |
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item
2.05 Costs Associated with Exit or Disposal Activities.
In
light of Motorsport Games Inc. (the “Company”) continuing evaluation of its operations, on October 29, 2023, the Company
determined to implement additional measures to continue to bring down its year-over-year operating expense through a reduction of the
Company’s workforce primarily in Australia and the United Kingdom by approximately 38 employees. The workforce reduction
is expected to impact approximately 40% of the Company’s employees worldwide. The Company expects to record a restructuring charge
related to the workforce reduction, primarily consisting of severance and redundancy costs, in a preliminary estimated range of $0.4
to $0.5 million. The Company expects to recognize and pay out the majority of the restructuring charge in the fourth quarter
of fiscal year 2023. The Company further anticipates the implementation of the workforce reduction, including cash payments, will be
substantially complete by the end of the fourth quarter of fiscal year 2023. The workforce reduction is subject to legal requirements
in Australia and the United Kingdom, which may extend this process beyond the fourth quarter of fiscal year 2023 in certain cases. The
charges that the Company expects to incur are subject to a number of assumptions, including legal requirements in primarily the
Australia and the United Kingdom jurisdictions, and the actual restructuring charge may differ materially from the estimated range disclosed
above.
Forward-Looking
Statements
This
Current Report on Form 8-K contains forward-looking statements within the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such
as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,”
“project,” and similar expressions also identify forward looking statements. Forward-looking statements include statements
regarding estimated costs related to the reduction of the Company’s workforce in Australia, expected savings resulting from such
reduction and other actions, the expected timing of actions, costs and savings related to the reduction of the Company’s workforce
in Australia and other actions, and the fact that the Company will incur substantially all of the costs related to such reduction in
future cash expenditures. These forward-looking statements involve risks and uncertainties, and there are important factors that could
cause the estimated future impact of such costs and savings and the expected timing of such actions to differ materially from the forward-looking
statements, including without limitation, the risk that such costs may be greater than expected and such savings may be lower than expected;
that the reduction of the Company’s workforce in Australia may adversely affect the Company’s ability to attract and retain
qualified personnel and that such reduction may be distracting to employees and management; that such reduction may negatively impact
the Company’s business operations and reputation; and that such reduction may not generate the intended benefits to the extent
or on the timeline as expected. Additional information regarding risks and uncertainties associated with the Company’s business
and a discussion of some of the factors that may cause actual results to differ materially from the results expressed or implied by such
forward-looking statements can be found in the Company’s SEC filings, including the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form
10-K for the fiscal year ended December 31, 2022 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. These forward-looking
statements are based on information as of the date hereof, and the Company assumes No obligation to publicly update or revise its forward-looking
statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
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:
November 2, 2023 |
By:
|
/s/
Stephen Hood |
|
|
Stephen
Hood |
|
|
Chief
Executive Officer and President |
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