Motorsport Games (MSGM) 10-Q 10 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-39868
Entity Registrant Name	Motorsport Games Inc.
Entity Central Index Key	0001821175
Entity Tax Identification Number	86-1791356
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	5972 NE 4th Avenue
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33137
City Area Code	(305)
Local Phone Number	507-8799
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	MSGM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Common Class A [Member]
Entity Common Stock, Shares Outstanding		11,673,587
Common Class B [Member]
Entity Common Stock, Shares Outstanding		7,000,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 5,223,051	$ 17,819,640
Accounts receivable, net of allowances of $3,596,634 and $4,563,884, at June 30, 2022 and December 31, 2021, respectively	1,472,430	5,490,272
Due from related parties	35,498	137,574
Prepaid expenses and other current assets	1,711,783	1,175,354
Total Current Assets	8,442,762	24,622,840
Property and equipment, net	723,776	727,089
Operating lease right of use assets	1,567,838
Goodwill		4,867,465
Intangible assets, net	14,261,175	20,485,809
Total Assets	24,995,551	50,703,203
Current liabilities:
Accounts payable	314,324	1,784,645
Accrued expenses and other liabilities	1,956,759	3,524,271
Due to related parties	37,049	119,015
Purchase commitments	2,582,122	3,170,319
Operating lease liabilities (current)	391,113
Total Current Liabilities	5,281,367	8,598,250
Operating lease liabilities (non-current)	1,179,315
Other non-current liabilities	3,521,390	4,122,950
Total Liabilities	9,982,072	12,721,200
Commitments and contingencies (Note 11)
Stockholders’ Equity:
Preferred stock, $0.0001 par value; authorized 1,000,000 shares; none issued and outstanding as of June 30, 2022 and December 31, 2021, respectively
Additional paid-in capital	76,242,774	75,651,175
Accumulated deficit	(60,531,239)	(37,988,326)
Accumulated other comprehensive loss	(933,644)	(945,375)
Total Stockholders’ Equity Attributable to Motorsport Games Inc.	14,779,759	36,719,338
Non-controlling interest	233,720	1,262,665
Total Stockholders’ Equity	15,013,479	37,982,003
Total Liabilities and Stockholders’ Equity	24,995,551	50,703,203
Common Class A [Member]
Stockholders’ Equity:
Class B common stock - $0.0001 par value; authorized 7,000,000 shares;7,000,000 shares issued and outstanding as of June 30, 2022, and December 31, 2021	1,168	1,164
Common Class B [Member]
Stockholders’ Equity:
Class B common stock - $0.0001 par value; authorized 7,000,000 shares;7,000,000 shares issued and outstanding as of June 30, 2022, and December 31, 2021	$ 700	$ 700

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Allowances for doubtful accounts receivable	$ 3,596,634	$ 4,563,884
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common Class A [Member]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	11,673,587	11,635,897
Common stock, shares outstanding	11,673,587	11,635,897
Common Class B [Member]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,000,000	7,000,000
Common stock, shares issued	7,000,000	7,000,000
Common stock, shares outstanding	7,000,000	7,000,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenues		$ 2,008,987	$ 2,238,927	$ 5,330,776	$ 4,713,059
Cost of revenues [1]	[1]	856,157	906,303	2,869,963	1,688,111
Gross profit		1,152,830	1,332,624	2,460,813	3,024,948
Operating expenses:
Sales and marketing		1,540,220	704,222	3,228,669	1,728,440
Development [2]	[2]	2,681,643	1,818,178	5,085,980	3,068,540
General and administrative [3]	[3]	3,349,609	4,717,180	6,772,763	19,481,218
Impairment of goodwill				4,788,268
Impairment of intangible assets		149,048		4,640,102
Depreciation and amortization		117,725	66,448	233,796	97,223
Total operating expenses		7,838,245	7,306,028	24,749,578	24,375,421
Loss from operations		(6,685,415)	(5,973,404)	(22,288,765)	(21,350,473)
Interest expense [4]	[4]	(191,662)	(31,899)	(393,258)	(151,438)
Gain attributable to equity method investment					1,370,837
Other (expense) income, net		(610,594)	44,360	(772,693)	84,707
Net loss		(7,487,671)	(5,960,943)	(23,454,716)	(20,046,367)
Less: Net loss attributable to non-controlling interest		(82,375)	(180,849)	(911,803)	(454,299)
Net loss attributable to Motorsport Games Inc.		$ (7,405,296)	$ (5,780,094)	$ (22,542,913)	$ (19,592,068)
Net loss attributable to Class A common stock per share:
Basic and diluted		$ (0.63)	$ (0.50)	$ (1.93)	$ (1.88)
Weighted-average shares of Class A common stock outstanding:
Basic and diluted		11,673,587	11,494,919	11,670,888	10,421,910
[1]Includes related party costs of $ 0 0 6,228 0 824 10,882 23,430 11,459 75,451 134,284 98,337 1,570,518 0 0 0 105,845

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Related party costs	$ 0	$ 0	$ 6,228	$ 0
Development [Member]
Related party expenses	824	10,882	23,430	11,459
General and Administrative Expense [Member]
Related party expenses	75,451	134,284	98,337	1,570,518
Interest Expense [Member]
Related party expenses	$ 0	$ 0	$ 0	$ 105,845

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net loss	$ (7,487,671)	$ (5,960,943)	$ (23,454,716)	$ (20,046,367)
Other comprehensive income (loss):
Foreign currency translation adjustments	136,976	(70,809)	11,731	(103,723)
Comprehensive loss	(7,350,695)	(6,031,752)	(23,442,985)	(20,150,090)
Comprehensive loss attributable to non-controlling interests	(140,224)	(180,849)	(1,028,945)	(454,299)
Comprehensive loss attributable to Motorsport Games Inc.	$ (7,210,471)	$ (5,850,903)	$ (22,414,040)	$ (19,695,791)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Class A [Member] Common Stock [Member]	Common Class B [Member] Common Stock [Member]	Members Equity [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Balance - March 31, 2021 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
Stock-based compensation	$ 33			9,076,883			9,076,916		9,076,916
Stock-based compensation, shares	330,633
Other comprehensive loss						(32,914)	(32,914)		(32,914)
Net loss					(13,811,974)		(13,811,974)	(273,450)	(14,085,424)
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	3,450,000
Purchase of additional interest in Le Mans Esports Series Ltd.								1,584,892	1,584,892
Ending balance, shares at Mar. 31, 2021	10,780,633
Balance - June 30, 2021 at Mar. 31, 2021	$ 1,078	700		75,940,940	(18,638,309)	(27,986)	57,276,423	3,957,001	61,233,424
Balance - March 31, 2021 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
Net loss									(20,046,367)
Ending balance, shares at Jun. 30, 2021	11,635,897	7,000,000
Balance - June 30, 2021 at Jun. 30, 2021	$ 1,164	$ 700		75,117,703	(24,418,403)	(98,795)	50,602,369	1,351,120	51,953,489
Balance - March 31, 2021 at Mar. 31, 2021	$ 1,078	700		75,940,940	(18,638,309)	(27,986)	57,276,423	3,957,001	61,233,424
Beginning balance, shares at Mar. 31, 2021	10,780,633
Stock-based compensation				116,274			116,274		116,274
Other comprehensive loss						(70,809)	(70,809)		(70,809)
Net loss					(5,780,094)		(5,780,094)	(180,849)	(5,960,943)
Issuance of common stock to 704Games former minority shareholders	$ 86						86		86
Issuance of common stock to Gaming Nation and Playfast, shares	855,264
Purchase of 704Games minority interest				(939,511)			(939,511)	(2,659,786)	(3,599,297)
ACO Investment in Le Mans Esports Series Ltd.								234,754	234,754
Ending balance, shares at Jun. 30, 2021	11,635,897	7,000,000
Balance - June 30, 2021 at Jun. 30, 2021	$ 1,164	$ 700		75,117,703	(24,418,403)	(98,795)	50,602,369	1,351,120	51,953,489
Balance - March 31, 2021 at Dec. 31, 2021	$ 1,164	$ 700		75,651,175	(37,988,326)	(945,375)	36,719,338	1,262,665	37,982,003
Beginning balance, shares at Dec. 31, 2021	11,635,897	7,000,000
Stock-based compensation	$ 4			353,026			353,030		353,030
Stock-based compensation, shares	37,690
Other comprehensive loss						(125,245)	(125,245)	(59,293)	(184,538)
Net loss					(15,137,617)		(15,137,617)	(829,428)	(15,967,045)
Ending balance, shares at Mar. 31, 2022	11,673,587	7,000,000
Balance - June 30, 2021 at Mar. 31, 2022	$ 1,168	$ 700		76,004,201	(53,125,943)	(1,070,620)	21,809,506	373,944	22,183,450
Balance - March 31, 2021 at Dec. 31, 2021	$ 1,164	$ 700		75,651,175	(37,988,326)	(945,375)	36,719,338	1,262,665	37,982,003
Beginning balance, shares at Dec. 31, 2021	11,635,897	7,000,000
Net loss									(23,454,716)
Ending balance, shares at Jun. 30, 2022	11,673,587
Balance - June 30, 2021 at Jun. 30, 2022	$ 1,168	$ 700		76,242,774	(60,531,239)	(933,644)	14,779,759	233,720	15,013,479
Balance - March 31, 2021 at Mar. 31, 2022	$ 1,168	$ 700		76,004,201	(53,125,943)	(1,070,620)	21,809,506	373,944	22,183,450
Beginning balance, shares at Mar. 31, 2022	11,673,587	7,000,000
Stock-based compensation				238,573			238,573		238,573
Other comprehensive loss						136,976	136,976	(57,849)	79,127
Net loss					(7,405,296)		(7,405,296)	(82,375)	(7,487,671)
Ending balance, shares at Jun. 30, 2022	11,673,587
Balance - June 30, 2021 at Jun. 30, 2022	$ 1,168	$ 700		$ 76,242,774	$ (60,531,239)	$ (933,644)	$ 14,779,759	$ 233,720	$ 15,013,479

