Motorsport Games (MSGM) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Entity Registrant Name	Motorsport Games Inc.
Entity Central Index Key	0001821175
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		11,635,897
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		7,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash	$ 49,778,477	$ 3,990,532
Accounts receivable, net of allowances of $2,191,484 and $2,150,684, at March 31, 2021 and December 31, 2020, respectively	5,571,848	5,975,414
Prepaid expenses and other current assets	856,147	507,177
Total Current Assets	56,206,472	10,473,123
Property and equipment, net	220,174	162,148
Goodwill	203,633	137,717
Intangible assets, net	9,323,807	5,568,452
Deferred offering costs		749,370
Other assets		296,200
Total Assets	65,954,086	17,387,010
Current Liabilities:
Accounts payable	417,218	705,951
Accrued expenses	2,436,410	3,355,003
Due to related parties	959,784	10,853,536
Total Current Liabilities	3,813,412	14,914,490
Other non-current liabilities	907,250	856,694
Total Liabilities	4,720,662	15,771,184
Stockholders' Equity / Member's Equity:
Preferred stock, $0.0001 par value, 1,000,000 shares authorized; none issued and outstanding as of March 31, 2021 and December 31, 2020
Additional paid-in capital	75,940,940
Member's equity		3,791,674
Accumulated deficit	(18,638,309)	(4,826,335)
Accumulated other comprehensive loss	(27,986)	4,928
Total Stockholders' Equity / Member's Deficit Attributable to Motorsport Games Inc.	57,276,423	(1,029,733)
Non-controlling interest	3,957,001	2,645,559
Total Stockholders' Equity / Member's Equity	61,233,424	1,615,826
Total Liabilities and Stockholders' Equity / Member's Equity	65,954,086	17,387,010
Class A Common Stock [Member]
Stockholders' Equity / Member's Equity:
Common stock value	1,078
Total Stockholders' Equity / Member's Equity	1,078
Class B Common Stock [Member]
Stockholders' Equity / Member's Equity:
Common stock value	700
Total Stockholders' Equity / Member's Equity	$ 700

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Accounts receivable, net of allowances	$ 2,191,484	$ 2,150,684
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Class A Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	10,780,633	0
Common stock, shares outstanding	10,780,633	0
Class B Common Stock [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,000,000	7,000,000
Common stock, shares issued	7,000,000	0
Common stock, shares outstanding	7,000,000	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues		$ 2,474,132	$ 3,234,567
Cost of revenues	[1]	781,808	1,068,497
Gross profit		1,692,324	2,166,070
Operating expenses:
Sales and marketing	[2]	1,024,218	638,139
Development	[3]	1,250,362	935,804
General and administrative	[4]	14,764,038	692,752
Depreciation and amortization		30,775	18,951
Total operating expenses		17,069,393	2,285,646
Loss from operations		(15,377,069)	(119,576)
Interest (expense) income	[5]	(119,539)	1,140
Gain (loss) attributable to equity method investment		1,370,837	(70,242)
Other income (expense), net		40,347	(11,830)
Net loss		(14,085,424)	(200,508)
Less: Net (loss) income attributable to non-controlling interest		(273,450)	39,123
Net loss attributable to Motorsport Games Inc.		$ (13,811,974)	$ (239,631)
Net loss attributable to Class A common stock per share : Basic and diluted	[6]	$ (1.30)
Weighted Average Number of Class A Common Shares Outstanding : Basic and diluted	[6]	10,637,065
[1]	Includes related party costs of $0 and $68,256 for the three months ended March 31, 2021 and 2020, respectively.
[2]	Includes related party expenses of $0 and $65,467 for the three months ended March 31, 2021 and 2020, respectively.
[3]	Includes related party expenses of $577 and $73,956 for the three months ended March 31, 2021 and 2020, respectively.
[4]	Includes related party expenses of $1,436,234 and $336,563 for the three months ended March 31, 2021 and 2020, respectively.
[5]	Includes related party expenses of $105,845 and $0 for the three months ended March 31, 2021 and 2020, respectively.
[6]	Basic and diluted net loss per Class A common stock is presented only for the period after the Company's organizational transactions. See Note 1 for a description of the organizational transactions. See Note 2 for the calculation of net loss per share.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Related party costs	$ 0	$ 68,256
Sales and Marketing [Member]
Expenses from related party transactions	0	65,467
Development [Member]
Expenses from related party transactions	577	73,956
General and Administrative [Member]
Expenses from related party transactions	1,436,234	336,563
Interest (Expense) Income [Member]
Expenses from related party transactions	$ 105,845	$ 0

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements Of Comprehensive Loss
Net loss	$ (14,085,424)	$ (200,508)
Other comprehensive loss:
Foreign currency translation adjustments	(32,914)
Comprehensive loss	(14,118,338)	(200,508)
Comprehensive (loss) income attributable to non-controlling interests	(273,450)	39,123
Comprehensive loss attributable to Motorsport Games Inc.	$ (13,844,888)	$ (239,631)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholder's Equity / Member's Equity (Unaudited) - USD ($)		Class A Common Stock [Member]	Class B Common Stock [Member]	Member's Equity [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total Stockholder's Equity/ Member's Equity Attributable To Motorsport Games Inc [Member]	Noncontrolling Interest [Member]	Total
Beginning balance at Dec. 31, 2019						$ (3,064,354)		$ (3,064,354)	$ 6,676,314	$ 3,611,960
Beginning balance, Shares at Dec. 31, 2019
Comprehensive loss: Other comprehensive loss
Net loss						(239,631)		(239,631)	39,123	(200,508)
Ending balance at Mar. 31, 2020						(3,303,985)		(3,303,985)	6,715,437	3,411,452
Ending balance, shares at Mar. 31, 2020
Beginning balance at Dec. 31, 2020				3,791,674		(4,826,335)	4,928	(1,029,733)	2,645,559	1,615,826
Beginning balance, Shares at Dec. 31, 2020
Conversion of membership interests into shares of common stock		$ 700	$ 700	(3,791,674)	3,790,274
Conversion of membership interests into shares of common stock, shares		7,000,000	7,000,000
Issuance of common stock in initial public offering, net	[1]	$ 345			63,073,783			63,074,128		63,074,128
Issuance of common stock in initial public offering, net, shares	[1]	3,450,000
Stock-based compensation		$ 33			9,076,883			9,076,916		9,076,916
Stock-based compensation, shares		330,633
Purchase of additional interest in Le Mans									1,584,892	1,584,892
Comprehensive loss: Other comprehensive loss							(32,914)	(32,914)		(32,914)
Net loss						(13,811,974)		(13,811,974)	(273,450)	(14,085,424)
Ending balance at Mar. 31, 2021		$ 1,078	$ 700		$ 75,940,940	$ (18,638,309)	$ (27,986)	$ 57,276,423	$ 3,957,001	$ 61,233,424
Ending balance, shares at Mar. 31, 2021		10,780,633	7,000,000
[1]	Gross proceeds of $69,000,000 less offering costs of $5,925,872.

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Stockholder's Equity / Member's Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2021USD ($)
Statement of Stockholders' Equity [Abstract]
Gross proceeds from initial public offering	$ 69,000,000
Offering costs	$ 5,925,872

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities:
Net loss		$ (14,085,424)	$ (200,508)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		136,600	134,016
Sales return and price protection reserves		40,800	152,907
Loss on disposal of property and equipment			32,537
Stock-based compensation		9,076,916
(Gain) loss on equity method investee		(1,370,837)	70,242
Changes in operating assets and liabilities:
Accounts receivable		362,766	(559,301)
Prepaid expenses and other current assets		(347,787)	(129,865)
Other assets		25,000	(450)
Accounts payable		(288,733)	253,272
Other non-current liabilities		50,555	29,792
Accrued expenses		(434,608)	797,004
Net Cash (Used In) Provided By Operating Activities		(6,834,752)	579,646
Cash Flows From Investing Activities:
Purchase of additional interest in Le Mans, net of cash acquired		153,250
Acquisition of KartKraft		(1,000,000)
Purchase of intangible assets		(26,000)
Purchase of property and equipment		(83,751)	(29,813)
Net Cash Used In Investing Activities		(956,501)	(29,813)
Cash Flows From Financing Activities:
Advances from related parties		1,772,503	230,000
Repayments of advances from related parties		(11,800,000)	(271,217)
Issuance of common stock in initial public offering, net	[1]	63,661,128
Net Cash Provided By (Used In) Financing Activities		53,633,631	(41,217)
Effect of foreign exchange rate changes on cash		(54,433)
Net Increase In Cash		45,787,945	508,616
Cash - Beginning of the period		3,990,532	1,960,279
Cash - End of the period		49,778,477	2,468,895
Supplemental Disclosures of Cash Flow Information:
Cash paid during the periods for: Interest		639,786
Non-cash investing and financing activities:
Reduction of additional paid-in capital for initial public offering issuance costs that were previously paid		587,000
Accrued loss on equity method investee			(14,429)
Purchase of additional interest in Le mans		$ 11,584,892
[1]	Gross proceeds of $69,000,000 less issuance costs of $5,338,872. See supplemental disclosure below for $587,000 of issuance costs paid in 2020.

