Motorsport Games (MSGM) 10-Q 21 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 21, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
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
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		2,720,328
Common Class B [Member]
Entity Common Stock, Shares Outstanding		700,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,966,553	$ 979,306
Accounts receivable, net of allowances of $2,532,383 and $2,252,383 as of June 30, 2023 and December 31, 2022, respectively	1,018,784	1,809,110
Prepaid expenses and other current assets	1,043,214	1,048,392
Total Current Assets	4,096,972	4,043,340
Property and equipment, net	394,608	522,433
Operating lease right of use assets	300,265	971,789
Intangible assets, net	8,544,394	13,360,230
Total Assets	13,336,239	18,897,792
Current liabilities:
Accounts payable	876,198	2,372,219
Accrued expenses and other current liabilities	3,359,598	3,416,424
Purchase commitments	2,239,821	2,563,216
Operating lease liabilities (current)	190,604	380,538
Total Current Liabilities	6,698,350	13,321,608
Operating lease liabilities (non-current)	112,900	617,288
Other non-current liabilities	3,105,037	3,055,498
Total Liabilities	9,916,287	16,994,394
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Preferred stock, $0.0001 par value per share; authorized 1,000,000 and 1,000,000 shares; and none issued and outstanding as of June 30, 2023 and December 31, 2022, respectively
Additional paid-in capital	91,736,545	76,446,061
Accumulated deficit	(87,251,102)	(73,979,131)
Accumulated other comprehensive loss	(1,208,945)	(933,406)
Total Stockholders’ Equity Attributable to Motorsport Games Inc.	3,276,837	1,533,711
Non-controlling interest	143,115	369,687
Total Stockholders’ Equity	3,419,952	1,903,398
Total Liabilities and Stockholders’ Equity	13,336,239	18,897,792
Common Class A [Member]
Stockholders’ Equity:
Common stock, value	269	117
Common Class B [Member]
Stockholders’ Equity:
Common stock, value	70	70
Related Party [Member]
Current assets:
Due from related parties	68,421	206,532
Current liabilities:
Due to related parties	$ 32,129	$ 4,589,211

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Allowances for doubtful accounts receivable	$ 2,532,383	$ 2,252,383
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 value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	2,720,328	1,183,808
Common stock, shares outstanding	2,720,328	1,183,808
Common Class B [Member]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	7,000,000	7,000,000
Common stock, shares issued	700,000	700,000
Common stock, shares outstanding	700,000	700,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues		$ 1,739,130	$ 2,008,987	$ 3,468,485	$ 5,330,776
Cost of revenues	[1]	866,167	856,157	2,114,903	2,869,963
Gross profit		872,963	1,152,830	1,353,582	2,460,813
Operating expenses:
Sales and marketing	[2]	434,788	1,540,220	1,053,198	3,228,669
Development	[3]	1,787,768	2,681,643	4,184,902	5,085,980
General and administrative	[4]	3,154,233	3,349,609	5,933,343	6,772,763
Impairment of goodwill					4,788,268
Impairment of intangible assets		4,004,627	149,048	4,004,627	4,640,102
Depreciation and amortization		104,854	117,725	202,208	233,796
Total operating expenses		9,486,270	7,838,245	15,378,278	24,749,578
Loss from operations		(8,613,307)	(6,685,415)	(14,024,696)	(22,288,765)
Interest expense		(244,750)	(191,662)	(443,870)	(393,258)
Other income (expense), net		657,175	(610,594)	1,008,492	(772,693)
Net loss		(8,200,882)	(7,487,671)	(13,460,074)	(23,454,716)
Less: Net loss attributable to non-controlling interest		(29,858)	(82,375)	(188,103)	(911,803)
Net loss attributable to Motorsport Games Inc.		$ (8,171,024)	$ (7,405,296)	$ (13,271,971)	$ (22,542,913)
Net loss attributable to Class A common stock per share:
Net loss attributable to Class A common stock per share - Basic		$ (3.02)	$ (6.34)	$ (5.42)	$ (19.32)
Net loss attributable to Class A common stock per share - Diluted		$ (3.02)	$ (6.34)	$ (5.42)	$ (19.32)
Weighted-average shares of Class A common stock outstanding:
Weighted-average shares of Class A common stock outstanding: Basic		2,704,106	1,167,359	2,448,131	1,167,087
Weighted-average shares of Class A common stock outstanding: Diluted		2,704,106	1,167,359	2,448,131	1,167,087
[1]Includes related party costs of $ 0 0 0 6,228 0 0 17,076 0 15,435 824 30,923 23,430 89,831 75,541 181,876 98,337

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Related party costs	[1]	$ 866,167	$ 856,157	$ 2,114,903	$ 2,869,963
Sales And Marketing [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party expenses		0	0	17,076	0
Research and Development Expense [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party expenses		15,435	824	30,923	23,430
General and Administrative Expense [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party expenses		89,831	75,541	181,876	98,337
Related Party [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party costs		$ 0	$ 0	$ 0	$ 6,228
[1]Includes related party costs of $ 0 0 0 6,228

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net loss	$ (8,200,882)	$ (7,487,671)	$ (13,460,074)	$ (23,454,716)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(196,951)	136,976	(275,539)	11,731
Comprehensive loss	(8,397,833)	(7,350,695)	(13,735,613)	(23,442,985)
Comprehensive loss attributable to non-controlling interests	(32,009)	(140,224)	(226,572)	(1,028,945)
Comprehensive loss attributable to Motorsport Games Inc.	$ (8,365,824)	$ (7,210,471)	$ (13,509,041)	$ (22,414,040)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Parent [Member]	Noncontrolling Interest [Member]	Total
Beginning balance at Dec. 31, 2021	$ 116	$ 70	$ 75,652,853	$ (37,988,326)	$ (945,375)	$ 36,719,338	$ 1,262,665	$ 37,982,003
Beginning balance, shares at Dec. 31, 2021	1,163,590	700,000
Stock-based compensation			353,030			353,030		353,030
Stock-based compensation, shares	3,769
Other comprehensive income (loss)					(125,245)	(125,245)	(59,293)	(184,538)
Net loss				(15,137,617)		(15,137,617)	(829,428)	(15,967,045)
Ending balance at Mar. 31, 2022	$ 116	$ 70	76,005,883	(53,125,943)	(1,070,620)	21,809,506	373,944	22,183,450
Ending balance, shares at Mar. 31, 2022	1,167,359	700,000
Beginning balance at Dec. 31, 2021	$ 116	$ 70	75,652,853	(37,988,326)	(945,375)	36,719,338	1,262,665	37,982,003
Beginning balance, shares at Dec. 31, 2021	1,163,590	700,000
Net loss								(23,454,716)
Ending balance at Jun. 30, 2022	$ 116	$ 70	76,244,456	(60,531,239)	(933,644)	14,779,759	233,720	15,013,479
Ending balance, shares at Jun. 30, 2022	1,167,359	700,000
Beginning balance at Mar. 31, 2022	$ 116	$ 70	76,005,883	(53,125,943)	(1,070,620)	21,809,506	373,944	22,183,450
Beginning balance, shares at Mar. 31, 2022	1,167,359	700,000
Stock-based compensation			238,573			238,573		238,573
Stock-based compensation, shares
Other comprehensive income (loss)					136,976	136,976	(57,849)	79,127
Net loss				(7,405,296)		(7,405,296)	(82,375)	(7,487,671)
Ending balance at Jun. 30, 2022	$ 116	$ 70	76,244,456	(60,531,239)	(933,644)	14,779,759	233,720	15,013,479
Ending balance, shares at Jun. 30, 2022	1,167,359	700,000
Beginning balance at Dec. 31, 2022	$ 117	$ 70	76,446,061	(73,979,131)	(933,406)	1,533,711	369,687	1,903,398
Beginning balance, shares at Dec. 31, 2022	1,183,808	700,000
Issuance of common stock	$ 74		10,571,460			10,571,534		10,571,534
Issuance of common stock, shares	734,741
Issuance of common stock for extinguishment of related party debt	$ 78		3,948,488			3,948,566		3,948,566
Issuance of common stock for extinguishment of related party loan, shares	780,385
Stock-based compensation			249,233			249,233		249,233
Stock-based compensation, shares
Other comprehensive income (loss)					(78,588)	(78,588)	(36,318)	(114,906)
Net loss				(5,100,947)		(5,100,947)	(158,245)	(5,259,192)
Ending balance at Mar. 31, 2023	$ 269	$ 70	91,215,242	(79,080,078)	(1,011,994)	11,123,509	175,124	11,298,633
Ending balance, shares at Mar. 31, 2023	2,698,934	700,000
Beginning balance at Dec. 31, 2022	$ 117	$ 70	76,446,061	(73,979,131)	(933,406)	1,533,711	369,687	1,903,398
Beginning balance, shares at Dec. 31, 2022	1,183,808	700,000
Net loss								(13,460,074)
Ending balance at Jun. 30, 2023	$ 269	$ 70	91,736,545	(87,251,102)	(1,208,945)	3,276,837	143,115	3,419,952
Ending balance, shares at Jun. 30, 2023	2,720,328	700,000
Beginning balance at Mar. 31, 2023	$ 269	$ 70	91,215,242	(79,080,078)	(1,011,994)	11,123,509	175,124	11,298,633
Beginning balance, shares at Mar. 31, 2023	2,698,934	700,000
Stock-based compensation			521,303			521,303		521,303
Stock-based compensation, shares	21,394
Other comprehensive income (loss)					(196,951)	(196,951)	(2,151)	(199,102)
Net loss				(8,171,024)		(8,171,024)	(29,858)	(8,200,882)
Ending balance at Jun. 30, 2023	$ 269	$ 70	$ 91,736,545	$ (87,251,102)	$ (1,208,945)	$ 3,276,837	$ 143,115	$ 3,419,952
Ending balance, shares at Jun. 30, 2023	2,720,328	700,000