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net Loss	$ (23,454,716)	$ (20,046,367)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment of intangible assets	4,640,102
Impairment of goodwill	4,788,268
Depreciation and amortization	1,071,172	659,309
Non-Cash lease expense	196,938
Stock-based compensation	591,603	9,193,190
Gain on equity method investment		(1,370,837)
Sales return and price protection reserves	1,098,397	199,940
(Increase) decrease in assets and increase (decrease) in liabilities, net of acquisitions and the effect of consolidation of equity affiliates:
Account receivables	2,877,935	2,149,685
Operating lease liabilities	(194,117)
Prepaid expenses and other assets	(572,926)	(751,480)
Other assets		25,000
Accounts payable	(1,455,211)	(579,061)
Other non-current liabilities	(475,927)	60,946
Accrued expenses	(1,160,816)	(804,871)
Net cash used in operating activities	(12,049,298)	(11,264,546)
Cash flows from investing activities:
Acquisition of Le Mans, net of cash acquired		153,250
Acquisition of Motorsport Games Australia		(1,000,000)
Acquisition of Studio 397		(12,785,463)
Purchase commitment liability		(27,928)
Purchase of property and equipment	(196,346)	(348,033)
Net cash used in investing activities	(196,346)	(14,008,174)
Cash flows from financing activities:
Advances from related parties	143,517	1,868,312
Repayments on advances from related parties	(24,913)	(12,663,168)
Repayments of purchase commitment liabilities	(1,000,000)
Purchase of non-controlling interest		(3,599,211)
Contributed capital from non-controlling shareholders		234,754
Payment of license liabilities	(100,000)
Proceeds from issuance of Class A common stock sold in initial public offering, net of underwriting costs		63,661,128
Net cash (used in) provided by financing activities	(981,396)	49,501,815
Effect of exchange rate changes on cash	630,451	83,577
Net increase (decrease) in cash	(12,596,589)	24,312,672
Cash at beginning of period	17,819,640	3,990,532
Cash at end of period	5,223,051	28,303,204
Cash paid during the period for:
Interest		804,674
Non-cash investing and financing activities:
Shares issued to 704Games former minority shareholders		86
Purchase commitment liability	29,681	3,126,314
Reduction of additional paid-in capital for purchased 704Games minority shares		939,511
Reduction of additional paid-in capital for initial public offering issuance costs that were previously paid		587,000
Purchase of additional interest in Le Mans Esports Series Ltd.		$ 1,584,892

