Motorsport Games (MSGM) 10-Q 9 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 09, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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
Entity Information, Former Legal or Registered Name	Not Applicable
Common Class A [Member]
Entity Common Stock, Shares Outstanding		3,074,656
Common Class B [Member]
Entity Common Stock, Shares Outstanding		700,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 529,438	$ 1,675,210
Accounts receivable, net of allowances of $450,000 as of June 30, 2024 and December 31, 2023	839,571	735,839
Prepaid expenses and other current assets	807,993	1,106,848
Total Current Assets	2,177,002	3,517,897
Property and equipment, net	136,997	247,693
Operating lease right of use assets	96,401	197,307
Intangible assets, net	4,798,011	5,795,807
Total Assets	7,208,411	9,758,704
Current liabilities:
Accounts payable	1,764,650	813,659
Accrued expenses and other current liabilities	1,397,358	1,891,315
Purchase commitments	875,096	4,656,538
Operating lease liabilities (current)	62,533	153,015
Total Current Liabilities	4,129,518	7,592,243
Operating lease liabilities (non-current)	32,242	45,659
Other non-current liabilities	17,571	31,098
Total Liabilities	4,179,331	7,669,000
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Preferred stock, $0.0001 par value; authorized 1,000,000 and 1,000,000 shares; and none issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
Additional paid-in capital	92,002,160	91,923,311
Accumulated deficit	(86,350,189)	(87,441,805)
Accumulated other comprehensive loss	(1,350,288)	(1,850,216)
Total Stockholders’ Equity Attributable to Motorsport Games Inc.	4,302,022	2,631,629
Non-controlling interest	(1,272,942)	(541,925)
Total Stockholders’ Equity	3,029,080	2,089,704
Total Liabilities and Stockholders’ Equity	7,208,411	9,758,704
Common Class A [Member]
Stockholders’ Equity:
Common stock, value	269	269
Common Class B [Member]
Stockholders’ Equity:
Common stock, value	70	70
Related Party [Member]
Current liabilities:
Due to related parties	$ 29,881	$ 77,716

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Allowances for doubtful accounts receivable	$ 450,000	$ 450,000
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	2,722,728	2,722,728
Common stock, shares outstanding	2,722,728	2,722,728
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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues		$ 1,881,653	$ 1,739,130	$ 4,910,689	$ 3,468,485
Cost of revenues		771,647	866,167	1,438,274	2,114,903
Gross profit		1,110,006	872,963	3,472,415	1,353,582
Operating expenses:
Sales and marketing [1]	[1]	205,549	434,788	455,935	1,053,198
Development [2]	[2]	868,745	1,787,768	1,932,102	4,184,902
Impairment of intangible assets			4,004,627		4,004,627
General and administrative [3]	[3]	1,411,826	3,154,233	3,602,092	5,933,343
Depreciation and amortization		63,138	104,854	136,862	202,208
Total operating expenses		2,549,258	9,486,270	6,126,991	15,378,278
Gain from settlement of license liabilities		3,248,000		3,248,000
Other operating income		250,000	11,563	250,000	127,660
Income (loss) from operations		2,058,748	(8,601,744)	843,424	(13,897,036)
Interest expense		(29,746)	(244,750)	(60,628)	(443,870)
Other income (loss), net		58,481	645,612	(378,711)	880,832
Net income (loss)		2,087,483	(8,200,882)	404,085	(13,460,074)
Less: Net (loss) income attributable to non-controlling interest		(288,823)	11,207	(687,530)	68,981
Net income (loss) attributable to Motorsport Games Inc.		$ 2,376,306	$ (8,212,089)	$ 1,091,615	$ (13,529,055)
Net income (loss) attributable to Class A common stock per share:
Basic		$ 0.87	$ (3.04)	$ 0.40	$ (5.53)
Diluted		$ 0.87	$ (3.04)	$ 0.40	$ (5.53)
Weighted-average shares of Class A common stock outstanding:
Basic		2,722,728	2,704,106	2,722,728	2,448,131
Diluted		2,722,728	2,704,106	2,722,728	2,448,131
[1]Includes related party expenses of $ 0 0 0 17,076 0 15,435 0 30,923 70,055 89,831 151,272 181,876

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Selling and Marketing Expense [Member]
Related party expenses	$ 0	$ 0	$ 0	$ 17,076
Research and Development Expense [Member]
Related party expenses	0	15,435	0	30,923
General and Administrative Expense [Member]
Related party expenses	$ 70,055	$ 89,831	$ 151,272	$ 181,876

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Net income (loss)	$ 2,087,483	$ (8,200,882)	$ 404,085	$ (13,460,074)
Other comprehensive income (loss):
Foreign currency translation adjustments	(80,305)	(196,951)	499,928	(275,539)
Comprehensive income (loss)	2,007,178	(8,397,833)	904,013	(13,735,613)
Comprehensive (loss) income attributable to non-controlling interests	(269,404)	9,056	(731,016)	30,512
Comprehensive income (loss) attributable to Motorsport Games Inc.	$ 2,276,582	$ (8,406,889)	$ 1,635,029	$ (13,766,125)

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
Balance at Dec. 31, 2022	$ 117	$ 70	$ 76,446,061	$ (72,978,210)	$ (933,406)	$ 2,534,632	$ (631,234)	$ 1,903,398
Balance, shares at Dec. 31, 2022	1,183,808	700,000
Stock-based compensation			249,233			249,233		249,233
Other comprehensive loss					(78,588)	(78,588)	(36,318)	(114,906)
Net income (loss)				(5,316,966)		(5,316,966)	57,774	(5,259,192)
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 debt, shares	780,385
Balance at Mar. 31, 2023	$ 269	$ 70	91,215,242	(78,295,176)	(1,011,994)	11,908,411	(609,778)	11,298,633
Balance, shares at Mar. 31, 2023	2,698,934	700,000
Balance at Dec. 31, 2022	$ 117	$ 70	76,446,061	(72,978,210)	(933,406)	2,534,632	(631,234)	1,903,398
Balance, shares at Dec. 31, 2022	1,183,808	700,000
Net income (loss)								(13,460,074)
Balance at Jun. 30, 2023	$ 269	$ 70	91,736,545	(86,507,265)	(1,208,945)	4,020,674	(600,722)	3,419,952
Balance, shares at Jun. 30, 2023	2,720,328	700,000
Balance at Mar. 31, 2023	$ 269	$ 70	91,215,242	(78,295,176)	(1,011,994)	11,908,411	(609,778)	11,298,633
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 loss					(196,951)	(196,951)	(2,151)	(199,102)
Net income (loss)				(8,212,089)		(8,212,089)	11,207	(8,200,882)
Balance at Jun. 30, 2023	$ 269	$ 70	91,736,545	(86,507,265)	(1,208,945)	4,020,674	(600,722)	3,419,952
Balance, shares at Jun. 30, 2023	2,720,328	700,000
Balance at Dec. 31, 2023	$ 269	$ 70	91,923,311	(87,441,805)	(1,850,216)	2,631,629	(541,925)	2,089,704
Balance, shares at Dec. 31, 2023	2,722,728	700,000
Stock-based compensation			68,191			68,191		68,191
Stock-based compensation, shares
Other comprehensive loss					580,233	580,233	(62,905)	517,328
Net income (loss)				(1,284,690)		(1,284,690)	(398,708)	(1,683,398)
Balance at Mar. 31, 2024	$ 269	$ 70	91,991,502	(88,726,495)	(1,269,983)	1	(1,003,538)	991,825
Balance, shares at Mar. 31, 2024	2,722,728	700,000
Balance at Dec. 31, 2023	$ 269	$ 70	91,923,311	(87,441,805)	(1,850,216)	2,631,629	(541,925)	2,089,704
Balance, shares at Dec. 31, 2023	2,722,728	700,000
Net income (loss)								404,085
Balance at Jun. 30, 2024	$ 269	$ 70	92,002,160	(86,350,189)	(1,350,288)	4,302,022	(1,272,942)	3,029,080
Balance, shares at Jun. 30, 2024	2,722,728	700,000
Balance at Mar. 31, 2024	$ 269	$ 70	91,991,502	(88,726,495)	(1,269,983)	1	(1,003,538)	991,825
Balance, shares at Mar. 31, 2024	2,722,728	700,000
Stock-based compensation			10,658			10,658		10,658
Other comprehensive loss					(80,305)	(80,305)	19,419	(60,886)
Net income (loss)				2,376,306		2,376,306	(288,823)	2,087,483
Balance at Jun. 30, 2024	$ 269	$ 70	$ 92,002,160	$ (86,350,189)	$ (1,350,288)	$ 4,302,022	$ (1,272,942)	$ 3,029,080
Balance, shares at Jun. 30, 2024	2,722,728	700,000