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (13,460,074)	$ (23,454,716)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on impairment of intangible assets	4,004,627	4,640,102
Loss on impairment of goodwill		4,788,268
Loss on impairment of property, plant and equipment	7,661
Depreciation and amortization	1,011,231	1,071,172
Non-cash lease expense		196,938
Purchase commitment and license liability interest accretion	396,547
Stock-based compensation	770,536	591,603
Changes in the fair value of stock warrants	(423,403)
Sales return and price protection reserves	280,000	1,098,397
Changes in assets and liabilities:
Accounts receivable	512,452	2,877,935
Due from related parties	(473,136)
Operating lease liabilities	(22,723)	(194,117)
Prepaid expenses and other assets	13,772	(572,926)
Accounts payable	(1,498,530)	(1,455,211)
Due to related parties	2,282
Other non-current liabilities		(475,927)
Accrued expenses and other liabilities	28,596	(1,160,816)
Net cash used in operating activities	(8,850,162)	(12,049,298)
Cash flows from investing activities:
Purchase of property and equipment	(24,437)	(196,346)
Net cash used in investing activities	(24,437)	(196,346)
Cash flows from financing activities:
Advances from related parties		143,517
Repayments on advances from related parties		(24,913)
Repayments of purchase commitment liabilities	(550,000)	(1,000,000)
Payment of license liabilities	(262,500)	(100,000)
Issuance of common stock from stock purchase commitment agreement	644,750
Issuance of common stock from registered direct offerings	10,404,784
Net cash provided by (used in) financing activities	10,237,034	(981,396)
Effect of exchange rate changes on cash and cash equivalents	(375,188)	630,451
Net increase (decrease) in cash and cash equivalents	987,247	(12,596,589)
Total cash and cash equivalents at beginning of the period	979,306	17,819,640
Total cash and cash equivalents at the end of the period	1,966,553	5,223,051
Cash paid during the year for:
Interest	399,231
Non-cash investing and financing activities:
Shares issued to Motorsport Network LLC for extinguishment of related party loan	3,948,566
Extinguishment of Motorsport Network LLC related party loan for Class A shares	(3,948,566)
Issuance of warrants in connection with registered direct offerings	54,597
Purchase commitment liability		$ 29,681