BUSINESS ORGANIZATION, NATURE O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2022
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 (“Motorsport Gaming”) was established as a limited liability company on August 2, 2018 under the laws of the State of Florida. On January 8, 2021, Motorsport Gaming converted into a Delaware corporation pursuant to a statutory conversion and changed its name to Motorsport Games Inc. (“Motorsport Games” or the “Company”). Upon effecting the corporate conversion on January 8, 2021, Motorsport Games now holds all the property and assets of Motorsport Gaming, and all of the debts and obligations of Motorsport Gaming were assumed by Motorsport Games by operation of law upon such corporate conversion. Risks and Uncertainties COVID-19 Pandemic The lingering impact of COVID-19 has continued to create significant volatility throughout the global economy, such as supply chain disruptions, limited labor supplies, higher inflation, and recession, which in turn has caused constraints on consumer spending. More recently, new variants of COVID-19, such as the Omicron variant and its subvariants, that are significantly more contagious than previous strains, have emerged. Further, the effectiveness of approved vaccines on these new strains remains uncertain. The spread of these new strains initially caused many government authorities and businesses to reimplement prior restrictions in an effort to lessen the spread of COVID-19 and its variants. However, while many of these restrictions have been lifted, uncertainty remains as to whether additional restrictions may be initiated or again reimplemented in response to surges in COVID-19 cases. Although the Company does not currently expect the COVID-19 pandemic to have a material impact on its future business and operations, the Company continues to monitor the evolving situation caused by the COVID-19 pandemic, and the Company may take further actions required by governmental authorities or that the Company determines are prudent to support the well-being of the Company’s 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; the emergence and severity of its variants; the actions to contain the virus or treat its impact, such as the availability and efficacy of vaccines (particularly with respect to emerging strains of the virus) and potential hesitancy to utilize them; the effect on discretionary spending by consumers; and how quickly and to what extent normal economic and operating conditions can resume. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 management’s opinion, 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 June 30, 2022 and for the three and six months ended June 30, 2022. The Company’s results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results for the full year ending December 31, 2022 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, 2021 and 2020 and for the years then ended which are included in the 2021 Form 10-K. Liquidity and Going Concern On January 15, 2021, the Company completed its initial public offering which resulted in net proceeds to the Company of approximately $ 63.1 For the six months ended June 30, 2022, the Company had a net loss of approximately $ 23.5 12.0 60.5 In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern Our future liquidity and capital requirements include funds to support the planned costs to operate our business, including amounts required to fund working capital, support the development and introduction of new products, maintain existing titles, and certain capital expenditures. The adequacy of our available funds generally depends on many factors, including our ability to successfully develop consumer-preferred new products or enhancements to our existing products, continued development and expansion of our esports platform and our ability to enter into collaborations with other companies and/or acquire other companies or technologies to enhance or complement our product and service offerings. We continue to explore additional funding in the form of potential equity and/or debt financing arrangements and consider these to be viable options to support future liquidity needs, provided that such opportunities can be obtained on terms that are commercially competitive and on terms acceptable to the Company. We are also seeking to improve our liquidity by achieving cost reductions by maintaining and enhancing cost control initiatives. As we continue to evaluate incremental funding solutions, we have reevaluated our product roadmap in the first quarter of 2022 and modified the expected timing and scope of certain new product releases. These changes have been made not only to maintain the development of high-quality video game titles, but also to improve the timing of certain working capital requirements and reduce expenditures, thereby decreasing our expected future cash-burn and improve our short-term liquidity needs. If needed, further adjustments could be made that would decrease short-term working capital requirements, while pushing out the timing of expected revenues. We expect to generate additional liquidity through consummating one or more potential equity and/or debt financings, achieving cost reductions by maintaining and enhancing cost control initiatives, and/or further adjusting our product roadmap to reduce near term need for working capital. If we are unable to generate adequate revenue and profit growth, there can be no assurances that such actions will provide us with sufficient liquidity to meet our cash requirements as, among other things, our liquidity can be impacted by a number of factors, including our level of sales, costs and expenditures, as well as accounts receivable and sales allowances. There can be no assurance that we will be able to obtain funds on commercially acceptable terms, if at all, to satisfy our future needed liquidity and capital resources. If we are unable to obtain adequate funds on acceptable terms, we may be required to, among other things, significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. If we are unable to satisfy our cash requirements from the sources identified above, we could be required to adopt one or more of the following alternatives: ● selling assets or operations; ● seeking additional capital contributions and/or loans from Motorsport Network, the Company’s other affiliates and/or third parties; and/or ● reducing other discretionary spending. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements There can be no assurance that we would be able to take any of the actions referred to above because of a variety of commercial or market factors, including, without limitation, market conditions being unfavorable for an equity or debt issuance, additional capital contributions and/or loans not being available from Motorsport Network or affiliates and/or third parties, or that the transactions may not be permitted under the terms of our various debt instruments then in effect, such as due to restrictions on the incurrence of debt, incurrence of liens, asset dispositions and related party transactions. In addition, such actions, if taken, may not enable us to satisfy our cash requirements if the actions that we are able to consummate do not generate a sufficient amount of additional capital. Even if we do secure additional financing, if our anticipated level of revenues are not achieved because of, for example, less than anticipated consumer acceptance of our offering of products and events; less than effective marketing and promotion campaigns, decreased consumer spending in response to weak economic conditions or weakness in the overall electronic games category; adverse changes in currency; decreased sales of our products and events as a result of increased competitive activities by our competitors; changes in consumer purchasing habits; retailer inventory management or reductions in retailer display space; less than anticipated results from the Company’s existing or new products or from its advertising and/or marketing plans; or if the Company’s expenses, including, without limitation, for advertising and promotions, product returns or price protection expenditures, exceed the anticipated level of expenses, our liquidity may continue to be insufficient to satisfy our future capital requirements. The factors described above, in particular the available cash on hand to fund operations over the next year, have raised substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. However, substantial doubt about the Company’s ability to continue as a going concern exists. Recently Issued Accounting Standards As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. The adoption dates discussed below reflect this election. In November 2019, the FASB issued ASU 2019-11, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Adoption of Accounting Pronouncements On January 1, 2022, the Company adopted Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) For leases with a term greater than 12 months, the new guidance requires the lease rights and obligations arising from the leasing arrangements, including operating leases, to be recognized as assets and liabilities on the balance sheet. Upon adoption of ASC 842, the Company recognized approximately $ 751,000 The adoption of ASC 842 did not have a material impact on the Company’s condensed consolidated statements of operations and comprehensive loss or condensed consolidated statements of cash flows. On January 1, 2022, the Company adopted ASU 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) On January 1, 2022, the Company adopted ASU 2019 -12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
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 2021 Form 10-K, except as disclosed in this note. Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers ● 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 include game consoles, PCs, mobile phones and tablets. The Company’s product and service offerings include 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 Company’s performance obligations are satisfied. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 reviewing 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 the Company to 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, Nintendo’s eShop, Apple’s App Store, and Google’s Play Store, to determine whether 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’s App Store or Google’s Play Store, the third party is considered the principal with the end customer and, as a result, the Company reports revenue net of the fees retained by the storefront. For contracts with customers where revenues are generated via the Apple’s App Store or Google’s Play Store, the Company has determined that it is the principal and, as a result, reports revenues on a gross basis, with mobile platform fees included within cost of revenues. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 864,157 and $ 1,098,397 , respectively. The Company recognized approximately $ 81,600 and $ 199,940 of sales returns and price protection charges as a reduction of revenues for the three and six months ended June 30, 2021, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 – Compensation – Stock 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, using the Black-Scholes option pricing model. 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. Stock-based compensation is adjusted for any forfeitures, which are accounted for on an as occurred basis. 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: SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES For the Three and Six Months Ended June 30, 2022 2021 Stock options 761,667 574,073 761,667 574,073 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Income Taxes On January 8, 2021, Motorsport Gaming, a Florida limited liability company, converted into Motorsport Games, a Delaware corporation, pursuant to a statutory conversion. The Company is subject to federal and state income taxes in the U.S. 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, Taxes 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.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 3 – INTANGIBLE ASSETS Licensing Agreements The Company has license agreements with various entities related to the development of video games and the organization and facilitation of esports events, including BARC (TOCA) Limited (“BARC”) with respect to the British Touring Car Championship (the “BTCC”) and INDYCAR LLC (“INDYCAR”) with respect to the INDYCAR SERIES. As of June 30, 2022, the Company had a remaining liability in connection with these licensing agreements of $ 774,680 Impairment During the six months ended June 30, 2022, the Company identified triggering events during the six months ended June 30, 2022, that indicated its allocated intangible and finite-lived intangible assets were at risk of impairment and as such, performed quantitative impairment assessments of all its intangible and finite-lived intangible assets. The primary triggers for the impairment review for the period ended March 31, 2022 were changes made to the Company’s product roadmap during the six months ended June 30, 2022, which resulted in changes to the scope and timing of certain product releases, as well as changes in the value of the Company’s market capitalization which had reduced significantly since December 31, 2021, the date of the last impairment assessment. These changes were made by the Company to better align the product roadmap with the Company’s ability to produce and release high quality games. The primary triggers for the impairment review for the three-month period ended June 30, 2022 were the ongoing reduction in the Company’s share price, the receipt of a deficiency letter notice from NASDAQ and the Company’s ongoing uncertain liquidity position. As a result of the quantitative assessments, the Company determined that the fair value of its rFactor 2 trade name and Le Mans video gaming license (the “Le Mans Gaming License”) indefinite-lived intangible assets, as well as certain finite-lived technology intangible assets, were lower than their carrying values and recorded an impairment loss for the indefinite-lived intangible assets for the six months ended June 30, 2022 of approximately $ 2,201,000 for its rFactor 2 trade name and $ 1,120,00 1,320,000 The Company determined the fair value of the indefinite-lived intangible assets using a relief-from-royalty method for the trade name and a discounted cash flow valuation model for the Le Mans Gaming License and used a cost to recreate valuation model for the finite-lived technology intangible asset. The impairment loss for indefinite- and finite-lived intangible assets was primarily driven by a reduction in expected future revenues, following changes to the Company’s product roadmap, as well as changes to the discount rates applied, royalty rates and technological obsolescence assumptions used in the valuation models. The principal assumptions used in the relief-from-royalty method analysis used to determine the fair value of the rFactor 2 trade name consisted of forecasted revenues, royalty rate and weighted average cost of capital (i.e., discount rate), while the principal assumptions used in the discounted cash flow valuation model for the Le Mans Gaming License were forecasted revenues and weighted average cost of capital. The principal assumptions used in determining the fair value of the finite-lived technology intangible asset were number of production hours, cost per hour and technological obsolescence. The Company considers these assumptions to be judgmental and subject to risk and uncertainty, which could result in further changes in subsequent periods. The impairment loss is presented as impairment of intangible assets in the condensed consolidated statements of operations and comprehensive loss. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements The following is a summary of intangible assets as of June 30, 2022: SCHEDULE OF INTANGIBLE ASSETS Licensing Agreements (Finite) Licensing Agreements (Indefinite) Software Licenses (Finite) Distribution Contracts (Finite) Trade Names (Indefinite) Non-Compete Agreements (Finite) Accumulated Amortization Total Balance as of December 31, 2021 $ 7,198,363 $ 2,810,000 $ 10,364,541 $ 560,000 $ 2,672,581 $ 257,530 $ (3,377,206 ) $ 20,485,809 Amortization expense - - - - - - (879,052 ) (879,052 ) Impairment of intangible assets - (1,118,209 ) (1,320,993 ) - (2,200,900 ) - - (4,640,102 ) FX translation adjustments 27,507 (213,861 ) (528,818 ) - (74,229 ) (18,813 ) 102,734 (705,480 ) Balance as of June 30, 2022 $ 7,225,870 $ 1,477,930 $ 8,514,730 $ 560,000 $ 397,452 $ 238,717 $ (4,153,524 ) $ 14,261,175 Accumulated amortization of intangible assets consists of the following: SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS Licensing Agreements (Finite) Software Licenses (Finite) Distribution Contracts (Finite) Non-Compete Agreements (Finite) Accumulated Amortization Balance as of December 31, 2021 $ 912,260 $ 1,843,716 $ 560,000 $ 61,230 $ 3,377,206 Amortization expense 113,749 723,628 - 41,675 879,052 Foreign currency translation adjustment - (96,403 ) - (6,331 ) (102,734 ) Balance as of June 30, 2022 $ 1,026,009 $ 2,470,941 $ 560,000 $ 96,574 $ 4,153,524 Estimated aggregate amortization expense of intangible assets for the next five years and thereafter is as follows: SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS For the Years Ended December 31, Total 2022 (remaining period) $ 1,045,777 2023 1,892,641 2024 1,687,137 2025 1,678,365 2026 1,400,729 Thereafter 2,172,544 Estimated aggregate amortization expense $ 9,877,193 Amortization expense related to intangible assets was approximately $ 396,500 471,000 879,000 581,500 3,460,000