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 404,085	$ (13,460,074)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Loss on impairment of intangible assets		4,004,627
Loss on disposal of property and equipment		7,661
Gain from settlement of license liabilities	(3,248,000)
Depreciation and amortization	1,189,106	1,011,231
Purchase commitment and license liability interest accretion	43,558	396,547
Stock-based compensation	78,849	770,536
Changes in the fair value of stock warrants	(13,527)	(423,403)
Sales return and price protection reserves		280,000
Changes in assets and liabilities:
Accounts receivable	(106,019)	512,452
Due from related parties	(10,015)	(473,136)
Operating lease liabilities	(2,904)	(22,723)
Prepaid expenses and other assets	309,152	13,772
Accounts payable	1,036,843	(1,498,530)
Due to related parties	(38,694)	2,282
Other non-current liabilities	(43,558)
Accrued expenses and other liabilities	(968,172)	28,596
Net cash used in operating activities	(1,369,296)	(8,850,162)
Cash flows from investing activities:
Purchase of property and equipment	(25,145)	(24,437)
Net cash used in investing activities	(25,145)	(24,437)
Cash flows from financing activities:
Repayments of purchase commitment liabilities	(50,000)	(550,000)
Payment of license liabilities		(262,500)
Issuance of common stock from stock purchase commitment agreement		644,750
Issuance of common stock from registered direct offerings		10,404,784
Net cash (used in) provided by financing activities	(50,000)	10,237,034
Effect of exchange rate changes on cash and cash equivalents	298,669	(375,188)
Net (decrease) increase in cash and cash equivalents	(1,145,772)	987,247
Total cash and cash equivalents at beginning of the period	1,675,210	979,306
Total cash and cash equivalents at the end of the period	529,438	1,966,553
Cash paid during the year for:
Interest	17,070	399,231
Non-cash investing and financing activities:
Shares issued to Driven Lifestyle Group LLC for extinguishment of related party loan		3,948,566
Extinguishment of Driven Lifestyle Group LLC related party loan for Class A shares		(3,948,566)
Issuance of warrants in connection with registered direct offerings		$ 54,597

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 2,376,306	$ (8,212,089)	$ 1,091,615	$ (13,529,055)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BUSINESS ORGANIZATION, NATURE O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES	6 Months Ended
	Jun. 30, 2024
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 net income of $ 0.4 1.4 86.4 0.5 1.3 0.9 0.4 0.2 For the six months ended June 30, 2024, the Company experienced an average net cash burn from operations of approximately $ 0.2 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 continues to explore 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) other strategic alternatives for its business, including, but not limited to, the sale or licensing of the Company’s assets in addition to the recent sales of its NASCAR License (as defined below) and Traxion (as defined below); and iii) cost reduction and restructuring initiatives, each of which is described more fully below. On July 29, 2024, the Company closed on a registered direct offering transaction with H.C. Wainwright & Co., LLC acting as the exclusive placement agent, which raised $ 1 The Company continues to explore additional funding in the form of potential Capital Financing and on March 31, 2023 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 gross offering price of up to $ 10 million (subject to compliance with the limitations set forth in the SEC’s “baby shelf” rules). Subject to the terms and conditions of the ED Agreement, the Sales Agent may sell shares by any method deemed to be an “at-the-market” (“ATM”) offering as defined in Rule 415 under the Securities Act of 1933, as amended. At the time the Company filed an initial prospectus supplement in connection with the offering of its shares of Class A common stock pursuant to the ED Agreement, the aggregate market value of the shares of Class A common stock eligible for sale under the initial prospectus supplement was approximately $ 2.9 Motorsport Games Inc. and Subsidiaries Due to the continuing 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 continues to explore other strategic alternatives and potential options for its business, including, but not limited to, the sale or licensing of certain of the Company’s assets in addition to the recent sales of its NASCAR License and Traxion. If any such additional strategic alternative is executed, it is expected it would help to improve the Company’s working capital position and reduce overhead expenditures, thereby lowering the Company’s expected future cash-burn, and providing some short-term liquidity relief. Nonetheless, even if the Company is successful in implementing one or more additional strategic alternatives, 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 be successful in implementing any additional strategic plans for the sale or licensing of its assets, or any other strategic alternative, which may be subject to the satisfaction of conditions beyond the Company’s control. As the Company continues to address its liquidity constraints, the Company may need to make further adjustments to its product roadmap in order to reduce operating cash burn. Additionally, the Company continues to seek to improve its liquidity through maintaining and enhancing cost control initiatives. The Company plans to continue 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. There can be no assurance that the Company would be able to take any of the financing 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, loans not being available from 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 sale of its NASCAR License 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. Motorsport Games Inc. and Subsidiaries 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 loans from third parties; ● further reducing other discretionary spending; ● entering into financing agreements on unattractive terms; and/or ● significantly curtailing or discontinuing operations. 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.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
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, 2024 and for the three and six months ended June 30, 2024. The Company’s results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year ending December 31, 2024 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, 2023 and 2022 and for the years then ended which are included in the 2023 Form 10-K. Use of Estimates The preparation of condensed 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates used in these condensed consolidated financial statements include, but are not limited to, revenue recognition criteria, including allowances for returns and price protection, offering periods for deferred net revenue, valuation allowance of deferred income taxes, the recognition and disclosure of contingent liabilities, 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. Reclassifications Certain reclassifications of prior period amounts have been made to conform to the presentation of these unaudited condensed consolidated financial statements. These reclassifications had no effect on prior periods’ net income (loss). Non-controlling Interests Non-controlling interests represent the portion of net assets in consolidated subsidiaries that are not attributable, directly or indirectly, to the Company. The net assets of the shared entities are attributed to the controlling and non-controlling interests based on the terms of the governing contractual arrangements. For the joint venture with Automobile Club de l’Ouest discussed in Note 9 – Commitments and Contingencies Motorsport Games Inc. and Subsidiaries Correction of an Immaterial Error in Previously Issued Financial Statements The Company has revised the presentation of net loss attributable to the non-controlling interest in the joint venture with Automobile Club de l’Ouest discussed in Note 9 – Commitments and Contingencies 350,059 0.13 216,019 0.08 41,065 0.02 257,084 0.11 411,535 Recently Issued Accounting Standards As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. The adoption dates discussed below reflect this election. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740). 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, 2023, as included in the 2023 Form 10-K, except as disclosed in this note. Revenue Recognition The Company derives revenue principally from sales of its games, and related extra content and services that can be experienced on game consoles, PCs and mobile phones. The Company’s product and service offerings include, but are not limited to, the following: ● full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”); ● extra content related to Games with Services which provides access to additional in-game content; The Company evaluates and recognizes revenue by: ● identifying the contract(s) with the customer; ● identifying the performance obligations in the contract; ● determining the transaction price; ● allocating the transaction price to performance obligations in the contract; and ● recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). Online-Enabled Games Games with Services. Motorsport Games Inc. and Subsidiaries Since the Company does not sell the performance obligations on a stand-alone basis, the Company considers market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. For Games with Services, generally 75 percent of the sales price is allocated to the software license performance obligation and recognized at a point in time when control of the license has been transferred to the customer. The remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably as the service is provided (over the Estimated Offering Period). Extra Content. Significant Judgments around Revenue Arrangements Identifying performance obligations. Determining the transaction price. Allocating the transaction price. Determining the Estimated Offering Period. Motorsport Games Inc. and Subsidiaries 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 $ 0.3 0.4 Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (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, 2024 2023 Stock options 97,919 69,992 Warrants 33,574 33,574 131,493 103,566 Licensing Agreements In March 2019, the Company entered into an agreement to facilitate the Le Mans Esports Series as part of a joint venture with Automobile Club de l’Ouest (“ACO”), the organizer of the 24 Hours of Le Mans endurance race. Through the Company’s ownership interest in this joint venture, which was increased to 51 45 In 2021, the Company also acquired intangible assets comprising the KartKraft computer video game as well as software, tradename and non-compete agreements related to its acquisition of 100 Motorsport Games Inc. and Subsidiaries