BUSINESS ORGANIZATION, NATURE O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES	NOTE 1 - BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES 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 Liquidity and Going Concern The Company had a net loss of approximately 13.5 8.9 87.3 2.0 1.4 1.1 The Company’s future liquidity and capital requirements include funds to support the planned costs to operate its business, including amounts required to fund working capital, support the development and introduction of new products, maintain existing titles, and certain capital expenditures. In order to address its liquidity shortfall, the Company is actively exploring several options, including, but not limited to: i) additional funding in the form of potential equity and/or debt financing arrangements or similar transactions (collectively, “Capital Financing”); ii) strategic alternatives for its business, including, but not limited to, the sale or licensing of the Company’s assets; and iii) cost reduction and restructuring initiatives, including re-evaluating its product roadmap, each of which is described more fully below. The Company continues to explore additional funding in the form of potential Capital Financing and has entered into an Equity Distribution Agreement (the “ED Agreement”) with Canaccord Genuity LLC, as sales agent (the “Sales Agent”), pursuant to which the Company may issue and sell shares of its Class A common stock having an aggregate offering price of up to $ 10 2.9 Due to the uncertainty surrounding the Company’s ability to raise funding in the form of potential Capital Financing, and in light of its liquidity position and anticipated future funding requirements, the Company has decided to explore strategic alternatives and potential options for its business, including, but not limited to, the sale or licensing of certain of the Company’s assets. For example, the Company is currently in discussions with a third-party for the potential sale of the Company’s NASCAR license. If any such strategic alternative is executed, including the consummation of a sale of the Company’s NASCAR license, it is expected it would help to reduce certain working capital requirements and reduce overhead expenditures, thereby reducing the Company’s expected future cash-burn, and provide some short-term liquidity relief. Nonetheless, even if the Company is successful in implementing one or more strategic alternatives, including the consummation of a sale of the Company’s NASCAR license, the Company will continue to require additional funding and/or further cost reduction measures in order to continue operations, which includes further restructuring of its business and operations. There are no assurances that the Company will even be successful in implementing a strategic plan for the sale or licensing of its assets, including the consummation of a sale of the Company’s NASCAR license, or any other strategic alternative, which may be subject to the satisfaction of conditions beyond the Company’s control, such as, among other things, the required consent from NASCAR with respect to any sale of the Company’s NASCAR license. As the Company continues to address its liquidity constraints, it has re-evaluated its product roadmap in the second quarter of 2023 and modified the expected timing and scope of certain new product releases, including the release of any future NASCAR games, which have been put on hold indefinitely. Further, the Company is evaluating its ability to deliver new titles under its other licenses, such as with INDYCAR and the British Touring Car Championship (the “BTCC”), which may result in further adjustments to the Company’s product roadmap. The Company continues to seek to reduce its monthly net cash-burn by reducing its cost base through maintaining and enhancing cost control initiatives, such as those that it expects to achieve through its previously announced organizational restructuring program (the “2022 Restructuring Program”), and is evaluating the structure of its business for additional changes in order to improve both its near-term and long-term liquidity position, as well as create a healthy and sustainable Company from which to operate. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements If the Company is unable to satisfy its capital requirements, it could be required to adopt one or more of the following alternatives: ● delaying the implementation of or revising certain aspects of the Company’s business strategy; ● further reducing or delaying the development and launch of new products and events; ● further reducing or delaying capital spending, product development spending and marketing and promotional spending; ● selling additional assets or operations; ● seeking additional capital contributions and/or loans from Motorsport Network, the Company’s other affiliates and/or third parties; ● further reducing other discretionary spending; ● entering into financing agreements on unattractive terms; and/or ● significantly curtailing or discontinuing operations. There can be no assurance that the Company 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 or similar transactions, 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 the Company’s 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 the Company to satisfy its capital requirements if the actions that the Company is able to consummate do not generate a sufficient amount of additional capital. Even if the Company does secure additional Capital Financing, if the anticipated level of revenues are not achieved because of, for example, decreased sales of the Company’s products due to the disposition of key assets, such as the potential sale of its NASCAR license, further changes in the Company’s product roadmap and/or the Company’s inability to deliver new products for its various other licenses; less than anticipated consumer acceptance of the Company’s 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 foreign currency exchange rates; decreased sales of the Company’s products and events as a result of increased competitive activities by the Company’s competitors; changes in consumer purchasing habits, such as the impact of higher energy prices on consumer purchasing behavior; 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 marketing, advertising and promotions, product returns or price protection expenditures, exceed the anticipated level of expenses, the Company’s liquidity position may continue to be insufficient to satisfy its future capital requirements. If the Company is ultimately unable to satisfy its capital requirements, it would likely need to dissolve and liquidate its assets under the bankruptcy laws or otherwise. In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern The accompanying unaudited 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. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 statement of the Company’s unaudited condensed consolidated financial statements as of June 30, 2023 and for the three and six months ended June 30, 2023. The Company’s results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the operating results for the full year ending December 31, 2023 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, 2022 and 2021 and for the years then ended which are included in the 2022 Form 10-K. Effective on November 10, 2022, the Company amended its certificate of incorporation to effectuate a reverse split of the issued and outstanding shares of Class A common stock and Class B common stock at a ratio of 1-for-10. Fractional shares of common stock resulting from the reverse stock split were settled in cash. Shares underlying outstanding equity-based awards were proportionately decreased and the respective per share exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities. All shares of common stock, equity-based awards, and per share information presented in the unaudited condensed consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates used in these consolidated financial statements include, but are not limited to, revenue recognition criteria, including allowances for returns and price protection, as well as current expected credit losses, valuation allowance of deferred income taxes, valuation of acquired companies and equity method investments, the recognition and disclosure of contingent liabilities, goodwill and intangible assets impairment testing, and stock-based compensation valuation. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and may cause actual results to differ from those estimates. 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. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Adoption of Accounting Pronouncements On January 1, 2023, the Company adopted Accounting Standard Update Codification Improvements to Topic 326, Financial Instruments – Credit Losses Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument” Revenue from Contracts with Customers On January 1, 2023, the Company adopted ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible instruments and Contracts in an Entity’s Own Equity These amendments improve U.S. GAAP by eliminating certain accounting models, therefore, simplifying the accounting for convertible instruments, and reducing complexity for preparers and practitioners, as well as improving the decision usefulness and relevance of the information provided to financial statement users. In addition to eliminating certain accounting models, these amendments enhance information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance. These amendments improve U.S. GAAP by simplifying the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and improving inconsistency in the accounting for some contracts as derivatives while accounting for economically similar contracts as equity. Entities may also elect to adopt the amendments using the fully retrospective method of transition, with the cumulative effect of the change recognized as an adjustment to the opening balance of retained earnings in the first comparative period presented. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Significant Accounting Policies There have been no material changes to the significant accounting policies disclosed in the audited consolidated financial statements for the year ended December 31, 2022, as included in the 2022 Form 10-K, except as disclosed in this note. Fair Value Measurements The Company accounts for its assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. ● Level 1 – Quoted prices for identical instruments in active markets; ● Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and ● Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company’s liability-classified warrants are measured at fair value on a recurring basis, with subsequent changes in fair value recognized in earnings. Certain assets, including long-lived assets, right of use assets, goodwill, indefinite-lived intangible assets, and purchase commitments are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs are classified as Level 3. Other financial instruments, including cash and cash equivalents, accounts receivable, prepaid and other assets, accounts payable, accrued expenses, and other current liabilities are carried at cost, which approximate their fair values due to their short-term nature. Stock Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 - Distinguishing Liabilities from Equity Derivatives and Hedging Allowances for Returns and Price Protection The Company may permit product returns from, or grant price protection to, its customers under certain conditions. Price protection represents the Company’s practice of providing channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the original wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. Allowances for returns and price protection are considered variable consideration under ASC 606. The Company reduces revenue for estimated future returns and price protections that may occur with distributors and retailers (“channel partners”). See Note 2 – Basis of Presentation and Summary of Significant Accounting Policies – Accounts Receivable Motorsport Games Inc. and Subsidiaries When evaluating the adequacy of allowances for returns and price protection, the Company analyzes the following: historical credit allowances, current sell-through of channel partners’ inventory of the Company’s products, current trends in retail and the video game industry, changes in customer demand, acceptance of products, and other related factors. In addition, the Company monitors the volume of sales to its channel partners and their inventories, as substantial overstocking in the distribution channel could result in higher-than-expected returns or higher price protection in subsequent periods. The Company recognized an expense of approximately $ 0.0 0.3 0.9 1.1 Deferred Revenue The Company’s deferred revenue, or contract liability, is classified as current and is included within accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets (Also refer Note 4 – Accrued Expenses and Other Current Liabilities Revenue recognized in the period from amounts included in contract liability at the beginning of the period was approximately $ 0.4 0.6 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 and warrants, 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, 2023 2022 Stock options 69,992 76,167 Warrants 33,574 - Dilutive securities 103,566 76,167

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2023
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 BTCC, and INDYCAR LLC (“INDYCAR”) with respect to the INDYCAR SERIES. As of June 30, 2023, the Company had a remaining liability in connection with these licensing agreements of approximately $ 0.8 3.3 Impairment During the three months ended June 30, 2023, the Company identified triggering events that indicated certain finite-lived intangible assets were at risk of impairment and as such, performed a quantitative impairment assessment to determine the recoverability of those finite-lived intangible assets. The primary trigger for the impairment review was the Company’s decision to explore strategic alternatives, including, but not limited to, the sale or licensing of the Company’s assets (the “Strategic Initiatives”), and that failure to consummate any such transaction would likely result in the Company being unable to comply with certain requirements of certain of its video game licenses. As a result of the quantitative assessment, the Company determined the fair value of certain licensing agreements, software and non-compete agreements were lower than their respective carrying values and recorded an impairment loss for the three months ended June 30, 2023 of approximately $ 4.0 The impairment loss is presented as impairment of intangible assets in the unaudited condensed consolidated statements of operations and comprehensive loss. Motorsport Games Inc. and Subsidiaries Intangible Assets The following is a summary of intangible assets as of June 30, 2023: 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 January 1, 2023 $ 7,198,363 $ 1,546,645 $ 8,656,842 $ 560,000 $ 212,185 $ 243,243 $ (5,057,048 ) $ 13,360,230 Amortization expense - - - - - - (842,350 ) (842,350 ) Impairment of intangible assets (3,457,202 ) - (481,142 ) - - (66,283 ) - (4,004,627 ) FX translation adjustments - 45,703 41,880 - (28,768 ) 1,216 (28,890 ) 31,141 Balance as of June 30, 2023 $ 3,741,161 $ 1,592,348 $ 8,217,580 $ 560,000 $ 183,417 $ 178,176 $ (5,928,288 ) $ 8,544,394 Weighted average remaining amortization period as of June 30, 2023 11.25 - 3.8 - - 0.8 - - 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 January 1, 2023 $ 1,146,010 $ 3,212,135 $ 560,000 $ 138,903 $ 5,057,048 Amortization expense 113,124 690,237 - 38,989 842,350 Foreign currency translation adjustment 1,876 24,900 - 2,114 28,890 Balance as of June 30, 2023 $ 1,261,010 $ 3,927,272 $ 560,000 $ 180,006 $ 5,928,288 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 Total 2023 (remaining period) $ 767,085 2024 1,494,431 2025 1,356,899 2026 1,110,113 2027 348,055 Thereafter 1,692,046 Estimated aggregate amortization expense $ 6,768,629 Motorsport Games Inc. and Subsidiaries Amortization expense related to intangible assets was approximately $ 0.4 0.8 3.5

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 4 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES June 30, December 31, 2023 2022 Accrued royalties $ 595,472 $ 274,085 Accrued professional and consulting fees 732,282 720,470 Accrued development costs 93,134 172,164 Accrued taxes 23,213 149,842 Accrued payroll 703,686 372,358 Deferred revenue 136,532 311,945 Loss contingency reserves 798,268 1,100,000 Accrued other 277,011 315,560 Total $ 3,359,598 $ 3,416,424