Condensed Consolidated Statem_7

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Cash Flows [Abstract]
Gross proceeds issuance cost	$ 69,000,000
Less issuance of cost	$ 5,338,872
Issuance cost paid		$ 587,000

Business Organization, Nature o

Business Organization, Nature of Operations, Risks and Uncertainties and Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Business Organization, Nature of Operations, Risks and Uncertainties and Basis of Presentation	NOTE 1 – BUSINESS ORGANIZATION, NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES AND BASIS OF PRESENTATION Organization and Operations Motorsport Gaming US LLC was established on August 2, 2018 under the laws of the State of Florida. On January 8, 2021, Motorsport Gaming US LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Motorsport Games Inc. (“Motorsport Games”). Upon effecting the corporate conversion on January 8, 2021, Motorsport Games Inc. now holds all the property and assets of Motorsport Gaming US LLC, and all of the debts and obligations of Motorsport Gaming US LLC were assumed by Motorsport Games Inc. by operation of law upon such corporate conversion. See Note 6 – Stockholders’ Equity – Corporate Conversion for additional details. Motorsport Games, through its subsidiaries, including 704Games (as defined below) (collectively, the “Company”), is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, including NASCAR, the iconic 24 Hours of Le Mans endurance race and the associated World Endurance Championship, the British Touring Car Championship (the “BTCC”) and others. The Company develops and publishes multi-platform racing video games including for game consoles, personal computer (PC) and mobile platforms. In addition, the Company organizes and facilitates esports tournaments, competitions, and events for its licensed racing games as well as on behalf of third-party racing game developers and publishers. On April 16, 2021, the Company acquired the remaining equity interests in 704Games Company whereby 704Games Company merged with 704Games LLC, a newly-formed Delaware limited liability company and wholly-owned subsidiary of the Company, with 704Games LLC being the surviving entity in such merger. As used herein, “704Games” refers to (i) 704Games Company prior to the merger and (ii) 704Games LLC from and after the merger. See Note 11 – Subsequent Events – Share Exchange Agreements—704Games Common Stock for additional details. Risks and Uncertainties The global spread of the ongoing and prolonged COVID-19 pandemic has created significant business uncertainty for the Company and others, resulting in volatility and economic disruption. Additionally, the outbreak has resulted in government authorities around the world implementing numerous measures to try to reduce the spread of COVID-19, such as travel bans and restrictions, quarantines, shelter-in-place, stay-at-home or total lock-down (or similar) orders and business limitations and shutdowns. As a result of the COVID-19 pandemic, including the related responses from government authorities, the Company’s business and operations have been impacted, including the temporary closure of its offices in Miami, Florida, Silverstone, England, and Moscow, Russia, which has resulted in the Company’s employees working remotely. During the COVID-19 outbreak, demand for the Company’s games has generally increased, which the Company believes is primarily attributable to a higher number of consumers staying at home due to COVID-19 related restrictions. Similarly, there has been a significant increase in viewership of the Company’s esports events since the initial impact of the virus, as these events began to air on both digital and linear platforms, particularly as the Company was able to attract many of the top “real world” motorsport stars to compete. However, several retailers have experienced, and continue to experience, closures, reduced operating hours and/or other restrictions as a result of the ongoing and prolonged COVID-19 pandemic, which has negatively impacted the sales of the Company’s products from such retailers. Additionally, in the Company’s esports business, the ongoing and prolonged COVID-19 pandemic has resulted in the postponing of certain events to later dates or shifting events from an in-person format to online only. The Company continues to monitor the evolving situation caused by the COVID-19 pandemic, and it may take further actions required by governmental authorities or that it determines are prudent to support the well-being of its employees, suppliers, business partners and others. The degree to which the ongoing and prolonged COVID-19 pandemic impacts the Company’s operations, business, financial results, liquidity, and financial condition will depend on future developments, which are highly uncertain, continuously evolving and cannot be predicted. This includes, but is not limited to, the duration and spread of the pandemic, its severity, actions to contain the virus or treat its impact, such as the efficacy of vaccines (particularly with respect to emerging strains of the virus), and how quickly and to what extent normal economic and operating conditions can resume. Adverse economic and market conditions as a result of the ongoing and prolonged COVID-19 pandemic could also adversely affect the demand for the Company’s products and may also impact the ability of its customers, vendors and suppliers satisfy their obligations to the Company. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020. The Company’s results of operations for the three months ended March 31, 2021 are not necessarily indicative of the operating results for the full year ending December 31, 2021 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related disclosures as of December 31, 2020 and 2019 and for the years then ended which are included the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2021 (the “2020 Form 10-K”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2 - Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies included in the audited consolidated financial statements included in the 2020 Form 10-K, except as disclosed in this note. Goodwill and Intangible Assets The Company has recorded goodwill in connection with its acquisition of 704Games and Le Mans and has recorded indefinite lived intangible assets in connection with its acquisition of Le Mans Esports Series Limited (the “Le Mans Joint Venture”) and KartKraft. Under Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise which may indicate that the Company may not be able to recover the carrying amount of the net assets of the reporting unit. The Company has determined that its reporting units align with its operating segments. See Note 10 – Segment Reporting. In evaluating goodwill for impairment, the Company may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If the Company bypasses the qualitative assessment, or if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company performs a one-step quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes a loss on impairment if the carrying value exceeds the fair value. In assessing the fair value of a reporting unit, the Company utilizes the Income Approach-Discounted Cash Flow Method as well as the Market Approach-Guideline Public Company Method. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 350. The Company’s intangible assets consist of the following which were acquired in connection with the acquisition of 704Games, the Le Mans Joint Venture, and KartKraft: Intangible Asset Useful Life License agreements 16 years Software 6-7 years Distribution contracts 1 year Non-compete agreements 3 years See Note 3 – Acquisitions for additional details regarding the acquisition of goodwill and intangible assets. Revenue Recognition The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). The Company determines revenue recognition through the following steps: ● Identification of a contract with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when or as the performance obligations are satisfied. The Company currently derives revenue principally from sales of its games and related extra content that can be played by customers on a variety of platforms, which includes game consoles, PCs, mobile phones and tablets. The Company’s product and service offerings include, but are not limited to, the following: 1) Sales of Games 2) Sales of Extra Content 3) Esports Competition Events Sales of Games. Sales of Extra Content. Esports. The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. During the three months ended March 31, 2021 and 2020, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. Identifying Performance Obligations Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To the extent a contract includes multiple promises, the Company must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the Transaction Price The transaction price is determined based on the consideration that the Company will be entitled to receive in exchange for transferring its goods and services to the customer. Determining the transaction price often requires significant judgment based on an assessment of contractual terms and business practices. It further includes review of variable consideration such as discounts, sales returns, price protection, and rebates, which is estimated at the time of the transaction. See below for additional information regarding the Company’s sales returns and price protection reserves. Allocating the Transaction Price Allocating the transaction price requires that the Company determine an estimate of the relative stand-alone selling price for each distinct performance obligation. Principal Versus Agent Considerations The Company evaluates sales to end customers of its full games and related content via third-party storefronts, including digital storefronts, such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple’s App Store, and Google’s Play Store, to determine whether or not the Company is acting as the principal or agent in the sale to the end customer. Key indicators that the Company evaluates in determining gross versus net treatment include, but are not limited to, the following: ● the underlying contract terms and conditions between the various parties to the transaction; ● which party is primarily responsible for fulfilling the promise to provide the specified good or service to the end customer; ● which party has inventory risk before the specified good or service has been transferred to the end customer; and ● which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, the Company determined that, apart from contracts with customers where revenue is generated via the Apple App Store or Google Play Store, the third party is considered the principal and, as a result, the Company reports revenue net of the fees retained by the storefront. For contracts with customers where revenue is generated via the Apple App Store or Google Play Store, the Company has determined that it is the principal and, as a result, reports revenue on a gross basis, with mobile platform fees included within cost of revenues Sales Allowance, Sales Returns and Price Protection Reserves Sales returns and price protection are considered variable consideration under ASC 606. The Company reduces revenue for estimated future returns and price protection which may occur with distributors and retailers (“channel partners”). See Note 2 – Summary of Significant Accounting Policies – Accounts Receivable in the 2020 Form 10-K for additional details. Price protection represents the Company’s practice to provide channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the original wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. When evaluating the adequacy of sales returns and price protection reserves, the Company analyzes the following: historical credit allowances, current sell-through of channel partners’ inventory of the Company’s products, current trends in retail and the video game industry, changes in customer demand, acceptance of products, and other related factors. In addition, the Company monitors the volume of sales to its channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price protection in subsequent periods. The Company recognized sales allowances and price protection reserves for the three months ended March 31, 2021 and 2020 in the amount of $118,340 and $97,828 respectively, which were included as reductions of revenues. Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of options, if not anti-dilutive. The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended March 31, 2021 2020 Stock options 382,518 n/a 382,518 - Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which applies a right-of-use model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. ASU 2016-02 requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP requirements. Classification depends on the same five criteria used by lessees under U.S. GAAP plus certain additional factors. The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and remeasurement of lease payments. Early adoption is permitted. This update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” (“ASU 2019-11”). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2019-11 are effective for annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In January 2020, the FASB issued ASU No. 2020-01— Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) Income Taxes On January 8, 2021, Motorsport Gaming US LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Motorsport Games Inc. The Company is subject to federal and state income taxes in the United States. The Company files income tax returns in the jurisdictions in which nexus threshold requirements are met. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. ASC 740 requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. After the performance of such reviews as of March 31, 2021, management determined that uncertainty exists with respect to the future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of such date. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company’s policy is to classify assessments, if any, for tax-related interest as interest expense and penalties as general and administrative expenses in its condensed consolidated statements of operations.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	NOTE 3 – ACQUISITIONS Le Mans On January 25, 2021, the Company, entered into an Amendment (the “Amendment”) to the Le Mans Esports Series Ltd Joint Venture Agreement with Automobile Club de l’Ouest, a company registered in France (“ACO”). Pursuant to the Amendment, the Company increased its ownership share in the Le Mans Joint Venture, from 45% to 51%, with the Company now holding a majority ownership share and ACO holding a 49% minority ownership share in the Le Mans Joint Venture. Pursuant to the Amendment, the parties expanded the primary objective and purpose of the Le Mans Joint Venture to include the creation, development, and publishing of video games based on the FIA World Endurance Championship and the 24 Hours of Le Mans, in addition to the operation, promotion, and running of an electronic sports events business replicating races of the FIA World Endurance Championship and the 24 Hours of Le Mans on an electronic gaming platform. Pursuant to the Amendment, if the board of directors of the Le Mans Joint Venture determines that the Le Mans Joint Venture’s working capital requirements for the development of future games exceeds its resources, the Company will be obligated to contribute such additional funding to the Le Mans Joint Venture as a loan (which loan shall bear no interest). Any such loan is required to be repaid when additional funding is no longer required by the Le Mans Joint Venture, as determined by its board of directors, with such repayment to occur prior to the Le Mans Joint Venture’s distribution of any of its profits to the shareholders of the Le Mans Joint Venture. Further, pursuant to the Amendment, the Company has a right to priority distribution of profits to recoup the additional funding and royalty payments that serve as the consideration for the Gaming License (as defined below). On January 25, 2021, simultaneously with the execution of the Amendment, the Le Mans Joint Venture and ACO entered into a license agreement pursuant to which the Le Mans Joint Venture was granted an exclusive license to use certain licensed intellectual property described in such license agreement for motorsports and/or racing video gaming products related to, themed as, or containing the FIA World Endurance Championship and the 24 Hours of Le Mans (including the Le Mans Joint Venture’s esports web platform) (the “Gaming License”). The Gaming License’s term is through January 25, 2031. The term will automatically renew for an additional ten-year term. In exchange for the Gaming License, the Company agreed to fund up to €8,000,000 as needed by the Le Mans Joint Venture for development of the video game products, to be contributed on an as-needed basis during the term of the Gaming License. Additionally, the Company is obligated to pay ACO an annual royalty payment beginning from the time of the launch of the first video game product and continuing each anniversary thereof for the term of the license. On January 25, 2021, the Le Mans Joint Venture (a 51% controlled subsidiary of the Company) and ACO entered into a license agreement pursuant to which the Le Mans Joint Venture was granted an exclusive license to use certain licensed intellectual property described in such license agreement for motorsports and/or racing esports events related to, themed as, or containing the FIA World Endurance Championship and the 24 Hours of Le Mans (including the Le Mans Joint Venture’s esports web platform) (the “Esports License”). The Esports License’s term is through January 25, 2031. The term of the Esports License will automatically renew for an additional ten-year term. The Esports License was granted to the Le Mans Joint Venture on a royalty-free basis in consideration of the investments already made into the Le Mans Joint Venture by the Company and ACO. On January 25, 2021, the Le Mans Joint Venture and ACO entered into another esports license agreement pursuant to which the Le Mans Joint Venture was granted an exclusive license to use certain licensed intellectual property described in such license agreement to run, promote, and exploit the 24 Hours of Le Mans Virtual event (the “24 Hours of Le Mans Virtual License”). The 24 Hours of Le Mans Virtual License’s term is through January 25, 2031. The term will automatically renew for an additional ten-year term. The 24 Hours of Le Mans Virtual License was granted to the Le Mans Joint Venture on a royalty-free basis in consideration of the investments already made into the Le Mans Joint Venture by the Company and ACO. The following key assumptions were utilized by the Company: (i) revenue projections; (ii) risk-free rate, which was estimated based on the rate of treasury securities with the same term as the mid-period of the projection periods; and (iii) revenue volatility, which was estimated based on an analysis of historical asset volatilities for similar companies and adjusted for operating leverage to estimate revenue volatility. The purchase price allocation was completed subsequent to the acquisition date. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows: As of January 25, 2021 Valuation Method Discount Rate GBP USD Cash £ 257,232 $ 350,626 Other assets 858 1,169 Gaming license Excess earning method 30.0 % 843,682 1,150,000 Esport licenses Excess earning method 30.0 % 1,217,836 1,660,000 Goodwill Cost-to-recreate 30.0 % 47,848 65,221 Accounts payable (5,147 ) (7,016 ) Non- controlling interest Busines Enterprise- Income 30.0 % (1,157,531 ) (1,573,624 ) Total Fair value of Member’s equity £ 1,204,778 $ 1,646,376 Fair value of the previously held interest £ 1,062,999 $ 1,449,000 Fair value of the consideration £ 141,779 $ 197,376 Results of operations of the Le Mans Joint Venture for the period from January 25, 2021 to March 31, 2021 included $81,918 in operating expenses. KartKraft On March 18, 2021, the Company acquired all assets comprising the KartKraft computer video game from Black Delta Holdings PTY, Black Delta Trading Pty Ltd and Black Delta IP Pty Ltd. (collectively, “Black Delta”). The purchase price for the assets was $1,000,000, of which $750,000 was paid at closing and $250,000 was paid in escrow and will be paid on the six-month anniversary of closing. Through this acquisition, the Company plans to enter the simulated kart-racing space. Motorsport Games has founded a new company, Motorsport Games Australia to support Black Delta’s development team. The purchase price allocation was completed subsequent to the acquisition date. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows: Intangible Asset Valuation Method Discount Rate Amount KartKraft Trade Name Relief-from-Royalty 27.5 % $ 108,000 Technology Replacement Cost 25.0 % 833,000 Employment & Non-Compete Agreements With & Without Method 25.0 % 59,000 Total Consideration $ 1,000,000 Results of operations of KartKraft for the period from March 18, 2021 to March 31, 2021 included $11,877 in operating expenses. Both Le Mans and KartKraft acquisitions have been recorded in accordance with ASC 805, Business Combinations. The transactions were taxable for income tax purposes and all assets and liabilities have been recorded at fair value for both book and income tax purposes. Therefore, deferred taxes have been recorded.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 4 - Intangible Assets Licensing Agreement On May 29, 2020, the Company secured a licensing agreement with the BARC (TOCA) Limited (“BARC”), the exclusive promoter of the BTCC. Pursuant to this agreement, the Company was granted an exclusive license to use certain licensed intellectual property for motorsports and/or racing video gaming products related to, themed as, or containing the BTCC, on consoles and mobile applications, esports series and esports events (including the Company’s esports platform). In exchange for the license, this agreement requires the Company to pay BARC an initial fee in two installments, the first of which was due on June 5, 2020 and the second installment on the earlier of 60 days after the release of the products contemplated by the license or May 29, 2022. Following the initial fee, this agreement also requires the Company to pay royalties, including certain minimum annual guarantees, on an ongoing basis to BARC and to meet certain product distribution, marketing and related milestones, subject to termination penalties. In connection with this licensing agreement, the Company acquired the BTCC license with a cost of $891,999. The Company began recognizing amortization expense during the year ended December 31, 2020 over the six-and-a-half year useful life, as the license terminates on December 31, 2026. As of March 31, 2021, the Company had a remaining liability in connection with this licensing agreement of $822,184, which is included in other non-current liabilities on the condensed consolidated balance sheets. In connection with the acquisition of the Le Mans Joint Venture, the Company acquired the following intangible assets (See Note 3 – Acquisitions for additional details): Intangible Asset Useful Life Cost Gaming license Indefinite $ 1,150,000 Esport licenses Indefinite 1,660,000 Total $ 2,810,000 In connection with the acquisition of KartKraft, the Company acquired the following intangible assets (See Note 3 – Acquisitions for additional details): Intangible Asset Useful Life Cost KartKraft Trade Name Indefinite $ 108,000 Software 6 Years 833,000 Employment & Non-Compete 3 Years 59,000 Total $ 1,000,000 Intangible assets consist of the following: Licensing Agreements Software Distribution Contracts Non-Compete Agreement Trade Name (Indefinite) Domain Name (Indefinite) Accumulated Amortization Total Balance as of January 1, 2019 $ 3,620,000 $ 2,340,000 $ 560,000 $ - $ - $ - $ (382,594 ) $ 6,137,406 Amortization expense - - - - - - (810,250 ) (810,250 ) Balance as of December 31, 2019 3,620,000 2,340,000 560,000 - - - (1,192,844 ) 5,327,156 Purchase of intangible assets 891,999 - - - - - - 891,999 Amortization expense - - - - - - (650,703 ) (650,703 ) Balance as of December 31, 2020 4,511,999 2,340,000 560,000 - - - (1,843,547 ) 5,568,452 Purchase of intangible assets 2,839,947 832,754 107,968 58,983 26,000 3,865,652 Amortization expense (110,297 ) (110,297 ) Balance as of March 31, 2021 $ 7,351,946 $ 3,172,754 $ 560,000 $ 107,968 $ 58,983 $ 26,000 $ (1,953,844 ) $ 9,323,807 Accumulated amortization of intangible assets consists of the following: Licensing Agreements Software Distribution Contracts Non-Compete Agreement Accumulated Amortization Balance as of January 1, 2019 $ 84,844 $ 87,750 $ 210,000 $ - $ 382,594 Amortization expense 226,250 234,000 350,000 810,250 Balance as of December 31, 2019 311,094 321,750 560,000 - 1,192,844 Amortization expense 306,302 344,401 - 650,703 Balance as of December 31, 2020 617,396 666,151 560,000 - 1,843,547 Amortization expense 90,869 18,794 - 634 110,297 Balance as of March 31, 2021 $ 708,265 $ 684,945 $ 560,000 $ 634 $ 1,953,844 Amortization expense related to intangible assets was $110,297 and $115,063 for the three months ended March 31, 2021 and 2020, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
Accrued Expenses	NOTE 5 – ACCRUED EXPENSES Accrued expenses consisted of the following: March 31, December 31, 2021 2020 Accrued royalties $ 492,546 $ 1,485,261 Accrued professional fees 26,010 129,291 Accrued consulting fees 832,666 398,526 Payable to Le Mans joint venture - 234,667 Accrued development costs 532,784 196,845 Accrued hosting fees 582 551 Accrued rent 40,787 40,787 Accrued taxes 45,934 54,880 Accrued payroll 397,884 778,918 Accrued director payment 30,250 - Accrued other 36,967 35,277 Total $ 2,436,410 $ 3,355,003

