Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2022 | Feb. 10, 2023 | |
Document Information [Line Items] | ||
Entity Registrant Name | Cinedigm Corp. | |
Trading Symbol | CIDM | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 179,092,441 | |
Amendment Flag | false | |
Entity Central Index Key | 0001173204 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-31810 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3720962 | |
Entity Address, Address Line One | 244 Fifth Avenue, Suite M289 | |
Entity Address, Address Line Two | Suite M289 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | (212) | |
Local Phone Number | 206-8600 | |
Title of 12(b) Security | CLASS A COMMON STOCK, PAR VALUE $0.001 PER SHARE | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 8,796 | $ 13,062 |
Accounts receivable, net of allowance of $2,780 and $2,921, respectively | 24,993 | 30,843 |
Unbilled revenue | 2,681 | 2,349 |
Employee retention tax credit | 2,475 | |
Prepaid and other current assets | 7,303 | 5,909 |
Total current assets | 46,248 | 52,163 |
Equity investment in Metaverse, a related party, at fair value | 5,200 | 7,028 |
Property and equipment, net | 1,695 | 1,980 |
Intangible assets, net | 18,864 | 20,034 |
Goodwill | 21,025 | 21,084 |
Other long-term assets | 1,863 | 2,347 |
Total assets | 94,895 | 104,636 |
Current liabilities | ||
Accounts payable and accrued expenses | 40,719 | 52,025 |
Line of credit, including unamortized debt issuance costs of $133 and $0, respectively | 4,867 | |
Current portion of deferred consideration on purchase of business | 4,694 | 4,513 |
Other current liabilities | 467 | 454 |
Total current liabilities | 50,747 | 56,992 |
Deferred consideration on purchase of business - net of current portion | 5,940 | 6,203 |
Other long-term liabilities | 564 | 491 |
Total liabilities | 57,251 | 63,686 |
Stockholders’ Equity | ||
Preferred stock, 15,000,000 shares authorized; Series A 10% - $0.001 par value per share; 20 shares authorized; 7 shares issued and 7 shares outstanding at December 31, 2022 and March 31, 2022. Liquidation preference of $3,648 | 3,559 | 3,559 |
Class A Common stock, $0.001 par value; 275,000,000 shares authorized at December 31, 2022 and March 31, 2022, 180,225,330 and 176,629,435 shares issued and 178,909,479 and 175,313,584 shares outstanding at December 31, 2022 and March 31, 2022, respectively | 177 | 174 |
Additional paid-in capital | 526,402 | 522,601 |
Treasury stock, at cost; 1,315,851 shares | (11,608) | (11,608) |
Accumulated deficit | (479,229) | (472,310) |
Accumulated other comprehensive loss | (389) | (163) |
Total stockholders’ equity of Cinedigm Corp. | 38,912 | 42,253 |
Deficit attributable to noncontrolling interest | (1,268) | (1,303) |
Total equity | 37,644 | 40,950 |
Total liabilities and equity | $ 94,895 | $ 104,636 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Accounts receivable, net of allowance (in Dollars) | $ 2,780 | $ 2,921 |
Unamortized debt issuance costs (in Dollars) | $ 133 | $ 0 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Treasury stock | 1,315,851 | 1,315,851 |
Series A preferred stock | ||
Preferred stock, shares authorized | 20 | 20 |
Preferred stock, dividend rate | 10% | 10% |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 7 | 7 |
Preferred stock, shares outstanding | 7 | 7 |
Preferred stock, Liquidation preference Value (in Dollars) | $ 3,648 | $ 3,648 |
Class A Common Stock | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 180,225,330 | 176,629,435 |
Common stock, shares outstanding | 178,909,479 | 175,313,584 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 27,882 | $ 14,084 | $ 55,478 | $ 39,202 |
Costs and expenses: | ||||
Direct operating | 14,411 | 6,459 | 29,859 | 14,423 |
Selling, general and administrative | 9,107 | 7,358 | 29,016 | 20,520 |
Depreciation and amortization | 924 | 1,031 | 2,908 | 3,663 |
Total operating expenses | 24,442 | 14,848 | 61,783 | 38,606 |
Operating income (loss) | 3,440 | (764) | (6,305) | 596 |
Interest expense | (367) | (97) | (880) | (277) |
Gain on forgiveness of PPP loan | 2,178 | |||
Change in fair value of equity investment in Metaverse, a related party | 453 | (1,828) | 1,453 | |
Employee retention tax credit | 2,025 | 2,475 | ||
Other income (expense) | (76) | (22) | (82) | 69 |
Income (loss) before income taxes | 5,022 | (430) | (6,620) | 4,019 |
Income tax benefit | 26 | 576 | ||
Net income (loss) | 5,022 | (404) | (6,620) | 4,595 |
Net (income) loss attributable to noncontrolling interest | (8) | 19 | (35) | 23 |
Net income (loss) attributable to controlling interests | 5,014 | (385) | (6,655) | 4,618 |
Preferred stock dividends | (88) | (89) | (264) | (267) |
Net income (loss) attributable to common stockholders | $ 4,926 | $ (474) | $ (6,919) | $ 4,351 |
Net income (loss) per share attributable to common stockholders - basic: (in Dollars per share) | $ 0.03 | $ 0 | $ (0.04) | $ 0.03 |
Weighted average shares of common stock outstanding: basic | 178,899,605 | 173,167,450 | 177,077,803 | 169,413,873 |
Net income (loss) per share attributable to common stockholders - diluted: (in Dollars per share) | $ 0.03 | $ 0 | $ (0.04) | $ 0.03 |
Weighted average shares of common stock outstanding: diluted | 178,899,605 | 173,167,450 | 177,077,803 | 173,017,364 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,022 | $ (404) | $ (6,620) | $ 4,595 |
Other comprehensive income (loss): | ||||
Foreign exchange translation | 88 | (14) | (226) | (33) |
Comprehensive income (loss) attributable to noncontrolling interest | (8) | 19 | (35) | 23 |
Comprehensive income (loss) | $ 5,102 | $ (399) | $ (6,881) | $ 4,585 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (6,620) | $ 4,595 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2,908 | 3,663 |
Changes in fair value of equity investment in Metaverse | 1,828 | (1,464) |
Gain from forgiveness of PPP loan | (2,178) | |
Impairment of advances | 1,636 | 782 |
Provision (benefit) for doubtful accounts | 54 | (397) |
Amortization of debt issuance costs | 138 | |
Stock-based compensation | 3,906 | 3,278 |
Interest expense for deferred consideration & earnouts | 743 | 97 |
Nonmonetary sale of content license | (1,022) | |
Other | 51 | 59 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 5,795 | (8,164) |
Unbilled revenue | (332) | (1,449) |
Prepaids and other current and long-term assets | (2,747) | (1,320) |
Employee retention tax credit | (2,475) | |
Accounts payable, accrued expenses, and other liabilities | (11,764) | 7,244 |
Net cash (used in) provided by operating activities | (7,901) | 4,746 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (429) | (292) |
Purchase of businesses | (4,750) | |
Sale of investment securities | 11 | |
Net cash used in investing activities | (429) | (5,031) |
Cash flows from financing activities: | ||
Payments of notes payable and deferred consideration | (665) | (7,786) |
Proceeds from line of credit | 19,469 | |
Payments on line of credit | (14,469) | (1,956) |
Debt issuance costs | (271) | |
Issuance of common stock | 12,378 | |
Net cash provided by financing activities | 4,064 | 2,636 |
Net change in cash and cash equivalents | (4,266) | 2,351 |
Cash and cash equivalents at beginning of period | 13,062 | 17,849 |
Cash and cash equivalents at end of period | $ 8,796 | $ 20,200 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information and Disclosure of Non-Cash Investing and Financing Activity (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash interest paid | $ 58 | $ 701 |
Income taxes paid | 79 | |
Noncash investing and financing activities: | ||
Accrued dividends on preferred stock | 88 | 89 |
Issuance of Class A common stock for payment of accrued preferred stock dividends | 264 | 267 |
Issuance of Class A common stock for business combination | 4,824 | |
Deferred consideration in purchase of business | 1,980 | |
Earnout consideration in purchase of a business | 1,461 | |
Earnout consideration paid with common shares of Company | (238) | |
Earnout consideration adjustment | 80 | |
Treasury shares acquired for withholding taxes | $ 5 | |
Issuance of common stock for Board of Director compensation | $ 3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-Controlling Interest |
Balance at Mar. 31, 2021 | $ 15,882 | $ 3,559 | $ 164 | $ (11,603) | $ 499,272 | $ (474,080) | $ (68) | $ 17,244 | $ (1,362) |
Balance (in Shares) at Mar. 31, 2021 | 7 | 166,228,568 | 1,313,836 | ||||||
Foreign exchange translation | (54) | (54) | (54) | ||||||
Stock-based compensation | 983 | 983 | 983 | ||||||
Stock-based compensation (in Shares) | 35,714 | ||||||||
Issuance of common stock in connection with business combinations | 2,506 | $ 2 | 2,504 | 2,506 | |||||
Issuance of common stock in connection with business combinations (in Shares) | 1,483,129 | ||||||||
Preferred stock dividends paid with common stock | 89 | (89) | |||||||
Preferred stock dividends paid with common stock (in Shares) | 53,278 | ||||||||
Net income (loss) | 5,194 | 5,187 | 5,187 | 7 | |||||
Balance at Jun. 30, 2021 | 24,511 | $ 3,559 | $ 166 | $ (11,603) | 502,848 | (468,982) | (122) | 25,866 | (1,355) |
Balance (in Shares) at Jun. 30, 2021 | 7 | 167,800,689 | 1,313,836 | ||||||
Balance at Mar. 31, 2021 | 15,882 | $ 3,559 | $ 164 | $ (11,603) | 499,272 | (474,080) | (68) | 17,244 | (1,362) |
Balance (in Shares) at Mar. 31, 2021 | 7 | 166,228,568 | 1,313,836 | ||||||
Net income (loss) | 4,595 | ||||||||
Balance at Dec. 31, 2021 | 41,009 | $ 3,559 | $ 174 | $ (11,608) | 520,099 | (469,729) | (101) | 42,394 | (1,385) |
Balance (in Shares) at Dec. 31, 2021 | 7 | 174,871,216 | 1,315,851 | ||||||
Balance at Jun. 30, 2021 | 24,511 | $ 3,559 | $ 166 | $ (11,603) | 502,848 | (468,982) | (122) | 25,866 | (1,355) |
Balance (in Shares) at Jun. 30, 2021 | 7 | 167,800,689 | 1,313,836 | ||||||
Foreign exchange translation | 35 | 35 | 35 | ||||||
Stock-based compensation | 946 | 946 | 946 | ||||||
Stock-based compensation (in Shares) | 132,630 | ||||||||
Issuance of common stock in connection with business combinations | 2,318 | $ 1 | 2,317 | 2,318 | |||||
Issuance of common stock in connection with business combinations (in Shares) | 1,179,156 | ||||||||
Treasury stock in connection with taxes withheld from employees | (5) | $ (5) | (5) | ||||||
Treasury stock in connection with taxes withheld from employees (in Shares) | (2,015) | 2,015 | |||||||
Preferred stock dividends | (89) | (89) | (89) | ||||||
Net income (loss) | (195) | (184) | (184) | (11) | |||||
Balance at Sep. 30, 2021 | 27,521 | $ 3,559 | $ 167 | $ (11,608) | 506,111 | (469,255) | (87) | 28,887 | (1,366) |
Balance (in Shares) at Sep. 30, 2021 | 7 | 169,110,460 | 1,315,851 | ||||||
Foreign exchange translation | (14) | (14) | (14) | ||||||
Stock-based compensation | 1,349 | 1,349 | 1,349 | ||||||
Stock-based compensation (in Shares) | 147,712 | ||||||||
Issuance of common stock in connection with equity line purchase commitment | |||||||||
Issuance of common stock in connection with equity line purchase commitment( in shares) | 210,084 | ||||||||
Preferred stock dividends | (178) | (178) | (178) | ||||||
Preferred stock dividends paid with common stock (in Shares) | 102,697 | ||||||||
Issuance of common stock in connection with performance stock units and annual incentive awards, net of employee payroll taxes | |||||||||
Issuance of common stock in connection with performance stock units and annual incentive awards, net of employee payroll taxes (in Shares) | 263 | ||||||||
Issuance of common stock in connection with equity line, net | 12,378 | $ 7 | 12,371 | 12,378 | |||||
Issuance of common stock in connection with equity line, net (in Shares) | 5,300,000 | ||||||||
Preferred stock dividends accrued | 89 | (89) | |||||||
Net income (loss) | (404) | (385) | (385) | (19) | |||||
Balance at Dec. 31, 2021 | 41,009 | $ 3,559 | $ 174 | $ (11,608) | 520,099 | (469,729) | (101) | 42,394 | (1,385) |
Balance (in Shares) at Dec. 31, 2021 | 7 | 174,871,216 | 1,315,851 | ||||||
Balance at Mar. 31, 2022 | 40,950 | $ 3,559 | $ 174 | $ (11,608) | 522,601 | (472,310) | (163) | 42,253 | (1,303) |
Balance (in Shares) at Mar. 31, 2022 | 7 | 175,313,584 | 1,315,851 | ||||||
Foreign exchange translation | 48 | 48 | 48 | ||||||
Stock-based compensation | 980 | 980 | 980 | ||||||
Preferred stock dividends paid with common stock | 88 | 88 | 88 | ||||||
Preferred stock dividends paid with common stock (in Shares) | 108,024 | ||||||||
Preferred stock dividends accrued | (88) | (88) | (88) | ||||||
Net income (loss) | (5,987) | (6,005) | (6,005) | 18 | |||||
Balance at Jun. 30, 2022 | 35,991 | $ 3,559 | $ 174 | $ (11,608) | 523,669 | (478,403) | (115) | 37,276 | (1,285) |
Balance (in Shares) at Jun. 30, 2022 | 7 | 175,421,608 | 1,315,851 | ||||||
Balance at Mar. 31, 2022 | 40,950 | $ 3,559 | $ 174 | $ (11,608) | 522,601 | (472,310) | (163) | 42,253 | (1,303) |
Balance (in Shares) at Mar. 31, 2022 | 7 | 175,313,584 | 1,315,851 | ||||||
Foreign exchange translation | |||||||||
Balance at Sep. 30, 2022 | 31,876 | $ 3,559 | $ 176 | $ (11,608) | 525,657 | (484,155) | (477) | 33,152 | (1,276) |
Balance (in Shares) at Sep. 30, 2022 | 7 | 178,001,096 | 1,315,851 | ||||||
Balance at Mar. 31, 2022 | 40,950 | $ 3,559 | $ 174 | $ (11,608) | 522,601 | (472,310) | (163) | 42,253 | (1,303) |
Balance (in Shares) at Mar. 31, 2022 | 7 | 175,313,584 | 1,315,851 | ||||||
