RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS
Related Party Revenue and Receivable - Pimax Innovation Co. Limited
In February 2026, the Company recorded approximately $11,000 worth of gaming revenues from Pimax Innovation Co. Limited, an affiliate of a significant minority shareholder of the Company. As of June 30, 2026, there was no balance due from Pimax Innovation Co. Limited.
Other Related Party Transactions – Driven Lifestyle Group LLC
The Company had other related party payables outstanding as of June 30, 2026 and December 31, 2025. Specifically, the Company owed approximately $4,000 and $3,000 to its related parties as a related party payable as of June 30, 2026 and December 31, 2025. During the three months ended June 30, 2026 and 2025, approximately $0 and $37,500, respectively, was paid to related parties in settlement of related party payables. During the six months ended June 30, 2026 and 2025, approximately $0 and $0.1 million was paid to related parties in settlement of related party payables, respectively.
Motorsport Games Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements
Backoffice Services Agreement
The Company previously entered into a Backoffice Services Agreement with Driven Lifestyle for rent, development and other services to support the Company’s business functions, which was amended periodically to reduce scope, and ultimately terminated on December 31, 2025.
For the six months ended June 30, 2026 and 2025, the Company incurred $0 and $75,000, respectively, in fees in connection with the Backoffice Services Agreement. For the three months ended June 30, 2026 and 2025, the Company incurred $0 and $37,500, respectively, in fees in connection with the Backoffice Services Agreement, which is presented in general and administrative expenses within the condensed consolidated statements of operations.
On April 22, 2026, the Company entered into a Share Repurchase Agreement (the “Agreement”) with Driven Lifestyle, pursuant to which the Company purchased shares of the Company’s Class A Common Stock held by Driven Lifestyle. The Agreement provided for such shares to be purchased at a price of $, which was equal to the average closing price of the Class A Common Stock as reported by the Nasdaq Capital Market for the five trading days immediately preceding the signing of the Agreement. Pursuant to this Agreement, all shares of the Company’s Class B Common Stock were cancelled.
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