GOODWILL

GOODWILL	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	NOTE 4 – GOODWILL The carrying amount of goodwill attributable to our Gaming and Esports reporting units and the changes in such balances during the six months ended June 30, 2022 were as follows: SCHEDULE OF GOODWILL Games Esports Total Balance as of January 1, 2022 $ 4,802,882 $ 64,583 $ 4,867,465 Impairment of Goodwill (4,723,685 ) (64,583 ) (4,788,268 ) Foreign exchange (79,197 ) - (79,197 ) Balance as of June 30, 2022 $ - $ - $ - During the six months ending June 30, 2022, the Company identified triggering events that indicated its goodwill associated with the acquisition of Studio397 B.V. (“Studio397”) was at risk of impairment and as such, performed a quantitative impairment assessment to determine whether the fair value of the associated reporting unit exceeded its fair value. The primary triggers for the impairment review were changes made to Motorsport Games’ product roadmap during the six months ended June 30, 2022, which resulted in changes to the scope and timing of certain product releases, as well as changes in the value of Motorsport Games’ market capitalization which had reduced significantly subsequent to December 31, 2021, the date of the last impairment assessment. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements As a result of the quantitative assessment, the Company determined the carrying value of its Gaming reporting unit exceeded its fair value and determined the associated goodwill was fully impaired. An impairment loss of $4,788,268 was recorded for the six months ended June 30, 2022. The Company determined the fair value of the Gaming reporting unit using a discounted cash flow valuation model. The impairment loss was primarily driven by a reduction in expected future revenues, following changes to the Company’s product roadmap, as well as a higher discount rate applied in the valuation model. The principal assumptions used in the discounted cash flow valuation model were forecasted revenues and weighted average cost of capital (i.e., the discount rate). The impairment loss is presented as impairment of goodwill in the condensed consolidated statements of operations and comprehensive loss.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2022
Leases
LEASES	NOTE 5 - LEASES The Company’s operating leases primarily relate to real estate, which include office space in the U.S., the U.K., and Russia. The Company’s leases have established fixed payment terms that are typically subject to annual rent increases throughout the term of each lease agreement. The Company’s lease agreements have varying noncancelable rental periods and do not typically include options for the Company to extend the lease terms. The Company’s operating leases have been presented in operating lease right-of-use assets, operating lease liabilities (short-term) and operating lease liabilities (long-term), on the Company’s condensed consolidated balance sheet as of June 30, 2022. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Refer to Note 1, Business Organization, Nature of Operations, Risks and Uncertainties and Basis of Presentation Incremental borrowing rate The Company’s lease agreements do not provide an implicit rate to determine the present value of lease payments. As such, the Company uses its incremental borrowing rate to determine the present value of lease payments. The Company derives its incremental borrowing rate from information available at the lease commencement date, which represents a collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. As the Company did not have external borrowings at the adoption date with comparable terms to its lease agreements, the Company estimated its borrowing rate based on prime lending rate (“Prime Rate”), adjusted for the US Treasury note rates for the same term as the associated lease and the Company’s credit risk spread. The components of lease expense were as follows: SCHEDULE OF LEASE COST Condensed Consolidated Statement of Three Months Six Months Comprehensive Loss Classification June 30, 2022 June 30, 2022 Short-term operating lease expense G&A $ 23,951 $ 52,916 Operating lease expense G&A 126,237 196,938 Total lease costs $ 150,188 $ 249,854 Weighted average remaining lease terms and weighted average discount rates are as follows: SCHEDULE OF REMAINING LEASE TERMS Six Months Ended June 30, 2022 Weighted-average remaining lease term - operating leases (years) 4.13 Weighted-average discount rate - operating leases 7.54 % Supplemental cash flow information related to leases is as follows: SCHEDULE OF CASH FLOW SUPPLEMENTAL Six Months Ended June 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 249,854 Right of use assets obtained in exchange for new lease obligations $ 1,086,668 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements As of June 30, 2022, maturities related to lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Operating Leases 2022 (remaining period) $ 253,005 2023 509,676 2024 420,525 2025 286,897 2026 273,522 Thereafter 65,037 Total lease payments $ 1,808,662 Less effects of imputed interest (238,234) Present value of lease liabilities $ 1,570,428 New lease agreements On February 8, 2022, the Company entered into a new lease agreement with Lemon City Group, LLC, an entity affiliated with our majority shareholder, Motorsport Network, for office space located in Miami, Florida (the “Lemon City Lease”). The term of this new lease is 5 years, which commenced April 1, 2022 and expires on March 31, 2027, and is terminable upon 60-days’ written notice, by either party, with no penalty 22,000 Subsequent Events

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	NOTE 6 – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES June 30 December 31, 2022 2021 Accrued royalties $ 851,574 $ 1,694,011 Accrued professional fees 50,000 80,909 Accrued consulting fees 352,422 106,006 Accrued development costs 320,359 968,007 Esport prize money 11,126 168,959 Accrued taxes 74,402 31,491 Accrued payroll 116,293 235,224 Accrued other 180,583 239,664 Total $ 1,956,759 $ 3,524,271 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

DUE TO_FROM RELATED PARTIES

DUE TO/FROM RELATED PARTIES	6 Months Ended
	Jun. 30, 2022
Due Tofrom Related Parties
DUE TO/FROM RELATED PARTIES	NOTE 7 – DUE TO/FROM RELATED PARTIES On April 1, 2020, the Company entered into a promissory note (the “$ 12 million Line of Credit”) with the Company’s majority stockholder, Motorsport Network, LLC (“Motorsport Network”), that provides the Company with a line of credit of up to $ 10 million at an interest rate of 10 % per annum, the availability of which is dependent on Motorsport Network’s available liquidity. 12 12 10 12 The $ 12 million Line of Credit does not have a stated maturity date and is payable upon demand at any time at the sole and absolute discretion of Motorsport Network, which has agreed, pursuant to a Side Letter Agreement related to the $ 12 million Line of Credit, dated September 4, 2020, not to demand or otherwise accelerate any amount due under the $ 12 million Line of Credit that would otherwise constrain the Company’s liquidity position, including the Company’s ability to continue as a going concern. The Company may prepay the $ 12 million Line of Credit in whole or in part at any time or from time to time without penalty or charge. In the event the Company or any of its subsidiaries consummates certain corporate events, including any capital reorganization, consolidation, joint venture, spin off, merger or any other business combination or restructuring of any nature, or if certain events of default occur, the entire principal amount and all accrued and unpaid interest will be accelerated and become payable. Given the state of the financial markets, the Company has recently assessed its exposure to any potential non-performance by Motorsport Network and believes that there is a substantial likelihood that Motorsport Network will not fulfill any of the Company’s borrowing requests for the foreseeable future. During the six months ended June 30, 2022, the Company did not draw or repay amounts under the $ 12 12 0 0 In addition to the $ 12 37,049 35,498 132,288

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 8 – RELATED PARTY TRANSACTIONS From time to time, Motorsport Network, and other related entities pay for Company expenses on the Company’s behalf. During the six months ended June 30, 2022, the Company incurred expenses of $ 143,517 that were paid by Motorsport Network on its behalf and are reimbursable by the Company to Motorsport Network. In addition, the Company has a promissory note with Motorsport Network, which is discussed in Note 7 – Due To/From Related Parties. Leasing agreements On February 8, 2022, the Company entered into the Lemon City Lease with Lemon City Group, LLC, an entity affiliated with our majority shareholder, Motorsport Network, for office space located in Miami, Florida. See Note 5 – Leases Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 9 – STOCKHOLDERS’ EQUITY Initial Public Offering On January 15, 2021, the Company completed its initial public offering of 3,450,000 20.00 450,000 63,073,783 Stock Warrants As of June 30, 2022 and December 31, 2021, 704Games has outstanding 10-year warrants to purchase 4,000 93.03 3.3