Net income (loss) | (6,620) | ||||||||
Balance at Dec. 31, 2022 | 37,644 | $ 3,559 | $ 177 | $ (11,608) | 526,402 | (479,229) | (389) | 38,912 | (1,268) |
Balance (in Shares) at Dec. 31, 2022 | 7 | 178,909,479 | 1,315,851 | ||||||
Balance at Jun. 30, 2022 | 35,991 | $ 3,559 | $ 174 | $ (11,608) | 523,669 | (478,403) | (115) | 37,276 | (1,285) |
Balance (in Shares) at Jun. 30, 2022 | 7 | 175,421,608 | 1,315,851 | ||||||
Foreign exchange translation | (362) | (362) | (362) | ||||||
Stock-based compensation | 791 | 791 | 791 | ||||||
Preferred stock dividends paid with common stock | 88 | 88 | 88 | ||||||
Preferred stock dividends paid with common stock (in Shares) | 178,572 | ||||||||
Issuance of common stock in connection with performance stock units and annual incentive awards, net of employee payroll taxes | 873 | $ 2 | 871 | 873 | |||||
Issuance of common stock in connection with performance stock units and annual incentive awards, net of employee payroll taxes (in Shares) | 2,066,879 | ||||||||
Issuance of common stock for BD Earnout commitment | 238 | 238 | 238 | ||||||
Issuance of common stock for BD Earnout commitment (in Shares) | 334,037 | ||||||||
Preferred stock dividends accrued | (88) | (88) | (88) | ||||||
Net income (loss) | (5,655) | (5,664) | (5,664) | 9 | |||||
Balance at Sep. 30, 2022 | 31,876 | $ 3,559 | $ 176 | $ (11,608) | 525,657 | (484,155) | (477) | 33,152 | (1,276) |
Balance (in Shares) at Sep. 30, 2022 | 7 | 178,001,096 | 1,315,851 | ||||||
Foreign exchange translation | 88 | 88 | 88 | ||||||
Stock-based compensation | 657 | 657 | 657 | ||||||
Preferred stock dividends paid with common stock | 88 | 88 | 88 | ||||||
Preferred stock dividends paid with common stock (in Shares) | 224,359 | ||||||||
Issuance of common stock for Board of Director compensation | 1 | $ 1 | 1 | ||||||
Issuance of common stock for Board of Director compensation (in shares) | 684,024 | ||||||||
Preferred stock dividends accrued | (88) | (88) | (88) | ||||||
Net income (loss) | 5,022 | 5,014 | 5,014 | 8 | |||||
Balance at Dec. 31, 2022 | $ 37,644 | $ 3,559 | $ 177 | $ (11,608) | $ 526,402 | $ (479,229) | $ (389) | $ 38,912 | $ (1,268) |
Balance (in Shares) at Dec. 31, 2022 | 7 | 178,909,479 | 1,315,851 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 9 Months Ended |
Dec. 31, 2022 | |
Disclosure of Nature of Operations and Liquidity [Abstract] | |
NATURE OF OPERATIONS AND LIQUIDITY | 1. NATURE OF OPERATIONS AND LIQUIDITY Cinedigm Corp. (“Cinedigm,” the “Company,” “we,” “us,” or similar pronouns) was incorporated in Delaware on March 31, 2000. We are (i) a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to thousands of titles and episodes released across digital, physical, theatrical, home and mobile entertainment platforms (“Streaming”) and (ii) a servicer of digital cinema assets for movie screens in both North America and several international countries. We report our financial results in two reportable segments as follows: (i) Cinema Equipment Business ("Cinema Equipment") and (ii) Content and Entertainment Business (“Content & Entertainment”). The Cinema Equipment segment consists of the non-recourse, financing vehicles and administrators for our digital cinema equipment (the “Systems”) installed in movie theatres throughout North America. Our Content & Entertainment segment operates in: (i) ancillary market aggregation and distribution of entertainment content and (ii) branded and curated over-the-top (“OTT”) digital network business providing entertainment channels and applications. Financial Condition and Liquidity As of December 31, 2022, the Company has an accumulated deficit of $ 479.2 million and negative working capital of $ 4.5 million . For the three and nine months ended December 31, 2022, the Company had net income (loss) attributable to common shareholders of $ 4.9 million and ($ 6.9 ) million , respectively. Net cash used in operating activities for the nine months ended December 31, 2022 was $ 7.9 million . We may continue to generate net losses for the foreseeable future. The Company is party to a Loan, Guaranty, and Security Agreement with East West Bank (“EWB”) providing for a revolving line of credit (the “Line of Credit Facility”) of $ 5.0 million, guaranteed by substantially all of our material subsidiaries and secured by substantially all of our and such subsidiaries’ assets. The Line of Credit Facility bears interest at a rate equal to 1.5 % above the prime rate, 9.0 % as of December 31, 2022 . The Line of Credit Facility expires on September 15, 2023 with a one-year extension available at EWB’s discretion. As of December 31, 2022 , $ 5.0 million was outstanding on the Line of Credit Facility. We believe our cash and cash equivalent balances, and availability under our credit facility, as of December 31, 2022 will be sufficient to support our operations for at least twelve months from the filing of this report. The Company may also undertake equity or debt offerings, if necessary and opportunistically available, for further capital needs. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation The accompanying interim Condensed Consolidated Financial Statements of Cinedigm Corp. have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and are consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on July 1, 2022. These Condensed Consolidated Financial Statements are unaudited and have been prepared by the Company following the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations; however, the Company believes the disclosures are adequate to make the information presented not misleading. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022. Interim results are not necessarily indicative of the results for a full year. The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Significant items subject to such estimates and assumptions include revenue recognition, allowance for doubtful accounts, returns and recovery reserves, goodwill and intangible asset impairments, share-based compensation expense, valuation allowance for deferred income taxes and amortization of intangible assets. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates. We own an 85 % interest in CON TV, LLC ("CONtv"), a worldwide digital network that creates original content, and sells and distributes on-demand digital content on the internet and other consumer digital distribution platforms, such as gaming consoles, set-top boxes, handsets, and tablets. We evaluated the investment under the voting interest entity model and determined that the entity should be consolidated as we have a controlling financial interest in the entity through our ownership of outstanding voting shares, and that other equity holders do not have substantive voting, participating or liquidation rights. We recorded net loss attributable to noncontrolling interest in our Condensed Consolidated Statements of Operations equal to 11 % of outstanding profit interest units retained by the noncontrolling interests. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022. Reclassifications Certain amounts have been reclassified to conform to the current presentation. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be “cash equivalents.” We maintain bank accounts with major banks, which from time to time may exceed the Federal Deposit Insurance Corporation’s insured limits. We periodically assess the financial condition of the institutions and believe that the risk of any loss is minimal. Accounts Receivable, Net We maintain reserves for potential credit losses on accounts receivable. We review the composition of accounts receivable and analyze historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. Employee Retention Tax Credit The Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provided an employee retention credit which was a refundable tax credit against certain employment taxes. The Consolidated Appropriations Act (the "Appropriations Act") extended and expanded the availability of the employee retention credit through December 31, 2021. The Appropriations Act amended the employee retention credit to be equal to 70 % of qualified wages paid to employees during the 2021 fiscal year. The Company qualified for the employee retention credit beginning in June 2020 for qualified wages through September 2021 and filed a cash refund claim during the three months ended September 30, 2022 and December 31, 2022 for $ 0.5 million and $ 2.0 million, respectively. During the three and nine months ended December 31, 2022 , the Company recorded an employee retention credit totaling $ 2.0 million and $ 2.5 million, respectively, in the Employee retention tax credit line on the Company’s Condensed Consolidated Statements of Operations. As of December 31, 2022, the tax credit receivable has been included in the Employee retention tax credit line on the Company's Condensed Consolidated Balance Sheet. Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation expense is recorded using the straight-line method over the estimated useful lives of the respective assets as follows: Computer equipment and software 3 - 5 years Digital cinema projection systems 10 years Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 6 years Internal-Use Software 5 years We capitalize costs associated with software developed or obtained for internal use when the preliminary project stage is completed, and it is determined that the software will provide significantly enhanced capabilities and modifications. These capitalized costs are included in property and equipment, net and include external direct cost of services procured in developing or obtaining internal-use software and personnel and related expenses for employees who are directly associated with, and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended use. Once the software is ready for its intended use, the costs are amortized over the useful life of the software. Post-configuration training and maintenance costs are expensed as incurred. We amortize internal-use software over its estimated useful life on a straight-line basis. Impairment of Long-lived and Finite-lived Assets We review the recoverability of our long-lived assets and finite-lived intangible assets, when events or conditions occur that indicate a possible impairment exists. The assessment for recoverability is based primarily on our ability to recover the carrying value of our long-lived and finite-lived assets from expected future undiscounted net cash flows. If the total of expected future undiscounted net cash flows is less than the total carrying value of the asset, the asset is deemed not to be recoverable and possibly impaired. We then estimate the fair value of the asset to determine whether an impairment loss should be recognized. An impairment loss will be recognized if the asset’s fair value is determined to be less than its carrying value. Fair value is determined by computing the expected future discounted cash flows. During the nine months ended December 31, 2022 and 2021 , no impairment charges were recorded from operations for long-lived assets or finite-lived assets. Intangible Assets, Net Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives, the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets with indefinite lives, the assets are tested annually for impairment or sooner if a triggering event occurs. Amortization lives of intangible assets are as follows: Content Library 3 – 20 years Advertiser Relationships and Channel 3 – 13 years Customer Relationships 5 – 13 years Software 10 years Trademarks and Tradenames 2 – 15 years Supplier Agreements 2 years The Company’s intangible assets included the following (in thousands): As of December 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 21,038 ) $ — $ 2,647 Advertiser Relationships and Channel 11,104 ( 759 ) — 10,345 Customer Relationships 10,658 ( 7,531 ) ( 1,968 ) 1,159 Software 3,200 ( 480 ) — 2,720 Trademark and Tradenames 4,026 ( 2,033 ) — 1,993 Total Intangible Assets $ 52,673 $ ( 31,841 ) $ ( 1,968 ) $ 18,864 As of March 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 20,665 ) $ — $ 3,020 Advertiser Relationships and Channel 10,081 ( 161 ) — 9,920 Customer Relationships 10,658 ( 7,327 ) ( 1,968 ) 1,363 Software 3,200 ( 240 ) — 2,960 Trademark and Tradenames 4,026 ( 1,301 ) — 2,725 Supplier Agreements 11,430 ( 11,384 ) — 46 Total Intangible Assets $ 63,080 $ ( 41,078 ) $ ( 1,968 ) $ 20,034 During the nine months ended December 31, 2022 and 2021, no impairment charge was recorded for intangible assets. During the three and nine months ended December 31, 2022, the Company had amortization expense of $ 0.7 million and $ 2.2 million , respectively. During the three and nine months ended December 31, 2021, the Company had amortization expense of $ 0.7 million and $ 2.2 million , respectively. During the three months ended December 31, 2022 , the Company entered into a non-monetary transaction for the purchase and sale of content licenses with an unrelated third-party. The fair value of the content licenses sold was determined to be $ 1.0 million which is included in Revenues in our Condensed Consolidated Statement of Operations for the three months ended December 31, 2022 . The fair value of the content licenses purchased was determined to be $ 1.0 million and is recognized in Intangible Assets, Net on our Condensed Consolidated Balance Sheet as of December 31, 2022. As of December 31, 2022, amortization expense is expected to be (in thousands): Total Remainder of fiscal year 2023 $ 1,252 2024 3,343 2025 2,137 2026 1,745 2027 1,269 Thereafter 9,118 $ 18,864 Goodwill Goodwill is the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is tested for impairment on an annual basis or more often if warranted by events or changes in circumstances indicating that the carrying value may exceed fair value, also known as impairment indicators. Inherent in the fair value determination for each reporting unit are certain judgments and estimates relating to future cash flows, including management’s interpretation of current economic indicators and market conditions, and assumptions about our strategic plans with regard to its operations. To the extent additional information arises, market conditions change, or our strategies change, it is possible that the conclusion regarding whether our remaining goodwill is impaired could change and result in future goodwill impairment charges that will have a material effect on our consolidated financial position or results of operations. The Company has the option to assess goodwill for possible impairment by performing a qualitative analysis to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount or to perform the quantitative impairment test. The Company reassessed goodwill impairment on its annual measurement date of March 31, 2022 by performing a qualitative analysis and determined that it was not more likely than not that the fair value of its reporting unit is less than its carrying amount. No goodwill impairment charge was recorded in the three and nine months ended December 31, 2022 and 2021 . Fair Value Measurements The fair value measurement disclosures are grouped into three levels based on valuation factors: • Level 1 – quoted prices in active markets for identical investments • Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) • Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The following tables summarize the levels of fair value measurements of our financial assets and liabilities (in thousands): As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ — $ — $ 5,200 $ 5,200 $ — $ — $ 5,200 $ 5,200 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 768 $ 768 Long-term portion of earnout consideration on purchase of a business — — 676 676 $ — $ — $ 1,444 $ 1,444 As of March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ 7,028 $ — $ — $ 7,028 $ 7,028 $ — $ — $ 7,028 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 1,081 $ 1,081 Long-term portion of earnout consideration on purchase of a business — — 603 603 $ — $ — $ 1,684 $ 1,684 The Company's equity investment in A Metaverse Company ("Metaverse") is in Hong Kong dollars and was translated into US dollars as of December 31, 2022 and March 31, 2022 at an exchange rate of 7.8 Hong Kong Dollars to 1 US Dollar. The fair value of this equity investment was measured by the quoted market price of Metaverse on the Stock Exchange of Hong Kong (SEHK: 1616) as of March 31, 2022. On April 1, 2022, trading of Metaverse’s ordinary shares was halted on the Hong Kong Stock Exchange. As of December 31, 2022, Metaverse’s stock valuation is based on an independent valuation based on the market approach and is categorized as Level 3 based on unobservable inputs. The Company estimated the fair value based on the market approach based on the last known enterprise value adjusting for trends in value from comparable companies. The adjustment to fair value of this investment resulted in a loss of $ 1.8 million and gain of $ 1.5 million for the nine months ended December 31, 2022 and 2021, respectively. As the value of the investment in Metaverse is determined based on unobservable inputs, company and industry fluctuations, as well as general economic, political, regulatory and market conditions such as recessions, interest rate changes or international currency fluctuations, changes to these assumptions may have a significant impact on the fair value of our investment in Metaverse. Our cash and cash equivalents, accounts receivable, unbilled revenue, accounts payable and accrued expenses are financial instruments and are recorded at cost in the Condensed Consolidated Balance Sheets. The estimated fair values of these financial instruments approximate their carrying amounts because of their short-term nature. Prepaid and Other Current Assets Prepaid and other current assets consisted of the following (in thousands): As of December 31, March 31, Advances $ 3,244 $ 2,117 Due from producers 1,549 1,861 Other receivables 1,134 826 Inventory 209 116 Other prepaid expenses 1,167 989 Total prepaid and other current assets $ 7,303 $ 5,909 Advances represent amounts prepaid to studios or content producers for which we provide content distribution services. We evaluate advances regularly for recoverability and record impairment charges for amounts that we expect may not be recoverable. Impairments related to advances were $ 1.0 million and $ 0.4 million for the three months ended December 31, 2022 and 2021, respectively. Impairments related to advances were $ 1.6 million and $ 0.8 million for the nine months ended December 31, 2022 and 2021 , respectively. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): As of December 31, March 31, Accounts payable $ 17,720 $ 34,177 Amounts due to producers 15,967 10,430 Accrued compensation and benefits 3,390 3,507 Accrued other expenses 3,642 3,911 Total accounts payable and accrued expenses $ 40,719 $ 52,025 Revenue Recognition Payment terms and conditions vary by customer and typically provide net 30 to 90 day terms. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. We have in the past entered into arrangements in connection with activation fees due from our System deployments that had extended payment terms. The outstanding balances on these arrangements are insignificant and hence the impact of significant financing would be insignificant. The following tables present the Company’s disaggregated revenue by segment and source (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cinema Equipment: Deployment $ 7,458 $ 220 $ 9,340 $ 1,263 Services ( 316 ) 506 ( 88 ) 1,171 Digital system sales 44 1,334 1,966 9,110 Total Cinema Equipment revenue $ 7,186 $ 2,060 $ 11,218 $ 11,544 Content & Entertainment: Base distribution business $ 8,121 $ 3,668 $ 11,145 $ 6,368 OTT streaming and digital 12,575 8,356 33,115 21,290 Total Content & Entertainment revenue $ 20,696 $ 12,024 $ 44,260 $ 27,658 Total revenue $ 27,882 $ 14,084 $ 55,478 $ 39,202 Cinema Equipment Segment Our Cinema Equipment segment consists of financing vehicles and administrators for Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for Systems installed domestically and internationally in our second deployment phase (“Phase II Deployment”). We retain ownership of our Systems and the residual cash flows related to the Systems in Phase I Deployment after the end of the 10-year deployment payment period. For certain Phase II Deployment Systems, we do not retain ownership of the residual cash flows and digital cinema equipment in Phase II Deployment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements. The Cinema Equipment segment also provides monitoring, data collection, serial data verification and management services to this segment, as well as to exhibitors who purchase their own equipment, in order to collect Virtual Print Fees (“VPFs”) from distributors and Alternative Content Fees (“ACFs”) from alternative content providers, and to distribute those fees to theatrical exhibitors (collectively, “Services”). VPFs are earned, net of administrative fees, pursuant to contracts with distributors, whereby amounts are payable by a distributor to Phase I Deployment and to Phase II Deployment when distributor's movies are displayed on screens utilizing our Systems installed in movie theatres. VPFs are earned and payable to us with respect to Phase I Deployment based on a defined fee schedule until the end of the VPF term. One VPF is payable for every digital title initially displayed per System. The amount of VPF revenue is dependent on the number of movie titles released and displayed using the Systems in any given accounting period. VPF revenue is recognized in the period the title first plays for general audience viewing in a digital projector equipped movie theatre. The Phase 1 Deployment’s and Phase 2 Deployment's performance obligations for revenue recognition are met at this time. Phase II Deployment’s agreements with distributors require the payment of VPFs, according to a defined fee schedule, for ten years from the date each system is installed; however, Phase II Deployment may no longer collect VPFs once “cost recoupment,” as defined in the contracts with distributors, is achieved. Cost recoupment will occur once the cumulative VPFs and other cash receipts collected by Phase II Deployment have equaled the total of all cash outflows, including the purchase price of all Systems, all financing costs, all “overhead and ongoing costs”, as defined, and including service fees, subject to maximum agreed upon amounts during the three-year rollout period and thereafter. The Company evaluated the constraining estimates related to the variable consideration and determined that it is not probable to conclude at this point in time that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Under the terms of our standard cinema equipment licensing agreements, exhibitors will continue to have the right to use our Systems through the end of the term of the licensing agreement, after which time, they have the option to: (i) return the Systems to us; (ii) renew their license agreement for successive one-year terms; or (iii) purchase the Systems from us at fair market value. As permitted by these agreements, we typically pursue the sale of the Systems to such exhibitors. Cinedigm recognizes revenue once the customer takes possession of the Systems and Cinedigm receives the sale proceeds. Such sales were originally contemplated as the conclusion of the digital cinema deployment plan. The Cinema Equipment segment earns an administrative fee of approximately 5 % of VPFs collected and, in addition, earns an incentive service fee equal to 2.5 % of the VPFs earned by Phase 1 Deployment. This administrative fee is related to the collection and remittance of the VPF’s and the performance obligation is satisfied at the time the related VPF fees are due which is at the time the movies are displayed on screens utilizing our Systems installed in movie theatres. The service fees are recognized as a point in time revenue when the corresponding VPF fees are due from the distributors. A limited number of systems from our Phase I deployment remain eligible for VPFs from certain distributors where Phase I exhibitors have renewed their term on an annual basis. We continue to pursue system sales for these remaining exhibitors. Our Phase II deployment currently consists of a limited number of exhibitors who purchased their own systems and have not yet reached recoupment or the end of their contractual term. We continue to administer VPFs for these limited systems from certain distributors. During the three and nine months ended December 31, 2022, $ 7.4 million and $ 9.1 million of revenue was recognized that was included in the accounts payable balance as constrained variable consideration at the beginning of the year. The Company recognized the revenue once the uncertainty associated with the variable consideration was resolved. As of December 31, 2022 , approximately $ 1.0 million remains on our balance sheet in accounts payable as constrained variable consideration. Content & Entertainment Segment Content & Entertainment segment earns fees for the distribution of content in the home entertainment markets via several distribution channels, including digital, video on demand (“VOD” or “OTT Streaming and Digital”), and physical goods (e.g., DVDs and Blu-ray Discs) (“Physical Revenue” or “Base Distribution Business”). Fees earned are typically a percentage based on the net amounts received from our customers. Depending upon the nature of the agreements with the platform and content providers, the fee rate that we earn varies. The Company’s performance obligations include the delivery of content for transactional, subscription and ad supported/free ad-supported streaming TV (“FAST”) on the digital platforms, and shipment of DVDs and Blu-ray Discs. Revenue is recognized at the point in time when the content is available for subscription on the digital platform (the Company’s digital content is considered functional IP), at the time of shipment for physical goods, or point-of-sale for transactional and VOD services as the control over the content or the physical title is transferred to the customer. The Company considers the delivery of content through various distribution channels to be a single performance obligation. Revenue from the sale of physical goods is recognized after deducting reserves for sales returns and other allowances. Reserves for potential sales returns of physical goods and other allowances are recorded based upon historical