RELATED PARTY LOANS

RELATED PARTY LOANS	6 Months Ended
	Jun. 30, 2023
Related Party Loans
RELATED PARTY LOANS	NOTE 5 – RELATED PARTY LOANS 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, 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. On November 23, 2020, the Company and Motorsport Network entered into an amendment to the $ 12 million Line of Credit, effective in 2020, pursuant to which the availability under the $ 12 million Line of Credit was increased from $ 10 million to $ 12 million, with no changes to the other terms. 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, and any principal and accrued interest owed will be accelerated and become immediately payable in the event the Company consummates certain corporate events, such as a capital reorganization. The Company may prepay the $ 12 On September 8, 2022, the Company entered into a support agreement with Motorsport Network (the “Support Agreement”) pursuant to which Motorsport Network issued approximately $ 3 12 12 12 3.9 780,385 As of June 30, 2023, the $ 12 12 As of June 30, 2023 and December 31, 2022, the balance due to Motorsport Network under the $ 12 0 3,670,000 0 96,667 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS In addition to the $ 12 Related Party Loans 0.2 0.1 1 0.1 The Company has regular related party receivables and payables outstanding as of June 30, 2023 and December 31, 2022. Specifically, the Company owed approximately $ 30,000 0.1 0.8 0.2 Backoffice Services Agreement On March 23, 2023 (but effective as of January 1, 2023), the Company entered into a new Backoffice Services Agreement with Motorsport Network (the “Backoffice Services Agreement”), following the expiration of the Company’s prior services agreement with Motorsport Network. Pursuant to the Backoffice Services Agreement, Motorsport Network will provide accounting, payroll and benefits, human resources and other back-office services on a full-time basis to support the Company’s business functions. The term of the Backoffice Services Agreement is 12 months from the effective date. The term will automatically renew for successive 12-month terms unless either party provides written notice of nonrenewal at least 30 days prior to the end of the then current term. The Backoffice Services Agreement may be terminated by either party at any time with 60 days prior notice. Pursuant to the Backoffice Services Agreement, the Company is required to pay a monthly fee to Motorsport Network of $ 17,500 105,000 52,500

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY Class A and B Common Stock As of June 30, 2023, the Company had 2,720,328 700,000 Holders of Class A and Class B common stock are entitled to one-vote and ten-votes, respectively, for each share held on all matters submitted to a vote of stockholders Effective on November 10, 2022, the Company amended its certificate of incorporation to effectuate a reverse split of the issued and outstanding shares of Class A common stock and Class B common stock at a ratio of 1-for-10. 704Games Warrants As of June 30, 2023 and December 31, 2022, 704Games LLC (“704Games”), a wholly-owned subsidiary of Motorsport Games Inc., has outstanding 10-year warrants to purchase 4,000 93.03 2.3 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Registered Direct Offerings and the Wainwright Warrants On February 1, February 2 and February 3, 2023, the Company completed three separate registered direct offerings (the “Offerings”) priced at-market under NASDAQ rules with H.C. Wainwright & Co., LLC acting as the exclusive placement agent for each transaction (the “Agent”). In connection with the Offerings, the Company paid the Agent a transaction fee equal to 7.0 common stock equal to 6.0 SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS Offering Date Shares Issued Gross Proceeds Net Proceeds Warrants Issued Warrant Strike Price Warrant Term Registered direct offering 1 February 1, 2023 183,020 $ 3.9 $ 3.6 10,981 $ 26.75 5 Registered direct offering 2 February 2, 2023 144,366 $ 3.4 $ 3.1 8,662 $ 29.375 5 Registered direct offering 3 February 3, 2023 232,188 $ 4.0 $ 3.7 13,931 $ 21.738 5 As of June 30, 2023, the Wainwright Warrants were assessed to have a fair value of approximately $ 0.1 The Company utilized a Black-Scholes Option Pricing Model to determine the fair value of the Wainwright Warrants. The Black-Scholes model requires management to make a number of key assumptions, including expected volatility, expected term, and risk-free interest rate. The risk-free interest rate is estimated using the rate of return on U.S. treasury notes with a life that approximates the expected term. The expected term assumption used in the Black-Scholes model represents the period of time that the Wainwright Warrants are Wainwright Warrants. As of , 2023, the Wainwright Warrants had no Stock Purchase Commitment Agreement During the six months ended June 30, 2023, the Company issued 175,167 657,850 2,000,000 1,302,676

