Business Context and Reporting Period
Company: Motorsport Games Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 4, 2024
Reporting Period: Immediate effective date for the fiscal year ending December 31, 2024.
Key Financial Metrics
This filing does not contain specific financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on a change in the company's independent registered public accounting firm.
Material Changes
- Accountant Change: The Audit Committee approved the engagement of Grassi & Co., CPAs, P.C. as the new independent registered public accounting firm, effective immediately.
- Dismissal: Grant Thornton LLP was dismissed as the independent registered public accounting firm.
- Audit History: Grant Thornton's audit reports for fiscal years 2023 and 2022 did not contain adverse opinions or disclaimers. However, the 2023 report included an explanatory paragraph regarding conditions that raised substantial doubt about the Company's ability to continue as a going concern.
- Disagreements: The Company reported no disagreements with Grant Thornton regarding accounting principles, practices, or auditing scope during the relevant periods.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the transition of audit responsibilities without providing forward-looking financial guidance or operational outlook.
Risks and Contingencies: The primary risk highlighted is the historical "going concern" qualification noted in the 2023 audit by the former accountant. The filing does not provide updated commentary on whether this condition has been resolved.
Unusual Items: The filing notes that no consultations were held with the new accountant (Grassi) regarding accounting principles or audit opinions prior to the engagement.
Investor Verification Checklist
- Verify the status of the "going concern" doubt raised in the December 31, 2023, audit report.
- Review the letter from Grant Thornton LLP (Exhibit 16.1) for any additional context on the dismissal.
- Monitor upcoming filings (e.g., 10-K) for the first financial statements audited by Grassi & Co.
- Confirm if the change in auditors was driven by cost, scope, or specific accounting disagreements not detailed in this summary.