experience. If actual future returns and allowances differ from past experience, adjustments to our allowances may be required. The Content & Entertainment segment also has contracts for the theatrical distribution of third-party feature movies and alternative content. The Content & Entertainment segment’s distribution fee revenue participation in box office receipts are recognized at the time a feature movie and alternative content are viewed. The Content & Entertainment segment has the right to receive or bill a portion of the theatrical distribution fee in advance of the exhibition date, and therefore such amount is recorded as a receivable at the time of execution, and all related distribution revenue is deferred until the third-party feature movie's or alternative content’s theatrical release date. The Company follows the five-step model established by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), Revenue from contracts with customers ("ASC 606") when preparing its assessment of revenue recognition. Principal Agent Considerations Revenue earned by our Content & Entertainment segment from the delivery of digital content and physical goods may be recognized gross or net depending on the terms of the arrangement. We determine whether revenue should be reported on a gross or net basis based on each revenue stream. Key indicators that we use in evaluating gross versus net treatment include, but are not limited to, the following: • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Shipping and Handling Shipping and handling costs are incurred to move physical goods (e.g., DVDs and Blu-ray Discs) to customers. We recognize all shipping and handling costs as an expense in direct operating expenses because we are responsible for delivery of the product to our customers prior to transfer of control to the customer. Credit Losses We maintain reserves for potential credit losses on accounts receivable. We review the composition of accounts receivable and analyze historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. Our Content & Entertainment segment recognizes accounts receivable, net of an estimated allowance for product returns and customer chargebacks, at the time that it recognizes revenue from a sale. Reserves for product returns and other allowances is variable consideration as part of the transaction price. If actual future returns and allowances differ from past experience, adjustments to our allowances may be required. During the three and nine months ended December 31, 2022 and 2021, we did not recognize any credit losses or reversals of previously recorded provisions, and did not have any write-offs charged against the allowance. Contract Liabilities We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue (contract liability) when cash payments are received or due in advance of our performance, even if amounts are refundable. Deferred revenue pertaining to our Content & Entertainment segment includes amounts related to the sale of DVDs with future release dates. Deferred revenue relating to our Cinema & Equipment segment pertains to revenues earned in connection with up front exhibitor contributions that are deferred and recognized over the expected cost recoupment period. It also includes unamortized balances in connection with activation fees due from the Systems deployments that have extended payment terms. The ending deferred revenue balance, including current and non-current balances as of March 31, 2022 and December 31, 2022 was $ 0.2 million and $ 0.4 million , respectively. For the three and nine months ended December 31, 2022, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business. Participations and royalties payable When we use third-parties to distribute company owned content, we record participations payable, which represent amounts owed to the distributor under revenue-sharing arrangements. When we provide content distribution services, we record accounts payable and accrued expenses to studios or content producers for royalties owed under licensing arrangements. We identify and record as a reduction to the liability any expenses that are to be reimbursed to us by such studios or content producers. Concentrations For the three months ended December 31, 2022, Iconic, Distribution Solutions, a division of Alliance Entertainment, Amazon.com, Inc., and Tubi represented 35 % , 16 % , 14 % and 5 % , respectively, of Content & Entertainment segment revenues, and approximately 16 % , 7 % , 14 % and 6 % , respectively, of our consolidated revenues. For the nine months ended December 31, 2022, Iconic, Distribution Solutions, a division of Alliance Entertainment, Amazon.com, Inc., and Tubi, represented 27 % , 19 % , 25 % and 10 % respectively, of Content & Entertainment segment revenues, and approximately 8 % , 5 % , 11 % and 5 % , respectively, of our consolidated revenues. For the three months ended December 31, 2021, Amazon.com, Inc., Distribution Solutions, a division of Alliance Entertainment and Tubi, represented 15 % , 11 % and 7 % , respectively, of Content & Entertainment segment revenues and approximately 13 % , 9 % and 6 % , respectively, of our consolidated revenues. For the nine months ended December 31, 2021, Amazon.com, Inc. Distribution Solutions, a division of Alliance Entertainment and Roku, Inc., represented 24 % , 9 % and 10 % , respectively, of Content & Entertainment segment revenues and approximately 17 % , 6 % and 7 % , respectively, of our consolidated revenues. Direct Operating Costs Direct operating costs consist of cost of revenue, fulfillment expenses, shipping costs, property taxes and insurance on systems, royalty expenses, impairments of advances and marketing and direct personnel costs. Stock-based Compensation The Company issues stock-based awards to employees and non-employees, generally in the form of restricted stock, restricted stock units, stock appreciation rights ("SARs") and performance stock units ("PSUs"). The Company accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments, including grants of stock options and restricted stock units and modifications to existing stock options, to be recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) based on their fair values. The Company measures the compensation expense of employee and nonemployee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. That cost is recognized on a straight-line basis over the period during which the employee and nonemployee is required to provide service in exchange for the award. The fair values of options and SARs are calculated as of the date of grant using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility, risk-free rate and expected term. The Company’s estimates of these assumptions are primarily based on the trading price of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. Forfeitures are recognized as they occur. Income Taxes The Company accounts for income taxes using the asset and |
Other Interests
Other Interests | 9 Months Ended |
Dec. 31, 2022 | |
Disclosure of Other Interests [Abstract] | |
OTHER INTERESTS | 3. OTHER INTERESTS Investment in CDF2 Holdings We indirectly o wn 100 % of the common equity of CDF2 Holdings, LLC (“CDF2 Holdings”), which was created for the purpose of capitalizing on the conversion of the exhibition industry from film to digital technology. CDF2 Holdings assists its customers in procuring the equipment necessary to convert their systems to digital technology by providing financing, equipment, installation and related ongoing services. CDF2 Holdings is a Variable Interest Entity (“VIE”), as defined in ASC Topic 810 (“ASC 810”), Consolidation . ASC 810 requires the consolidation of VIEs by an entity that has a controlling financial interest in the VIE which entity is thereby defined as the primary beneficiary of the VIE. As of December 31, 2022 and March 31, 2022, our maximum exposure to loss, as it relates to the non-consolidated CDF2 Holdings entity, represents accounts receivable for service fees under a master service agreement with CDF2 Holdings. Such accounts receivable was $ 2.1 million and $ 0.8 million as of December 31, 2022 and March 31, 2022, respectively, which are included in accounts receivable, net on the accompanying Condensed Consolidated Balance Sheets. The accompanying Condensed Consolidated Statements of Operations include $ 0.1 million and $ 0.2 million of digital cinema servicing revenue from CDF2 Holdings for the three months ended December 31, 2022 and 2021, respectively. The accompanying Condensed Consolidated Statements of Operations include $ 0.2 million and $ 0.5 million of digital cinema servicing revenue from CDF2 Holdings for the nine months ended December 31, 2022 and 2021, respectively. Total Stockholders’ Deficit of CDF2 Holdings at December 31, 2022 and March 31, 2022 was $ 59.2 million and $ 55.6 million , respectively. We have no obligation to fund the operating loss or the stockholders’ deficit beyond our initial investment of $ 2.0 million and, accordingly, our investment in CDF2 Holdings as of December 31, 2022 and March 31, 2022 is carried at $ 0 . Investment in Roundtable On March 15, 2022, the Company entered into a stock purchase agreement with Roundtable Entertainment Holdings, Inc. (“Roundtable”) pursuant to which the Company purchased 500 shares of Roundtable Series A Preferred Stock and warrants to purchase 100 shares of Roundtable Common Stock (together, the “Roundtable Securities”). The Company funded the purchase of the Roundtable Securities by issuing 316,937 share s of Common Stock to Roundtable. T he Company recorded $ 0.2 million for the purchase of the Securities which is included in other long-term assets on the Condensed Consolidated Balance Sheets. The Roundtable investment was accounted for using the cost method and is included within other long-term assets. |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | 4. STOCKHOLDERS’ EQUITY COMMON STOCK Authorized Common Stock As of December 31, 2022 , the number of shares of Common Stock authorized for issuance was 275,000,000 shares. During the three months ended December 31, 2022, the Company issued 908,383 shares of Common Stock. This is comprised of 224,359 shares in payment of preferred stock dividends and 684,024 restricted shares issued in connection with Board of Director compensation. During the nine months ended December 31, 2022, the Company issued 3,595,895 shares of Common Stock. This is comprised of 510,955 shares in payment of preferred stock dividends, 2,750,903 shares issued on August 18, 2022 in connection with the vesting of grants pursuant to the 2017 Equity Incentive Plan, and 334,037 shares issued in payment of the Bloody Disgusting earnout commitment. During the nine months ended December 31, 2021 , we issued 8,642,648 shares of Common Stock which consist of the sale of shares of our Class A common stock, issuance of Common Stock for business combination, the issuances of Common Stock in payment of preferred stock dividends and in payment of Board of Director retainer fees. PREFERRED STOCK Cumulative dividends in arrears on preferred stock were $ 0.1 million as of December 31, 2022 and 2021. In May, June and November 2022, we paid preferred stock dividends in arrears in the form of 510,955 shares of Class A Common Stock. TREASURY STOCK We have treasury stock, at cost, consisting of 1,315,851 shares of Common Stock at December 31, 2022 and March 31, 2022. EQUITY INCENTIVE PLANS Stock Based Compensation Awards Awards issued under our 2000 Equity Incentive Plan (the “2000 Plan”) may be in any of the following forms (or a combination thereof) (i) stock option awards; (ii) SARs; (iii) stock or restricted stock or restricted stock units; or (iv) performance awards. The 2000 Plan provides for the granting of incentive stock options (“ISOs”) with exercise prices not less than the fair market value of our Common Stock on the date of grant. ISOs granted to shareholders having more than 10 % of the total combined voting power of the Company must have exercise prices of at least 110 % of the fair market value of our Common Stock on the date of grant. ISOs and non-statutory stock options granted under the 2000 Plan are subject to vesting provisions, and exercise is subject to the continuous service of the participant. The exercise prices and vesting periods (if any) for non-statutory options are set at the discretion of our compensation committee. On November 1, 2017, upon the consummation of the initial equity investment in Cinedigm by Bison, as a result of which there was a change of control of the Company, all stock options (incentive and non-statutory) and shares of restricted stock were vested immediately and the options became fully exercisable. In connection with the grants of stock options and shares of restricted stock under the 2000 Plan, we and the participants have executed stock option agreements and notices of restricted stock awards setting forth the terms of the grants. The 2000 Plan provided for the issuance of up to 2,380,000 shares of Common Stock to employees, outside directors and consultants. Options outstanding and exercisable under the 2000 Plan are as follows: As of December 31, 2022: Range of Prices Options Weighted Average Weighted Average Aggregate $ 1.16 - $ 7.40 5,000 2.50 $ 7.40 $ — $ 13.70 - $ 24.40 