Stockholder's Equity

Stockholder's Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholder's Equity	NOTE 6 – STOCKHOLDERS’ EQUITY Corporate Conversion On January 8, 2021, Motorsport Gaming US LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Motorsport Games Inc. Effective as of January 8, 2021, 100% of the membership interests held by the sole member of Motorsport Gaming US LLC, Motorsport Network, converted into an aggregate of (i) 7,000,000 shares of Class A common stock of Motorsport Games Inc. and (ii) 7,000,000 shares of Class B common stock of Motorsport Games Inc., representing all of the outstanding shares of Class A and Class B common stock immediately following the corporate conversion. Motorsport Network is the only holder of shares of the Company’s Class B common stock and does not have any transfer, conversion, registration or economic rights with respect to such shares of Class B common stock. Upon effecting the corporate conversion on January 8, 2021, Motorsport Games Inc. now holds all the property and assets of Motorsport Gaming US LLC, and all of the debts and obligations of Motorsport Gaming US LLC were assumed by Motorsport Games Inc. by operation of law upon such corporate conversion. Effective as of January 8, 2021, the members of the board of directors of Motorsport Gaming US LLC became the members of Motorsport Games Inc.’s board of directors, and the officers of Motorsport Gaming US LLC became the officers of Motorsport Games Inc. Initial Public Offering On January 15, 2021, the Company completed its initial public offering of 3,450,000 shares of its Class A common stock at a price to the public of $20.00 per share, which includes the exercise in full by the underwriters of their option to purchase from the Company an additional 450,000 shares of the Company’s Class A common stock. The net proceeds to the Company from the initial public offering were approximately $63.1 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Equity Grants – Common Stock During the three months ended March 31, 2021, in conjunction with the Company’s initial public offering, the Company granted an aggregate of 330,633 shares of Class A common stock to its Chief Executive Officer, a consultant, and three of its directors with an aggregate grant date fair value of $6,612,660. The grant date fair value of these shares was recognized as stock-based compensation expense on the date of grant as the awards were fully vested on such date. Equity Grants – Stock Options During the three months ended March 31, 2021, in conjunction with the Company’s initial public offering, the Company issued its Chief Executive Officer an immediately vested ten-year stock option to purchase 203,333 restricted shares of the Company’s Class A common stock at an exercise price of $20.00 per share. The option had a grant date fair value of $2,189,896 which was recognized on the grant date. During the three months ended March 31, 2021, in conjunction with the Company’s initial public offering, the Company granted ten-year stock options to purchase an aggregate of 167,477 shares of Class A common stock (145,438 shares at an exercise price of $20.00 and 22,039 shares at an exercise price of $23.90) to various employees of the Company. The options vest ratably over three years from the date of grant and had an aggregate grant date fair value of $2,043,133 which is being recognized ratably over the vesting period. Approximately $203,000 of compensation expense was recognized during the three months ended March 31, 2021. During the three months ended March 31, 2021, in conjunction with the Company’s initial public offering, the Company granted ten-year stock options to purchase an aggregate of 15,096 shares of Class A common stock at an exercise price of $20.00 to the Company’s four directors. The options vest as follows: (i) an aggregate of 11,250 shares subject to the options vest on the one-year grant date anniversary, and (ii) 3,846 shares subject to the options vest ratably over three years from the date of grant. The options had an aggregate grant date fair value of $169,377 which is being recognized ratably over the vesting periods, as applicable. Approximately $35,000 of compensation expense was recognized during the three months ended March 31, 2021. During the three months ended March 31, 2021, the Company granted a ten-year stock option to purchase 5,114 shares of Class A common stock at an exercise price of $23.90 to the Company’s Head of Music Strategy. The option vests as follows: (i) 209 shares subject to the option vest immediately, (ii) 1,767 shares subject to the option vest on the one-year grant date anniversary, and (iii) 3,138 shares subject to the option vest ratably upon each of five confirmations of pre-approved artist introductions. The option grant date fair value of $140,000 is being recognized pursuant to the vesting terms. Approximately $36,000 of compensation expense was recognized during the three months ended March 31, 2021. Stock-based Compensation For three months ended March 31, 2021 and 2020, the Company recognized aggregate stock-based compensation expense of $9,076,916 and $0, respectively, related to the issuances of stock options and Class A common stock. As of March 31, 2021, there was $2,158,949 of unrecognized stock-based compensation expense which will be recognized over approximately 2.5 years.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 7 – RELATED PARTY TRANSACTIONS During the three months ended March 31, 2021, regarding the promissory note with Motorsport Network (the “Promissory Note”) that is included within due to related parties on the condensed consolidated balance sheets, the Company repaid $11,800,000 of the Promissory Note and drew down an additional $1,906,248, such that the balance due to Motorsport Network was $959,784 as of March 31, 2021. See Note 11 – Subsequent Events – Repayment of Promissory Note for additional details.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 – Commitments and Contingencies Litigation Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. As of March 31, 2021 and December 31, 2020, the Company has not accrued any amounts for contingencies. On January 11, 2021, Ascend FS, Inc. (“Ascend”), a minority stockholder of 704Games, filed a derivative action on behalf of 704Games in the Eleventh Judicial Circuit Court of Florida against the Company and the Company’s Chief Executive Officer and Executive Chairman. The complaint alleged breach of fiduciary duty and breach of contract in connection with the Company’s August and October 2020 purchases of an aggregate of 116,608 shares of common stock of 704Games (representing approximately 28.7% of the outstanding shares of 704Games) from certain selling stockholders. In connection with the closing of the transactions contemplated by the share exchange agreements entered into with Ascend and PlayFast Games, LLC (“PlayFast”) discussed in Note 11 – Subsequent Events – Share Exchange Agreements – 704Games Common Stock, the Company and its affiliates, without admitting any liability by any party, were released from all claims that Ascend or PlayFast could allege or assert against the Company as minority stockholders of 704Games. Pursuant to the exchange agreement with Ascend, the derivative legal action previously commenced by Ascend against the Company and certain of its affiliates was dismissed with prejudice on April 25, 2021. On February 11, 2021, HC2 Holdings 2 Inc. and Continental General Insurance Company, former minority stockholders of 704Games, filed a complaint (the “HC2 and Continental Complaint”) in the United States District Court for the District of Delaware against the Company, the Company’s Chief Executive Officer and Executive Chairman, the Company’s Chief Financial Officer, and the sole manager of Motorsport Network (collectively, the “Individual Defendants”). The complaint alleges misrepresentations and omissions by the Company concerning 704Games’ financial condition and future prospects in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 under the Exchange Act; joint and several liability of the Individuals Defendants under Section 20(a) of the Exchange Act with respect to the alleged violation of Section 10(b) and Rule 10(b); alleged violation by the Company of Section 20A of the Exchange Act in connection with plaintiffs’ sale to the Company of an aggregate of 106,307 shares of common stock of 704Games, which is equal to 26.2% of the outstanding common stock of 704Games, in August 18, 2020 (the “Stock Sale”); alleged breach of the Company’s obligations under the Stockholders’ Agreement, dated August 14, 2018, by and among the Company and the other stockholders of 704Games, in connection with 704Games’ requirement to provide financial information about 704Games to the plaintiffs; the defendants’ alleged fraudulent inducement of the plaintiffs to enter into a stock purchase agreement for the Stock Sale; the defendants’ alleged breach of fiduciary duty by alleged failure to disclose key financial and other information about 704Games and allegedly diverting corporate opportunities for the benefit of defendants; and alleged unjust enrichment. The plaintiffs seek, among other things, damages from the defendants, jointly and severally, based on the alleged difference between the fair market value of the shares of common stock of 704Games on August 18, 2020, the date of the Stock Sale, and the purchase price that was paid in the Stock Sale, as well as punitive damages and other relief. At this time, it is too soon to determine the outcome of any litigation that may result from the HC2 and Continental Complaint. As a result, the Company has not accrued for any loss contingencies related to this claim because the amount and range of loss, if any, cannot currently be reasonably estimated. The Company believes that the plaintiff’s allegations are without merit and intends to vigorously defend its position to the fullest extent permitted by law. Epic License Agreement On August 11, 2020, the Company entered into a licensing agreement with Epic Games International (“Epic”) for worldwide licensing rights to Epic’s proprietary computer program known as the Unreal Engine 4. Pursuant to this agreement, upon payment of the initial license fee described below, the Company was granted a nonexclusive, non-transferable and terminable license to develop, market and sublicense (under limited circumstances and subject to conditions of this agreement) certain products using the Unreal Engine 4 for its next generation of games. In exchange for the license, this agreement requires the Company to pay Epic an initial license fee that was paid during the year ended December 31, 2020. During the three months ended March 31, 2021, Epic did not earn any royalties under this agreement. During a two-year support period, Epic will use commercially reasonable efforts to provide the Company with updates to the Unreal Engine 4 and technical support via a licensee forum. After the expiration of the support period, Epic has no further obligation to provide or to offer to provide any support services. This agreement is effective until terminated under its provisions; however, pursuant to its terms, the Company can only actively develop new or existing authorized products using the Unreal Engine 4 during a five-year active development period, which terminates on August 11, 2025. Operating Leases The Company leases its facilities under operating leases. The Company’s rent expense under its operating leases was $89,755 and $54,301 for the three months ended March 31, 2021 and 2020, respectively.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
Concentrations	NOTE 9 – CONCENTRATIONS Customer Concentrations The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues for the following periods: For the Three Months Ended March 31, Customer 2021 2020 Customer B 35.76 % 35.59 % Customer D 42.08 % 29.94 % Customer E * 11.78 % Total 77.84 % 77.31 % * Less than 10% The following table sets forth information as to each customer that accounted for 10% or more of the Company’s accounts receivable as of: March 31, December 31, Customer 2021 2020 Customer A 63.54 % 81.84 % Customer B 12.68 % * Customer C 17.77 % * Total 93.99 % 81.84 % * Less than 10% A reduction in sales from or loss of these customers, in a significant amount, could have a material adverse effect on the Company’s results of operations and financial condition. Supplier Concentrations The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s cost of revenues for the following periods: For the Three Months Ended March 31, Supplier 2021 2020 Supplier A 39.47 % 42.22 % Supplier B * 12.56 % Supplier C 18.37 % * Supplier D * 10.70 % Total 57.84 % 65.48 %

