Nov 30, 2022

11.30.2022 Engine Gaming and Media underwent a radical diet to battle its burn rate. The Nasdaq- and Toronto Stock Exchange-listed company reported a $14.5 million net loss for its full fiscal year 2022, which ended August 31, 2022. In comparison to Engine Gaming and Media’s $40.7 million net loss in FY 2021, the company made a step in the right direction with a strategic realignment. “We commenced a process to explore and evaluate strategic options to enhance shareholder value,” explained Executive Chairman Tom Rogers. “We continue to narrow our focus, and we are confident that our efforts will result in a significant opportunity for the company to deliver on our stated goals in initiating this process." As a result, Engine Gaming and Media dropped several of its subsidiaries over the last 24 months. In November 2020, Engine Gaming and Media’s Motorsports Group (consisting of IDEAS+CARS, The Race media, WTF1, Driver DataDB, and Lets Go Racing) was sold to third-party UK investment group Ideas + Cars Holdings for $1.76 million. In April, Engine Gaming and Media’s racing game developer Eden Games was sold for approximately $15 million. In June, Engine Gaming and Media disposed of its gaming events and entertainment subsidiary UMG Media for $100. Additionally, Engine Gaming and Media discontinued its gambling subsidiary Winview during the last quarter. Three wholly owned subsidiaries — Frankly (Canada), Stream Hatchet (Spain), and SideQik (USA) – form the core of Engine Gaming and Media’s optimized business strategy. Operational highlights of those subsidiaries in FY 2022, included Stream Hatchet signing contract extensions with Microsoft, Activision, and Ubisoft while expanding its list of clients with the addition of Monumental Sports, PUBG, FIFA, Logitech, Nvidia, and Octagon; while SideQik added FoodPanda, Blizzard, Fanatics, and BenQ as customers and signed renewals and extensions with existing customers including Riot Games, Nike, and Universal Music Group. At the end of its fiscal year, Engine Gaming and Media had a cash position of $8.6 million.