Interactive Motorsports and Entertainment Corp (IMTS)

Description:

Interactive Motorsports and Entertainment Corp., an Indiana Corporation, through its wholly owned subsidiary, Perfect Line, Inc., owns and operates NASCAR Silicon Motor Speedway racing centers, a chain of NASCAR branded entertainment and retail stores. NASCAR Silicon Motor Speedway customers experience driving in a NASCAR racecar that simulates the motion, sights and sounds of an actual NASCAR event. Located in plush, heavy traffic locations, IMTS's racing centers include up to 14 racecar simulators per location and offer NASCAR driver merchandise available to the market. Perfect Line's racing centers are located in heavy traffic, posh mall locations. The current racing centers average about 5,850 sq. ft. Each racing center has up to 800 square feet of retail merchandise space, or a total of more than 6,000 square feet of retail area. According to IMTS' internal data an estimated 160,000,0002 people annually visit these mall locations. For the year ended December 31, 2003, the Company's racing centers and revenue share simulators generated revenue of approximately $7.5 million. NASCAR Silicon Motor Speedway racing centers were originally owned and developed by Silicon Entertainment, Inc. Silicon Entertainment, Inc. opened its first site in August 1997 at the Mall of America in Bloomington, Minnesota. Silicon Entertainment, Inc. raised large sums of initial capital, of which, according to Silicon Entertainment, Inc. documents, approximately $6.5 million was utilized to create the proprietary software technology and approximately $25 million was utilized to produce approximately 170 simulators and complete the build-out of 15 stores in heavy traffic malls.