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 3 – INTANGIBLE ASSETS In October 2023, the Company sold its NASCAR licensed rights under that certain Second Amended and Restated Distribution and License Agreement with NASCAR Team Properties (the “NASCAR License”) to iRacing.com Motorsport Simulations, LLC (“iRacing”). As consideration for such sale and assignment of the NASCAR License and all rights related thereto (the “Assignment”), iRacing paid the Company $ 5.0 0.5 0.5 Intangible Assets The following is a summary of intangible assets as of June 30, 2024: SCHEDULE OF INTANGIBLE ASSETS Licensing Licensing Software Distribution Trade Non- Accumulated Total Balance as of January 1, 2024 $ 906,166 $ 1,495,515 $ 8,115,937 $ 560,000 $ 223,194 $ 180,266 $ (5,685,271 ) $ 5,795,807 Amortization expense - - - - - - (1,050,555 ) (1,050,555 ) Foreign currency translation adjustments - 22,746 36,392 - (12,270 ) (3,512 ) 9,403 52,759 Balance as of June 30, 2024 $ 906,166 $ 1,518,261 $ 8,152,329 $ 560,000 $ 210,924 $ 176,754 $ (6,726,423 ) $ 4,798,011 Weighted average remaining amortization period at June 30, 2024 0.5 - 3.0 - - - - - Accumulated amortization of intangible assets consists of the following: SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS Licensing Software Distribution Non- Accumulated Balance as of January 1, 2024 $ 298,538 $ 4,646,467 $ 560,000 $ 180,266 $ 5,685,271 Amortization expense 303,000 747,555 - - 1,050,555 Foreign currency translation adjustment - (5,891 ) - (3,512 ) (9,403 ) Balance as of June 30, 2024 $ 601,538 $ 5,388,131 $ 560,000 $ 176,754 $ 6,726,423 Motorsport Games Inc. and Subsidiaries Estimated aggregate amortization expense of intangible assets for the next five years and thereafter is as follows: SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS For the Years Ended December 31, Total 2024 (remaining period) $ 1,026,929 2025 881,876 2026 880,247 2027 121,306 2028 52,702 Thereafter 105,766 Estimated aggregate amortization expense $ 3,068,826 Amortization expense related to intangible assets was approximately $ 0.5 0.4 1.1 0.8

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2024
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, 2024 2023 Accrued royalties $ 192,416 $ 217,868 Accrued professional and consulting fees 268,358 110,008 Accrued development costs 33,713 32,214 Accrued taxes 100,973 40,000 Accrued payroll 160,946 500,522 Deferred revenue 280,302 270,845 Loss contingency reserves 293,842 545,920 Accrued other 66,808 173,938 Total $ 1,397,358 $ 1,891,315

RELATED PARTY LOANS

RELATED PARTY LOANS	6 Months Ended
	Jun. 30, 2024
Related Party Loans
RELATED PARTY LOANS	NOTE 5 – RELATED PARTY LOANS The Company has a $ 12 12 10 12 12 On September 8, 2022, the Company entered into a support agreement with Driven Lifestyle (the “Support Agreement”) pursuant to which Driven Lifestyle issued approximately $ 3 12 12 12 12 3.9 780,385 Motorsport Games Inc. and Subsidiaries As of June 30, 2024, the $ 12 12 As of June 30, 2024 and December 31, 2023, there was no 12

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS In addition to the $ 12 0.1 1.0 2,000 On May 3, 2024 (but effective as of October 1, 2023), the Company entered into a new lease agreement with Lemon City Group, LLC, an entity controlled by Driven Lifestyle, for approximately 800 The term of the lease is nine months, with a commencement date of October 1, 2023, consistent with the Company’s initial date of occupancy, and expiring on June 30, 2024, terminable with a 60-day written notice with no penalty. 1,800 Backoffice Services Agreement On March 23, 2023 (but effective as of January 1, 2023), the Company entered into a new Backoffice Services Agreement with Driven Lifestyle (the “Backoffice Services Agreement”) following the expiration of the Company’s prior services agreement with Driven Lifestyle. Pursuant to the Backoffice Services Agreement, Driven Lifestyle 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 Driven Lifestyle of $ 17,500 105,000 52,500 On August 8, 2024 (but effective as of July 1, 2024), the Company amended its Backoffice Services Agreement with Driven Lifestyle (the “Amended Backoffice Services Agreement”). Pursuant to the Amended Backoffice Services Agreement, Driven Lifestyle will provide office space, 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 Amended 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 Amended Backoffice Services Agreement may be terminated by either party at any time with 60 days prior notice. Pursuant to the Amended Backoffice Services Agreement, the Company is required to pay a monthly fee to Driven Lifestyle of $ 12,500

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY Class A and B Common Stock As of June 30, 2024, the Company had 2,722,728 700,000 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. 704Games Warrants As of June 30, 2024 and December 31, 2023, 704Games LLC (“704Games”), a wholly-owned subsidiary of Motorsport Games Inc., has outstanding 10 4,000 93.03 no 12 Motorsport Games Inc. and Subsidiaries 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 6.0 SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS Offering Date Shares Issued Gross Net Warrants Warrant Strike Price Warrant 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, 2024, the Wainwright Warrants were assessed to have a fair value of approximately $ 0.02 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 expected to be outstanding and is estimated using the contractual term of the Wainwright Warrants. Stock Purchase Commitment Agreement During the six months ended June 30, 2023, the Company issued 175,167 657,850 2,000,000

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2024
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 2,081 Motorsport Games Inc. and Subsidiaries The Company issued stock options under its MSGM 2021 Stock Plan during the six months ended June 30, 2024 and 2023. 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, 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 On January 26, 2024, the compensation committee of the board of directors of the Company approved and authorized the grant of an option award to purchase 46,000 11,500 34,500 The following is a summary of stock-based compensation award activity for the six months ended June 30, 2024: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY Number of Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2024 (net of forfeitures) 53,371 Granted 46,000 Forfeited, cancelled or expired (1,452 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2024 (net of forfeitures) 97,919 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 2024 2023 2024 2023 For the Three Months Ended For the Six Months Ended June 30, 2024 2023 2024 2023 General and Administrative $ 9,643 $ 525,952 $ 79,374 $ 545,378 Sales and Marketing 125 (16,982 ) 1,472 222,735 Development 890 12,333 (1,997 ) 2,423 Stock-based compensation expense $ 10,658 $ 521,303 $ 78,849 $ 770,536 As of June 30, 2024, there was approximately $ 0.1 1.5

