Hello, everyone, and thank you for joining the H.C. Wainwright 27th Annual Global Investment Conference. My name is Scott Buck and I'm an H.C. Wainwright Research Analyst covering the technology sector. Today, I have the pleasure of introducing our presenters. I'd like to welcome Stephen Hood, Chief Executive Officer, and Stanley Beckley, Chief Financial Officer of Motorsport Games, Inc., a racing game developer, publisher, and eSports ecosystem provider. Gentlemen, welcome. Thank you very much, Scott. Appreciate it. Thank you. Motorsport Games, we're a video game developer, as you will have heard, but I think quite uniquely, we're not just the video game developer. We actually produce the games, we publish them, we build a backend platform which enables us to really bring the customers together and funnel them into our racing products. That platform in the background also enables us to build additional services and perks that provide the company with the opportunity to upsell subscription services and other things that we can monetize in order to really control the complete experience from beginning to end. The reason that we've opted to do this, a great effort from the company, is to really control the quality of experience and the level of accessibility in the sim racing segment. In the sim racing segment, some of the products are somewhat antiquated. They could be hard to find, hard to utilize, lots of different third parties, apps, and content in order to try and build the experience that players want. We wanted to simplify this, so we decided to build the entirety of the ecosystem ourselves. Motorsport Games is a publicly listed company. The ticker is MSGM. We're on the NASDAQ. The company totals 41 staff as of today. Most of those are developers, engineers, developers building the video games that we build. Over the last couple of years, since I've been back in the business as CEO with Stanley, a CFO alongside me, we've been really leading a turnaround for the business. We've always seen enormous potential in what the company is capable of. Today, we have a development arm called Studio 397. These are boutique developers producing very well-loved products, great technology. What we've tried to combine more recently is great entertainment value with their amazing technology. We host multiple products. The key ones are rFactor 2, which is racing simulation, and our more recent product, Le Mans Ultimate. The backend service that I mentioned earlier is called Race Control. It has over 250,000 accounts on that backend service right now. All of those people we can reach directly in order to funnel them into our products. Le Mans Ultimate, we're very proud of this title. It recently came out of something called Early Access, which is like the beta phase for a product. It's been on the market for about 18 months now, but just went to version 1.0 as of last month in July. It's done incredibly well for us. It's an officially licensed title. It's also a joint venture with the group behind the famous 24-hour race that takes place in France every year in June, the 24 Hours of Le Mans. The ACO is the group behind that. They've been enormously supportive, listened to our ideas for innovation in the racing space, and we've decided to concentrate on Le Mans Ultimate and make this our pinnacle product and put all of our time and energy into this. The two key reasons: one, the actual experience of endurance racing, not just the Le Mans 24-hour race, but it's supported by the FIA World Endurance Championship. It has a championship that runs alongside it, where all the manufacturers like Ferrari and Porsche and Aston Martin enter their cars. Quite interestingly, they enter cars in different categories. All of these different categories of cars compete on the track at the same time, from hypercars, which are very futuristic looking, very fast things, to LMP2 prototypes, kind of a mid-ground, and then really kind of poster cars, your Porsche 911 GT3s, Ferrari 296. They all race on track at the same time. You can have about 62 cars in some of the races. The races range from 4- 24 hours, so it's a true endurance event. It's not just one driver that competes for the entirety of time. In the real world, you have multiple drivers per team, and they drive different legs of the race. That, for us, was quite a unique approach to gaming. In most racing games, you find a group of friends that get together, they jump onto the latest racing game, and when they get to the track, they're actually enemies. Only one person can win. It makes no real sense in today's kind of collaborative squad-based gameplay that you find in many popular video games. We've taken that theme into Le Mans Ultimate. You can join up with friends and play online in the same car, taking turns. You can play against the AI and just play it offline, taking turns as and when you want. The save file gets uploaded to the cloud. You can pick it up and continue. Your buddy can drive the next leg of the race at a later date. It's all built around fitting this racing in as and when it works for you. It's really this squad-based concept that we're bringing to racing that seems to have been delivered to great effect. It's very popular. The game is constantly updated. When we update the game with new content, new features, like new cars and new tracks, we heavily monetize these elements as well. The game has sold over 240,000 units since it launched. We don't have much of a marketing budget at all behind it, but we have cultivated a great following. There's also a very strong attach rate for all of the content that we do push into the product as well. It's resonating with customers and doing incredibly well for the business. Le Mans Ultimate timeline. In here, what's really important for us is the fact that it is an officially licensed product. It's a sports title. Unlike most sports titles, like a Madden or a FIFA back in the day, or even a Formula One game that are heavily tied to the real sport, when the major fixtures or the races come about, you see a peak of interest. We see the same as it follows the World Endurance Championship with our game. Actually, and crucially, the most interest that's generated from the product is when we put out our own updates. People are