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 10 – SHARE-BASED COMPENSATION On January 12, 2021, in connection with initial public offering, Motorsport Games established the Motorsport Games Inc. 2021 Equity Incentive Plan (the “MSGM 2021 Stock Plan”). The MSGM 2021 Stock Plan provides for the grant of options, stock appreciation rights, restricted stock awards, performance share awards and restricted stock unit awards, and initially authorized 1,000,000 200,643 The majority of the options issued under the MSGM 2021 Stock Plan have time-based vesting schedules, typically vesting ratably over a three-year period. Certain stock option awards differed from this vesting schedule, notably awards made to Motorsport Games’ Chief Executive Officer in conjunction with Motorsport Games’ initial public offering that vested immediately, as well as those made to Motorsport Games’ directors that vested on the one-year anniversary of award issuance. All stock options issued under the MSGM 2021 Stock Plan expire 10 The following is a summary of stock-based compensation award activity for the periods ended June 30, 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY For the Six Months Ended June 30, 2022 Number of Options Vesting Term Contractual Term Grant Date Fair Value Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2022 (net of forfeitures) 297,401 Stock options awarded to employees under the MSGM 2021 Stock Plan 569,348 3 10 1,171,370 Stock options awarded to Board of Directors under the MSGM 2021 Stock Plan 57,108 1 10 120,630 Forfeited, cancelled or expired (162,190 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2022 (net of forfeitures) 761,667 In addition to the equity awards granted and detailed above, the Company granted 37,690 120,630 Stock-Based Compensation The following table summarizes stock-based compensation expense resulting from equity awards included in the Company’s consolidated statement of operations: SCHEDULE OF STOCK BASED COMPENSATION EXPENSE 2022 2021 2022 2021 For the Three Months Ended For the Six Months Ended 2022 2021 2022 2021 G&A $ 188,201 $ 136,155 $ 458,323 $ 9,051,518 Sales & Marketing 32,365 (34,350 ) 78,839 83,372 Development 18,007 14,469 54,441 58,300 Stock-based compensation expense $ 238,573 $ 116,274 $ 591,603 $ 9,193,190 As of June 30, 2022, there was approximately $ 2,000,000 3.5 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 – COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. Litigation or other legal proceedings, with or without merit, is unpredictable and generally expensive and time consuming and, even if resolved in our favor, is likely to divert significant resources from our core business, including distracting our management personnel from their normal responsibilities. Certain conditions may exist as of the date the 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 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 June 30, 2022 and December 31, 2021, the Company has not accrued any amounts for contingencies. As previously disclosed, on February 11, 2021, HC2 Holdings 2 Inc. (now known as Innovate 2) and Continental General Insurance Company, former minority stockholders of 704Games, filed a complaint in the U.S. 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 manager of Motorsport Network. The complaint was later amended and added Leo Capital Holdings LLC as an additional plaintiff and the controller of Motorsport Network as an additional individual defendant. The complaint alleges, among other things, purported misrepresentations and omissions concerning 704Games’ financial condition made in connection with the Company’s purchase of these minority shareholders’ interest in 704Games in August and October 2021. The complaint asserts claims under Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 thereunder; Section 20(a) of the Exchange Act; Section 20A of the Exchange Act; breach of the Company’s obligations under the Stockholders’ Agreement dated August 14, 2018; fraudulent inducement; breach of fiduciary duties; and 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 the date of plaintiffs’ sale and the purchase price that was paid, as well as punitive damages and other relief. In May 2021, the Company, along with the other defendants, filed a motion to dismiss the plaintiffs’ complaint. On March 28, 2022, the court entered an order denying the motion to dismiss. The Company believes that this action is without merit and will continue to vigorously defend itself. However, litigation is inherently uncertain. Accordingly, the Company cannot predict the outcome of this matter and Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 the agreement, upon payment of the initial license fee described below, the Company was granted a non-exclusive, non-transferable and terminable license to develop, market and sublicense (under limited circumstances and subject to conditions of the agreement) certain products using the Unreal Engine 4 for its next generation of games. The Company will pay Epic a license fee royalty payment equal to 5% 70,641 Minimum Royalty Guarantees The Company is required to make certain minimum royalty guarantee payments to third-party licensors, arising primarily from its NASCAR, INDYCAR and BTCC licenses, Le Mans Video Gaming License and Le Mans Esports License. These minimum royalty guarantee payments apply throughout the duration of the licensing agreements, which expire between fiscal years ending December 31, 2026 and 2031, and give rise to a commitment of approximately $ 35.5 3.55 Purchase Commitment Liabilities On April 22, 2022, Motorsport Games entered into a letter agreement (the “Amendment”) amending the terms of (i) the share purchase agreement dated March 31, 2021 (the “SPA”) with Luminis International BV, Technology In Business B.V. (“TIB”) and certain of TIB’s shareholders parties to such amendment, relating to the acquisition of Studio397 and (ii) the related deed of pledge that secured the Company’s payment of the $ 3,200,000 Pursuant to the Amendment, the deferred installment amount due to be paid under the SPA by the Company on the first anniversary of closing was reduced from $3,200,000 to $1,000,000, with the remaining $2,200,000 further deferred and to be paid within 90 days of the date that the Company made the $ 1,000,000 1,000,000 . See Note 14 - Subsequent Events.

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2022
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 12 – CONCENTRATIONS Customer Concentrations The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues, with all the customers listed coming from the Gaming segment, for the following periods: SCHEDULE OF CONCENTRATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, Customer 2022 2021 2022 2021 Customer B 39.51 % 24.56 % 26.20 % 30.29 % Customer C 29.72 % 30.60 % 21.61 % 19.24 % Customer D 24.56 % 31.37 % 21.46 % 36.85 % Total 93.79 % 86.53 % 69.27 % 86.38 % * Less than 10%. The following table sets forth information as to each customer that accounted for 10% or more of the Company’s trade accounts receivable (net), with all customers coming from the Gaming segment, as of: June 30, December 31, Customer 2022 2021 Customer A 65.08 % 51.9 % Customer D 16.71 % 17.7 % Total 81.79 % 69.6 % * Less than 10%. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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, with all suppliers relating to the Gaming segment, for the following periods: SCHEDULE OF CONCENTRATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, Supplier 2022 2021 2022 2021 Supplier A 54.66 % 27.40 % 27.42 % 36.41 % Supplier C 16.90 % 50.86 % - % 33.67 % Total 71.56 % 78.26 % 27.42 % 70.08 % * Less than 10%.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 13 – 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 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. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Segment information available with respect to these reportable business segments was as follows: SCHEDULE OF SEGMENT REPORTING INFORMATION For the Three Months Ended, For the Six Months Ended, June 30, June 30, 2022 2021 2022 2021 Revenues: Gaming $ 1,941,938 $ 2,238,927 $ 4,900,326 $ 4,689,140 Esports 67,049 - 430,450 23,919 Total Segment and Consolidated Revenues $ 2,008,987 $ 2,238,927 $ 5,330,776 $ 4,713,059 Cost of Revenues: Gaming $ 820,740 $ 902,751 $ 2,224,744 $ 1,617,867 Esports 35,417 3,552 645,219 70,244 Total Segment and Consolidated Cost of Revenues $ 856,157 $ 906,303 $ 2,869,963 $ 1,688,111 Gross Profit (Loss): Gaming $ 1,121,197 $ 1,336,176 $ 2,675,582 $ 3,071,273 Esports 31,633 (3,552 ) (214,769 ) (46,325 ) Total Segment and Consolidated Gross Profit $ 1,152,830 $ 1,332,624 $ 2,460,813 $ 3,024,948 Loss From Operations: Gaming $ (6,393,338 ) $ (5,716,887 ) $ (21,437,759 ) $ (20,910,146 ) Esports (292,077 ) (256,517 ) (851,006 ) (440,327 ) Total Segment and Consolidated Loss From Operations $ (6,685,415 ) $ (5,973,404 ) $ (22,288,765 ) $ (21,350,473 ) Depreciation and Amortization: Gaming $ 109,656 $ 58,496 $ 217,139 $ 85,305 Esports 8,069 7,952 16,657 11,918 Total Segment and Consolidated Depreciation and Amortization $ 117,725 $ 66,448 $ 233,796 $ 97,223 Interest Expense, net: Gaming $ (191,662 ) $ (31,899 ) $ (393,258 ) $ (151,438 ) Esports - - - - Total Segment and Consolidated Interest Expense, net $ (191,662 ) $ (31,899 ) $ (393,258 ) $ (151,438 ) Gain attributable to equity method investment: Gaming $ - $ - $ - $ 1,370,837 Esports - - - - Total Gain attributable to equity method investment $ - $ - $ - $ 1,370,837 Other (Expense) Income, Net: Gaming $ (610,481 ) $ 41,932 $ (767,605 ) $ 82,279 Esports (113 ) 2,428 (5,088 ) 2,428 Total Other (Expense) Income, Net: $ (610,594 ) $ 44,360 $ (772,693 ) $ 84,707 Net Loss: Gaming $ (7,195,481 ) $ (5,706,855 ) $ (22,598,621 ) $ (19,608,468 ) Esports (292,190 ) (254,088 ) (856,095 ) (437,899 ) Total Segment and Consolidated Net Loss $ (7,487,671 ) $ (5,960,943 ) $ (23,454,716 ) $ (20,046,367 ) Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements June 30, 2022 December 31, 2021 Segment Total Assets: Gaming $ 23,017,840 $ 47,511,471 Esports 1,977,711 3,191,732 Consolidated Total Assets $ 24,995,551 $ 50,703,203

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 - SUBSEQUENT EVENTS The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the consolidated financial statements were issued. On July 21, 2022, the Company entered into a letter agreement effective as of July 19, 2022 (the “Second Amendment”), further amending the terms of the share purchase agreement, dated March 31, 2021 (the “SPA”), with Luminis International BV and Technology In Business B.V. (“TIB”) and certain of TIB’s shareholders. Pursuant to the Second Amendment, the deferred purchase price installment that was otherwise due to be paid by the Company on July 19, 2022 was reduced from $ 2,200,000 1,870,000 330,000 1,870,000 15% 100,000 150,000 1,870,000 2,200,000 1,870,000 On August 9, 2022, the Company terminated the Lemon City Lease in accordance with its terms, without penalty, effective as of October 8, 2022.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers ● 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 include game consoles, PCs, mobile phones and tablets. The Company’s product and service offerings include 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 Company’s performance obligations are satisfied. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 reviewing 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 the Company to 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, Nintendo’s eShop, Apple’s App Store, and Google’s Play Store, to determine whether 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’s App Store or Google’s Play Store, the third party is considered the principal with the end customer and, as a result, the Company reports revenue net of the fees retained by the storefront. For contracts with customers where revenues are generated via the Apple’s App Store or Google’s Play Store, the Company has determined that it is the principal and, as a result, reports revenues on a gross basis, with mobile platform fees included within cost of revenues. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 864,157 and $ 1,098,397 , respectively. The Company recognized approximately $ 81,600 and $ 199,940 of sales returns and price protection charges as a reduction of revenues for the three and six months ended June 30, 2021, respectively.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718 – Compensation – Stock 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, using the Black-Scholes option pricing model. 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. Stock-based compensation is adjusted for any forfeitures, which are accounted for on an as occurred basis.
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: SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES For the Three and Six Months Ended June 30, 2022 2021 Stock options 761,667 574,073 761,667 574,073 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements
Income Taxes	Income Taxes On January 8, 2021, Motorsport Gaming, a Florida limited liability company, converted into Motorsport Games, a Delaware corporation, pursuant to a statutory conversion. The Company is subject to federal and state income taxes in the U.S. 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, Taxes 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)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
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: SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES For the Three and Six Months Ended June 30, 2022 2021 Stock options 761,667 574,073 761,667 574,073