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
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 the Company’s favor, is likely to divert significant resources from the Company’s core business, including distracting its management personnel from their normal responsibilities. Motorsport Games Inc. and Subsidiaries 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. The Company recognizes legal costs associated with loss contingencies in the period incurred. 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) (“Innovate”) 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 Driven Lifestyle. The complaint was later amended and added Leo Capital Holdings LLC (“Leo Capital”) as an additional plaintiff and the controller of Driven Lifestyle 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 2020. 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 alleged, 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. 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 agreed to pay the sum of $ 1.1 0.1 40,000 1.1 On October 14, 2023, the Company, along with other defendants, reached and executed a settlement agreement with Leo Capital in connection with the HC2 and Continental Complaint, which settles the claims made by Leo Capital against the defendants, as well as the claims made by the defendants against Leo Capital. Under the terms of the settlement agreement, the Company agreed to pay the sum of $ 0.2 0.2 Motorsport Games Inc. and Subsidiaries In respect of Innovate, the Company believes that the plaintiff’s allegations are without merit and the Company intends to continue to vigorously defend its position to the fullest extent permitted by law. Given the litigation is ongoing, the outcome of the litigation remains uncertain at this time. As such, the Company does not believe it is probable a settlement will be reached, nor can any such settlement amount be reasonably estimable, and has not recognized a settlement liability in respect of the remaining plaintiff. 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 (“Hallmark”) 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 plans to defend its position. On November 22, 2023, the Company entered into an insurance policy and claims release with Hallmark (the “Hallmark Settlement”) related to a previously submitted Underlying Action for coverage under a management liability policy issued by Hallmark. Under the terms of the Hallmark Settlement, Hallmark agreed to pay $ 1.75 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 8,600,000 Intangible Assets 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 15,000 Motorsport Games Inc. and Subsidiaries License Commitments On May 29, 2020, the Company secured a licensing agreement (the “Prior BTCC License Agreement”) with BARC (TOCA) Limited (“BARC”), the exclusive promoter of the British Touring Car Championship (the “BTCC”). Pursuant to the Prior BTCC License Agreement, the Company was granted an exclusive license (the “BTCC License”) to use certain licensed intellectual property for motorsports and/or racing video gaming products related to, themed as, or containing the BTCC, on consoles, PC and mobile applications, esports series and esports events (including the Company’s esports platform). In exchange for the BTCC License, the Prior BTCC License Agreement required the Company to pay BARC an initial fee in two equal installments of $ 100,000 225,000 0.6 On April 12, 2024, the Company and BARC entered into the New BTCC License Agreement. Pursuant to the New BTCC License Agreement, BARC granted the Company a non-exclusive license to use the “British Touring Car Championship,” “BTCC” and (insofar only as this is included in the title of the British Touring Car Championship) certain title sponsor logos, the title “British Touring Car Championship,” “BTCC” and other related intellectual property rights described in the New BTCC License Agreement (collectively, the Licensed IP”) for the official Licensed IP downloadable content purchased for the rFactor 2 video game digitally sold and distributed through the Steam store (including, but not limited to purchases through Licensee’s RaceControl storefront) (the “Products”), including the Products’ development, manufacturing, marketing, publicity, advertisement, promotion, distribution, publicizing, broadcasting, streaming, making available and/or selling worldwide, continued commercial exploitation of the Products, including the right to use, modify and improve the Products developed using the Licensed IP. As consideration for the license under the New BTCC License Agreement, the Company will be obligated to pay BARC an annual royalty in the amount of 50 Motorsport Games Inc. and Subsidiaries On July 13, 2021, the Company entered into a license agreement with INDYCAR LLC (“INDYCAR”) pursuant to which INDYCAR granted the Company a license to use certain licensed intellectual property for motorsports and/or racing video gaming products related to, themed as, or containing the INDYCAR SERIES (the “INDYCAR Gaming License”). The INDYCAR Gaming License was a long-term agreement, in connection with which the parties intended to form an exclusive relationship for the development of video games to be the official video games of the INDYCAR SERIES. Additionally, the Company and INDYCAR entered into a license agreement pursuant to which the Company was granted a license to use certain licensed intellectual property for motorsports and/or racing esports events related to, themed as, or containing the INDYCAR SERIES (including the rFactor 2 platform) (the “INDYCAR Esports License” and together with the INDYCAR Gaming License, the “INDYCAR Licenses”). Upon execution of the INDYCAR Gaming License, the Company recorded a liability and a related intangible asset equal to the present value of the minimum royalty payments due under the agreement. The license intangible asset was impaired during 2023 as discussed further in Note 3 – Intangible Assets 2.9 On May 17, 2024, the Company entered into a Settlement Agreement and License with INDYCAR (“the INDYCAR Agreement”). The INDYCAR Agreement resolved any and all disputes between the Company and INDYCAR with respect to the termination of (i) the License Agreement, dated July 13, 2021, by and between INDYCAR and the Company with respect to INDYCAR SERIES racing series related gaming products (the “IndyCar Products License”) and (ii) the License Agreement, dated July 13, 2021, by and between INDYCAR and the Company with respect to INDYCAR SERIES racing series related esports events (the “IndyCar Events License,” together with the IndyCar Products License, the “Prior License Agreements”). Pursuant to the INDYCAR Agreement, subject to the satisfaction of the conditions to the effectiveness of the Agreement (as described below), the Company and INDYCAR agreed that the Company’s liabilities under the Prior License Agreements, including any and all royalties and/or any other sums or liabilities of any kind whatsoever were forgiven by INDYCAR and discharged in their entirety in consideration of the Company’s payment to INDYCAR of $250,000 on the date of the Agreement and $150,000 within 30 days following the date of execution of the Agreement. The Agreement became effective upon satisfaction of (i) the Company’s payment to INDYCAR of $250,000 on the date of the Agreement and (ii) the Company’s payment of $150,000 to INDYCAR within 30 days following the date of execution of the Agreement. Both $250,000 and $150,000 were paid to INDYCAR by the Company in May 2024. 2.5 Further, as of the effective date of the INDYCAR Agreement, the Company granted to INDYCAR a royalty-free, perpetual, irrevocable, exclusive, transferable, and sublicensable, right and license throughout the world (the “License”) to use the licensed intellectual property described in the Agreement (the “Licensed Intellectual Property”) for the purpose of developing, marketing, distributing and selling esports series and esports events related to, themed as, or containing the INDYCAR SERIES racing series and/or motorsports and/or racing (including without limitation simulation style) video gaming products related to, themed as or containing the INDYCAR SERIES racing series, on current and future versions of consoles, PCs, smart TVs, mobile applications, gaming subscription services, cloud gaming, cloud streaming, handheld products and other new generation formats. In addition, the Company agreed to provide INDYCAR from the effective date of the Agreement to December 31, 2024, upon request by INDYCAR, with up to 50 hours free-of-charge consulting services to facilitate the transition of the INDYCAR series game development using the Licensed Intellectual Property to the software developer of INDYCAR’s choice. Motorsport Games Inc. and Subsidiaries Purchase Commitment Liabilities On April 20, 2021, the Company acquired 100 12.8 3.2 pursuant to which, among other things, the Deferred Payment installment amount due to be paid by the Company on the first anniversary of closing was reduced from $ 3.2 1 2.2 330,000 100,000 150,000 15 0.6 0.3

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2024
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 2024 2023 2024 2023 Customer B 23.6 % 26.7 % 21.2 % 25.5 % Customer C 20.5 % 29.8 % 20.6 % 28.5 % Customer D 41.2 % 24.2 % 47.3 % 26.0 % Total 85.3 % 80.7 % 89.1 % 80.0 % 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, 2024 December 31, 2023 Customer B 28.7 % 32.1 % Customer C 31.1 % 34.3 % Customer D 30.8 % 22.3 % Total 90.6 % 88.7 % 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 2024 2023 2024 2023 Supplier A - % 66.5 % - % 41.8 % * Less than 10%. Motorsport Games Inc. and Subsidiaries