very, very tied into the product experience. They're looking forward to advances in the product. They're very happy to receive new content, pay for new content. We're breaking records all of the time with the concurrent online player base. Even though we saw a peak at Le Mans in June, we've actually beaten those records with our own updates. We're very heartened by the fact that people seem very attached to the product. It's doing incredibly well for us every time we put out new updates, and we're doing this regularly. The RaceControl platform. This is a backend service. We sell our games on the PC platform. Video gaming on the PC space is big business now. You'll see the likes of AMD and Nvidia making huge profits from the gaming market because they sell very expensive video cards that enable gamers to play these high-end racing experiences and other gaming experiences. Gamers spend, you know, $250- $2,000 on the latest graphics cards. People buy these things to play these kind of games on their PC. It's really where the high-end gaming market is. We're very firmly entrenched in that market as of today. RaceControl is an additional service in the background. Our games on PC are sold through a Steam platform run by a company called Valve. It's the world's biggest PC platform. All of the gamers are in this location. They have an app on their drive that enables them to purchase the latest games and participate in those gaming experiences. RaceControl is wholly owned by Motorsport Games. RaceControl is really the funnel for players jumping online and then looking for a race to participate in. It interacts directly with the game, and it's very transparent to the end user. It simplifies the overall experience. That's how we've managed to get over 240,000 sales of the product alone, and over 250,000 people subscribed to RaceControl, playing our rFactor 2 and Le Mans Ultimate games. We see this as a huge opportunity for further growth. RaceControl introduced a subscription mechanic that enabled players to access additional perks, such as specific races or specific championships. It's a very light touch in-game at the moment. Since December, so there's only been seven to eight months of development of this particular subscription feature, we have nearly $1 million worth of annual recurring revenue from the RaceControl platform. This is in addition to the revenue that we generate by selling the base game and additional content, such as tracks and cars. Now we have a subscription tier, and people seem to be taking to this very well because it brings new perks and experiences to a game that they seemingly already love and are bringing their friends into. rFactor 2 is really the legacy product from Studio 397. rFactor 2 is a very stereotypical racing simulation, very high-end. It's all about the technology. It's all about buying the latest steering wheel and the pedals and all of the gear. It's a big investment for users, and they seem to love it. It's been around for many years. We use this as the platform to then develop Le Mans Ultimate, our current latest game, and make that more accessible. rFactor 2 is still in the market, still does very well, and has enabled us to really build on what was already regarded as highly valuable and highly intoxicating racing technology. F1 Arcade, you may have heard of F1 Arcade from a company called Kindred Concepts. They have a deal with Liberty Media, the group behind Formula 1. Obviously, Formula 1 is big business. I've been around this license many times in my 30-year gaming career. We're very proud to supply all of the racing technology and the software for the simulation used by F1 Arcade in all of their venues. I believe they have about six venues around the U.S., right now, a couple in the U.K., more opening all the time. We use this as a showcase of being chosen by Kindred Concepts and Liberty Media to represent Formula 1 with the best racing technology. They do not use the official Formula One game that comes from a company called Codemasters and published and owned by a company called Electronic Arts. They came to Motorsport Games to leverage Studio 397's rFactor 2 technology, which has since moved on in Le Mans Ultimate, to great effect. It's highly scalable. We can make a driving or a racing simulation for a complete novice through to a high-end eSports driver or a professional driver. That breadth of capability is simply down to the fact that we built this technology, we understand it, we own all of it, and we know how to leverage it to great effect. We also see this as a potential stepping stone to a broader relationship with F1 Arcade as they grow, and maybe even a broader relationship with Liberty Media around the F1 gaming license when it becomes available a couple of years from now. The technology, I don't want to go into it too deeply, but we're very proud of the fact that our high-end developers, the scientists in white coats, the best physics, the best tire model, which doesn't mean a great deal to the average guy or girl gamer, but you can really feel the difference. For example, driving a Ferrari hypercar versus a Porsche hypercar, they're not just visually different, they just sound different, they feel very different to drive. It's that attention to detail that really resonates with the end user who isn't short for choice when it comes to racing games. Our experiences stand head and shoulders above the competition, hence Liberty and Kindred Concepts coming to us, because we've got the attention to detail here. We have the backend service, which means we can control the end-to-end user experience. We have our own graphics engine. We build our own art content. We have the entire pipeline. That gives us enormous flexibility to deliver any kind of product that we should wish to. Right now, we're focused entirely on Le Mans Ultimate. It's doing incredibly well, but we think it's a stepping stone to something else in the future. Stanley, if you want to give a financial update. Thank you, Stephen. This slide shows MSDM' s financial timeline from when it went public in January of 2021 through our last quarterly earnings report filed from 10-Q for Q2 2025. Prior to the last few quarters, and with the exception of Q4 2023, when we sold our NASCAR license, the