207,037 0.78 14.63 — 212,037 0.82 $ 14.46 $ — As of March 31, 2022: Range of Prices Options Weighted Average Weighted Average Aggregate $ 7.40 5,000 3.25 $ 7.40 $ — $ 14.00 - $ 24.40 212,337 1.50 14.65 — 217,337 1.54 $ 14.49 $ — In August 2017, the Company adopted the 2017 Equity Incentive Plan (the “2017 Plan). The 2017 Plan replaced the 2000 Plan, and applies to employees and directors of, and consultants to, the Company. The 2017 Plan provides for the issuance of up to 18,098,270 shares of Common Stock, in the form of various awards, including stock options, SARs, restricted stock, restricted stock units, PSUs and cash awards. SARs outstanding under the 2017 Plan are as follows: As of December 31, 2022: Range of Prices SARs Outstanding Weighted Average Weighted Average Aggregate $ 0.33 - $ 0.74 8,650,000 8.61 $ 0.56 $ — $ 1.16 - $ 1.47 2,128,277 6.55 1.39 — $ 1.71 - $ 2.10 2,237,493 8.36 1.92 — $ 2.23 - $ 2.56 455,583 8.81 2.28 — 13,471,353 $ — As of March 31, 2022: Range of Prices SARs Outstanding Weighted Average Weighted Average Aggregate $ 0.54 - $ 0.74 5,550,000 8.74 $ 0.62 $ 1,208 $ 1.16 - $ 1.47 2,283,610 7.90 1.37 — $ 1.71 - $ 2.10 2,455,738 8.91 1.97 — $ 2.23 - $ 2.56 604,250 9.60 2.32 — 10,893,598 $ 1,208 An analysis of all SARs exercisable under the 2017 Plan as of December 31, 2022 is presented below: SARs Exercisable Weighted Average Weighted Average Aggregate 5,448,345 7.75 $ 1.13 $ — Total SARs outstanding are as follows: Nine Months Ended December 31, 2022 SARs Outstanding - March 31, 2022 10,893,598 Issued 3,100,000 Forfeited ( 522,245 ) Total SARs Outstanding - December 31, 2022 13,471,353 The following weighted average assumptions were used to estimate the fair value of SARs granted as follows: Nine Months Ended December 31, 2022 Expected dividend yield — Expected equity volatility 111.89 % Expected term (years) 6.50 Risk-free interest rate 4.49 % Exercise price $ 0.49 Market price per share $ 0.49 Weighted average fair value per SAR $ 0.43 The risk-free rates are based on the implied yield available on U.S. Treasury constant maturities with remaining terms equivalent to the respective expected terms of the options. In addition, the Company has granted PSU awards under the 2017 Plan to employees. These awards vest upon certain performance goals being achieved as of March 31, 2022 and 2023 and can be settled in cash or equity upon vesting. During the three and nine months ended December 31, 2022 , the Company issued 482,628 shares of common stock, net of 199,498 shares withheld to pay taxes, related to the vesting of 682,126 of PSU awards. As of December 31, 2022 , there were 696,280 of PSU awards outstanding that vest as of March 31, 2023 subject to achieving certain performance goals. No additional PSU awards were granted during the three and nine months ended December 31, 2022. During the nine months ended December 31, 2022 , 482,628 shares were issued for vested awards. Employee and director stock-based compensation expense related to our stock-based awards was as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Selling, general and administrative $ 708 $ 1,349 $ 3,906 $ 3,278 There was $ 0.1 million of stock-based compensation expense for the three months ended December 31, 2022 and 2021, respectively, related to the Board. There was $ 0.3 million and $ 0.3 million of stock-based compensation for the nine months ended December 31, 2022 and 2021, respectively, related to Board of Directors compensation. During the nine months ended December 31, 2022, the Company issued 684,024 restricted shares to non-employee directors. Options Granted Outside Cinedigm's Equity Incentive Plan As of March 31, 2022 , there were 12,500 options and 600,000 SARs granted to employees outside of Cinedigm's Equity Incentive Plan. During the three months ended December 31, 2022 , 100,000 SARs were granted as an inducement to a new employee. |
Line of Credit Facility
Line of Credit Facility | 9 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT FACILITY | 5. LINE OF CREDIT FACILITY On September 15, 2022, the Company entered into a Loan, Guaranty, and Security Agreement with EWB. The agreement provided for a Line of Credit Facility of $ 5.0 million , guaranteed by substantially all of our material subsidiaries and secured by substantially all of our and such subsidiaries’ assets. The Line of Credit Facility bears interest at a rate equal to 1.5 % above the prime rate, 9.0 % as of December 31, 2022 . The Line of Credit Facility expires on September 15, 2023 with a one-year extension available at EWB’s discretion. As of December 31, 2022, $ 5.0 million was outstanding on the Line of Credit Facility. Under the Line of Credit Facility, the Company is subject to certain financial and nonfinancial covenants including terms which require the Company to maintain certain metrics and ratios, maintain certain minimum cash on hand, and to report financial information to our lender on a periodic basis. During the three and nine months ended December 31, 2022 the Company had interest expense of $ 0.1 million related to the Line of Credit Facility. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 6. SEGMENT REPORTING We operate in two reportable segments: Cinema Equipment and Content & Entertainment. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Operating Decision Maker ("CODM") to evaluate performance, which is generally the segment’s operating income (loss) before depreciation and amortization. Operations of: Products and services provided: Cinema Equipment Financing vehicles and administrators for 343 Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for 54 Systems installed domestically and internationally in our second deployment phase (“Phase II Deployment”). We retain ownership of the Systems and the residual cash flows related to the Systems in Phase I Deployment after the repayment of all non-recourse debt at the expiration of exhibitor master license agreements. For certain Phase II Deployment Systems, we do not retain ownership of the residual cash flows and digital cinema equipment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements. Provides monitoring, collection, verification and management services as well as to exhibitors who purchase their own equipment, and also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors (collectively, “Services”). Content & Entertainment Leading independent streaming company of content and channels. We collaborate with producers and other content owners to market, source, curate and distribute independent content to targeted and under-served audiences in theatres and homes, and via mobile and emerging platforms. The following tables present certain financial information related to our reportable segments and Corporate (in thousands): As of December 31, 2022 Intangible Goodwill Total Line Cinema Equipment $ — $ — $ 7,977 $ — Content & Entertainment 18,638 21,025 77,118 — Corporate 226 — 9,800 4,867 Total $ 18,864 $ 21,025 $ 94,895 $ 4,867 As of March 31, 2022 Intangible Goodwill Total Line Cinema Equipment $ — $ — $ 24,445 $ — Content & Entertainment 19,946 21,084 68,873 — Corporate 88 — 11,318 — Total $ 20,034 $ 21,084 $ 104,636 $ — Condensed Consolidated Statement of Operations Three Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Revenues $ 7,186 $ 20,696 $ — $ 27,882 Direct operating 89 14,322 — 14,411 Selling, general and administrative 912 3,794 4,401 9,107 Allocation of corporate overhead 88 2,407 ( 2,495 ) — Depreciation and amortization 82 734 108 924 Total operating expenses 1,171 21,257 2,014 24,442 Operating income (loss) $ 6,015 $ ( 561 ) $ ( 2,014 ) $ 3,440 The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Three Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — — 708 708 Total stock-based compensation $ — $ — $ 708 $ 708 Condensed Consolidated Statement of Operations Three Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Revenues $ 2,060 $ 12,024 $ — $ 14,084 Direct operating 139 6,320 — 6,459 Selling, general and administrative 99 3,720 3,539 7,358 Allocation of corporate overhead 143 964 ( 1,107 ) — Depreciation and amortization 196 831 4 1,031 Total operating expenses 577 11,835 2,436 14,848 Operating income (loss) $ 1,483 $ 189 $ ( 2,436 ) $ ( 764 ) The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Three Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — 552 797 1,349 Total stock-based compensation $ — $ 552 $ 797 $ 1,349 Condensed Consolidated Statement of Operations Nine Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Revenues $ 11,218 $ 44,260 $ — $ 55,478 Direct operating 359 29,500 — 29,859 Selling, general and administrative 2,553 11,452 15,011 29,016 Allocation of corporate overhead 284 7,651 ( 7,935 ) — Depreciation and amortization 303 2,282 323 2,908 Total operating expenses 3,499 50,885 7,399 61,783 Operating income (loss) $ 7,719 $ ( 6,625 ) $ ( 7,399 ) $ ( 6,305 ) The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Nine Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — — 3,906 3,906 Total stock-based compensation $ — $ — $ 3,906 $ 3,906 Condensed Consolidated Statement of Operations Nine Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Revenues $ 11,544 $ 27,658 $ — $ 39,202 Direct operating 560 13,863 — 14,423 Selling, general and administrative 856 10,081 9,583 20,520 Allocation of corporate overhead 412 2,763 ( 3,175 ) — Depreciation and amortization 1,001 2,658 4 3,663 Total operating expenses 2,829 29,365 6,412 38,606 Operating income (loss) $ 8,715 $ ( 1,707 ) $ ( 6,412 ) $ 596 The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Nine Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — 1,063 2,215 3,278 Total stock-based compensation $ — $ 1,063 $ 2,215 $ 3,278 |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES We calculate income tax expense upon an annual effective tax rate forecast, including estimates and assumptions. We recorded an income tax benefit (expense) of $ 0.0 million for the three and nine months ended December 31, 2022. We recorded an income tax benefit of approximately $ 0.0 million and $ 0.6 million for the three and nine months ended December 31, 2021, respectively. We have not recorded tax benefits on our loss before income taxes because we have provided for a full valuation allowance that offsets potential deferred tax assets resulting from net operating loss carry forwards, reflecting our inability to use such loss carry forwards. Our effective tax rate for the three months ended December 31, 2022 and 2021 was 0 % and 4 %, respectively. Our effective tax rate for the nine months ended December 31, 2022 and 2021 was 0 % and ( 14 %) , respectively. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation expense is recorded using the straight-line method over the estimated useful lives of the respective assets as follows: Computer equipment and software 3 - 5 years Digital cinema projection systems 10 years Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 6 years Internal-Use Software 5 years We capitalize costs associated with software developed or obtained for internal use when the preliminary project stage is completed, and it is determined that the software will provide significantly enhanced capabilities and modifications. These capitalized costs are included in property and equipment, net and include external direct cost of services procured in developing or obtaining internal-use software and personnel and related expenses for employees who are directly associated with, and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended use. Once the software is ready for its intended use, the costs are amortized over the useful life of the software. Post-configuration training and maintenance costs are expensed as incurred. We amortize internal-use software over its estimated useful life on a straight-line basis. |
Impairment of Long-lived and Finite-lived Assets | Impairment of Long-lived and Finite-lived Assets We review the recoverability of our long-lived assets and finite-lived intangible assets, when events or conditions occur that indicate a possible impairment exists. The assessment for recoverability is based primarily on our ability to recover the carrying value of our long-lived and finite-lived assets from expected future undiscounted net cash flows. If the total of expected future undiscounted net cash flows is less than the total carrying value of the asset, the asset is deemed not to be recoverable and possibly impaired. We then estimate the fair value of the asset to determine whether an impairment loss should be recognized. An impairment loss will be recognized if the asset’s fair value is determined to be less than its carrying value. Fair value is determined by computing the expected future discounted cash flows. During the nine months ended December 31, 2022 and 2021 , no impairment charges were recorded from operations for long-lived assets or finite-lived assets. |