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment Reporting	NOTE 10 – SEGMENT REPORTING The Company’s principal operating segments coincide with the types of products and services to be sold. The products and services from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three months ended March 31, 2021 and 2020 were: (i) the development and publishing of interactive racing video games, entertainment content and services (the “Gaming segment”); and (ii) the organization and facilitation of esports tournaments, competitions and events for the Company’s licensed racing games as well as on behalf of third-party video game racing series and other video game publishers (the “esports segment”). The Company’s chief operating decision-maker has been identified as the Company’s Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of March 31, 2021 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers. As the Company primarily generates its revenues from customers in the United States, no geographical segments are presented. Given that the Company’s esports segment just began its operations in late 2018, it has no material separate assets. That being said, the Company expects that its esports segment will have separate assets in the future. Segment operating profit is determined based upon internal performance measures used by the chief operating decision-maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments. Segment information available with respect to these reportable business segments was as follows: For the Three Months Ended, March 31, 2021 2020 Revenues: Gaming $ 2,450,213 $ 3,234,567 Esports 23,919 - Total Segment and Consolidated Revenues $ 2,474,132 $ 3,234,567 Cost of Revenue: Gaming $ 715,116 $ 923,466 Esports 66,692 145,031 Total Segment and Consolidated Cost of Revenues $ 781,808 $ 1,068,497 Gross Profit: Gaming $ 1,735,097 $ 2,311,101 Esports (42,773 ) (145,031 ) Total Segment and Consolidated Gross Profit $ 1,692,324 $ 2,166,070 (Loss) Income From Operations: Gaming $ (15,193,257 ) $ 118,748 Esports (183,812 ) (238,324 ) Total Segment and Consolidated (Loss) Income From Operations $ (15,377,069 ) $ (119,576 ) Depreciation and Amortization: Gaming $ 25,439 $ 18,732 Esports 5,336 219 Total Segment and Consolidated Depreciation and Amortization $ 30,775 $ 18,951 Interest Income (Expense): Gaming $ (119,539 ) $ 1,140 Esports - - Total Segment and Consolidated Interest Income (Expense) $ (119,539 ) $ 1,140 Equity investment (Loss) Income: Gaming $ 1,291,647 $ (11,830 ) Esports - (70,242 ) Total Segment Equity in (Loss) Income $ 1,291,647 $ (82,072 ) March 31, 2021 December 31, 2020 Segment Total Assets: Gaming $ 65,910,252 $ 17,377,993 Esports 43,834 9,017 Consolidated Total assets $ 65,954,086 $ 17,387,010

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	NOTE 11 - Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements were issued. Other than as described below, the Company did not identify any subsequent events that would have required adjustments or disclosure in the condensed consolidated financial statements or notes. Share Exchange Agreements—704Games Common Stock On April 16, 2021, the Company closed the transactions contemplated by each of (i) the share exchange agreement with PlayFast, dated as of March 11, 2021, as amended by that certain amendment dated as of April 1, 2021 (as amended, the “PlayFast Exchange Agreement”) and (ii) the share exchange agreement with Ascend, dated as of March 14, 2021, as amended by that certain amendment dated as of April 1, 2021 (as amended, the “Ascend Exchange Agreement”). As a result, the Company acquired all of the remaining equity interests in 704Games Company. The transactions contemplated by the PlayFast Exchange Agreement and the Ascend Exchange Agreement were structured as a merger of 704Games Company with and into 704Games LLC, a newly-formed Delaware limited liability company and wholly-owned subsidiary of the Company, with 704Games LLC being the surviving entity in such merger. The merger consideration issued to (i) PlayFast with respect to the shares of common stock of 704Games Company it surrendered in such merger consisted of 366,542 newly-issued shares of the Company’s Class A common stock and $1,542,519 in cash and (ii) Ascend with respect to the shares of common stock of 704Games Company it surrendered in such merger consisted of 488,722 newly-issued shares of the Company’s Class A common stock and $2,056,692 in cash. Pursuant to the PlayFast Exchange Agreement and the Ascend Exchange Agreement, the Company and the other defendants, without admitting any liability by any party, were released from all claims that Ascend or PlayFast could allege or assert against the Company as minority stockholders of 704Games. Pursuant to the Ascend Exchange Agreement, the derivative legal action previously commenced by Ascend was dismissed with prejudice on April 25, 2021. Studio397 On April 20, 2021, the Company closed the transactions contemplated by the share purchase agreement dated April 1, 2021 (the “SPA”) with Luminis International BV (“Luminis”) and Technology In Business B.V. (“TIB”) pursuant to which the Company purchased from TIB 100% of the share capital (the “Shares”) of Studio397 B.V. (“Studio397”). The purchase price for the shares was U.S. $16,000,000, payable in two installments, as follows: U.S. $12,800,000 at closing (the “Completion Payment”) and U.S. $3,200,000 on the first-year anniversary of closing (the “Deferred Payment”). To secure the Company’s payment of the Deferred Payment, the Company granted a right of pledge on 20% of the Shares (“Pledged Shares”) by means of execution of a deed of pledge at the closing of the transactions contemplated by the SPA. The voting rights attached to the Pledged Shares will be transferred to TIB if and to the extent that the Company fails to pay the Deferred Payment within 30 business days following receipt of TIB’s notice of such failure. TIB agreed to fund Studio397 with sufficient funds from its proceeds of the Completion Payment at closing by way of share premium contribution so as to enable Studio397 to fully settle at closing the royalty payment amounts to be paid to Image Space Incorporated by Studio397 pursuant to the buy-out agreement, dated December 7, 2020, between Image Space Incorporated and Studio397. Repayment of Promissory Note On April 21, 2021, the Company repaid $863,169 of the balance relating to the Promissory Note due to Motorsport Network.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The Company has recorded goodwill in connection with its acquisition of 704Games and Le Mans and has recorded indefinite lived intangible assets in connection with its acquisition of Le Mans Esports Series Limited (the “Le Mans Joint Venture”) and KartKraft. Under Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other (“ASC 350”), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise which may indicate that the Company may not be able to recover the carrying amount of the net assets of the reporting unit. The Company has determined that its reporting units align with its operating segments. See Note 10 – Segment Reporting. In evaluating goodwill for impairment, the Company may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount. If the Company bypasses the qualitative assessment, or if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company performs a one-step quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes a loss on impairment if the carrying value exceeds the fair value. In assessing the fair value of a reporting unit, the Company utilizes the Income Approach-Discounted Cash Flow Method as well as the Market Approach-Guideline Public Company Method. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 350. The Company’s intangible assets consist of the following which were acquired in connection with the acquisition of 704Games, the Le Mans Joint Venture, and KartKraft: Intangible Asset Useful Life License agreements 16 years Software 6-7 years Distribution contracts 1 year Non-compete agreements 3 years See Note 3 – Acquisitions for additional details regarding the acquisition of goodwill and intangible assets.
Revenue Recognition	Revenue Recognition The Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). The Company determines revenue recognition through the following steps: ● Identification of a contract with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when or as the performance obligations are satisfied. The Company currently derives revenue principally from sales of its games and related extra content that can be played by customers on a variety of platforms, which includes game consoles, PCs, mobile phones and tablets. The Company’s product and service offerings include, but are not limited to, the following: 1) Sales of Games 2) Sales of Extra Content 3) Esports Competition Events Sales of Games. Sales of Extra Content. Esports. The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. During the three months ended March 31, 2021 and 2020, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. Identifying Performance Obligations Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To the extent a contract includes multiple promises, the Company must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the Transaction Price The transaction price is determined based on the consideration that the Company will be entitled to receive in exchange for transferring its goods and services to the customer. Determining the transaction price often requires significant judgment based on an assessment of contractual terms and business practices. It further includes review of variable consideration such as discounts, sales returns, price protection, and rebates, which is estimated at the time of the transaction. See below for additional information regarding the Company’s sales returns and price protection reserves. Allocating the Transaction Price Allocating the transaction price requires that the Company determine an estimate of the relative stand-alone selling price for each distinct performance obligation. Principal Versus Agent Considerations The Company evaluates sales to end customers of its full games and related content via third-party storefronts, including digital storefronts, such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple’s App Store, and Google’s Play Store, to determine whether or not the Company is acting as the principal or agent in the sale to the end customer. Key indicators that the Company evaluates in determining gross versus net treatment include, but are not limited to, the following: ● the underlying contract terms and conditions between the various parties to the transaction; ● which party is primarily responsible for fulfilling the promise to provide the specified good or service to the end customer; ● which party has inventory risk before the specified good or service has been transferred to the end customer; and ● which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, the Company determined that, apart from contracts with customers where revenue is generated via the Apple App Store or Google Play Store, the third party is considered the principal and, as a result, the Company reports revenue net of the fees retained by the storefront. For contracts with customers where revenue is generated via the Apple App Store or Google Play Store, the Company has determined that it is the principal and, as a result, reports revenue on a gross basis, with mobile platform fees included within cost of revenues Sales Allowance, Sales Returns and Price Protection Reserves Sales returns and price protection are considered variable consideration under ASC 606. The Company reduces revenue for estimated future returns and price protection which may occur with distributors and retailers (“channel partners”). See Note 2 – Summary of Significant Accounting Policies – Accounts Receivable in the 2020 Form 10-K for additional details. Price protection represents the Company’s practice to provide channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the original wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. When evaluating the adequacy of sales returns and price protection reserves, the Company analyzes the following: historical credit allowances, current sell-through of channel partners’ inventory of the Company’s products, current trends in retail and the video game industry, changes in customer demand, acceptance of products, and other related factors. In addition, the Company monitors the volume of sales to its channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price protection in subsequent periods. The Company recognized sales allowances and price protection reserves for the three months ended March 31, 2021 and 2020 in the amount of $118,340 and $97,828 respectively, which were included as reductions of revenues.
Stock-based Compensation	Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares.
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of options, if not anti-dilutive. The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended March 31, 2021 2020 Stock options 382,518 n/a 382,518 -
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which applies a right-of-use model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. ASU 2016-02 requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP requirements. Classification depends on the same five criteria used by lessees under U.S. GAAP plus certain additional factors. The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and remeasurement of lease payments. Early adoption is permitted. This update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” (“ASU 2019-11”). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in ASU 2019-11 are effective for annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the impact of this standard on its condensed consolidated financial statements and disclosures. In January 2020, the FASB issued ASU No. 2020-01— Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force)
Income Taxes	Income Taxes On January 8, 2021, Motorsport Gaming US LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Motorsport Games Inc. The Company is subject to federal and state income taxes in the United States. The Company files income tax returns in the jurisdictions in which nexus threshold requirements are met. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. ASC 740 requires that a valuation allowance be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. After the performance of such reviews as of March 31, 2021, management determined that uncertainty exists with respect to the future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of such date. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company’s policy is to classify assessments, if any, for tax-related interest as interest expense and penalties as general and administrative expenses in its condensed consolidated statements of operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of Intangible Assets Estimated Useful Lives	The Company’s intangible assets consist of the following which were acquired in connection with the acquisition of 704Games, the Le Mans Joint Venture, and KartKraft: Intangible Asset Useful Life License agreements 16 years Software 6-7 years Distribution contracts 1 year Non-compete agreements 3 years
Schedule of Calculation Weighted Average Dilutive Common Shares	The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: For the Three Months Ended March 31, 2021 2020 Stock options 382,518 n/a 382,518 -