company has incurred significant operating losses, which were as high as $16 million in Q1 2022 and a negative EPS of $12.97 during that quarter. Adjusted EBITDA had also been historically negative, with the exception of the last few quarters, rising to as high as negative $6.6 million in Q3 2022. Over the last couple of years, management has made a concerted effort to trim operating costs by implementing a cost-cutting plan and focusing on driving revenues and growth related to our Le Mans Ultimate and rFactor 2 titles, as well as our subscription offerings via RaceControl. For the most recent quarter, Q2 2025, we reported a net income of $4.2 million and revenues that were 37.7% higher than the same period in the prior year. Despite the fact that we no longer generate revenues from our NASCAR games, the license we sold in 2023 and the title we no longer sell starting in 2025, EPS was $0.82 for Q2 2025. It's important to note that even after adjusting for non-recurring and other operating income of $1.1 million, Q2 2025 was the first quarter in the company's history that income from operations was generated. We also reported a net income of $1 million in Q1 of 2025 as well, and EPS of $0.33. As we list the liquidity for the six months ended June 30th, 2025, MSGM generated an average positive monthly cash flow from operations of $46,000 per month, or $0.3 million for the six months, which included $0.8 million from Wesco Insurance Company settlement and $500,000 from a settlement agreement with HC2 Holdings. Even after adjusting for non-recurring cash inflows during the first six months of 2025, our monthly cash burn was still less than $0.1 million, which is significantly lower than the monthly cash burn of $0.2 million during the first six months of 2024, and even lower than the negative monthly cash burn of $1.5 million incurred during the first six months of 2023. We currently also have no debt on our balance sheet. As of June 2025, we had $150,000 in purchase commitment liabilities that were paid off in early June. Stephen, as we list the management team, it's myself, Stephen, who is out of the U.K. Stephen has more than 30 years of experience in the gaming industry and previously worked on the F1 franchise title with Codemasters. I'm out of the Miami office with over 20 years of experience as a CPA and a Chartered Accountant. I started my career with KPMG, where I was a Senior Manager in the audit practice. I spent the first nine years of my career there. I was also the Corporate Controller for over three and a half years with a private equity firm called H.I.G. Capital out of the Miami office. This is our current Board of Directors: John Delta, an experienced executive spanning decades of experience; Andrew Jacobson, a digital media sales executive with over 20 years of experience; Nafsanna, who was previously Head of Legal at Codemasters, and he's highly experienced and is considered an expert in the video games industry; Paul Huang is a new U.S. board member. He was appointed to the board after the Pimax deal. The Pimax deal was a $2.5 million private offering that Pimax, who is a virtual reality headset manufacturer, bought into, based on the company's stock price, plus a 33% premium. We netted $2.35 million in net proceeds to the company after that offering. Paul Huang is currently a Professor of Robotics at the University of Delaware, and he also serves as an advisor to the Pimax team. This slide gives us a brief snapshot of the growing market size of the racing video games market or industry, which was valued at over $5 billion in 2024 and is expected to grow to over $6.9 billion by 2032. The racing simulator market specifically, which we currently operate in, is forecast to grow at 15.6% during a similar period. These valuations are all reflected in the fact that Electronic Arts acquired Codemasters a few years ago, the developers of the F1 video game title, for $1.2 billion, just a few years ago. Thanks, Stanley. The snapshot that we're trying to provide here is a significant business turnaround. We have a new management team in place, an excellent Board of Directors. We've taken aggressive steps to curtail the company's spending and actually deploy resources in the appropriate area, get the company back on track. A long story short is, what is a video game developer that's not producing great video games that people want to play and spend their money on? I think Le Mans Ultimate is a great example of that turnaround. It's been done very efficiently, very quickly. It showcases what we can do with the technology when it is deployed appropriately. Owning the entire end-to-end experience gives us enormous control and leverage over the customer experience. We're using that to great effect. We're very happy with the approach that RaceControl, the backend service, is taking and how it's been received by consumers. Now we're at the point where there is a great positive reception to the company, to its products. Most interestingly, customers are asking when Le Mans Ultimate, which is currently only available on the PC platform, it's done nearly a quarter of a million units, is coming to gaming consoles. We're proactively working with a chosen partner on the first stage of that porting process to bring Le Mans Ultimate to Microsoft Xbox and PlayStation consoles. It's a much larger audience. There isn't a direct rival in that space. We think it's going to do phenomenally well. We're hopeful of that being formally greenlit in the coming weeks after a technical test has passed. Beyond this, we also know that we could deploy the technology for another driving or racing experience. Those discussions are taking place internally at the moment as to what we should do and when a product could come to market. Of course, we're not forgetting the F1 Arcade and social experiences that we're involved in with F1 Arcade and Liberty Media. There could be a much larger opportunity there. We've been very careful about what we're doing over the last couple of years to get the wheel turning again, but we're very excited about where we could go next. Thank you very much. Stephen and Stanley, thank you very much for your introduction to Motorsport Games. Everyone on the line, please enjoy the conference and have a great day.