Engine Gaming and Media, Inc. (NASDAQ:GAME) Q4 2022 Earnings Call Transcript

Jason Tilchen: Great! Another very helpful explanation there. One last one, just on the comments around the run rate of cash flow breakeven for fiscal ’23, can you maybe just talk to you know the current cash positioning and just how you feel about the cadence of that maybe burn in the first half of the year or improvements throughout the year? Do you think that there’s going to be a need to potentially raise additional capital or do you think that that you know €“ that trajectory of improving expense reductions and things like that will help reduce that need in fiscal ’23?

Lou Schwartz: Yes, so let me respond to that. So we finished our quarter with $8.6 million of cash. You know as I mentioned to Mike, you know some of the adjustments that we’ve made to OpEx will continue to flow through in future quarters, and I think it will be more evident how aggressive we’ve been in terms of rightsizing our cost structure and preserving cash to extend sort of our runway. That said, you know we’re in the middle of a strategic process. That strategic process is intended right to create scale and to create growth and an opportunity for the company sort of going forward. And we expect that through that strategic process, you know we’ll be able to deliver continued sort of growth and the ability to finance the future company on much better terms and remain sort of shareholder-friendly as we’ve been sort of in the past by reducing sort of any sort of potential dilution in the future.

But we remain focused on rationalizing our OpEx and getting to cash flow sort of breakeven on a stand-alone basis in 2023.

Jason Tilchen: Great! Thanks a lot.

Operator: There are no additional analysts with questions. And at this time, I would like to turn the floor back over to Lou for any closing comments.

Lou Schwartz: Well, thank you everyone for your attendance today. We look forward to keeping you updated as we make further progress. Thank you again very much for attending. Bye-bye!

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation and have a great day!