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	The following is a summary of intangible assets as of June 30, 2022: SCHEDULE OF INTANGIBLE ASSETS Licensing Agreements (Finite) Licensing Agreements (Indefinite) Software Licenses (Finite) Distribution Contracts (Finite) Trade Names (Indefinite) Non-Compete Agreements (Finite) Accumulated Amortization Total Balance as of December 31, 2021 $ 7,198,363 $ 2,810,000 $ 10,364,541 $ 560,000 $ 2,672,581 $ 257,530 $ (3,377,206 ) $ 20,485,809 Amortization expense - - - - - - (879,052 ) (879,052 ) Impairment of intangible assets - (1,118,209 ) (1,320,993 ) - (2,200,900 ) - - (4,640,102 ) FX translation adjustments 27,507 (213,861 ) (528,818 ) - (74,229 ) (18,813 ) 102,734 (705,480 ) Balance as of June 30, 2022 $ 7,225,870 $ 1,477,930 $ 8,514,730 $ 560,000 $ 397,452 $ 238,717 $ (4,153,524 ) $ 14,261,175
SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS	Accumulated amortization of intangible assets consists of the following: SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS Licensing Agreements (Finite) Software Licenses (Finite) Distribution Contracts (Finite) Non-Compete Agreements (Finite) Accumulated Amortization Balance as of December 31, 2021 $ 912,260 $ 1,843,716 $ 560,000 $ 61,230 $ 3,377,206 Amortization expense 113,749 723,628 - 41,675 879,052 Foreign currency translation adjustment - (96,403 ) - (6,331 ) (102,734 ) Balance as of June 30, 2022 $ 1,026,009 $ 2,470,941 $ 560,000 $ 96,574 $ 4,153,524
SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS	Estimated aggregate amortization expense of intangible assets for the next five years and thereafter is as follows: SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS For the Years Ended December 31, Total 2022 (remaining period) $ 1,045,777 2023 1,892,641 2024 1,687,137 2025 1,678,365 2026 1,400,729 Thereafter 2,172,544 Estimated aggregate amortization expense $ 9,877,193

GOODWILL (Tables)

GOODWILL (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF GOODWILL	The carrying amount of goodwill attributable to our Gaming and Esports reporting units and the changes in such balances during the six months ended June 30, 2022 were as follows: SCHEDULE OF GOODWILL Games Esports Total Balance as of January 1, 2022 $ 4,802,882 $ 64,583 $ 4,867,465 Impairment of Goodwill (4,723,685 ) (64,583 ) (4,788,268 ) Foreign exchange (79,197 ) - (79,197 ) Balance as of June 30, 2022 $ - $ - $ -

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2022
Leases
SCHEDULE OF LEASE COST	The components of lease expense were as follows: SCHEDULE OF LEASE COST Condensed Consolidated Statement of Three Months Six Months Comprehensive Loss Classification June 30, 2022 June 30, 2022 Short-term operating lease expense G&A $ 23,951 $ 52,916 Operating lease expense G&A 126,237 196,938 Total lease costs $ 150,188 $ 249,854
SCHEDULE OF REMAINING LEASE TERMS	Weighted average remaining lease terms and weighted average discount rates are as follows: SCHEDULE OF REMAINING LEASE TERMS Six Months Ended June 30, 2022 Weighted-average remaining lease term - operating leases (years) 4.13 Weighted-average discount rate - operating leases 7.54 %
SCHEDULE OF CASH FLOW SUPPLEMENTAL	Supplemental cash flow information related to leases is as follows: SCHEDULE OF CASH FLOW SUPPLEMENTAL Six Months Ended June 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 249,854 Right of use assets obtained in exchange for new lease obligations $ 1,086,668
SCHEDULE OF MATURITIES OF LEASE LIABILITIES	As of June 30, 2022, maturities related to lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Operating Leases 2022 (remaining period) $ 253,005 2023 509,676 2024 420,525 2025 286,897 2026 273,522 Thereafter 65,037 Total lease payments $ 1,808,662 Less effects of imputed interest (238,234) Present value of lease liabilities $ 1,570,428

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
SCHEDULE OF ACCRUED EXPENSES	Accrued expenses and other liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES June 30 December 31, 2022 2021 Accrued royalties $ 851,574 $ 1,694,011 Accrued professional fees 50,000 80,909 Accrued consulting fees 352,422 106,006 Accrued development costs 320,359 968,007 Esport prize money 11,126 168,959 Accrued taxes 74,402 31,491 Accrued payroll 116,293 235,224 Accrued other 180,583 239,664 Total $ 1,956,759 $ 3,524,271

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY	The following is a summary of stock-based compensation award activity for the periods ended June 30, 2022 and 2021: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY For the Six Months Ended June 30, 2022 Number of Options Vesting Term Contractual Term Grant Date Fair Value Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2022 (net of forfeitures) 297,401 Stock options awarded to employees under the MSGM 2021 Stock Plan 569,348 3 10 1,171,370 Stock options awarded to Board of Directors under the MSGM 2021 Stock Plan 57,108 1 10 120,630 Forfeited, cancelled or expired (162,190 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2022 (net of forfeitures) 761,667
SCHEDULE OF STOCK BASED COMPENSATION EXPENSE	The following table summarizes stock-based compensation expense resulting from equity awards included in the Company’s consolidated statement of operations: SCHEDULE OF STOCK BASED COMPENSATION EXPENSE 2022 2021 2022 2021 For the Three Months Ended For the Six Months Ended 2022 2021 2022 2021 G&A $ 188,201 $ 136,155 $ 458,323 $ 9,051,518 Sales & Marketing 32,365 (34,350 ) 78,839 83,372 Development 18,007 14,469 54,441 58,300 Stock-based compensation expense $ 238,573 $ 116,274 $ 591,603 $ 9,193,190

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2022
Customer Concentration Risk [Member]
Concentration Risk [Line Items]
SCHEDULE OF CONCENTRATIONS	The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues, with all the customers listed coming from the Gaming segment, for the following periods: SCHEDULE OF CONCENTRATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, Customer 2022 2021 2022 2021 Customer B 39.51 % 24.56 % 26.20 % 30.29 % Customer C 29.72 % 30.60 % 21.61 % 19.24 % Customer D 24.56 % 31.37 % 21.46 % 36.85 % Total 93.79 % 86.53 % 69.27 % 86.38 % * Less than 10%. The following table sets forth information as to each customer that accounted for 10% or more of the Company’s trade accounts receivable (net), with all customers coming from the Gaming segment, as of: June 30, December 31, Customer 2022 2021 Customer A 65.08 % 51.9 % Customer D 16.71 % 17.7 % Total 81.79 % 69.6 % * Less than 10%.
Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
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, with all suppliers relating to the Gaming segment, for the following periods: SCHEDULE OF CONCENTRATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, Supplier 2022 2021 2022 2021 Supplier A 54.66 % 27.40 % 27.42 % 36.41 % Supplier C 16.90 % 50.86 % - % 33.67 % Total 71.56 % 78.26 % 27.42 % 70.08 % * Less than 10%.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2022
Segment Reporting [Abstract]
SCHEDULE OF SEGMENT REPORTING INFORMATION	Segment information available with respect to these reportable business segments was as follows: SCHEDULE OF SEGMENT REPORTING INFORMATION For the Three Months Ended, For the Six Months Ended, June 30, June 30, 2022 2021 2022 2021 Revenues: Gaming $ 1,941,938 $ 2,238,927 $ 4,900,326 $ 4,689,140 Esports 67,049 - 430,450 23,919 Total Segment and Consolidated Revenues $ 2,008,987 $ 2,238,927 $ 5,330,776 $ 4,713,059 Cost of Revenues: Gaming $ 820,740 $ 902,751 $ 2,224,744 $ 1,617,867 Esports 35,417 3,552 645,219 70,244 Total Segment and Consolidated Cost of Revenues $ 856,157 $ 906,303 $ 2,869,963 $ 1,688,111 Gross Profit (Loss): Gaming $ 1,121,197 $ 1,336,176 $ 2,675,582 $ 3,071,273 Esports 31,633 (3,552 ) (214,769 ) (46,325 ) Total Segment and Consolidated Gross Profit $ 1,152,830 $ 1,332,624 $ 2,460,813 $ 3,024,948 Loss From Operations: Gaming $ (6,393,338 ) $ (5,716,887 ) $ (21,437,759 ) $ (20,910,146 ) Esports (292,077 ) (256,517 ) (851,006 ) (440,327 ) Total Segment and Consolidated Loss From Operations $ (6,685,415 ) $ (5,973,404 ) $ (22,288,765 ) $ (21,350,473 ) Depreciation and Amortization: Gaming $ 109,656 $ 58,496 $ 217,139 $ 85,305 Esports 8,069 7,952 16,657 11,918 Total Segment and Consolidated Depreciation and Amortization $ 117,725 $ 66,448 $ 233,796 $ 97,223 Interest Expense, net: Gaming $ (191,662 ) $ (31,899 ) $ (393,258 ) $ (151,438 ) Esports - - - - Total Segment and Consolidated Interest Expense, net $ (191,662 ) $ (31,899 ) $ (393,258 ) $ (151,438 ) Gain attributable to equity method investment: Gaming $ - $ - $ - $ 1,370,837 Esports - - - - Total Gain attributable to equity method investment $ - $ - $ - $ 1,370,837 Other (Expense) Income, Net: Gaming $ (610,481 ) $ 41,932 $ (767,605 ) $ 82,279 Esports (113 ) 2,428 (5,088 ) 2,428 Total Other (Expense) Income, Net: $ (610,594 ) $ 44,360 $ (772,693 ) $ 84,707 Net Loss: Gaming $ (7,195,481 ) $ (5,706,855 ) $ (22,598,621 ) $ (19,608,468 ) Esports (292,190 ) (254,088 ) (856,095 ) (437,899 ) Total Segment and Consolidated Net Loss $ (7,487,671 ) $ (5,960,943 ) $ (23,454,716 ) $ (20,046,367 ) Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements June 30, 2022 December 31, 2021 Segment Total Assets: Gaming $ 23,017,840 $ 47,511,471 Esports 1,977,711 3,191,732 Consolidated Total Assets $ 24,995,551 $ 50,703,203

