Motorsport Games’ Entire Board of Directors Resign Following a Financial Dispute

It wasn’t good timing for Motorsport Games, which posted a net loss of over $7.5 million in Q3 2022, but now they’re in even deeper water after their whole board of directors resigned over a disagreement. It seems that the company’s fortunes have rapidly collapsed.

https://twitter.com/Roland_OTR/status/1592286465685598208?s=20&t=fITsjKF3dXgelXjgVQ6BNg

A recent SEC filing and an internal letter to workers states that the entire board of directors at Motorsport Games have resigned due to financial problems. All of the board members left reportedly due to disagreements about the company’s funding strategy.

In an email obtained by Insider Gaming, Motorsport Games CEO Dmitry Kozko warned staff that the board’s departure puts the company “in a non-compliant situation with NASDAQ,” but that the company has 45 days to propose a plan for how it can become compliant again, with the option of getting another 180 days.

I want to assure all of you that each of these changes have been carefully made in the best interest of the business and the team, in the effort to create a strong and sustainable organization so that we fulfill our mission; to create a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.”

Now the question arises, what’s next in store for the company?

Well, they have 30 days to find a new board of directors and 500,000 publicly tradeable shares to meet NASDAQ‘s auditing standards for listing.

Motorsport Games has reportedly lost a lot of people in the past few of months, based on information provided by current and former employees. Some of whom had crucial roles in the development of their games.