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Summary of Aggregate Purchase Price	The purchase price allocation was completed subsequent to the acquisition date. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows: As of January 25, 2021 Valuation Method Discount Rate GBP USD Cash £ 257,232 $ 350,626 Other assets 858 1,169 Gaming license Excess earning method 30.0 % 843,682 1,150,000 Esport licenses Excess earning method 30.0 % 1,217,836 1,660,000 Goodwill Cost-to-recreate 30.0 % 47,848 65,221 Accounts payable (5,147 ) (7,016 ) Non- controlling interest Busines Enterprise- Income 30.0 % (1,157,531 ) (1,573,624 ) Total Fair value of Member’s equity £ 1,204,778 $ 1,646,376 Fair value of the previously held interest £ 1,062,999 $ 1,449,000 Fair value of the consideration £ 141,779 $ 197,376 The purchase price allocation was completed subsequent to the acquisition date. The aggregate purchase price was allocated to the assets acquired and liabilities assumed as follows: Intangible Asset Valuation Method Discount Rate Amount KartKraft Trade Name Relief-from-Royalty 27.5 % $ 108,000 Technology Replacement Cost 25.0 % 833,000 Employment & Non-Compete Agreements With & Without Method 25.0 % 59,000 Total Consideration $ 1,000,000

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets Acquisition	In connection with the acquisition of the Le Mans Joint Venture, the Company acquired the following intangible assets (See Note 3 – Acquisitions for additional details): Intangible Asset Useful Life Cost Gaming license Indefinite $ 1,150,000 Esport licenses Indefinite 1,660,000 Total $ 2,810,000 In connection with the acquisition of KartKraft, the Company acquired the following intangible assets (See Note 3 – Acquisitions for additional details): Intangible Asset Useful Life Cost KartKraft Trade Name Indefinite $ 108,000 Software 6 Years 833,000 Employment & Non-Compete 3 Years 59,000 Total $ 1,000,000
Schedule of Intangible Assets	Intangible assets consist of the following: Licensing Agreements Software Distribution Contracts Non-Compete Agreement Trade Name (Indefinite) Domain Name (Indefinite) Accumulated Amortization Total Balance as of January 1, 2019 $ 3,620,000 $ 2,340,000 $ 560,000 $ - $ - $ - $ (382,594 ) $ 6,137,406 Amortization expense - - - - - - (810,250 ) (810,250 ) Balance as of December 31, 2019 3,620,000 2,340,000 560,000 - - - (1,192,844 ) 5,327,156 Purchase of intangible assets 891,999 - - - - - - 891,999 Amortization expense - - - - - - (650,703 ) (650,703 ) Balance as of December 31, 2020 4,511,999 2,340,000 560,000 - - - (1,843,547 ) 5,568,452 Purchase of intangible assets 2,839,947 832,754 107,968 58,983 26,000 3,865,652 Amortization expense (110,297 ) (110,297 ) Balance as of March 31, 2021 $ 7,351,946 $ 3,172,754 $ 560,000 $ 107,968 $ 58,983 $ 26,000 $ (1,953,844 ) $ 9,323,807
Summary of Accumulated Amortization of Intangible Assets	Accumulated amortization of intangible assets consists of the following: Licensing Agreements Software Distribution Contracts Non-Compete Agreement Accumulated Amortization Balance as of January 1, 2019 $ 84,844 $ 87,750 $ 210,000 $ - $ 382,594 Amortization expense 226,250 234,000 350,000 810,250 Balance as of December 31, 2019 311,094 321,750 560,000 - 1,192,844 Amortization expense 306,302 344,401 - 650,703 Balance as of December 31, 2020 617,396 666,151 560,000 - 1,843,547 Amortization expense 90,869 18,794 - 634 110,297 Balance as of March 31, 2021 $ 708,265 $ 684,945 $ 560,000 $ 634 $ 1,953,844

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following: March 31, December 31, 2021 2020 Accrued royalties $ 492,546 $ 1,485,261 Accrued professional fees 26,010 129,291 Accrued consulting fees 832,666 398,526 Payable to Le Mans joint venture - 234,667 Accrued development costs 532,784 196,845 Accrued hosting fees 582 551 Accrued rent 40,787 40,787 Accrued taxes 45,934 54,880 Accrued payroll 397,884 778,918 Accrued director payment 30,250 - Accrued other 36,967 35,277 Total $ 2,436,410 $ 3,355,003

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2021
Customer Concentration Risk [Member]
Schedule of Concentrations	The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues for the following periods: For the Three Months Ended March 31, Customer 2021 2020 Customer B 35.76 % 35.59 % Customer D 42.08 % 29.94 % Customer E * 11.78 % Total 77.84 % 77.31 % * Less than 10% The following table sets forth information as to each customer that accounted for 10% or more of the Company’s accounts receivable as of: March 31, December 31, Customer 2021 2020 Customer A 63.54 % 81.84 % Customer B 12.68 % * Customer C 17.77 % * Total 93.99 % 81.84 % * Less than 10%
Supplier Concentrations [Member]
Schedule of Concentrations	The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s cost of revenues for the following periods: For the Three Months Ended March 31, Supplier 2021 2020 Supplier A 39.47 % 42.22 % Supplier B * 12.56 % Supplier C 18.37 % * Supplier D * 10.70 % Total 57.84 % 65.48 %

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Segment information available with respect to these reportable business segments was as follows: For the Three Months Ended, March 31, 2021 2020 Revenues: Gaming $ 2,450,213 $ 3,234,567 Esports 23,919 - Total Segment and Consolidated Revenues $ 2,474,132 $ 3,234,567 Cost of Revenue: Gaming $ 715,116 $ 923,466 Esports 66,692 145,031 Total Segment and Consolidated Cost of Revenues $ 781,808 $ 1,068,497 Gross Profit: Gaming $ 1,735,097 $ 2,311,101 Esports (42,773 ) (145,031 ) Total Segment and Consolidated Gross Profit $ 1,692,324 $ 2,166,070 (Loss) Income From Operations: Gaming $ (15,193,257 ) $ 118,748 Esports (183,812 ) (238,324 ) Total Segment and Consolidated (Loss) Income From Operations $ (15,377,069 ) $ (119,576 ) Depreciation and Amortization: Gaming $ 25,439 $ 18,732 Esports 5,336 219 Total Segment and Consolidated Depreciation and Amortization $ 30,775 $ 18,951 Interest Income (Expense): Gaming $ (119,539 ) $ 1,140 Esports - - Total Segment and Consolidated Interest Income (Expense) $ (119,539 ) $ 1,140 Equity investment (Loss) Income: Gaming $ 1,291,647 $ (11,830 ) Esports - (70,242 ) Total Segment Equity in (Loss) Income $ 1,291,647 $ (82,072 ) March 31, 2021 December 31, 2020 Segment Total Assets: Gaming $ 65,910,252 $ 17,377,993 Esports 43,834 9,017 Consolidated Total assets $ 65,954,086 $ 17,387,010