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 8 – SHARE-BASED COMPENSATION On January 12, 2021, in connection with its 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 100,000 21,815 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements 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 the Company’s former Chief Executive Officer in conjunction with the Company’s initial public offering that vested immediately, as well as those made to the Company’s current and former directors that vest 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 six months ended June 30, 2023: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY Number of Options Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2023 (net of forfeitures) 74,285 Stock options awarded to Board of Directors under the MSGM 2021 Stock Plan 26,316 Forfeited, cancelled or expired (30,609 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2023 (net of forfeitures) 69,992 On April 4, 2023, the Company granted an aggregate of 26,316 0.1 21,394 30,000 Stock-Based Compensation The following table summarizes stock-based compensation expense resulting from equity awards included in the Company’s condensed consolidated statements of operations: SCHEDULE OF STOCK BASED COMPENSATION EXPENSE 2023 2022 2023 2022 For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 General and Administrative $ 525,952 $ 188,201 $ 545,378 $ 458,323 Sales and Marketing (16,982 ) 32,365 222,735 78,839 Development 12,333 18,007 2,423 54,441 Stock-based compensation expense $ 521,303 $ 238,573 $ 770,536 $ 591,603 As of June 30, 2023, there was approximately $ 0.3 1.8 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – 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, except as otherwise disclosed below. 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 condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. On February 11, 2021, HC2 Holdings 2 Inc. (now known as Innovate 2) and Continental General Insurance Company (“Continental”), former minority stockholders of 704Games, filed a complaint (the “HC2 and Continental Complaint”) in the U.S. District Court for the District of Delaware against the Company, the Company’s former Chief Executive Officer and Executive Chairman, the Company’s former 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. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements On January 11, 2023, in connection with the HC2 and Continental Complaint, the Company, along with other defendants, entered into a settlement agreement with one of the plaintiffs, Continental, to settle the claims made by Continental against the defendants and the claims made by the defendants against Continental. Under the terms of the settlement agreement, the Company was obligated to pay the sum of $ 1.1 0.1 40,000 1.1 0.8 1.1 Accrued Expenses and Other Current Liabilities On July 28, 2023, Wesco Insurance Company (“Wesco”) filed a complaint in state court in Florida against the Company, as well as the other defendants involved in the litigation related to the HC2 and Continental Complaint (the “Underlying Action”). The Company had previously submitted the Underlying Action for coverage under a management liability policy issued by Hallmark Specialty Insurance Company and an excess policy with Wesco (the “Wesco Policy”). Wesco’s complaint seeks declaratory relief to determine Wesco’s obligations to the defendants under an excess policy of insurance issued to the Company by Wesco for the Underlying Action. Wesco claims that there is no coverage afforded to the defendants for the Underlying Action under the Wesco Policy. The Company disagrees with and disputes Wesco’s position regarding coverage for the Underlying Action under the Wesco Policy and will defend its position. Commitments On January 25, 2021, the Company entered into an amendment (the “Le Mans Amendment”) to the Le Mans Esports Series Ltd joint venture agreement, which resulted in an increase of the Company’s ownership interest in the Le Mans Esports Series Ltd joint venture from 45 51 8,000,000 8,700,000 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 nonexclusive, 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% of product revenue, as defined in the licensing agreement. During the six months ended June 30, 2023, the Company did not pay any royalties to Epic under the agreement. Pursuant to the terms of the agreement, the Company has the right to actively develop new or existing authorized products during a 5-year period ending on August 11, 2025. 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 (collectively the “Video Game Licenses”). These minimum royalty guarantee payments apply throughout the duration of the Video Game Licenses’ agreements, which expire between fiscal years ending December 31, 2026 and 2032, and give rise to a minimum royalty guarantee commitment of $ 17.4 0.4 1.6 In addition to the minimum royalty guarantee payments, the Company is obligated by the Video Game Licenses’ agreements to spend a minimum amount on relevant marketing activities each year, aggregating to $ 2.35 Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2023
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 10 – CONCENTRATIONS Customer Concentrations The following table sets forth information as to each customer that accounted for 10% or more of the Company’s revenues for the following periods: SCHEDULE OF CONCENTRATIONS Three Months Ended Six Months Ended Customer 2023 2022 2023 2022 Customer B 26.7 % 39.5 % 25.5 % 26.2 % Customer C 29.8 % 29.7 % 28.5 % 21.6 % Customer D 24.2 % 24.6 % 26.0 % 21.5 % Total 80.7 % 93.8 % 80.0 % 69.3 % The following table sets forth information as to each customer that accounted for 10% or more of the Company’s trade accounts receivable as of: Customer June 30, 2023 December 31, 2022 Customer A - 50.5 % Customer B 29.5 % 11.2 % Customer C 46.7 % 15.2 % Customer D 18.4 % 13.1 % Total 94.6 % 90.0 % * Less than 10%. A reduction in sales from or loss of these customers, in a significant amount, could have a material adverse effect on the Company’s results of operations and financial condition. Supplier Concentrations The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s cost of revenues for the following periods: SCHEDULE OF CONCENTRATIONS Three Months Ended Six Months Ended Supplier 2023 2022 2023 2022 Supplier A 66.5 % 54.7 % 41.8 % 27.4 % Supplier C - * 16.9 % - * - * Total 66.5 % 71.6 % 41.8 % 27.4 % * Less than 10%. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 11 – SEGMENT REPORTING The Company’s principal operating segments coincide with the types of products and services to be sold. The products and services from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three months six months ended June 30, 2023 and 2022 were (i) the development and publishing of interactive racing video games, entertainment content and services (the “Gaming segment”); and (ii) the organization and facilitation of esports tournaments, competitions and events for the Company’s licensed racing games as well as on behalf of third-party video game racing series and other video game publishers (the “Esports segment”). The Company’s Chief Operating Decision Maker (“CODM”) has been identified as the Company’s Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of June 30, 2023 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers. As the Company primarily generates its revenues from customers in the United States, no geographical segments are presented. Segment operating profit is determined based upon internal performance measures used by the CODM. 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 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues: Gaming $ 1,739,096 $ 1,941,938 $ 3,178,313 $ 4,900,326 Esports 34 67,049 290,172 430,450 Total Revenues $ 1,739,130 $ 2,008,987 $ 3,468,485 $ 5,330,776 Cost of Revenues: Gaming $ 865,309 $ 820,737 $ 1,740,148 $ 2,224,744 Esports 858 35,420 374,755 645,219 Total Cost of Revenues $ 866,167 $ 856,157 $ 2,114,903 $ 2,869,963 Gross Profit (Loss): Gaming $ 873,787 $ 1,121,201 $ 1,438,165 $ 2,675,582 Esports (824 ) 31,629 (84,583 ) (214,769 ) Total Gross Profit $ 872,963 $ 1,152,830 $ 1,353,582 $ 2,460,813 Loss From Operations: Gaming $ (8,559,203 ) $ (6,393,338 ) $ (13,664,576 ) $ (21,437,759 ) Esports (54,104 ) (292,077 ) (360,120 ) (851,006 ) Total Loss From Operations $ (8,613,307 ) $ (6,685,415 ) $ (14,024,696 ) $ (22,288,765 ) Depreciation and Amortization: Gaming $ 92,497 $ 109,656 $ 177,615 $ 217,139 Esports 12,357 8,069 24,593 16,657 Total Depreciation and Amortization $ 104,854 $ 117,725 $ 202,208 $ 233,796 Interest Expense, net: Gaming $ (244,750 ) $ (191,662 ) $ (443,870 ) $ (393,258 ) Esports - - - - Total Interest Expense, net $ (244,750 ) $ (191,662 ) $ (443,870 ) $ (393,258 ) Other Income (Expense), net: Gaming $ 664,264 $ (610,481 ) $ 1,032,508 $ (767,605 ) Esports (7,089 ) (113 ) (24,016 ) (5,088 ) Total Other Income (Expense), net $ 657,175 $ (610,594 ) $ 1,008,492 $ (772,693 ) Net Loss: Gaming $ (8,139,689 ) $ (7,195,481 ) $ (13,075,938 ) $ (22,598,621 ) Esports (61,193 ) (292,190 ) (384,136 ) (856,095 ) Total Net Loss $ (8,200,882 ) $ (7,487,671 ) $ (13,460,074 ) $ (23,454,716 ) June 30, 2023 December 31, 2022 Total Assets: Gaming $ 11,104,297 $ 16,315,359 Esports 2,231,942 2,582,433 Total Assets $ 13,336,239 $ 18,897,792

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 - SUBSEQUENT EVENTS The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the unaudited consolidated financial statements were issued. On July 28, 2023, Wesco filed a complaint in state court in Florida against the Company, as well as the other defendants involved in the litigation related to the HC2 and Continental Complaint. Refer to Note 9 – Commitments and Contingencies

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	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 statement of the Company’s unaudited condensed consolidated financial statements as of June 30, 2023 and for the three and six months ended June 30, 2023. The Company’s results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the operating results for the full year ending December 31, 2023 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, 2022 and 2021 and for the years then ended which are included in the 2022 Form 10-K. Effective on November 10, 2022, the Company amended its certificate of incorporation to effectuate a reverse split of the issued and outstanding shares of Class A common stock and Class B common stock at a ratio of 1-for-10. Fractional shares of common stock resulting from the reverse stock split were settled in cash. Shares underlying outstanding equity-based awards were proportionately decreased and the respective per share exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities. All shares of common stock, equity-based awards, and per share information presented in the unaudited condensed consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates used in these consolidated financial statements include, but are not limited to, revenue recognition criteria, including allowances for returns and price protection, as well as current expected credit losses, valuation allowance of deferred income taxes, valuation of acquired companies and equity method investments, the recognition and disclosure of contingent liabilities, goodwill and intangible assets impairment testing, and stock-based compensation valuation. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and may cause actual results to differ from those estimates.
Recently Issued Accounting Standards	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. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements
Adoption of Accounting Pronouncements	Adoption of Accounting Pronouncements On January 1, 2023, the Company adopted Accounting Standard Update Codification Improvements to Topic 326, Financial Instruments – Credit Losses Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument” Revenue from Contracts with Customers On January 1, 2023, the Company adopted ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible instruments and Contracts in an Entity’s Own Equity These amendments improve U.S. GAAP by eliminating certain accounting models, therefore, simplifying the accounting for convertible instruments, and reducing complexity for preparers and practitioners, as well as improving the decision usefulness and relevance of the information provided to financial statement users. In addition to eliminating certain accounting models, these amendments enhance information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance. These amendments improve U.S. GAAP by simplifying the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions and improving inconsistency in the accounting for some contracts as derivatives while accounting for economically similar contracts as equity. Entities may also elect to adopt the amendments using the fully retrospective method of transition, with the cumulative effect of the change recognized as an adjustment to the opening balance of retained earnings in the first comparative period presented. Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements Significant Accounting Policies There have been no material changes to the significant accounting policies disclosed in the audited consolidated financial statements for the year ended December 31, 2022, as included in the 2022 Form 10-K, except as disclosed in this note.
Fair Value Measurements	Fair Value Measurements The Company accounts for its assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. ● Level 1 – Quoted prices for identical instruments in active markets; ● Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and ● Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The Company’s liability-classified warrants are measured at fair value on a recurring basis, with subsequent changes in fair value recognized in earnings. Certain assets, including long-lived assets, right of use assets, goodwill, indefinite-lived intangible assets, and purchase commitments are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs are classified as Level 3. Other financial instruments, including cash and cash equivalents, accounts receivable, prepaid and other assets, accounts payable, accrued expenses, and other current liabilities are carried at cost, which approximate their fair values due to their short-term nature.
Stock Warrants	Stock Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 - Distinguishing Liabilities from Equity Derivatives and Hedging
Allowances for Returns and Price Protection	Allowances for Returns and Price Protection The Company may permit product returns from, or grant price protection to, its customers under certain conditions. Price protection represents the Company’s practice of providing channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the original wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. Allowances for returns and price protection are considered variable consideration under ASC 606. The Company reduces revenue for estimated future returns and price protections that may occur with distributors and retailers (“channel partners”). See Note 2 – Basis of Presentation and Summary of Significant Accounting Policies – Accounts Receivable Motorsport Games Inc. and Subsidiaries When evaluating the adequacy of allowances for returns and price protection, the Company analyzes the following: historical credit allowances, current sell-through of channel partners’ inventory of the Company’s products, current trends in retail and the video game industry, changes in customer demand, acceptance of products, and other related factors. In addition, the Company monitors the volume of sales to its channel partners and their inventories, as substantial overstocking in the distribution channel could result in higher-than-expected returns or higher price protection in subsequent periods. The Company recognized an expense of approximately $ 0.0 0.3 0.9 1.1
Deferred Revenue	Deferred Revenue The Company’s deferred revenue, or contract liability, is classified as current and is included within accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets (Also refer Note 4 – Accrued Expenses and Other Current Liabilities Revenue recognized in the period from amounts included in contract liability at the beginning of the period was approximately $ 0.4 0.6
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 and warrants, 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, 2023 2022 Stock options 69,992 76,167 Warrants 33,574 - Dilutive securities 103,566 76,167