Intangible Assets, Net | Intangible Assets, Net Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives, the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets with indefinite lives, the assets are tested annually for impairment or sooner if a triggering event occurs. Amortization lives of intangible assets are as follows: Content Library 3 – 20 years Advertiser Relationships and Channel 3 – 13 years Customer Relationships 5 – 13 years Software 10 years Trademarks and Tradenames 2 – 15 years Supplier Agreements 2 years The Company’s intangible assets included the following (in thousands): As of December 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 21,038 ) $ — $ 2,647 Advertiser Relationships and Channel 11,104 ( 759 ) — 10,345 Customer Relationships 10,658 ( 7,531 ) ( 1,968 ) 1,159 Software 3,200 ( 480 ) — 2,720 Trademark and Tradenames 4,026 ( 2,033 ) — 1,993 Total Intangible Assets $ 52,673 $ ( 31,841 ) $ ( 1,968 ) $ 18,864 As of March 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 20,665 ) $ — $ 3,020 Advertiser Relationships and Channel 10,081 ( 161 ) — 9,920 Customer Relationships 10,658 ( 7,327 ) ( 1,968 ) 1,363 Software 3,200 ( 240 ) — 2,960 Trademark and Tradenames 4,026 ( 1,301 ) — 2,725 Supplier Agreements 11,430 ( 11,384 ) — 46 Total Intangible Assets $ 63,080 $ ( 41,078 ) $ ( 1,968 ) $ 20,034 During the nine months ended December 31, 2022 and 2021, no impairment charge was recorded for intangible assets. During the three and nine months ended December 31, 2022, the Company had amortization expense of $ 0.7 million and $ 2.2 million , respectively. During the three and nine months ended December 31, 2021, the Company had amortization expense of $ 0.7 million and $ 2.2 million , respectively. During the three months ended December 31, 2022 , the Company entered into a non-monetary transaction for the purchase and sale of content licenses with an unrelated third-party. The fair value of the content licenses sold was determined to be $ 1.0 million which is included in Revenues in our Condensed Consolidated Statement of Operations for the three months ended December 31, 2022 . The fair value of the content licenses purchased was determined to be $ 1.0 million and is recognized in Intangible Assets, Net on our Condensed Consolidated Balance Sheet as of December 31, 2022. As of December 31, 2022, amortization expense is expected to be (in thousands): Total Remainder of fiscal year 2023 $ 1,252 2024 3,343 2025 2,137 2026 1,745 2027 1,269 Thereafter 9,118 $ 18,864 |
Goodwill | Goodwill Goodwill is the excess of the purchase price paid over the fair value of the net assets of an acquired business. Goodwill is tested for impairment on an annual basis or more often if warranted by events or changes in circumstances indicating that the carrying value may exceed fair value, also known as impairment indicators. Inherent in the fair value determination for each reporting unit are certain judgments and estimates relating to future cash flows, including management’s interpretation of current economic indicators and market conditions, and assumptions about our strategic plans with regard to its operations. To the extent additional information arises, market conditions change, or our strategies change, it is possible that the conclusion regarding whether our remaining goodwill is impaired could change and result in future goodwill impairment charges that will have a material effect on our consolidated financial position or results of operations. The Company has the option to assess goodwill for possible impairment by performing a qualitative analysis to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount or to perform the quantitative impairment test. The Company reassessed goodwill impairment on its annual measurement date of March 31, 2022 by performing a qualitative analysis and determined that it was not more likely than not that the fair value of its reporting unit is less than its carrying amount. No goodwill impairment charge was recorded in the three and nine months ended December 31, 2022 and 2021 . |
Fair Value Measurements | Fair Value Measurements The fair value measurement disclosures are grouped into three levels based on valuation factors: • Level 1 – quoted prices in active markets for identical investments • Level 2 – other significant observable inputs (including quoted prices for similar investments and market corroborated inputs) • Level 3 – significant unobservable inputs (including our own assumptions in determining the fair value of investments) The following tables summarize the levels of fair value measurements of our financial assets and liabilities (in thousands): As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ — $ — $ 5,200 $ 5,200 $ — $ — $ 5,200 $ 5,200 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 768 $ 768 Long-term portion of earnout consideration on purchase of a business — — 676 676 $ — $ — $ 1,444 $ 1,444 As of March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ 7,028 $ — $ — $ 7,028 $ 7,028 $ — $ — $ 7,028 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 1,081 $ 1,081 Long-term portion of earnout consideration on purchase of a business — — 603 603 $ — $ — $ 1,684 $ 1,684 The Company's equity investment in A Metaverse Company ("Metaverse") is in Hong Kong dollars and was translated into US dollars as of December 31, 2022 and March 31, 2022 at an exchange rate of 7.8 Hong Kong Dollars to 1 US Dollar. The fair value of this equity investment was measured by the quoted market price of Metaverse on the Stock Exchange of Hong Kong (SEHK: 1616) as of March 31, 2022. On April 1, 2022, trading of Metaverse’s ordinary shares was halted on the Hong Kong Stock Exchange. As of December 31, 2022, Metaverse’s stock valuation is based on an independent valuation based on the market approach and is categorized as Level 3 based on unobservable inputs. The Company estimated the fair value based on the market approach based on the last known enterprise value adjusting for trends in value from comparable companies. The adjustment to fair value of this investment resulted in a loss of $ 1.8 million and gain of $ 1.5 million for the nine months ended December 31, 2022 and 2021, respectively. As the value of the investment in Metaverse is determined based on unobservable inputs, company and industry fluctuations, as well as general economic, political, regulatory and market conditions such as recessions, interest rate changes or international currency fluctuations, changes to these assumptions may have a significant impact on the fair value of our investment in Metaverse. Our cash and cash equivalents, accounts receivable, unbilled revenue, accounts payable and accrued expenses are financial instruments and are recorded at cost in the Condensed Consolidated Balance Sheets. The estimated fair values of these financial instruments approximate their carrying amounts because of their short-term nature. |
Prepaid and Other Current Assets | Prepaid and Other Current Assets Prepaid and other current assets consisted of the following (in thousands): As of December 31, March 31, Advances $ 3,244 $ 2,117 Due from producers 1,549 1,861 Other receivables 1,134 826 Inventory 209 116 Other prepaid expenses 1,167 989 Total prepaid and other current assets $ 7,303 $ 5,909 Advances represent amounts prepaid to studios or content producers for which we provide content distribution services. We evaluate advances regularly for recoverability and record impairment charges for amounts that we expect may not be recoverable. Impairments related to advances were $ 1.0 million and $ 0.4 million for the three months ended December 31, 2022 and 2021, respectively. Impairments related to advances were $ 1.6 million and $ 0.8 million for the nine months ended December 31, 2022 and 2021 , respectively. |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following (in thousands): As of December 31, March 31, Accounts payable $ 17,720 $ 34,177 Amounts due to producers 15,967 10,430 Accrued compensation and benefits 3,390 3,507 Accrued other expenses 3,642 3,911 Total accounts payable and accrued expenses $ 40,719 $ 52,025 |
Revenue Recognition | Revenue Recognition Payment terms and conditions vary by customer and typically provide net 30 to 90 day terms. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. We have in the past entered into arrangements in connection with activation fees due from our System deployments that had extended payment terms. The outstanding balances on these arrangements are insignificant and hence the impact of significant financing would be insignificant. The following tables present the Company’s disaggregated revenue by segment and source (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cinema Equipment: Deployment $ 7,458 $ 220 $ 9,340 $ 1,263 Services ( 316 ) 506 ( 88 ) 1,171 Digital system sales 44 1,334 1,966 9,110 Total Cinema Equipment revenue $ 7,186 $ 2,060 $ 11,218 $ 11,544 Content & Entertainment: Base distribution business $ 8,121 $ 3,668 $ 11,145 $ 6,368 OTT streaming and digital 12,575 8,356 33,115 21,290 Total Content & Entertainment revenue $ 20,696 $ 12,024 $ 44,260 $ 27,658 Total revenue $ 27,882 $ 14,084 $ 55,478 $ 39,202 Cinema Equipment Segment Our Cinema Equipment segment consists of financing vehicles and administrators for Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for Systems installed domestically and internationally in our second deployment phase (“Phase II Deployment”). We retain ownership of our Systems and the residual cash flows related to the Systems in Phase I Deployment after the end of the 10-year deployment payment period. For certain Phase II Deployment Systems, we do not retain ownership of the residual cash flows and digital cinema equipment in Phase II Deployment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements. The Cinema Equipment segment also provides monitoring, data collection, serial data verification and management services to this segment, as well as to exhibitors who purchase their own equipment, in order to collect Virtual Print Fees (“VPFs”) from distributors and Alternative Content Fees (“ACFs”) from alternative content providers, and to distribute those fees to theatrical exhibitors (collectively, “Services”). VPFs are earned, net of administrative fees, pursuant to contracts with distributors, whereby amounts are payable by a distributor to Phase I Deployment and to Phase II Deployment when distributor's movies are displayed on screens utilizing our Systems installed in movie theatres. VPFs are earned and payable to us with respect to Phase I Deployment based on a defined fee schedule until the end of the VPF term. One VPF is payable for every digital title initially displayed per System. The amount of VPF revenue is dependent on the number of movie titles released and displayed using the Systems in any given accounting period. VPF revenue is recognized in the period the title first plays for general audience viewing in a digital projector equipped movie theatre. The Phase 1 Deployment’s and Phase 2 Deployment's performance obligations for revenue recognition are met at this time. Phase II Deployment’s agreements with distributors require the payment of VPFs, according to a defined fee schedule, for ten years from the date each system is installed; however, Phase II Deployment may no longer collect VPFs once “cost recoupment,” as defined in the contracts with distributors, is achieved. Cost recoupment will occur once the cumulative VPFs and other cash receipts collected by Phase II Deployment have equaled the total of all cash outflows, including the purchase price of all Systems, all financing costs, all “overhead and ongoing costs”, as defined, and including service fees, subject to maximum agreed upon amounts during the three-year rollout period and thereafter. The Company evaluated the constraining estimates related to the variable consideration and determined that it is not probable to conclude at this point in time that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. Under the terms of our standard cinema equipment licensing agreements, exhibitors will continue to have the right to use our Systems through the end of the term of the licensing agreement, after which time, they have the option to: (i) return the Systems to us; (ii) renew their license agreement for successive one-year terms; or (iii) purchase the Systems from us at fair market value. As permitted by these agreements, we typically pursue the sale of the Systems to such exhibitors. Cinedigm recognizes revenue once the customer takes possession of the Systems and Cinedigm receives the sale proceeds. Such sales were originally contemplated as the conclusion of the digital cinema deployment plan. The Cinema Equipment segment earns an administrative fee of approximately 5 % of VPFs collected and, in addition, earns an incentive service fee equal to 2.5 % of the VPFs earned by Phase 1 Deployment. This administrative fee is related to the collection and remittance of the VPF’s and the performance obligation is satisfied at the time the related VPF fees are due which is at the time the movies are displayed on screens utilizing our Systems installed in movie theatres. The service fees are recognized as a point in time revenue when the corresponding VPF fees are due from the distributors. A limited number of systems from our Phase I deployment remain eligible for VPFs from certain distributors where Phase I exhibitors have renewed their term on an annual basis. We continue to pursue system sales for these remaining exhibitors. Our Phase II deployment currently consists of a limited number of exhibitors who purchased their own systems and have not yet