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Revenue recognized
Sales allowances and price protection reserves	$ 118,340	$ 97,828

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Intangible Assets Estimated Useful Lives (Details)	3 Months Ended
	Mar. 31, 2021
License Agreements [Member]
Intangible asset, useful life	16 years
Software [Member] | Minimum [Member]
Intangible asset, useful life	6 years
Software [Member] | Minimum [Member]
Intangible asset, useful life	7 years
Distribution Contracts [Member]
Intangible asset, useful life	1 year
Noncompete Agreements [Member]
Intangible asset, useful life	3 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Calculation Weighted Average Dilutive Common Shares (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Shares excluded in computation of earnings per common share	382,518
Stock Options [Member]
Shares excluded in computation of earnings per common share	382,518

Acquistions (Details Narrative)

Acquistions (Details Narrative)	Jan. 25, 2031EUR (€)	Mar. 18, 2021USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Jan. 25, 2021	Jan. 24, 2021	Jan. 08, 2021
Membership interests								100.00%
Total Operating Expenses				$ 17,069,393	$ 2,285,646
KartKraft Acquisition [Member]
Purchase price for the assets		$ 1,000,000
KartKraft Acquisition [Member] | At Closing [Member]
Purchase price for the assets		750,000
KartKraft Acquisition [Member] | Six Month Anniversary Closing [Member]
Purchase price for the assets		$ 250,000
Subsequent Event [Member] | Euro [Member] | Minimum [Member]
Development expenses | €	€ 8,000,000
Le Mans [Member]
Membership interests						51.00%	45.00%
Total Operating Expenses			$ 81,918
Automobile Club de l'Ouest [Member]
Membership interests						49.00%
KartKraft [Member]
Total Operating Expenses			$ 11,877

Acquisitions - Summary of Aggre

Acquisitions - Summary of Aggregate Purchase Price (Details)	Mar. 18, 2021USD ($)	Jan. 25, 2021USD ($)	Jan. 25, 2021GBP (£)	Mar. 31, 2021USD ($)	Jan. 25, 2021GBP (£)	Dec. 31, 2020USD ($)
Goodwill				$ 203,633		$ 137,717
Le Mans [Member]
Cash		$ 350,626
Other assets		1,169
Gaming license		1,150,000
Esport licenses		1,660,000
Goodwill		65,221
Accounts payable		(7,016)
Non- controlling interest		(1,573,624)
Total Fair value of Member's equity		1,646,376
Fair value of the previously held interest		1,449,000
Fair value of the consideration		$ 197,376
Total Consideration				2,810,000
Le Mans [Member] | Gaming License [Member]
Valuation Method		Excess earning method	Excess earning method
Discount Rate		30.00%	30.00%
Le Mans [Member] | Esport License [Member]
Valuation Method		Excess earning method	Excess earning method
Discount Rate		30.00%	30.00%
Le Mans [Member] | Goodwill [Member]
Valuation Method		Cost-to-recreate	Cost-to-recreate
Discount Rate		30.00%	30.00%
Le Mans [Member] | Noncontrolling Interest [Member]
Valuation Method		Busines Enterprise- Income	Busines Enterprise- Income
Discount Rate		30.00%	30.00%
Le Mans [Member] | GBP [Member]
Cash | £					£ 257,232
Other assets | £					858
Gaming license | £					843,682
Esport licenses | £					1,217,836
Goodwill | £					£ 47,848
Accounts payable		$ (5,147)
Non- controlling interest		$ (1,157,531)
Total Fair value of Member's equity | £			£ 1,204,778
Fair value of the previously held interest | £			1,062,999
Fair value of the consideration | £			£ 141,779
KartKraft [Member]
Total Consideration	$ 1,000,000			1,000,000
KartKraft [Member] | KartKraft Trade Name [Member]
Valuation Method	Releif-from-Royalty
Discount Rate	27.50%
Total Consideration	$ 108,000			108,000
KartKraft [Member] | Technology [Member]
Valuation Method	Replacement Cost
Discount Rate	25.00%
Total Consideration	$ 833,000
KartKraft [Member] | Employment & Non-Compete [Member]
Valuation Method	With & Without Method
Discount Rate	25.00%
Total Consideration	$ 59,000			$ 59,000

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Intangible assets	$ 9,323,807		$ 5,568,452	$ 5,327,156	$ 6,137,406
Amortization expense	110,297	$ 115,063	$ 650,703	$ 810,250
License Agreements [Member]
License cost	$ 891,999
Useful life of license	6 years 6 months
License Agreements [Member] | Other Noncurrent Liabilities [Member]
Intangible assets	$ 822,184

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets Acquisition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 18, 2021
Le Mans [Member]
Total	$ 2,810,000
Le Mans [Member] | Gaming License [Member]
Total	$ 1,150,000
Useful Life	Indefinite
Le Mans [Member] | Esport License [Member]
Total	$ 1,660,000
Useful Life	Indefinite
KartKraft [Member]
Total	$ 1,000,000	$ 1,000,000
KartKraft [Member] | KartKraft Trade Name [Member]
Total	$ 108,000	108,000
Useful Life	Indefinite
KartKraft [Member] | Software [Member]
Total	$ 833,000
Useful Life	6 Years
KartKraft [Member] | Employment & Non-Compete [Member]
Total	$ 59,000	$ 59,000
Useful Life	P3Y

Intangible Assets - Schedule _2

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Beginning Balance	$ 5,568,452	$ 5,327,156	$ 5,327,156	$ 6,137,406
Purchase of intangible assets	3,865,652		891,999
Amortization expense	(110,297)	(115,063)	(650,703)	(810,250)
Ending Balance	9,323,807		5,568,452	5,327,156
Accumulated amortization, Beginning Balance	(1,843,547)	(1,192,844)	(1,192,844)	(382,594)
Amortization expense	(110,297)		(650,703)	(810,250)
Accumulated amortization, ending balance	(1,953,844)		(1,843,547)	(1,192,844)
License Agreements [Member]
Beginning Balance	4,511,999	3,620,000	3,620,000	3,620,000
Purchase of intangible assets	2,839,947		891,111
Amortization expense
Ending Balance	7,351,946		4,511,999	3,620,000
Accumulated amortization, Beginning Balance	(617,396)	(311,094)	(311,094)	(84,844)
Amortization expense	(90,869)		(374,918)	(226,250)
Accumulated amortization, ending balance	(708,265)		(617,396)	(311,094)
Software [Member]
Beginning Balance	2,340,000	2,340,000	2,340,000	2,340,000
Purchase of intangible assets	832,754
Amortization expense
Ending Balance	3,172,754		2,340,000	2,340,000
Accumulated amortization, Beginning Balance	(666,150)	(321,750)	(321,750)	(87,750)
Amortization expense	(18,794)		(275,785)	(234,000)
Accumulated amortization, ending balance	(684,945)		(666,150)	(321,750)
Distribution Contracts [Member]
Beginning Balance	560,000	560,000	560,000	560,000
Purchase of intangible assets
Amortization expense
Ending Balance	560,000		560,000	560,000
Accumulated amortization, Beginning Balance	(560,000)	(560,000)	(560,000)	(210,000)
Amortization expense				(350,000)
Accumulated amortization, ending balance	(560,000)		(560,000)	(560,000)
Non-Compete Agreements [Member]
Beginning Balance
Purchase of intangible assets	107,968
Amortization expense
Ending Balance	107,968
Accumulated amortization, Beginning Balance
Amortization expense	(634)
Accumulated amortization, ending balance	(634)
Trade Name (Indefinite) [Member]
Beginning Balance
Purchase of intangible assets	58,983
Amortization expense
Ending Balance	58,983
Domain Name (Indefinite) [Member]
Beginning Balance
Purchase of intangible assets	26,000
Amortization expense
Ending Balance	$ 26,000

Intangible Assets - Schdeule of

Intangible Assets - Schdeule of Accumulated Amortization of Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Beginning Balance	$ 1,843,547	$ 1,192,844	$ 382,594
Amortization expense	110,297	650,703	810,250
Ending Balance	1,953,844	1,843,547	1,192,844
License Agreements [Member]
Beginning Balance	617,396	311,094	84,844
Amortization expense	90,869	374,918	226,250
Ending Balance	708,265	617,396	311,094
Software [Member]
Beginning Balance	666,150	321,750	87,750
Amortization expense	18,794	275,785	234,000
Ending Balance	684,945	666,150	321,750
Distribution Contracts [Member]
Beginning Balance	560,000	560,000	210,000
Amortization expense			350,000
Ending Balance	560,000	560,000	560,000
Non-Compete Agreements [Member]
Beginning Balance
Amortization expense	634
Ending Balance	$ 634

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued royalties	$ 492,546	$ 1,485,261
Accrued professional fees	26,010	129,291
Accrued consulting fees	832,666	398,526
Payable to Le Mans joint venture		234,667
Accrued development costs	532,784	196,845
Accrued hosting fees	582	551
Accrued rent	40,787	40,787
Accrued taxes	45,934	54,880
Accrued payroll	397,884	778,918
Accrued director payment	30,250
Accrued other	36,967	35,277
Total	$ 2,436,410	$ 3,355,003