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2023
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, 2023 2022 Stock options 69,992 76,167 Warrants 33,574 - Dilutive securities 103,566 76,167

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	The following is a summary of intangible assets as of June 30, 2023: 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 January 1, 2023 $ 7,198,363 $ 1,546,645 $ 8,656,842 $ 560,000 $ 212,185 $ 243,243 $ (5,057,048 ) $ 13,360,230 Amortization expense - - - - - - (842,350 ) (842,350 ) Impairment of intangible assets (3,457,202 ) - (481,142 ) - - (66,283 ) - (4,004,627 ) FX translation adjustments - 45,703 41,880 - (28,768 ) 1,216 (28,890 ) 31,141 Balance as of June 30, 2023 $ 3,741,161 $ 1,592,348 $ 8,217,580 $ 560,000 $ 183,417 $ 178,176 $ (5,928,288 ) $ 8,544,394 Weighted average remaining amortization period as of June 30, 2023 11.25 - 3.8 - - 0.8 - -
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 January 1, 2023 $ 1,146,010 $ 3,212,135 $ 560,000 $ 138,903 $ 5,057,048 Amortization expense 113,124 690,237 - 38,989 842,350 Foreign currency translation adjustment 1,876 24,900 - 2,114 28,890 Balance as of June 30, 2023 $ 1,261,010 $ 3,927,272 $ 560,000 $ 180,006 $ 5,928,288
SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS	SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS Total 2023 (remaining period) $ 767,085 2024 1,494,431 2025 1,356,899 2026 1,110,113 2027 348,055 Thereafter 1,692,046 Estimated aggregate amortization expense $ 6,768,629

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
SCHEDULE OF ACCRUED EXPENSES	Accrued expenses and other current liabilities consisted of the following: SCHEDULE OF ACCRUED EXPENSES June 30, December 31, 2023 2022 Accrued royalties $ 595,472 $ 274,085 Accrued professional and consulting fees 732,282 720,470 Accrued development costs 93,134 172,164 Accrued taxes 23,213 149,842 Accrued payroll 703,686 372,358 Deferred revenue 136,532 311,945 Loss contingency reserves 798,268 1,100,000 Accrued other 277,011 315,560 Total $ 3,359,598 $ 3,416,424

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS	SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS Offering Date Shares Issued Gross Proceeds Net Proceeds Warrants Issued Warrant Strike Price Warrant Term Registered direct offering 1 February 1, 2023 183,020 $ 3.9 $ 3.6 10,981 $ 26.75 5 Registered direct offering 2 February 2, 2023 144,366 $ 3.4 $ 3.1 8,662 $ 29.375 5 Registered direct offering 3 February 3, 2023 232,188 $ 4.0 $ 3.7 13,931 $ 21.738 5

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2023
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 six months ended June 30, 2023: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY Number of Options Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2023 (net of forfeitures) 74,285 Stock options awarded to Board of Directors under the MSGM 2021 Stock Plan 26,316 Forfeited, cancelled or expired (30,609 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2023 (net of forfeitures) 69,992
SCHEDULE OF STOCK BASED COMPENSATION EXPENSE	The following table summarizes stock-based compensation expense resulting from equity awards included in the Company’s condensed consolidated statements of operations: SCHEDULE OF STOCK BASED COMPENSATION EXPENSE 2023 2022 2023 2022 For the Three Months Ended For the Six Months Ended 2023 2022 2023 2022 General and Administrative $ 525,952 $ 188,201 $ 545,378 $ 458,323 Sales and Marketing (16,982 ) 32,365 222,735 78,839 Development 12,333 18,007 2,423 54,441 Stock-based compensation expense $ 521,303 $ 238,573 $ 770,536 $ 591,603

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2023
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 for the following periods: SCHEDULE OF CONCENTRATIONS Three Months Ended Six Months Ended Customer 2023 2022 2023 2022 Customer B 26.7 % 39.5 % 25.5 % 26.2 % Customer C 29.8 % 29.7 % 28.5 % 21.6 % Customer D 24.2 % 24.6 % 26.0 % 21.5 % Total 80.7 % 93.8 % 80.0 % 69.3 % The following table sets forth information as to each customer that accounted for 10% or more of the Company’s trade accounts receivable as of: Customer June 30, 2023 December 31, 2022 Customer A - 50.5 % Customer B 29.5 % 11.2 % Customer C 46.7 % 15.2 % Customer D 18.4 % 13.1 % Total 94.6 % 90.0 % * 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 for the following periods: SCHEDULE OF CONCENTRATIONS Three Months Ended Six Months Ended Supplier 2023 2022 2023 2022 Supplier A 66.5 % 54.7 % 41.8 % 27.4 % Supplier C - * 16.9 % - * - * Total 66.5 % 71.6 % 41.8 % 27.4 % * Less than 10%.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2023
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 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues: Gaming $ 1,739,096 $ 1,941,938 $ 3,178,313 $ 4,900,326 Esports 34 67,049 290,172 430,450 Total Revenues $ 1,739,130 $ 2,008,987 $ 3,468,485 $ 5,330,776 Cost of Revenues: Gaming $ 865,309 $ 820,737 $ 1,740,148 $ 2,224,744 Esports 858 35,420 374,755 645,219 Total Cost of Revenues $ 866,167 $ 856,157 $ 2,114,903 $ 2,869,963 Gross Profit (Loss): Gaming $ 873,787 $ 1,121,201 $ 1,438,165 $ 2,675,582 Esports (824 ) 31,629 (84,583 ) (214,769 ) Total Gross Profit $ 872,963 $ 1,152,830 $ 1,353,582 $ 2,460,813 Loss From Operations: Gaming $ (8,559,203 ) $ (6,393,338 ) $ (13,664,576 ) $ (21,437,759 ) Esports (54,104 ) (292,077 ) (360,120 ) (851,006 ) Total Loss From Operations $ (8,613,307 ) $ (6,685,415 ) $ (14,024,696 ) $ (22,288,765 ) Depreciation and Amortization: Gaming $ 92,497 $ 109,656 $ 177,615 $ 217,139 Esports 12,357 8,069 24,593 16,657 Total Depreciation and Amortization $ 104,854 $ 117,725 $ 202,208 $ 233,796 Interest Expense, net: Gaming $ (244,750 ) $ (191,662 ) $ (443,870 ) $ (393,258 ) Esports - - - - Total Interest Expense, net $ (244,750 ) $ (191,662 ) $ (443,870 ) $ (393,258 ) Other Income (Expense), net: Gaming $ 664,264 $ (610,481 ) $ 1,032,508 $ (767,605 ) Esports (7,089 ) (113 ) (24,016 ) (5,088 ) Total Other Income (Expense), net $ 657,175 $ (610,594 ) $ 1,008,492 $ (772,693 ) Net Loss: Gaming $ (8,139,689 ) $ (7,195,481 ) $ (13,075,938 ) $ (22,598,621 ) Esports (61,193 ) (292,190 ) (384,136 ) (856,095 ) Total Net Loss $ (8,200,882 ) $ (7,487,671 ) $ (13,460,074 ) $ (23,454,716 ) June 30, 2023 December 31, 2022 Total Assets: Gaming $ 11,104,297 $ 16,315,359 Esports 2,231,942 2,582,433 Total Assets $ 13,336,239 $ 18,897,792