reached recoupment or the end of their contractual term. We continue to administer VPFs for these limited systems from certain distributors. During the three and nine months ended December 31, 2022, $ 7.4 million and $ 9.1 million of revenue was recognized that was included in the accounts payable balance as constrained variable consideration at the beginning of the year. The Company recognized the revenue once the uncertainty associated with the variable consideration was resolved. As of December 31, 2022 , approximately $ 1.0 million remains on our balance sheet in accounts payable as constrained variable consideration. Content & Entertainment Segment Content & Entertainment segment earns fees for the distribution of content in the home entertainment markets via several distribution channels, including digital, video on demand (“VOD” or “OTT Streaming and Digital”), and physical goods (e.g., DVDs and Blu-ray Discs) (“Physical Revenue” or “Base Distribution Business”). Fees earned are typically a percentage based on the net amounts received from our customers. Depending upon the nature of the agreements with the platform and content providers, the fee rate that we earn varies. The Company’s performance obligations include the delivery of content for transactional, subscription and ad supported/free ad-supported streaming TV (“FAST”) on the digital platforms, and shipment of DVDs and Blu-ray Discs. Revenue is recognized at the point in time when the content is available for subscription on the digital platform (the Company’s digital content is considered functional IP), at the time of shipment for physical goods, or point-of-sale for transactional and VOD services as the control over the content or the physical title is transferred to the customer. The Company considers the delivery of content through various distribution channels to be a single performance obligation. Revenue from the sale of physical goods is recognized after deducting reserves for sales returns and other allowances. Reserves for potential sales returns of physical goods and other allowances are recorded based upon historical experience. If actual future returns and allowances differ from past experience, adjustments to our allowances may be required. The Content & Entertainment segment also has contracts for the theatrical distribution of third-party feature movies and alternative content. The Content & Entertainment segment’s distribution fee revenue participation in box office receipts are recognized at the time a feature movie and alternative content are viewed. The Content & Entertainment segment has the right to receive or bill a portion of the theatrical distribution fee in advance of the exhibition date, and therefore such amount is recorded as a receivable at the time of execution, and all related distribution revenue is deferred until the third-party feature movie's or alternative content’s theatrical release date. The Company follows the five-step model established by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), Revenue from contracts with customers ("ASC 606") when preparing its assessment of revenue recognition. Principal Agent Considerations Revenue earned by our Content & Entertainment segment from the delivery of digital content and physical goods may be recognized gross or net depending on the terms of the arrangement. We determine whether revenue should be reported on a gross or net basis based on each revenue stream. Key indicators that we use in evaluating gross versus net treatment include, but are not limited to, the following: • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Shipping and Handling Shipping and handling costs are incurred to move physical goods (e.g., DVDs and Blu-ray Discs) to customers. We recognize all shipping and handling costs as an expense in direct operating expenses because we are responsible for delivery of the product to our customers prior to transfer of control to the customer. Credit Losses We maintain reserves for potential credit losses on accounts receivable. We review the composition of accounts receivable and analyze historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. Our Content & Entertainment segment recognizes accounts receivable, net of an estimated allowance for product returns and customer chargebacks, at the time that it recognizes revenue from a sale. Reserves for product returns and other allowances is variable consideration as part of the transaction price. If actual future returns and allowances differ from past experience, adjustments to our allowances may be required. During the three and nine months ended December 31, 2022 and 2021, we did not recognize any credit losses or reversals of previously recorded provisions, and did not have any write-offs charged against the allowance. Contract Liabilities We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue (contract liability) when cash payments are received or due in advance of our performance, even if amounts are refundable. Deferred revenue pertaining to our Content & Entertainment segment includes amounts related to the sale of DVDs with future release dates. Deferred revenue relating to our Cinema & Equipment segment pertains to revenues earned in connection with up front exhibitor contributions that are deferred and recognized over the expected cost recoupment period. It also includes unamortized balances in connection with activation fees due from the Systems deployments that have extended payment terms. The ending deferred revenue balance, including current and non-current balances as of March 31, 2022 and December 31, 2022 was $ 0.2 million and $ 0.4 million , respectively. For the three and nine months ended December 31, 2022, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business. Participations and royalties payable When we use third-parties to distribute company owned content, we record participations payable, which represent amounts owed to the distributor under revenue-sharing arrangements. When we provide content distribution services, we record accounts payable and accrued expenses to studios or content producers for royalties owed under licensing arrangements. We identify and record as a reduction to the liability any expenses that are to be reimbursed to us by such studios or content producers. Concentrations For the three months ended December 31, 2022, Iconic, Distribution Solutions, a division of Alliance Entertainment, Amazon.com, Inc., and Tubi represented 35 % , 16 % , 14 % and 5 % , respectively, of Content & Entertainment segment revenues, and approximately 16 % , 7 % , 14 % and 6 % , respectively, of our consolidated revenues. For the nine months ended December 31, 2022, Iconic, Distribution Solutions, a division of Alliance Entertainment, Amazon.com, Inc., and Tubi, represented 27 % , 19 % , 25 % and 10 % respectively, of Content & Entertainment segment revenues, and approximately 8 % , 5 % , 11 % and 5 % , respectively, of our consolidated revenues. For the three months ended December 31, 2021, Amazon.com, Inc., Distribution Solutions, a division of Alliance Entertainment and Tubi, represented 15 % , 11 % and 7 % , respectively, of Content & Entertainment segment revenues and approximately 13 % , 9 % and 6 % , respectively, of our consolidated revenues. For the nine months ended December 31, 2021, Amazon.com, Inc. Distribution Solutions, a division of Alliance Entertainment and Roku, Inc., represented 24 % , 9 % and 10 % , respectively, of Content & Entertainment segment revenues and approximately 17 % , 6 % and 7 % , respectively, of our consolidated revenues. |
Direct Operating Costs | Direct Operating Costs Direct operating costs consist of cost of revenue, fulfillment expenses, shipping costs, property taxes and insurance on systems, royalty expenses, impairments of advances and marketing and direct personnel costs. |
Stock-based Compensation | Stock-based Compensation The Company issues stock-based awards to employees and non-employees, generally in the form of restricted stock, restricted stock units, stock appreciation rights ("SARs") and performance stock units ("PSUs"). The Company accounts for its stock-based compensation awards in accordance with FASB ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). ASC 718 requires all stock-based payments, including grants of stock options and restricted stock units and modifications to existing stock options, to be recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) based on their fair values. The Company measures the compensation expense of employee and nonemployee services received in exchange for an award of equity instruments based on the fair value of the award on the grant date. That cost is recognized on a straight-line basis over the period during which the employee and nonemployee is required to provide service in exchange for the award. The fair values of options and SARs are calculated as of the date of grant using the Black-Scholes option pricing model based on key assumptions such as stock price, expected volatility, risk-free rate and expected term. The Company’s estimates of these assumptions are primarily based on the trading price of the Company’s stock, historical data, peer company data and judgment regarding future trends and factors. Forfeitures are recognized as they occur. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss and tax credit carryforwards and for differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Valuation allowances are established when management is unable to conclude that it is more likely than not that some portion, or all, of the deferred tax asset will ultimately be realized. The Company is primarily subject to income taxes in the United States. The Company accounts for uncertain tax positions in accordance with an amendment to ASC Topic 740-10, Income Taxes (Accounting for Uncertainty in Income Taxes) , which clarified the accounting for uncertainty in tax positions. This amendment provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if the position is “more-likely-than-not” to be sustained were it to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. If an uncertain tax position meets the “more-likely-than-not” threshold, the largest amount of tax benefit that is more than 50% likely to be recognized upon ultimate settlement with the taxing authority is recorded. The Company has no uncertain tax positions as of December 31, 2022 . |
Earnings per Share | Earnings per Share Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include stock options and warrants outstanding during the period, using the treasury stock method. Potentially dilutive common shares are excluded from the computations of diluted income (loss) per share if their effect would be anti-dilutive. A net loss available to common stockholders causes all potentially dilutive securities to be anti-dilutive and are not included. Basic and diluted net income (loss) per share are computed as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Basic net income (loss) per share: Net income (loss) attributable to common stockholders $ 4,926 $ ( 474 ) $ ( 6,919 ) 4,351 Shares used in basic computation: Weighted-average shares of common stock outstanding 178,899,605 173,167,450 177,077,803 169,413,873 Basic net income (loss) per share $ 0.03 $ ( 0.00 ) $ ( 0.04 ) $ 0.03 Shares used in diluted computation: Weighted-average shares of common stock outstanding 178,899,605 173,167,450 177,077,803 169,413,873 Stock options and SARs — — — 3,603,491 Weighted-average number of shares 178,899,605 173,167,450 177,077,803 173,017,364 Diluted net income (loss) per share $ 0.03 $ ( 0.00 ) $ ( 0.04 ) $ 0.03 The following table summarizes the potential shares of common stock excluded from the diluted calculation (in thousands): Three Months Ended Nine Months Ended SARs 13,471,351 12,787,403 Stock options 12,500 12,500 13,483,851 12,799,903 For the three and nine months ended December 31, 2021, 12,088,473 and 8,484,982 , respectively, potentially dilutive shares have been excluded from the diluted loss per share as their impact would have been antidilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU provide temporary, optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The ASU primarily includes relief related to contract modifications and hedging relationships, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance is effective immediately and the amendments were originally to be applied prospectively through December 31, 2022. However, the FASB issued ASU 2022-06, deferring the sunset date to December 31, 2024. The adoption of this ASU is not expected to have a material impact on the Company's Condensed Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815) . The amendments in this ASU clarify the guidance on ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance establishes the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible and renames that method the "portfolio layer" method. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We do not expect the amendments to have a material effect on our Condensed Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) . The amendments in this ASU eliminate the guidance on troubled debt restructurings while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulties. The ASU also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We do not expect the amendments to have a material effect on our Condensed Consolidated Financial Statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of property and equipment, net | Computer equipment and software 3 - 5 years Digital cinema projection systems 10 years Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 6 years Internal-Use Software 5 years |