Stockholder's Equity (Details N

Stockholder's Equity (Details Narrative) - USD ($)		Jan. 15, 2021	Jan. 08, 2021	Mar. 31, 2021	Mar. 31, 2020
Membership interests			100.00%
Proceeds from initial public offering	[1]			$ 63,661,128
Unrecognized stock-based compensation expense				$ 2,158,949
Period for Recognition				2 years 6 months
Class A Common Stock [Member]
Conversion of shares			7,000,000
Stock issued during the period, shares	[2]			3,450,000
Proceeds from initial public offering		$ 63,100,000
Stock-based compensation expense				$ 9,076,916	$ 0
Class A Common Stock [Member] | IPO [Member]
Stock issued during the period, shares		3,450,000
Stock price per share		$ 20
Class A Common Stock [Member] | IPO [Member] | Chief Executive Officer, A Consultant &Three Of its Directors [Member]
Stock issued during the period, shares				330,633
Stock-based compensation expense				$ 6,612,660
Class A Common Stock [Member] | IPO [Member] | Chief Executive Officer [Member]
Restricted options issued during the period				203,333
Exercise price				$ 20
Fair value of option granted				$ 2,189,896
Terms of award				P10Y
Class A Common Stock [Member] | IPO [Member] | Employees [Member]
Stock-based compensation expense				$ 203,000
Restricted options issued during the period				167,477
Fair value of option granted				$ 2,043,133
Terms of award				P10Y
Class A Common Stock [Member] | IPO [Member] | Employees [Member]
Restricted options issued during the period				145,438
Exercise price				$ 20
Class A Common Stock [Member] | IPO [Member] | Employees [Member]
Restricted options issued during the period				22,039
Exercise price				$ 23.90
Class A Common Stock [Member] | IPO [Member] | Four Directors [Member]
Stock-based compensation expense				$ 35,000
Restricted options issued during the period				15,096
Exercise price				$ 20
Fair value of option granted				$ 169,377
Terms of award				P10Y
Class A Common Stock [Member] | IPO [Member] | Four Directors [Member] | One-year Grant Date Anniversary [Member]
Restricted options issued during the period				11,250
Class A Common Stock [Member] | IPO [Member] | Four Directors [Member] | Three Years [Member]
Restricted options issued during the period				3,846
Class A Common Stock [Member] | IPO [Member] | Company's Head of Music Strategy [Member]
Stock-based compensation expense				$ 36,000
Restricted options issued during the period				5,114
Exercise price				$ 23.90
Fair value of option granted				$ 140,000
Terms of award				P10Y
Class A Common Stock [Member] | IPO [Member] | Company's Head of Music Strategy [Member] | One-year Grant Date Anniversary [Member]
Restricted options issued during the period				1,767
Class A Common Stock [Member] | IPO [Member] | Company's Head of Music Strategy [Member] | Immediately [Member]
Restricted options issued during the period				209
Class A Common Stock [Member] | IPO [Member] | Company's Head of Music Strategy [Member] | Five Confirmations of Pre-approved Artist Introductions [Member]
Restricted options issued during the period				3,138
Class A Common Stock [Member] | IPO [Member] | Additional Shares for Underwriters [Member]
Stock issued during the period, shares		450,000
Class B Common Stock [Member]
Conversion of shares			7,000,000
Stock issued during the period, shares	[2]
[1]	Gross proceeds of $69,000,000 less issuance costs of $5,338,872. See supplemental disclosure below for $587,000 of issuance costs paid in 2020.
[2]	Gross proceeds of $69,000,000 less offering costs of $5,925,872.

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Related Party Transactions [Abstract]
Repayments of advances from related parties	$ (11,800,000)	$ (271,217)
Additional related party	1,906,248
Due to related parties	$ 959,784		$ 10,853,536

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	Feb. 11, 2021	Jan. 11, 2021	Mar. 31, 2021	Mar. 31, 2020
Operating leases, rent expense			$ 89,755	$ 54,301
704Games [Member]
Aggregate purchase of shares of common stock	106,307
Percentage of outstanding shares	$ 26.2
704Games [Member] | August and October 2020 [Member]
Aggregate purchase of shares of common stock		116,608
Percentage of outstanding shares		$ 28.7

Concentrations - Schedule of Co

Concentrations - Schedule of Concentrations (Details)	3 Months Ended				12 Months Ended
	Mar. 31, 2021		Mar. 31, 2020		Dec. 31, 2020
Customer Concentration Risk [Member] | Revenues [Member]
Concentration risk percentage	77.84%		77.31%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration risk percentage	93.99%				81.84%
Customer Concentration Risk [Member] | Customer B [Member] | Revenues [Member]
Concentration risk percentage	35.76%		35.59%
Customer Concentration Risk [Member] | Customer B [Member] | Accounts Receivable [Member]
Concentration risk percentage	12.68%					[1]
Customer Concentration Risk [Member] | Customer D [Member] | Revenues [Member]
Concentration risk percentage	42.08%		29.94%
Customer Concentration Risk [Member] | Customer E [Member] | Revenues [Member]
Concentration risk percentage		[1]	11.78%
Customer Concentration Risk [Member] | Customer A [Member] | Accounts Receivable [Member]
Concentration risk percentage	63.54%				81.84%
Customer Concentration Risk [Member] | Customer C [Member] | Accounts Receivable [Member]
Concentration risk percentage	17.77%					[1]
Supplier Concentrations [Member] | Revenues [Member]
Concentration risk percentage	57.84%		65.48%
Supplier Concentrations [Member] | Supplier A [Member] | Revenues [Member]
Concentration risk percentage	39.47%		42.22%
Supplier Concentrations [Member] | Supplier B [Member] | Revenues [Member]
Concentration risk percentage		[1]	12.56%
Supplier Concentrations [Member] | Supplier C [Member] | Revenues [Member]
Concentration risk percentage	18.37%			[1]
Supplier Concentrations [Member] | Supplier D [Member] | Revenues [Member]
Concentration risk percentage		[1]	10.70%
[1]	Less than 10%

Segment Reporting (Details Narr

Segment Reporting (Details Narrative) - Integer	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting [Abstract]
Number of reportable segments	2	2

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Total Segment and Consolidated Revenues		$ 2,474,132	$ 3,234,567
Total Segment and Consolidated Cost of Revenues	[1]	781,808	1,068,497
Total Segment and Consolidated Gross Profit		1,692,324	2,166,070
Total Segment and Consolidated (Loss) Income From Operations		(15,377,069)	(119,576)
Total Segment and Consolidated Depreciation and Amortization		30,775	18,951
Total Segment and Consolidated Interest Income (Expense)	[2]	(119,539)	1,140
Total Segment Equity in (Loss) Income		1,370,837	(70,242)
Consolidated Total Assets		65,954,086		$ 17,387,010
Gaming [Member]
Total Segment and Consolidated Revenues		2,450,213	3,234,567
Total Segment and Consolidated Cost of Revenues		715,116	923,466
Total Segment and Consolidated Gross Profit		1,735,097	2,311,101
Total Segment and Consolidated (Loss) Income From Operations		(15,193,257)	118,748
Total Segment and Consolidated Depreciation and Amortization		25,439	18,732
Total Segment and Consolidated Interest Income (Expense)		(119,539)	1,140
Total Segment Equity in (Loss) Income		1,291,647	(11,830)
Consolidated Total Assets		65,910,252		17,377,993
Esports [Member]
Total Segment and Consolidated Revenues		23,919
Total Segment and Consolidated Cost of Revenues		66,692	145,031
Total Segment and Consolidated Gross Profit		(42,773)	(145,031)
Total Segment and Consolidated (Loss) Income From Operations		(183,812)	(238,324)
Total Segment and Consolidated Depreciation and Amortization		5,336	219
Total Segment and Consolidated Interest Income (Expense)
Total Segment Equity in (Loss) Income			$ (70,242)
Consolidated Total Assets		$ 43,834		$ 9,017
[1]	Includes related party costs of $0 and $68,256 for the three months ended March 31, 2021 and 2020, respectively.
[2]	Includes related party expenses of $105,845 and $0 for the three months ended March 31, 2021 and 2020, respectively.

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)		Apr. 21, 2021	Apr. 20, 2021	Mar. 14, 2021	Mar. 11, 2021	Mar. 31, 2021
Stock issued during the period	[1]					$ 63,074,128
Subsequent Event [Member]
Pledged percentage			20.00%
Repayment of promissory note		$ 863,169
Class A Common Stock [Member]
Stock issued during the period, shares	[1]					3,450,000
Stock issued during the period	[1]					$ 345
704Games [Member] | Share Exchange Agreements [Member] | Class A Common Stock [Member]
Stock issued during the period, shares					366,542
Stock issued during the period					$ 1,542,519
Ascend FS, Inc [Member] | Share Exchange Agreements [Member] | Class A Common Stock [Member]
Stock issued during the period, shares				488,722
Stock issued during the period				$ 2,056,692
Studio397 [Member] | Binding Term Sheet [Member] | Subsequent Event [Member]
Business acquisition percentage			100.00%
Purchase price for the shares			$ 16,000,000
Studio397 [Member] | Binding Term Sheet [Member] | Subsequent Event [Member] | At Closing [Member]
Purchase price for the shares			12,800,000
Studio397 [Member] | Binding Term Sheet [Member] | Subsequent Event [Member] | First Year Anniversary Closing [Member]
Purchase price for the shares			$ 3,200,000
[1]	Gross proceeds of $69,000,000 less offering costs of $5,925,872.