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2024
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 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 Segment information available with respect to these reportable business segments was as follows: SCHEDULE OF SEGMENT REPORTING INFORMATION 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Gaming $ 1,881,653 $ 1,739,096 $ 4,910,689 $ 3,178,313 Esports - 34 - 290,172 Total Revenues $ 1,881,653 $ 1,739,130 $ 4,910,689 $ 3,468,485 Cost of Revenues: Gaming $ 771,647 $ 865,309 $ 1,438,274 $ 1,740,148 Esports - 858 - 374,755 Total Cost of Revenues $ 771,647 $ 866,167 $ 1,438,274 $ 2,114,903 Gross Profit (Loss): Gaming $ 1,110,006 $ 873,787 $ 3,472,415 $ 1,438,165 Esports - (824 ) - (84,583 ) Total Gross Profit $ 1,110,006 $ 872,963 $ 3,472,415 $ 1,353,582 Income (Loss) From Operations: Gaming $ 2,091,424 $ (8,547,640 ) $ 967,877 $ (13,536,916 ) Esports (32,676 ) (54,104 ) (124,453 ) (360,120 ) Total Income (Loss) From Operations $ 2,058,748 $ (8,601,744 ) $ 843,424 $ (13,897,036 ) Depreciation and Amortization: Gaming $ 51,010 $ 92,497 $ 112,308 $ 177,615 Esports 12,128 12,357 24,554 24,593 Total Depreciation and Amortization $ 63,138 $ 104,854 $ 136,862 $ 202,208 Interest Expense, net: Gaming $ (29,166 ) $ (244,750 ) $ (60,048 ) $ (443,870 ) Esports (580 ) - (580 ) - Total Interest Expense, net $ (29,746 ) $ (244,750 ) $ (60,628 ) $ (443,870 ) Other Income (Expense), net: Gaming $ 89,725 $ 652,701 $ (319,439 ) $ 904,848 Esports (31,244 ) (7,089 ) (59,272 ) (24,016 ) Total Other Income (Expense), net $ 58,481 $ 645,612 $ (378,711 ) $ 880,832 Net Income (Loss): Gaming $ 2,120,740 $ (8,139,689 ) $ 529,171 $ (13,075,938 ) Esports (33,257 ) (61,193 ) (125,086 ) (384,136 ) Total Net Income (Loss) $ 2,087,483 $ (8,200,882 ) $ 404,085 $ (13,460,074 ) June 30, 2024 December 31, 2023 Total Assets: Gaming $ 5,653,460 $ 7,892,388 Esports 1,554,951 1,866,316 Total Assets $ 7,208,411 $ 9,758,704

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
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 condensed consolidated financial statements were issued and determined that there have been no events that have occurred that would require adjustments to the Company’s disclosures in the condensed consolidated financial statements On July 26, 2024, the Company entered into definitive agreements for the sale and issuance of 460,830 2.17 460,830 460,830 2.17 five and one-half years 18 1.0 On August 8, 2024 (but effective as of July 1, 2024), the Company amended its Backoffice Services Agreement with Driven Lifestyle (the “Amended Backoffice Services Agreement”). Pursuant to the Amended Backoffice Services Agreement, Driven Lifestyle will provide office space, 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 Amended 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 Amended Backoffice Services Agreement may be terminated by either party at any time with 60 days prior notice. Pursuant to the Amended Backoffice Services Agreement, the Company is required to pay a monthly fee to Driven Lifestyle of $ 12,500

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
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, 2024 and for the three and six months ended June 30, 2024. The Company’s results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the operating results for the full year ending December 31, 2024 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, 2023 and 2022 and for the years then ended which are included in the 2023 Form 10-K.
Use of Estimates	Use of Estimates The preparation of condensed 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 condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates used in these condensed consolidated financial statements include, but are not limited to, revenue recognition criteria, including allowances for returns and price protection, offering periods for deferred net revenue, valuation allowance of deferred income taxes, the recognition and disclosure of contingent liabilities, 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.
Reclassifications	Reclassifications Certain reclassifications of prior period amounts have been made to conform to the presentation of these unaudited condensed consolidated financial statements. These reclassifications had no effect on prior periods’ net income (loss).
Non-controlling Interests	Non-controlling Interests Non-controlling interests represent the portion of net assets in consolidated subsidiaries that are not attributable, directly or indirectly, to the Company. The net assets of the shared entities are attributed to the controlling and non-controlling interests based on the terms of the governing contractual arrangements. For the joint venture with Automobile Club de l’Ouest discussed in Note 9 – Commitments and Contingencies Motorsport Games Inc. and Subsidiaries
Correction of an Immaterial Error in Previously Issued Financial Statements	Correction of an Immaterial Error in Previously Issued Financial Statements The Company has revised the presentation of net loss attributable to the non-controlling interest in the joint venture with Automobile Club de l’Ouest discussed in Note 9 – Commitments and Contingencies 350,059 0.13 216,019 0.08 41,065 0.02 257,084 0.11 411,535
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. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740).
Significant Accounting Policies	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, 2023, as included in the 2023 Form 10-K, except as disclosed in this note.
Revenue Recognition	Revenue Recognition The Company derives revenue principally from sales of its games, and related extra content and services that can be experienced on game consoles, PCs and mobile phones. The Company’s product and service offerings include, but are not limited to, the following: ● full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”); ● extra content related to Games with Services which provides access to additional in-game content; The Company evaluates and recognizes revenue by: ● identifying the contract(s) with the customer; ● identifying the performance obligations in the contract; ● determining the transaction price; ● allocating the transaction price to performance obligations in the contract; and ● recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). Online-Enabled Games Games with Services. Motorsport Games Inc. and Subsidiaries Since the Company does not sell the performance obligations on a stand-alone basis, the Company considers market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. For Games with Services, generally 75 percent of the sales price is allocated to the software license performance obligation and recognized at a point in time when control of the license has been transferred to the customer. The remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably as the service is provided (over the Estimated Offering Period). Extra Content. Significant Judgments around Revenue Arrangements Identifying performance obligations. Determining the transaction price. Allocating the transaction price. Determining the Estimated Offering Period. Motorsport Games Inc. and Subsidiaries
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 $ 0.3 0.4
Net Income (Loss) Per Common Share	Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (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, 2024 2023 Stock options 97,919 69,992 Warrants 33,574 33,574 131,493 103,566
Licensing Agreements	Licensing Agreements In March 2019, the Company entered into an agreement to facilitate the Le Mans Esports Series as part of a joint venture with Automobile Club de l’Ouest (“ACO”), the organizer of the 24 Hours of Le Mans endurance race. Through the Company’s ownership interest in this joint venture, which was increased to 51 45 In 2021, the Company also acquired intangible assets comprising the KartKraft computer video game as well as software, tradename and non-compete agreements related to its acquisition of 100 Motorsport Games Inc. and Subsidiaries

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2024 2023 Stock options 97,919 69,992 Warrants 33,574 33,574 131,493 103,566

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	The following is a summary of intangible assets as of June 30, 2024: SCHEDULE OF INTANGIBLE ASSETS Licensing Licensing Software Distribution Trade Non- Accumulated Total Balance as of January 1, 2024 $ 906,166 $ 1,495,515 $ 8,115,937 $ 560,000 $ 223,194 $ 180,266 $ (5,685,271 ) $ 5,795,807 Amortization expense - - - - - - (1,050,555 ) (1,050,555 ) Foreign currency translation adjustments - 22,746 36,392 - (12,270 ) (3,512 ) 9,403 52,759 Balance as of June 30, 2024 $ 906,166 $ 1,518,261 $ 8,152,329 $ 560,000 $ 210,924 $ 176,754 $ (6,726,423 ) $ 4,798,011 Weighted average remaining amortization period at June 30, 2024 0.5 - 3.0 - - - - -
SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS	Accumulated amortization of intangible assets consists of the following: SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS Licensing Software Distribution Non- Accumulated Balance as of January 1, 2024 $ 298,538 $ 4,646,467 $ 560,000 $ 180,266 $ 5,685,271 Amortization expense 303,000 747,555 - - 1,050,555 Foreign currency translation adjustment - (5,891 ) - (3,512 ) (9,403 ) Balance as of June 30, 2024 $ 601,538 $ 5,388,131 $ 560,000 $ 176,754 $ 6,726,423
SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS	Estimated aggregate amortization expense of intangible assets for the next five years and thereafter is as follows: SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS For the Years Ended December 31, Total 2024 (remaining period) $ 1,026,929 2025 881,876 2026 880,247 2027 121,306 2028 52,702 Thereafter 105,766 Estimated aggregate amortization expense $ 3,068,826

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2024
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, 2024 2023 Accrued royalties $ 192,416 $ 217,868 Accrued professional and consulting fees 268,358 110,008 Accrued development costs 33,713 32,214 Accrued taxes 100,973 40,000 Accrued payroll 160,946 500,522 Deferred revenue 280,302 270,845 Loss contingency reserves 293,842 545,920 Accrued other 66,808 173,938 Total $ 1,397,358 $ 1,891,315

