お知らせ • May 24
Motorsport Games Announces Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard
As disclosed in Motorsport Games Inc.'s (the Company) Current Report on Form 8-K filed by the Company on November 22, 2023, the Nasdaq Stock Market LLC (“Nasdaq”) notified the Company on November 17, 2023 that the Company was not in compliance with the minimum stockholders’ equity requirement of at least $2,500,000 for continued inclusion on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(1). In the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, the Company reported stockholders’ equity of $498,897, which was below the NCM Equity Rule’s stockholders’ equity threshold. Additionally, the Company did not meet either of the alternative Nasdaq continued listing standards under the Nasdaq Listing Rules, which include (i) a market value of listed securities of at least $35 million or (ii) net income of $500,000 from continuing operations in the most recently completed fiscal year or in two of the three most recently completed fiscal years. As disclosed in the Company’s Current Report on Form 8-K filed by the Company on February 6, 2024 (the “February 8-K”), on February 5, 2024, Nasdaq notified the Company that, based on Nasdaq’s review of the Company and the materials submitted by the Company to Nasdaq, Nasdaq’s staff granted to the Company an extension to regain compliance with the NCM Equity Rule until May 15, 2024, subject to the Company’s regaining and evidencing compliance with the NCM Equity Rule by such date. The February 8-K disclosed that, in the event the Company did not regain and evidence compliance with the NCM Equity Rule by May 15, 2024, Nasdaq’s staff would provide written notification to the Company that its securities may be subject to delisting. Further, if the Company fails to evidence compliance upon filing its periodic report for June 30, 2024, with the SEC and Nasdaq the Company may be subject to delisting. At that time, the Company may appeal Nasdaq’s staff’s determination to a Listing Qualifications Panel. The February 8-K disclosed, without any assurances, that, to regain compliance with the NCM Equity Rule, the Company planned to negotiate and implement equity financing transactions and negotiate reductions of its licensing liabilities. To regain compliance with the NCM Equity Rule, the Company entered into the Agreement disclosed and summarized in the Form 8-K. Pursuant to the Agreement, the Company’s liability to INDYCAR, LLC in the amount of approximately $2.9 million was settled for $400,000, which resulted in a gain of approximately $2.5 million, which in turn resulted in a $2.5 million increase to the Company’s stockholders’ equity. Accordingly, as of the date of this Current Report on Form 8-K, the Company believes that it has regained compliance with the stockholders’ equity requirement based upon the settlement with INDYCAR that resulted in a $2.5 million increase to the Company’s stockholders’ equity, as described and disclosed in Current Report on Form 8-K. Nasdaq will continue to monitor the Company’s ongoing compliance with the NCM Equity Rule and, if at the time of its next periodic report the Company does not evidence compliance, it may be subject to delisting. In addition, if the Company fails to evidence compliance upon filing its periodic report for the June 30, 2024, the Company may be subject to delisting.