BUSINESS ORGANIZATION, NATURE_2

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jul. 31, 2023	Dec. 31, 2022
Net loss	$ 8,200,882	$ 5,259,192	$ 7,487,671	$ 15,967,045	$ 13,460,074	$ 23,454,716
Net cash provided by used in operating activities					8,850,162	$ 12,049,298
Accumulated deficit	87,251,102				87,251,102			$ 73,979,131
Cash and cash equivalents	1,966,553				1,966,553			$ 979,306
Average net cash decrease	$ 1,100,000
At The Market [Member]
Available for future sales					2,900,000
Equity Distribution Agreement [Member] | Canaccord Genuity LLC [Member] | Common Class A [Member]
Available for future sales					$ 10,000,000
Subsequent Event [Member]
Cash and cash equivalents							$ 1,400,000

SCHEDULE OF CALCULATION WEIGHTE

SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	103,566	76,167	103,566	76,167
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	69,992	76,167	69,992	76,167
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	33,574		33,574

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Sales return and price protection reserves	$ 0	$ 0.9	$ 0.3	$ 1.1
Contract Liability [Member]
Revenue recognized			$ 0.4	$ 0.6

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 13,360,230
Intangible assets, amortization beginning			(5,057,048)
Amortization expense			(842,350)
Impairment of intangible assets	$ (4,004,627)	$ (149,048)	(4,004,627)	$ (4,640,102)
FX translation adjustments			31,141
Intangible assets, ending	8,544,394		8,544,394
Intangible assets, amortization ending	(5,928,288)		$ (5,928,288)
Weighted average remaining amortization
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 7,198,363
Intangible assets, amortization beginning			(1,146,010)
Amortization expense
Impairment of intangible assets			(3,457,202)
FX translation adjustments
Intangible assets, ending	3,741,161		3,741,161
Intangible assets, amortization ending	(1,261,010)		$ (1,261,010)
Weighted average remaining amortization			11 years 3 months
Licensing Agreements (Indefinite) [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 1,546,645
Amortization expense
Impairment of intangible assets
FX translation adjustments			45,703
Intangible assets, ending	1,592,348		$ 1,592,348
Weighted average remaining amortization
Software Licenses (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 8,656,842
Intangible assets, amortization beginning			(3,212,135)
Amortization expense
Impairment of intangible assets			(481,142)
FX translation adjustments			41,880
Intangible assets, ending	8,217,580		8,217,580
Intangible assets, amortization ending	(3,927,272)		$ (3,927,272)
Weighted average remaining amortization			3 years 9 months 18 days
Distribution Contracts (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 560,000
Intangible assets, amortization beginning			(560,000)
Amortization expense
Impairment of intangible assets
FX translation adjustments
Intangible assets, ending	560,000		560,000
Intangible assets, amortization ending	(560,000)		$ (560,000)
Weighted average remaining amortization
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 212,185
Amortization expense
Impairment of intangible assets
FX translation adjustments			(28,768)
Intangible assets, ending	183,417		$ 183,417
Weighted average remaining amortization
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning			$ 243,243
Intangible assets, amortization beginning			(138,903)
Amortization expense
Impairment of intangible assets			(66,283)
FX translation adjustments			1,216
Intangible assets, ending	178,176		178,176
Intangible assets, amortization ending	(180,006)		$ (180,006)
Weighted average remaining amortization			9 months 18 days
Accumulated Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization beginning			$ (5,057,048)
Amortization expense			(842,350)
Impairment of intangible assets
FX translation adjustments			(28,890)
Intangible assets, amortization ending	$ (5,928,288)		$ (5,928,288)
Weighted average remaining amortization

SCHEDULE OF ACCUMULATED AMORTIZ

SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			$ 5,057,048
Amortization expense	$ 400,000	$ 400,000	842,350	$ 800,000
Amortization of intangible assets foreign currency translation adjusments			28,890
Accumulated amortization, ending	5,928,288		5,928,288
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			1,146,010
Amortization expense			113,124
Amortization of intangible assets foreign currency translation adjusments			1,876
Accumulated amortization, ending	1,261,010		1,261,010
Software Licenses (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			3,212,135
Amortization expense			690,237
Amortization of intangible assets foreign currency translation adjusments			24,900
Accumulated amortization, ending	3,927,272		3,927,272
Distribution Contracts (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			560,000
Amortization expense
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			138,903
Amortization expense			38,989
Amortization of intangible assets foreign currency translation adjusments			2,114
Accumulated amortization, ending	$ 180,006		$ 180,006

SCHEDULE OF ESTIMATED AGGREGATE

SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS (Details)	Jun. 30, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remaining period)	$ 767,085
2024	1,494,431
2025	1,356,899
2026	1,110,113
2027	348,055
Thereafter	1,692,046
Estimated aggregate amortization expense	$ 6,768,629

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Indefinite-Lived Intangible Assets [Line Items]
Impairment loss for intangible assets	$ 4,004,627	$ 149,048	$ 4,004,627	$ 4,640,102
Amortization expense	400,000	$ 400,000	842,350	$ 800,000
Intangible assets	8,544,394		8,544,394		$ 13,360,230
Non-amortizing Intangible Assets [Member]
Indefinite-Lived Intangible Assets [Line Items]
Intangible assets	$ 3,500,000		3,500,000
Licensing Agreements [Member] | Purchase Commitments [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived intangible assets acquired			800,000
Licensing Agreements [Member] | Other Noncurrent Liabilities [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived intangible assets acquired			$ 3,300,000

SCHEDULE OF ACCRUED EXPENSES (D

SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued royalties	$ 595,472	$ 274,085
Accrued professional and consulting fees	732,282	720,470
Accrued development costs	93,134	172,164
Accrued taxes	23,213	149,842
Accrued payroll	703,686	372,358
Deferred revenue	136,532	311,945
Loss contingency reserves	798,268	1,100,000
Accrued other	277,011	315,560
Total	$ 3,359,598	$ 3,416,424

RELATED PARTY LOANS (Details Na

RELATED PARTY LOANS (Details Narrative) - USD ($)	Feb. 01, 2023	Jan. 30, 2023	Sep. 08, 2022	Jun. 30, 2023	Dec. 31, 2022	Nov. 23, 2020	Apr. 01, 2020
Liine of credit			$ 12,000,000	$ 12,000,000
Principal and accrued interest payments	$ 3,900,000	$ 3,900,000
Line of credit current				0	$ 3,670,000
Accrued related party				$ 0	$ 96,667
Common Class A [Member]
Stock issued during period, shares, other	780,385	780,385
Support Agreement [Member]
Liine of credit			3,000,000
Principal and accrued interest payments			$ 12,000,000
Promissory Note [Member]
Liine of credit						$ 12,000,000	$ 12,000,000
Interest rate							10%
Promissory Note [Member] | Maximum [Member]
Line of credit, maximum borrowing capacity						12,000,000	$ 10,000,000
Promissory Note [Member] | Minimum [Member]
Line of credit, maximum borrowing capacity						$ 10,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)		3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 23, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2023 EUR (€)	Sep. 08, 2022 USD ($)
Related Party Transaction [Line Items]
Line of credit		$ 12,000,000	$ 12,000,000				$ 12,000,000
Payment to related parties			1,000,000	$ 100,000	$ 800,000
Due from related parties		8,700,000	8,700,000			€ 8,000,000
New Services Agreement [Member]
Related Party Transaction [Line Items]
Monthly fee payment	$ 17,500	52,500	105,000
Related Party [Member]
Related Party Transaction [Line Items]
Incurred expenses			200,000	$ 100,000
Due from related parties		30,000	30,000		200,000
Due to related parties		32,129	32,129		$ 4,589,211
Related Parties [Member]
Related Party Transaction [Line Items]
Due to related parties		$ 100,000	$ 100,000