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS	SCHEDULE OF REGISTERED DIRECT OFFERINGS AND WAINWRIGHT WARRANTS Offering Date Shares Issued Gross Net Warrants Warrant Strike Price Warrant 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, 2024
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, 2024: SCHEDULE OF STOCK-BASED COMPENSATION OPTIONS ACTIVITY Number of Awards outstanding under the MSGM 2021 Stock Plan as of January 1, 2024 (net of forfeitures) 53,371 Granted 46,000 Forfeited, cancelled or expired (1,452 ) Awards outstanding under the MSGM 2021 Stock Plan as of June 30, 2024 (net of forfeitures) 97,919
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 2024 2023 2024 2023 For the Three Months Ended For the Six Months Ended June 30, 2024 2023 2024 2023 General and Administrative $ 9,643 $ 525,952 $ 79,374 $ 545,378 Sales and Marketing 125 (16,982 ) 1,472 222,735 Development 890 12,333 (1,997 ) 2,423 Stock-based compensation expense $ 10,658 $ 521,303 $ 78,849 $ 770,536

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2024
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 2024 2023 2024 2023 Customer B 23.6 % 26.7 % 21.2 % 25.5 % Customer C 20.5 % 29.8 % 20.6 % 28.5 % Customer D 41.2 % 24.2 % 47.3 % 26.0 % Total 85.3 % 80.7 % 89.1 % 80.0 % 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, 2024 December 31, 2023 Customer B 28.7 % 32.1 % Customer C 31.1 % 34.3 % Customer D 30.8 % 22.3 % Total 90.6 % 88.7 %
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 2024 2023 2024 2023 Supplier A - % 66.5 % - % 41.8 % * Less than 10%.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2024
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 2024 2023 2024 2023 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Gaming $ 1,881,653 $ 1,739,096 $ 4,910,689 $ 3,178,313 Esports - 34 - 290,172 Total Revenues $ 1,881,653 $ 1,739,130 $ 4,910,689 $ 3,468,485 Cost of Revenues: Gaming $ 771,647 $ 865,309 $ 1,438,274 $ 1,740,148 Esports - 858 - 374,755 Total Cost of Revenues $ 771,647 $ 866,167 $ 1,438,274 $ 2,114,903 Gross Profit (Loss): Gaming $ 1,110,006 $ 873,787 $ 3,472,415 $ 1,438,165 Esports - (824 ) - (84,583 ) Total Gross Profit $ 1,110,006 $ 872,963 $ 3,472,415 $ 1,353,582 Income (Loss) From Operations: Gaming $ 2,091,424 $ (8,547,640 ) $ 967,877 $ (13,536,916 ) Esports (32,676 ) (54,104 ) (124,453 ) (360,120 ) Total Income (Loss) From Operations $ 2,058,748 $ (8,601,744 ) $ 843,424 $ (13,897,036 ) Depreciation and Amortization: Gaming $ 51,010 $ 92,497 $ 112,308 $ 177,615 Esports 12,128 12,357 24,554 24,593 Total Depreciation and Amortization $ 63,138 $ 104,854 $ 136,862 $ 202,208 Interest Expense, net: Gaming $ (29,166 ) $ (244,750 ) $ (60,048 ) $ (443,870 ) Esports (580 ) - (580 ) - Total Interest Expense, net $ (29,746 ) $ (244,750 ) $ (60,628 ) $ (443,870 ) Other Income (Expense), net: Gaming $ 89,725 $ 652,701 $ (319,439 ) $ 904,848 Esports (31,244 ) (7,089 ) (59,272 ) (24,016 ) Total Other Income (Expense), net $ 58,481 $ 645,612 $ (378,711 ) $ 880,832 Net Income (Loss): Gaming $ 2,120,740 $ (8,139,689 ) $ 529,171 $ (13,075,938 ) Esports (33,257 ) (61,193 ) (125,086 ) (384,136 ) Total Net Income (Loss) $ 2,087,483 $ (8,200,882 ) $ 404,085 $ (13,460,074 ) June 30, 2024 December 31, 2023 Total Assets: Gaming $ 5,653,460 $ 7,892,388 Esports 1,554,951 1,866,316 Total Assets $ 7,208,411 $ 9,758,704

BUSINESS ORGANIZATION, NATURE_2

BUSINESS ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES (Details Narrative) - USD ($)		3 Months Ended				6 Months Ended
	Jul. 29, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jul. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Net loss		$ 2,087,483	$ (1,683,398)	$ (8,200,882)	$ (5,259,192)	$ 404,085	$ (13,460,074)
Net cash provided by used in operating activities						1,369,296	$ 8,850,162
Retained earnings accumulated deficit		86,350,189				86,350,189			$ 87,441,805
Cash and cash equivalents		529,438				529,438			$ 1,675,210
Average net cash decrease						200,000
Equity Distribution Agreement [Member] | Common Class A [Member]
Property, Plant and Equipment [Line Items]
Sale of stock						2,900,000
INDYCAR LLC [Member]
Property, Plant and Equipment [Line Items]
Settlement of outstanding licensing liabilities		400,000
BARC LIMITED [Member]
Property, Plant and Equipment [Line Items]
Settlement of outstanding licensing liabilities		$ 200,000
Canaccord Genuity LLC [Member] | Equity Distribution Agreement [Member] | Common Class A [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Sale of stock						$ 10,000,000
Subsequent Event [Member]
Property, Plant and Equipment [Line Items]
Cash and cash equivalents								$ 1,300,000
Net proceeds	$ 900,000
Gross proceeds	$ 1,000,000

SCHEDULE OF CALCULATION WEIGHTE

SCHEDULE OF CALCULATION WEIGHTED AVERAGE DILUTIVE COMMON SHARES (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	131,493	103,566	131,493	103,566
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	97,919	69,992	97,919	69,992
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive securities	33,574	33,574	33,574	33,574

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)		3 Months Ended				6 Months Ended
	Dec. 31, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2021	Jan. 25, 2021
Net income loss		$ 2,376,306		$ (8,212,089)		$ 1,091,615	$ (13,529,055)
Increased net loss per share, Basic		$ 0.87		$ (3.04)		$ 0.40	$ (5.53)
Increased net loss per share, Diluted		$ 0.87		(3.04)		$ 0.40	$ (5.53)
Revenue recognized						$ 300,000	$ 400,000
Studio 397 B.V. [Member]
Ownership percentage								100%
LeMans Esports Series Ltd [Member] | Maximum [Member]
Ownership percentage									51%
LeMans Esports Series Ltd [Member] | Minimum [Member]
Ownership percentage									45%
Common Class A [Member]
Net income loss			$ 350,059		$ 216,019	$ 41,065	$ 257,084
Decreased stockholders equity	$ 411,535
Common Class A [Member] | Revision of Prior Period, Error Correction, Adjustment [Member]
Increased net loss per share, Basic			$ 0.13	0.02	$ 0.08		$ 0.11
Increased net loss per share, Diluted			$ 0.13	$ 0.02	$ 0.08		$ 0.11