BUSINESS ORGANIZATION, NATURE_2

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES AND BASIS OF PRESENTATION (Details Narrative) - USD ($)		3 Months Ended				6 Months Ended
	Jan. 15, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Initial public offering	$ 63,100,000
Net loss		$ 7,487,671	$ 15,967,045	$ 5,960,943	$ 14,085,424	$ 23,454,716	$ 20,046,367
Net Cash Provided by (Used in) Operating Activities						12,049,298	$ 11,264,546
Retained Earnings (Accumulated Deficit)		60,531,239				60,531,239		$ 37,988,326
Right of use assets		1,567,838				1,567,838
Leasing Arrangements [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Right of use assets		$ 751,000				$ 751,000

SCHEDULE OF CALCULATION WEIGHTE

SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	761,667	574,073
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded in computation of earnings per common share	761,667	574,073

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accounting Policies [Abstract]
Sales returns and price protection reserves	$ 864,157	$ 81,600	$ 1,098,397	$ 199,940

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization beginning	$ (3,377,206)
Intangible assets, Beginning	20,485,809
Amortization of intangible asset	(879,052)
Impairment of intangible assets finite lived	(4,640,102)
FX translation adjustments	(705,480)
Intangible assets, amortization ending	(4,153,524)
Intangible assets, ending	14,261,175
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	7,198,363
Intangible assets, amortization beginning	(912,260)
Amortization of intangible asset
Impairment of intangible assets finite lived
FX translation adjustments	27,507
Intangible assets, gross ending	7,225,870
Intangible assets, amortization ending	(1,026,009)
Licensing Agreements (Indefinite) [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	2,810,000
Amortization of intangible asset
Impairment of intangible assets finite lived	(1,118,209)
FX translation adjustments	(213,861)
Intangible assets, gross ending	1,477,930
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	10,364,541
Intangible assets, amortization beginning	(1,843,716)
Amortization of intangible asset
Impairment of intangible assets finite lived	(1,320,993)
FX translation adjustments	(528,818)
Intangible assets, gross ending	8,514,730
Intangible assets, amortization ending	(2,470,941)
Distribution Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	560,000
Intangible assets, amortization beginning	(560,000)
Amortization of intangible asset
Impairment of intangible assets finite lived
FX translation adjustments
Intangible assets, gross ending	560,000
Intangible assets, amortization ending	(560,000)
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	2,672,581
Amortization of intangible asset
Impairment of intangible assets finite lived	(2,200,900)
FX translation adjustments	(74,229)
Intangible assets, gross ending	397,452
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net beginning	257,530
Intangible assets, amortization beginning	(61,230)
Amortization of intangible asset
Impairment of intangible assets finite lived
FX translation adjustments	(18,813)
Intangible assets, gross ending	238,717
Intangible assets, amortization ending	(96,574)
Accumulated Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization beginning	(3,377,206)
Amortization of intangible asset	(879,052)
Impairment of intangible assets finite lived
FX translation adjustments	102,734
Intangible assets, amortization ending	$ (4,153,524)

SCHEDULE OF ACCUMULATED AMORTIZ

SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			$ 3,377,206
Amortization of Intangible Assets	$ 396,500	$ 471,000	879,000	$ 581,500
Accumulated amortization, ending	4,153,524		4,153,524
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			912,260
Amortization of Intangible Assets			113,749
Amortization of intangible assets foreign currency translation adjusments
Accumulated amortization, ending	1,026,009		1,026,009
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			1,843,716
Amortization of Intangible Assets			723,628
Amortization of intangible assets foreign currency translation adjusments			(96,403)
Accumulated amortization, ending	2,470,941		2,470,941
Distribution Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			560,000
Amortization of Intangible Assets
Amortization of intangible assets foreign currency translation adjusments
Accumulated amortization, ending	560,000		560,000
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			61,230
Amortization of Intangible Assets			41,675
Amortization of intangible assets foreign currency translation adjusments			(6,331)
Accumulated amortization, ending	96,574		96,574
Accumulated Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			3,377,206
Amortization of Intangible Assets			879,052
Amortization of intangible assets foreign currency translation adjusments			(102,734)
Accumulated amortization, ending	$ 4,153,524		$ 4,153,524

SCHEDULE OF ESTIMATED AGGREGATE

SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS (Details)	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (remaining period)	$ 1,045,777
2023	1,892,641
2024	1,687,137
2025	1,678,365
2026	1,400,729
Thereafter	2,172,544
Estimated aggregate amortization expense	$ 9,877,193

SCHEDULE OF GOODWILL (Details)

SCHEDULE OF GOODWILL (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill, beginning balance			$ 4,867,465
Goodwill impairment loss			(4,788,268)
Foreign exchange			(79,197)
Goodwill, ending balance
Le Mans Gaming [Member]
Goodwill, beginning balance			4,802,882
Goodwill impairment loss			(4,723,685)
Foreign exchange			(79,197)
Goodwill, ending balance
Esports Licenses [Member]
Goodwill, beginning balance			64,583
Goodwill impairment loss			(64,583)
Foreign exchange
Goodwill, ending balance

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 2,201,000		$ 2,201,000
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)			1,120
Impairment Loss			1,320,000
Amortization expense	396,500	$ 471,000	879,000	$ 581,500
Intangible assets	14,261,175		14,261,175		$ 20,485,809
Non-amortizing Intangible Assets [Member]
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets	$ 3,460,000		3,460,000
Licensing Agreements [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets Acquired			$ 774,680

SCHEDULE OF LEASE COST (Details

SCHEDULE OF LEASE COST (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Leases
Short-term operating lease expense	$ 23,951	$ 52,916
Operating lease expense	126,237	196,938
Total lease costs	$ 150,188	$ 249,854

SCHEDULE OF REMAINING LEASE TER

SCHEDULE OF REMAINING LEASE TERMS (Details)	Jun. 30, 2022
Leases
Weighted-average remaining lease term - operating leases (years)	4 years 1 month 17 days
Weighted-average discount rate - operating leases	7.54%

SCHEDULE OF CASH FLOW SUPPLEMEN

SCHEDULE OF CASH FLOW SUPPLEMENTAL (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Leases
Cash paid for amounts included in the measurement of operating lease liabilities	$ 249,854
Right of use assets obtained in exchange for new lease obligations	$ 1,086,668

SCHEDULE OF MATURITIES OF LEASE

SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details)	Jun. 30, 2022 USD ($)
Leases
2022 (remaining period)	$ 253,005
2023	509,676
2024	420,525
2025	286,897
2026	273,522
Thereafter	65,037
Total lease payments	1,808,662
Less effects of imputed interest	(238,234)
Present value of lease liabilities	$ 1,570,428

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)		6 Months Ended
	Feb. 08, 2022	Jun. 30, 2022
Leases
Lease description	The term of this new lease is 5 years, which commenced April 1, 2022 and expires on March 31, 2027, and is terminable upon 60-days’ written notice, by either party, with no penalty
Rent paid		$ 22,000

SCHEDULE OF ACCRUED EXPENSES (D

SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued royalties	$ 851,574	$ 1,694,011
Accrued professional fees	50,000	80,909
Accrued consulting fees	352,422	106,006
Accrued development costs	320,359	968,007
Esport prize money	11,126	168,959
Accrued taxes	74,402	31,491
Accrued payroll	116,293	235,224
Accrued other	180,583	239,664
Total	$ 1,956,759	$ 3,524,271