SCHEDULE OF REGISTERED DIRECT O

SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Registered Direct Offering 1 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Offering Date	Feb. 01, 2023
Shares Issued | shares	183,020
Warrants Issued | shares	10,981
Warrant Strike Price | $ / shares	$ 26.75
Gross proceeds | $	$ 3.9
Net Proceeds | $	$ 3.6
Warrants Term	5 years
Registered Direct Offering 2 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Offering Date	Feb. 02, 2023
Shares Issued | shares	144,366
Warrants Issued | shares	8,662
Warrant Strike Price | $ / shares	$ 29.375
Gross proceeds | $	$ 3.4
Net Proceeds | $	$ 3.1
Warrants Term	5 years
Registered Direct Offering 3 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Offering Date	Feb. 03, 2023
Shares Issued | shares	232,188
Warrants Issued | shares	13,931
Warrant Strike Price | $ / shares	$ 21.738
Gross proceeds | $	$ 4
Net Proceeds | $	$ 3.7
Warrants Term	5 years

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)			3 Months Ended	6 Months Ended
	Dec. 09, 2022	Nov. 10, 2022	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Class of Stock [Line Items]
Voting rights				Holders of Class A and Class B common stock are entitled to one-vote and ten-votes, respectively, for each share held on all matters submitted to a vote of stockholders
Reverse stock split ratio		the Company amended its certificate of incorporation to effectuate a reverse split of the issued and outstanding shares of Class A common stock and Class B common stock at a ratio of 1-for-10.
Transaction fee percentage				7%
Fair value of warrants				$ (423,403)
Stock issued during period value new issues			$ 10,571,534
Wainwright Warrants [Member]
Class of Stock [Line Items]
Fair value of warrants				$ 100,000
704 Games Company [Member]
Class of Stock [Line Items]
Shares of common stock				4,000
Stock option exercise price increase				$ 93.03
704 Games Company [Member] | Warrant [Member]
Class of Stock [Line Items]
Remaining life of years				2 years 3 months 18 days
Common Class A [Member]
Class of Stock [Line Items]
Common stock shares outstanding				2,720,328		1,183,808
Percentage of aggregate number of shares of common stock placed in each offering				6%
Common Class A [Member] | Stock Purchase Commitment Agreement [Member] | Alumni Capital LP [Member]
Class of Stock [Line Items]
Stock issued during period shares new issues	2,000,000			175,167
Stock issued during period value new issues				$ 657,850
Purchase obligation				$ 1,302,676
Common Class B [Member]
Class of Stock [Line Items]
Common stock shares outstanding				700,000		700,000

SCHEDULE OF STOCK-BASED COMPENS

SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY (Details) - MSGM 2021 Stock Plan [Member]	6 Months Ended
	Jun. 30, 2023 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, outstanding, beginning	74,285
Number of options, granted	26,316
Number of options, forfeited, cancelled or expired	(30,609)
Number of options, outstanding, ending	69,992

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 521,303	$ 238,573	$ 770,536	$ 591,603
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	525,952	188,201	545,378	458,323
Selling and Marketing Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	(16,982)	32,365	222,735	78,839
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 12,333	$ 18,007	$ 2,423	$ 54,441

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)			6 Months Ended
	Jun. 09, 2023	Apr. 04, 2023	Jun. 30, 2023	Jan. 12, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock based compensation expense			$ 300,000
Compensation expense period			1 year 9 months 18 days
MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expiring period			10 years
MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, granted			26,316
MSGM 2021 Stock Plan [Member] | Board of Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, granted		26,316
Grant date fair value		$ 100,000
Common Class A [Member] | MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for issuance			21,815	100,000
Common Class A [Member] | MSGM 2021 Stock Plan [Member] | Consultant [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant date fair value	$ 30,000
Number of options, granted	21,394

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)			6 Months Ended	12 Months Ended
	Jan. 17, 2023 USD ($)	Jan. 11, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Jan. 25, 2021
Loss Contingencies [Line Items]
Fund for research			$ 8,700,000			€ 8,000,000
Minimum royalty guarantee commitment					$ 17,400,000
Minimum royalty guarantee commitments, paid			400,000
Video Games Licenses Agreement [Member]
Loss Contingencies [Line Items]
Minimum royalty guarantee commitments, paid			2,350,000
Forecast [Member]
Loss Contingencies [Line Items]
Minimum royalty guarantee commitments, paid					$ 1,600,000
LeMans Esports Series Ltd [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Ownership percent							45%
LeMans Esports Series Ltd [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Ownership percent							51%
Continental [Member]
Loss Contingencies [Line Items]
Litigation Settlement, Amount Awarded to Other Party		$ 1,100,000
Litigation settlement	$ 100,000		$ 800,000	$ 1,100,000
Litigation Settlement Interest	$ 40,000

SCHEDULE OF CONCENTRATIONS (Det

SCHEDULE OF CONCENTRATIONS (Details)	3 Months Ended			6 Months Ended				12 Months Ended
	Jun. 30, 2023		Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022		Dec. 31, 2022
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier A [Member]
Concentration Risk [Line Items]
Concentration risk percentage	66.50%		54.70%	41.80%		27.40%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier C [Member]
Concentration Risk [Line Items]
Concentration risk percentage		[1]	16.90%		[1]		[1]
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier [Member]
Concentration Risk [Line Items]
Concentration risk percentage	66.50%		71.60%	41.80%		27.40%
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	26.70%		39.50%	25.50%		26.20%
Customer B [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				29.50%				11.20%
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	29.80%		29.70%	28.50%		21.60%
Customer C [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				46.70%				15.20%
Customer D [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	24.20%		24.60%	26%		21.50%
Customer D [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				18.40%				13.10%
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	80.70%		93.80%	80%		69.30%
Customer [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				94.60%				90%
Customer A [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage					[2]			50.50%
[1]Less than 10%.[2]Less than 10%.

SCHEDULE OF SEGMENT REPORTING I

SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($)		3 Months Ended				6 Months Ended
		Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from External Customer [Line Items]
Total Revenues		$ 1,739,130		$ 2,008,987		$ 3,468,485	$ 5,330,776
Total Cost of Revenues	[1]	866,167		856,157		2,114,903	2,869,963
Total Gross Profit		872,963		1,152,830		1,353,582	2,460,813
Total Loss From Operations		(8,613,307)		(6,685,415)		(14,024,696)	(22,288,765)
Total Depreciation and Amortization		104,854		117,725		202,208	233,796
Total Interest Expense, net		(244,750)		(191,662)		(443,870)	(393,258)
Total Other (Expense) Income, net		657,175		(610,594)		1,008,492	(772,693)
Total Net Loss		(8,200,882)	$ (5,259,192)	(7,487,671)	$ (15,967,045)	(13,460,074)	(23,454,716)
Total assets		13,336,239				13,336,239		$ 18,897,792
Gaming [Member]
Revenue from External Customer [Line Items]
Total Revenues		1,739,096		1,941,938		3,178,313	4,900,326
Total Cost of Revenues		865,309		820,737		1,740,148	2,224,744
Total Gross Profit		873,787		1,121,201		1,438,165	2,675,582
Total Loss From Operations		(8,559,203)		(6,393,338)		(13,664,576)	(21,437,759)
Total Depreciation and Amortization		92,497		109,656		177,615	217,139
Total Interest Expense, net		(244,750)		(191,662)		(443,870)	(393,258)
Total Other (Expense) Income, net		664,264		(610,481)		1,032,508	(767,605)
Total Net Loss		(8,139,689)		(7,195,481)		(13,075,938)	(22,598,621)
Total assets		11,104,297				11,104,297		16,315,359
Esports [Member]
Revenue from External Customer [Line Items]
Total Revenues		34		67,049		290,172	430,450
Total Cost of Revenues		858		35,420		374,755	645,219
Total Gross Profit		(824)		31,629		(84,583)	(214,769)
Total Loss From Operations		(54,104)		(292,077)		(360,120)	(851,006)
Total Depreciation and Amortization		12,357		8,069		24,593	16,657
Total Interest Expense, net
Total Other (Expense) Income, net		(7,089)		(113)		(24,016)	(5,088)
Total Net Loss		(61,193)		$ (292,190)		(384,136)	$ (856,095)
Total assets		$ 2,231,942				$ 2,231,942		$ 2,582,433
[1]Includes related party costs of $ 0 0 0 6,228