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Beginning	$ 5,795,807
Amortization	(1,050,555)
Foreign currency translation adjustment	52,759
Intangible assets, net ending	$ 4,798,011
Accumulated amortization weighted average remaining amortization
Licensing Agreements (Indefinite) [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite intangible assets, net beginning	$ 1,495,515
Indefinite amortization
Indefinite foreign currency translation adjustment	22,746
Indefinite intangible assets, net ending	$ 1,518,261
Indefinite weighted average remaining amortization
Trade Names (Indefinite) [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite intangible assets, net beginning	$ 223,194
Indefinite amortization
Indefinite foreign currency translation adjustment	(12,270)
Indefinite intangible assets, net ending	$ 210,924
Indefinite weighted average remaining amortization
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, net beginning	$ 906,166
Finite amortization
Foreign currency translation adjustment
Finite intangible assets, net ending	$ 906,166
Finite weighted average remaining amortization	6 months
Software Licenses (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, net beginning	$ 8,115,937
Finite amortization
Foreign currency translation adjustment	36,392
Finite intangible assets, net ending	$ 8,152,329
Finite weighted average remaining amortization	3 years
Distribution Contracts (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, net beginning	$ 560,000
Finite amortization
Foreign currency translation adjustment
Finite intangible assets, net ending	$ 560,000
Finite weighted average remaining amortization
Noncompete Agreements (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Finite intangible assets, net beginning	$ 180,266
Finite amortization
Foreign currency translation adjustment	(3,512)
Finite intangible assets, net ending	$ 176,754
Finite weighted average remaining amortization
Accumulated Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, amortization beginning	$ (5,685,271)
Amortization	(1,050,555)
Foreign currency translation adjustment	9,403
Intangible assets, amortization ending	$ (6,726,423)
Accumulated amortization 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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			$ 5,685,271
Amortization expense	$ 500,000	$ 400,000	1,100,000	$ 800,000
Accumulated amortization, ending	6,726,423		6,726,423
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			298,538
Amortization expense			303,000
Foreign currency translation adjustment
Accumulated amortization, ending	601,538		601,538
Software Licenses (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			4,646,467
Amortization expense			747,555
Foreign currency translation adjustment			(5,891)
Accumulated amortization, ending	5,388,131		5,388,131
Distribution Contracts (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			560,000
Amortization expense
Foreign currency translation adjustment
Accumulated amortization, ending	560,000		560,000
Noncompete Agreements (Finite) [Member]
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization, beginning			180,266
Amortization expense
Foreign currency translation adjustment			(3,512)
Accumulated amortization, ending	$ 176,754		176,754
Accumulated Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense			1,050,555
Foreign currency translation adjustment			$ (9,403)

SCHEDULE OF ESTIMATED AGGREGATE

SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS (Details) - Finite-Lived Intangible Assets [Member]	Jun. 30, 2024 USD ($)
Impairment Effects on Earnings Per Share [Line Items]
2024 (remaining period)	$ 1,026,929
2025	881,876
2026	880,247
2027	121,306
2028	52,702
Thereafter	105,766
Estimated aggregate amortization expense	$ 3,068,826

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Oct. 03, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Paid for the assignment	$ 5
Notes payable	$ 0.5
Amortization of Intangible Assets		$ 0.5	$ 0.4	$ 1.1	$ 0.8

SCHEDULE OF ACCRUED EXPENSES (D

SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued royalties	$ 192,416	$ 217,868
Accrued professional and consulting fees	268,358	110,008
Accrued development costs	33,713	32,214
Accrued taxes	100,973	40,000
Accrued payroll	160,946	500,522
Deferred revenue	280,302	270,845
Loss contingency reserves	293,842	545,920
Accrued other	66,808	173,938
Total	$ 1,397,358	$ 1,891,315

RELATED PARTY LOANS (Details Na

RELATED PARTY LOANS (Details Narrative) - USD ($)			6 Months Ended
	Feb. 01, 2023	Jan. 30, 2023	Jun. 30, 2024	Dec. 31, 2023	Sep. 08, 2022
Defined Benefit Plan Disclosure [Line Items]
Liine of credit			$ 12,000,000	$ 12,000,000	$ 12,000,000
Principal and accrued interest payments	$ 3,900,000	$ 3,900,000
Line of credit current			0	$ 0
Common Class A [Member]
Defined Benefit Plan Disclosure [Line Items]
Debt conversion, shares issued	780,385	780,385
Support Agreement [Member]
Defined Benefit Plan Disclosure [Line Items]
Liine of credit					$ 3,000,000
Majority Shareholder [Member]
Defined Benefit Plan Disclosure [Line Items]
Liine of credit			$ 12,000,000
Interest rate			10%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)				3 Months Ended	6 Months Ended		9 Months Ended
	Jul. 01, 2024 USD ($)	May 03, 2024 ft²	Mar. 23, 2023 USD ($)	Jun. 30, 2024 USD ($) ft²	Jun. 30, 2024 USD ($) ft²	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) ft²	Dec. 31, 2023 USD ($)	Sep. 08, 2022 USD ($)
Related Party Transaction [Line Items]
Line of credit				$ 12,000,000	$ 12,000,000		$ 12,000,000	$ 12,000,000	$ 12,000,000
Payment to related parties					$ 1,000,000	$ 1,000,000
Area of land | ft²				2,000	2,000		2,000
New Services Agreement [Member]
Related Party Transaction [Line Items]
Rent per month			$ 17,500	$ 52,500	$ 105,000
Backoffice Services Agreement [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Rent per month	$ 12,500
Lemon City Group Llc [Member]
Related Party Transaction [Line Items]
Area of land | ft²		800
Lease expiration		The term of the lease is nine months, with a commencement date of October 1, 2023, consistent with the Company’s initial date of occupancy, and expiring on June 30, 2024, terminable with a 60-day written notice with no penalty.
Rent per month							$ 1,800
Related Party [Member]
Related Party Transaction [Line Items]
Due from related parties				$ 100,000	$ 100,000		$ 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, 2024 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
Warrant Strike Price | $ / shares	$ 26.75
Gross proceeds | $	$ 3.9
Net Proceeds | $	$ 3.6
Warrants issued | shares	10,981
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
Warrant Strike Price | $ / shares	$ 29.375
Gross proceeds | $	$ 3.4
Net Proceeds | $	$ 3.1
Warrants issued | shares	8,662
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
Warrant Strike Price | $ / shares	$ 21.738
Gross proceeds | $	$ 4
Net Proceeds | $	$ 3.7
Warrants issued | shares	13,931
Warrants Term	5 years

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)		3 Months Ended	6 Months Ended
	Dec. 09, 2022	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Common stock 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.
Transaction fee percentage			7%
Fair value of warrants			$ (13,527)	$ (423,403)
Stock issued during period value new issues		$ 10,571,534
Wainwright Warrants [Member]
Class of Stock [Line Items]
Fair value of warrants			$ 20,000
704 Games Company [Member]
Class of Stock [Line Items]
Warrants outstanding term			10 years		10 years
Shares of common stock			4,000		4,000
Stock option exercise price increase			$ 93.03		$ 93.03
Warrants intrinsic value			$ 0
Warrants, remaining term			12 months
Common Class A [Member]
Class of Stock [Line Items]
Common stock shares outstanding			2,722,728		2,722,728
Percentage of aggregate number of shares of common stock placed in each offering			6%
Common Class A [Member] | Alumni Capital LP [Member] | Stock Purchase Commitment Agreement [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
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, 2024 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of options, outstanding, beginning	53,371
Number of options, granted	46,000
Number of options, forfeited, cancelled or expired	(1,452)
Number of options, outstanding, ending	97,919

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 10,658	$ 521,303	$ 78,849	$ 770,536
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	9,643	525,952	79,374	545,378
Selling and Marketing Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	125	(16,982)	1,472	222,735
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 890	$ 12,333	$ (1,997)	$ 2,423

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ in Millions		6 Months Ended
	Jan. 26, 2024	Jun. 30, 2024	Jan. 12, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized stock based compensation expense		$ 0.1
Compensation expense period		1 year 6 months
Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Option award vested, shares	11,500
Option award expected vested, shares	34,500
MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation expiring period		10 years
Common Class A [Member] | MSGM 2021 Stock Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for issuance		2,081	100,000
Class A Common Stock [Member] | MSGM 2021 Stock Plan [Member] | Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Grant option award to purchase, shares	46,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)

3 Months Ended

6 Months Ended

May 17, 2024

Apr. 12, 2024 USD ($)

Nov. 22, 2023 USD ($)

Nov. 08, 2023 USD ($)

Oct. 16, 2023 USD ($)

Oct. 14, 2023 USD ($)

Jan. 17, 2023 USD ($)

Jan. 11, 2023 USD ($)

Jul. 21, 2022 USD ($)

Apr. 22, 2022 USD ($)

Apr. 20, 2021 USD ($)

May 29, 2020 USD ($)

Jun. 30, 2024 USD ($)

Jun. 30, 2023 USD ($)

Jun. 30, 2024 USD ($)

Jun. 30, 2023 USD ($)

Jun. 30, 2024 EUR (€)