DUE TO_FROM RELATED PARTIES (De

DUE TO/FROM RELATED PARTIES (Details Narrative) - USD ($)		3 Months Ended	6 Months Ended
	Apr. 01, 2020	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Nov. 23, 2020
Short-Term Debt [Line Items]
Line of credit		$ 0	$ 0
Related party interest expense		0	0
Due to related parties		37,049	37,049	$ 119,015
Promissory Note [Member]
Short-Term Debt [Line Items]
Line of credit	$ 12,000,000	12,000,000	12,000,000		$ 12,000,000
Line of credit interest rate	10%
Due to related parties		37,049	37,049
Due from related parties		$ 35,498	35,498
Payment to related parties			$ 132,288
Promissory Note [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Line of credit, maximum borrowing capacity	$ 10,000,000				12,000,000
Promissory Note [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Line of credit, maximum borrowing capacity					$ 10,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	6 Months Ended
	Jun. 30, 2022 USD ($)
Promissory Note [Member]
Short-Term Debt [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 143,517

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)		6 Months Ended
	Jan. 15, 2021	Jun. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Proceeds from issuance initial public offering	$ 63,100,000
704 Games Company [Member]
Class of Stock [Line Items]
Warrants outstanding		4,000	4,000
Warrants exercise price		$ 93.03	$ 93.03
704 Games Company [Member] | Warrant [Member]
Class of Stock [Line Items]
Remaining life of years		3 years 3 months 18 days
Common Class A [Member] | IPO [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues	3,450,000
Shares issued, price per share	$ 20
Proceeds from issuance initial public offering	$ 63,073,783
Common Class A [Member] | IPO [Member] | Additional Shares for Underwriters [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues	450,000

SCHEDULE OF STOCK-BASED COMPENS

SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY (Details)	6 Months Ended
	Jun. 30, 2022 USD ($) shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting term, granted	3 years 6 months
MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, outstanding, beginning	297,401
Number of options, forfeited, cancelled or expired	(162,190)
Number of options, outstanding, ending	761,667
MSGM 2021 Stock Plan [Member] | Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, granted	569,348
Vesting term, granted	3 years
Contractual term, granted	10 years
Grant date fair value | $	$ 1,171,370
MSGM 2021 Stock Plan [Member] | Board of Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, granted	57,108
Vesting term, granted	1 year
Contractual term, granted	10 years
Grant date fair value | $	$ 120,630

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 238,573	$ 116,274	$ 591,603	$ 9,193,190
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	188,201	136,155	458,323	9,051,518
Selling and Marketing Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	32,365	(34,350)	78,839	83,372
Development [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 18,007	$ 14,469	$ 54,441	$ 58,300

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Jan. 12, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense period	3 years 6 months
Unrecognized stock based compensation expense	$ 2,000,000
MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense period	10 years
MSGM 2021 Stock Plan [Member] | Board of Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense period	1 year
Number of options, granted	57,108
Grant date fair value	$ 120,630
MSGM 2021 Stock Plan [Member] | Board of Directors [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, granted	37,690
Common Class A [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, shares authorized	100,000,000	100,000,000
Shares available for issuance	200,643
Common Class A [Member] | Motorsport Games [Member] | MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock, shares authorized			1,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)				3 Months Ended	6 Months Ended
	Apr. 30, 2022	Apr. 22, 2022	Aug. 11, 2020	Jun. 30, 2022	Jun. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Other commitment				$ 35,500,000	$ 35,500,000
Payment of royalty					3,550,000
License Agreement [Member] | Epic Games International [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
License fee royalty percentage			5%
Proceeds from royalty				$ 70,641	$ 70,641
Letter Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred purchase price installment		$ 3,200,000
Debt instrument, description		Pursuant to the Amendment, the deferred installment amount due to be paid under the SPA by the Company on the first anniversary of closing was reduced from $3,200,000 to $1,000,000, with the remaining $2,200,000 further deferred and to be paid within 90 days of the date that the Company made the $1,000,000 payment. Further, pursuant to the Amendment, secured obligations under the deed of pledge were correspondingly reduced from $3,200,000 to $2,200,000 following the finalization of an amendment to the deed of pledge on May 12, 2022.
Repayments of Debt	$ 1,000,000	$ 1,000,000

SCHEDULE OF CONCENTRATIONS (Det

SCHEDULE OF CONCENTRATIONS (Details)	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022		Jun. 30, 2021	Dec. 31, 2021
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier A [Member]
Concentration Risk [Line Items]
Concentration risk percentage	54.66%	27.40%	27.42%		36.41%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier C [Member]
Concentration Risk [Line Items]
Concentration risk percentage	16.90%	50.86%		[1]	33.67%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier [Member]
Concentration Risk [Line Items]
Concentration risk percentage	71.56%	78.26%	27.42%		70.08%
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	39.51%	24.56%	26.20%		30.29%
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	29.72%	30.60%	21.61%		19.24%
Customer D [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	24.56%	31.37%	21.46%		36.85%
Customer D [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage			16.71%			17.70%
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	93.79%	86.53%	69.27%		86.38%
Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage			81.79%			69.60%
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage			65.08%			51.90%
[1]Less than 10%.

SCHEDULE OF SEGMENT REPORTING I

SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($)		3 Months Ended				6 Months Ended
		Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Revenue from External Customer [Line Items]
Revenues		$ 2,008,987		$ 2,238,927		$ 5,330,776	$ 4,713,059
Cost of Revenues	[1]	856,157		906,303		2,869,963	1,688,111
Gross Profit (Loss)		1,152,830		1,332,624		2,460,813	3,024,948
Loss From Operations		(6,685,415)		(5,973,404)		(22,288,765)	(21,350,473)
Depreciation and Amortization		117,725		66,448		233,796	97,223
Interest Expense, net		(191,662)		(31,899)		(393,258)	(151,438)
Total Gain attributable to equity method investment							1,370,837
Total Other (Expense) Income, Net		(610,594)		44,360		(772,693)	84,707
Net Loss		(7,487,671)	$ (15,967,045)	(5,960,943)	$ (14,085,424)	(23,454,716)	(20,046,367)
Segment Total Assets		24,995,551				24,995,551		$ 50,703,203
Gaming [Member]
Revenue from External Customer [Line Items]
Revenues		1,941,938		2,238,927		4,900,326	4,689,140
Cost of Revenues		820,740		902,751		2,224,744	1,617,867
Gross Profit (Loss)		1,121,197		1,336,176		2,675,582	3,071,273
Loss From Operations		(6,393,338)		(5,716,887)		(21,437,759)	(20,910,146)
Depreciation and Amortization		109,656		58,496		217,139	85,305
Interest Expense, net		(191,662)		(31,899)		(393,258)	(151,438)
Total Gain attributable to equity method investment							1,370,837
Total Other (Expense) Income, Net		(610,481)		41,932		(767,605)	82,279
Net Loss		(7,195,481)		(5,706,855)		(22,598,621)	(19,608,468)
Segment Total Assets		23,017,840				23,017,840		47,511,471
Esports [Member]
Revenue from External Customer [Line Items]
Revenues		67,049				430,450	23,919
Cost of Revenues		35,417		3,552		645,219	70,244
Gross Profit (Loss)		31,633		(3,552)		(214,769)	(46,325)
Loss From Operations		(292,077)		(256,517)		(851,006)	(440,327)
Depreciation and Amortization		8,069		7,952		16,657	11,918
Interest Expense, net
Total Gain attributable to equity method investment
Total Other (Expense) Income, Net		(113)		2,428		(5,088)	2,428
Net Loss		(292,190)		$ (254,088)		(856,095)	$ (437,899)
Segment Total Assets		$ 1,977,711				$ 1,977,711		$ 3,191,732
[1]Includes related party costs of $ 0 0 6,228 0

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - Segment	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting [Abstract]
Number of reportable segments	2	2	2	2

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)					6 Months Ended
	Jul. 31, 2022	Jul. 21, 2022	Jul. 19, 2022	Jul. 18, 2022	Jun. 30, 2022	Jun. 30, 2021
Subsequent Event [Line Items]
Pay down of related party debt					$ 24,913	$ 12,663,168
Subsequent Event [Member]
Subsequent Event [Line Items]
Debt instrument obligation			$ 1,870,000	$ 2,200,000
Subsequent Event [Member] | Letter Amendment [Member]
Subsequent Event [Line Items]
Pay down of related party debt	$ 330,000		1,870,000	$ 2,200,000
Outstanding balance			$ 1,870,000
Debt instrument, interest rate, stated percentage			15%
Subsequent Event [Member] | Letter Amendment [Member] | August 15, 2022 through December of 2022 [Member]
Subsequent Event [Line Items]
Debt instrument, periodic payment			$ 100,000
Subsequent Event [Member] | Letter Agreement [Member]
Subsequent Event [Line Items]
Debt instrument, increase, accrued interest			$ 1,870,000
Subsequent Event [Member] | Letter Agreement [Member] | January 15, 2023 [Member]
Subsequent Event [Line Items]
Debt instrument, periodic payment		$ 150,000