Jan. 15, 2023 USD ($)

Dec. 15, 2022 USD ($)

Jul. 31, 2022 USD ($)

Jul. 19, 2022

Jan. 25, 2021

Aug. 11, 2020

Loss Contingencies [Line Items]

Fund for research

$ 8,600,000

$ 8,600,000

€ 8,000,000

Earned royalties

15,000

15,000

Gain from settlement of license liabilities

3,248,000

3,248,000

Studio 397 B.V. [Member]

Loss Contingencies [Line Items]

Voting interest acquired

100%

Deferred payment

$ 12,800,000

Studio 397 B.V. [Member] | Deferred Payment [Member]

Loss Contingencies [Line Items]

Deferred payment

$ 1,000,000

$ 1,000,000

Contingent consideration liability to be paid

$ 3,200,000

$ 3,200,000

$ 3,200,000

600,000

600,000

$ 150,000

$ 100,000

$ 330,000

letter agreements, description

pursuant to which, among other things, the Deferred Payment installment amount due to be paid by the Company on the first anniversary of closing was reduced from $3.2 million to $1 million with the remaining $2.2 million to be settled in installments of: $330,000 to be paid on July 31, 2022; for the period August 15, 2022, through December 15, 2022 monthly installments of $100,000; and for the period beginning on January 15, 2023, monthly installments of $150,000 until the remaining Deferred Payment amount is satisfied.

pursuant to which, among other things, the Deferred Payment installment amount due to be paid by the Company on the first anniversary of closing was reduced from $3.2 million to $1 million with the remaining $2.2 million to be settled in installments of: $330,000 to be paid on July 31, 2022; for the period August 15, 2022, through December 15, 2022 monthly installments of $100,000; and for the period beginning on January 15, 2023, monthly installments of $150,000 until the remaining Deferred Payment amount is satisfied.

Remaining consideration

$ 2,200,000

$ 2,200,000

Contingent consideration interest

300,000

300,000

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%

Assignment and Assumption Agreement [Member] | Leo Capital [Member]

Loss Contingencies [Line Items]

Litigation settlement amount

$ 200,000

$ 200,000

Licensing Agreement [Member]

Loss Contingencies [Line Items]

License fee royalty percentage

5%

BTCC License Agreement [Member] | Two Equal Installments Each [Member]

Loss Contingencies [Line Items]

Payments to Acquire Intangible Assets

$ 100,000

BARC Settlement Agreement [Member]

Loss Contingencies [Line Items]

Payments to Acquire Intangible Assets

$ 225,000

Gain from settlement of license liabilities

600,000

600,000

Royalty percentage

50%

INDYCAR License Agreement [Member]

Loss Contingencies [Line Items]

Gain from settlement of license liabilities

$ 2,500,000

$ 2,500,000

Liquidating damage claim amount

$ 2,900,000

Settlement payments description

the Company and INDYCAR agreed that the Company’s liabilities under the Prior License Agreements, including any and all royalties and/or any other sums or liabilities of any kind whatsoever were forgiven by INDYCAR and discharged in their entirety in consideration of the Company’s payment to INDYCAR of $250,000 on the date of the Agreement and $150,000 within 30 days following the date of execution of the Agreement. The Agreement became effective upon satisfaction of (i) the Company’s payment to INDYCAR of $250,000 on the date of the Agreement and (ii) the Company’s payment of $150,000 to INDYCAR within 30 days following the date of execution of the Agreement. Both $250,000 and $150,000 were paid to INDYCAR by the Company in May 2024.

Letter Agreement [Member]

Loss Contingencies [Line Items]

Interest rate

15%

Continental [Member]

Loss Contingencies [Line Items]

Litigation settlement amount

$ 1,100,000

$ 1,100,000

Litigation settlement, expense

100,000

Payments of litigation settlement

$ 40,000

Hallmark Settlement [Member]

Loss Contingencies [Line Items]

Litigation settlement payment

$ 1,750,000

SCHEDULE OF CONCENTRATIONS (Det

SCHEDULE OF CONCENTRATIONS (Details)	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2024		Jun. 30, 2023	Jun. 30, 2024		Jun. 30, 2023	Dec. 31, 2023
Customer B [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	23.60%		26.70%	21.20%		25.50%
Customer B [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				28.70%			32.10%
Customer C [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	20.50%		29.80%	20.60%		28.50%
Customer C [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				31.10%			34.30%
Customer D [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	41.20%		24.20%	47.30%		26%
Customer D [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				30.80%			22.30%
Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage	85.30%		80.70%	89.10%		80%
Customer [Member] | Trade Accounts Receivable [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage				90.60%			88.70%
Supplier A [Member] | Revenue Benchmark [Member] | Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration risk percentage		[1]	66.50%		[1]	41.80%
[1]Less than 10%.

SCHEDULE OF SEGMENT REPORTING I

SCHEDULE OF SEGMENT REPORTING INFORMATION (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Total Revenues	$ 1,881,653		$ 1,739,130		$ 4,910,689	$ 3,468,485
Total Cost of Revenues	771,647		866,167		1,438,274	2,114,903
Total Gross Profit	1,110,006		872,963		3,472,415	1,353,582
Total Income (Loss) From Operations	2,058,748		(8,601,744)		843,424	(13,897,036)
Total Depreciation and Amortization	63,138		104,854		136,862	202,208
Total Interest Expense, net	(29,746)		(244,750)		(60,628)	(443,870)
Total Other Income (Expense), net	58,481		645,612		(378,711)	880,832
Total Net Income (Loss)	2,087,483	$ (1,683,398)	(8,200,882)	$ (5,259,192)	404,085	(13,460,074)
Total Assets	7,208,411				7,208,411		$ 9,758,704
Gaming [Member]
Segment Reporting Information [Line Items]
Total Revenues	1,881,653		1,739,096		4,910,689	3,178,313
Total Cost of Revenues	771,647		865,309		1,438,274	1,740,148
Total Gross Profit	1,110,006		873,787		3,472,415	1,438,165
Total Income (Loss) From Operations	2,091,424		(8,547,640)		967,877	(13,536,916)
Total Depreciation and Amortization	51,010		92,497		112,308	177,615
Total Interest Expense, net	(29,166)		(244,750)		(60,048)	(443,870)
Total Other Income (Expense), net	89,725		652,701		(319,439)	904,848
Total Net Income (Loss)	2,120,740		(8,139,689)		529,171	(13,075,938)
Total Assets	5,653,460				5,653,460		7,892,388
Esports [Member]
Segment Reporting Information [Line Items]
Total Revenues			34			290,172
Total Cost of Revenues			858			374,755
Total Gross Profit			(824)			(84,583)
Total Income (Loss) From Operations	(32,676)		(54,104)		(124,453)	(360,120)
Total Depreciation and Amortization	12,128		12,357		24,554	24,593
Total Interest Expense, net	(580)				(580)
Total Other Income (Expense), net	(31,244)		(7,089)		(59,272)	(24,016)
Total Net Income (Loss)	(33,257)		$ (61,193)		(125,086)	$ (384,136)
Total Assets	$ 1,554,951				$ 1,554,951		$ 1,866,316

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - Segment	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting [Abstract]
Number of reportable segments	2	2

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - USD ($)	Jul. 26, 2024	Jul. 01, 2024
Definitive Agreements [Member]
Subsequent Event [Line Items]
Gross proceeds	$ 1,000,000
Definitive Agreements [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Exercise price	$ 2.17
Definitive Agreements [Member] | Private Placement [Member] | Series A Warrants [Member]
Subsequent Event [Line Items]
Warrants to purchase common stock	460,830
Warrants term	5 years 6 months
Definitive Agreements [Member] | Private Placement [Member] | Series B Warrants [Member]
Subsequent Event [Line Items]
Warrants to purchase common stock	460,830
Warrants term	18 months
Definitive Agreements [Member] | Common Class A [Member]
Subsequent Event [Line Items]
Number of shares sale and issuance	460,830
Offering price	$ 2.17
Backoffice Services Agreement [Member]
Subsequent Event [Line Items]
Monthely fee		$ 12,500