Schedule of amortization expense | Content Library 3 – 20 years Advertiser Relationships and Channel 3 – 13 years Customer Relationships 5 – 13 years Software 10 years Trademarks and Tradenames 2 – 15 years Supplier Agreements 2 years |
Schedule of intangible assets | As of December 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 21,038 ) $ — $ 2,647 Advertiser Relationships and Channel 11,104 ( 759 ) — 10,345 Customer Relationships 10,658 ( 7,531 ) ( 1,968 ) 1,159 Software 3,200 ( 480 ) — 2,720 Trademark and Tradenames 4,026 ( 2,033 ) — 1,993 Total Intangible Assets $ 52,673 $ ( 31,841 ) $ ( 1,968 ) $ 18,864 As of March 31, 2022 Cost Basis Accumulated Impairment Net Content Library $ 23,685 $ ( 20,665 ) $ — $ 3,020 Advertiser Relationships and Channel 10,081 ( 161 ) — 9,920 Customer Relationships 10,658 ( 7,327 ) ( 1,968 ) 1,363 Software 3,200 ( 240 ) — 2,960 Trademark and Tradenames 4,026 ( 1,301 ) — 2,725 Supplier Agreements 11,430 ( 11,384 ) — 46 Total Intangible Assets $ 63,080 $ ( 41,078 ) $ ( 1,968 ) $ 20,034 |
Schedule of amortization expense for intangible assets | Total Remainder of fiscal year 2023 $ 1,252 2024 3,343 2025 2,137 2026 1,745 2027 1,269 Thereafter 9,118 $ 18,864 |
Schedule of fair value measurements of our financial assets and liabilities | As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ — $ — $ 5,200 $ 5,200 $ — $ — $ 5,200 $ 5,200 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 768 $ 768 Long-term portion of earnout consideration on purchase of a business — — 676 676 $ — $ — $ 1,444 $ 1,444 As of March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Equity investment in Metaverse, at fair value $ 7,028 $ — $ — $ 7,028 $ 7,028 $ — $ — $ 7,028 Liabilities: Current portion of earnout consideration on purchase of a business $ — $ — $ 1,081 $ 1,081 Long-term portion of earnout consideration on purchase of a business — — 603 603 $ — $ — $ 1,684 $ 1,684 |
Schedule of prepaid and other current assets | As of December 31, March 31, Advances $ 3,244 $ 2,117 Due from producers 1,549 1,861 Other receivables 1,134 826 Inventory 209 116 Other prepaid expenses 1,167 989 Total prepaid and other current assets $ 7,303 $ 5,909 |
Schedule of accounts payable and accrued expenses | As of December 31, March 31, Accounts payable $ 17,720 $ 34,177 Amounts due to producers 15,967 10,430 Accrued compensation and benefits 3,390 3,507 Accrued other expenses 3,642 3,911 Total accounts payable and accrued expenses $ 40,719 $ 52,025 |
Schedule of revenue disaggregation | The following tables present the Company’s disaggregated revenue by segment and source (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Cinema Equipment: Deployment $ 7,458 $ 220 $ 9,340 $ 1,263 Services ( 316 ) 506 ( 88 ) 1,171 Digital system sales 44 1,334 1,966 9,110 Total Cinema Equipment revenue $ 7,186 $ 2,060 $ 11,218 $ 11,544 Content & Entertainment: Base distribution business $ 8,121 $ 3,668 $ 11,145 $ 6,368 OTT streaming and digital 12,575 8,356 33,115 21,290 Total Content & Entertainment revenue $ 20,696 $ 12,024 $ 44,260 $ 27,658 Total revenue $ 27,882 $ 14,084 $ 55,478 $ 39,202 |
Schedule of basic and diluted net income (loss) per share | Basic and diluted net income (loss) per share are computed as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Basic net income (loss) per share: Net income (loss) attributable to common stockholders $ 4,926 $ ( 474 ) $ ( 6,919 ) 4,351 Shares used in basic computation: Weighted-average shares of common stock outstanding 178,899,605 173,167,450 177,077,803 169,413,873 Basic net income (loss) per share $ 0.03 $ ( 0.00 ) $ ( 0.04 ) $ 0.03 Shares used in diluted computation: Weighted-average shares of common stock outstanding 178,899,605 173,167,450 177,077,803 169,413,873 Stock options and SARs — — — 3,603,491 Weighted-average number of shares 178,899,605 173,167,450 177,077,803 173,017,364 Diluted net income (loss) per share $ 0.03 $ ( 0.00 ) $ ( 0.04 ) $ 0.03 |
Schedule of potential shares of common stock | The following table summarizes the potential shares of common stock excluded from the diluted calculation (in thousands): Three Months Ended Nine Months Ended SARs 13,471,351 12,787,403 Stock options 12,500 12,500 13,483,851 12,799,903 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of analysis of option activity | Options outstanding and exercisable under the 2000 Plan are as follows: As of December 31, 2022: Range of Prices Options Weighted Average Weighted Average Aggregate $ 1.16 - $ 7.40 5,000 2.50 $ 7.40 $ — $ 13.70 - $ 24.40 207,037 0.78 14.63 — 212,037 0.82 $ 14.46 $ — As of March 31, 2022: Range of Prices Options Weighted Average Weighted Average Aggregate $ 7.40 5,000 3.25 $ 7.40 $ — $ 14.00 - $ 24.40 212,337 1.50 14.65 — 217,337 1.54 $ 14.49 $ — |
Schedule of stock appreciation rights outstanding | As of December 31, 2022: Range of Prices SARs Outstanding Weighted Average Weighted Average Aggregate $ 0.33 - $ 0.74 8,650,000 8.61 $ 0.56 $ — $ 1.16 - $ 1.47 2,128,277 6.55 1.39 — $ 1.71 - $ 2.10 2,237,493 8.36 1.92 — $ 2.23 - $ 2.56 455,583 8.81 2.28 — 13,471,353 $ — As of March 31, 2022: Range of Prices SARs Outstanding Weighted Average Weighted Average Aggregate $ 0.54 - $ 0.74 5,550,000 8.74 $ 0.62 $ 1,208 $ 1.16 - $ 1.47 2,283,610 7.90 1.37 — $ 1.71 - $ 2.10 2,455,738 8.91 1.97 — $ 2.23 - $ 2.56 604,250 9.60 2.32 — 10,893,598 $ 1,208 An analysis of all SARs exercisable under the 2017 Plan as of December 31, 2022 is presented below: SARs Exercisable Weighted Average Weighted Average Aggregate 5,448,345 7.75 $ 1.13 $ — |
Schedule of SARs outstanding | Nine Months Ended December 31, 2022 SARs Outstanding - March 31, 2022 10,893,598 Issued 3,100,000 Forfeited ( 522,245 ) Total SARs Outstanding - December 31, 2022 13,471,353 |
Schedule of weighted average assumptions used to estimate fair value of SARs | The following weighted average assumptions were used to estimate the fair value of SARs granted as follows: Nine Months Ended December 31, 2022 Expected dividend yield — Expected equity volatility 111.89 % Expected term (years) 6.50 Risk-free interest rate 4.49 % Exercise price $ 0.49 Market price per share $ 0.49 Weighted average fair value per SAR $ 0.43 |
Schedule of stock-based compensation expense | Three Months Ended Nine Months Ended 2022 2021 2022 2021 Selling, general and administrative $ 708 $ 1,349 $ 3,906 $ 3,278 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of reportable segments and corporate | The following tables present certain financial information related to our reportable segments and Corporate (in thousands): As of December 31, 2022 Intangible Goodwill Total Line Cinema Equipment $ — $ — $ 7,977 $ — Content & Entertainment 18,638 21,025 77,118 — Corporate 226 — 9,800 4,867 Total $ 18,864 $ 21,025 $ 94,895 $ 4,867 As of March 31, 2022 Intangible Goodwill Total Line Cinema Equipment $ — $ — $ 24,445 $ — Content & Entertainment 19,946 21,084 68,873 — Corporate 88 — 11,318 — Total $ 20,034 $ 21,084 $ 104,636 $ — |
Schedule of Condensed Consolidated Statement of Operations | Condensed Consolidated Statement of Operations Three Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Revenues $ 7,186 $ 20,696 $ — $ 27,882 Direct operating 89 14,322 — 14,411 Selling, general and administrative 912 3,794 4,401 9,107 Allocation of corporate overhead 88 2,407 ( 2,495 ) — Depreciation and amortization 82 734 108 924 Total operating expenses 1,171 21,257 2,014 24,442 Operating income (loss) $ 6,015 $ ( 561 ) $ ( 2,014 ) $ 3,440 Condensed Consolidated Statement of Operations Three Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Revenues $ 2,060 $ 12,024 $ — $ 14,084 Direct operating 139 6,320 — 6,459 Selling, general and administrative 99 3,720 3,539 7,358 Allocation of corporate overhead 143 964 ( 1,107 ) — Depreciation and amortization 196 831 4 1,031 Total operating expenses 577 11,835 2,436 14,848 Operating income (loss) $ 1,483 $ 189 $ ( 2,436 ) $ ( 764 ) Condensed Consolidated Statement of Operations Nine Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Revenues $ 11,218 $ 44,260 $ — $ 55,478 Direct operating 359 29,500 — 29,859 Selling, general and administrative 2,553 11,452 15,011 29,016 Allocation of corporate overhead 284 7,651 ( 7,935 ) — Depreciation and amortization 303 2,282 323 2,908 Total operating expenses 3,499 50,885 7,399 61,783 Operating income (loss) $ 7,719 $ ( 6,625 ) $ ( 7,399 ) $ ( 6,305 ) Condensed Consolidated Statement of Operations Nine Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Revenues $ 11,544 $ 27,658 $ — $ 39,202 Direct operating 560 13,863 — 14,423 Selling, general and administrative 856 10,081 9,583 20,520 Allocation of corporate overhead 412 2,763 ( 3,175 ) — Depreciation and amortization 1,001 2,658 4 3,663 Total operating expenses 2,829 29,365 6,412 38,606 Operating income (loss) $ 8,715 $ ( 1,707 ) $ ( 6,412 ) $ 596 |
Schedule of employee and director stock-based compensation expense related to our stock-based awards | The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Three Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — — 708 708 Total stock-based compensation $ — $ — $ 708 $ 708 The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Three Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — 552 797 1,349 Total stock-based compensation $ — $ 552 $ 797 $ 1,349 The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Nine Months Ended December 31, 2022 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — — 3,906 3,906 Total stock-based compensation $ — $ — $ 3,906 $ 3,906 The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows (in thousands): Nine Months Ended December 31, 2021 Cinema Content & Entertainment Corporate Consolidated Direct operating $ — $ — $ — $ — Selling, general and administrative — 1,063 2,215 3,278 Total stock-based compensation $ — $ 1,063 $ 2,215 $ 3,278 |
Nature of Operations and Liqu_2
Nature of Operations and Liquidity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 15, 2022 | Mar. 31, 2022 | |
Nature of Operations and Liquidity [Abstract] | ||||||
Nature of operations and liquidity, description | (i) a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to thousands of titles and episodes released across digital, physical, theatrical, home and mobile entertainment platforms (“Streaming”) and (ii) a servicer of digital cinema assets for movie screens in both North America and several international countries. | |||||
Accumulated deficit | $ 479,200 | $ 479,200 | ||||
Working capital | 4,500 | 4,500 | ||||
Net income (loss) attributable to common shareholders | 4,926 | $ (474) | (6,919) | $ 4,351 | ||
Net cash used by operating activities | 7,900 | |||||
Out standing line of credit facility | 4,867 | $ 4,867 | ||||
Revolving Credit Facility [Member] | East West Bank [Member] | ||||||
Nature of Operations and Liquidity [Abstract] | ||||||
Line of credit facility interest rate description | The Line of Credit Facility bears interest at a rate equal to 1.5% above the prime rate, 9.0% as of December 31, 2022. | |||||
Credit facility expiration date | Sep. 15, 2023 | |||||
Revolving line of credit | 5,000 | $ 5,000 | $ 5,000 | |||
Out standing line of credit facility | $ 5,000 | $ 5,000 | ||||
Debt instrument maturity date extension period | 1 year | |||||
Revolving Credit Facility [Member] | Prime Rate [Member] | East West Bank [Member] | ||||||
Nature of Operations and Liquidity [Abstract] | ||||||
Interest rate, stated percentage | 9% | 9% | ||||
Interest rate percentage over the prime rarte | 1.50% |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Employee retention tax credit percentage | 70% | |||||
Employee retention credit cash refund claim | $ 2,000,000 | $ 500,000 | ||||
Employee retention tax credit | 2,025,000 | $ 2,475,000 | ||||
Impairments related to advance (in Dollars) | 1,000,000 | $ 400,000 | 1,600,000 | $ 800,000 | ||
Impairment charge for finite-lived intangible assets (in dollars) | 0 | 0 | ||||
Impairment charge of long-lived assets (in Dollars) | 0 | 0 | ||||
Amortization expense (in Dollars) | 700,000 | 700,000 | 2,200,000 | 2,200,000 | ||
Revenue from related parties | 1,000,000 | |||||
Fair value of purchased content licenses | 1,000,000 | 1,000,000 | ||||
Foreign currency (in Dollars) | 1 | |||||
Adjustment to fair value of investment Loss (in Dollars) | 1,800,000 | |||||
Adjustment to fair value of investment gain (in Dollars) | 1,500,000 | |||||
Goodwill impairment charge | 0 | $ 0 | $ 0 | $ 0 | ||
Deployment payment period | 10 years | |||||
Incentive fees, percentage | 2.50% | |||||
Deferred revenue current and non-current balances (in Dollars) | 400,000 | $ 400,000 | $ 200,000 | |||
Accounts payable | $ 1,000,000 | $ 1,000,000 | ||||
Dilutive shares (in Shares) | shares | 12,088,473 | 8,484,982 | ||||
Accounts Payable [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Revenue recognized (in Dollars) | $ 7,400,000 | $ 9,100,000 | ||||
CON TV, LLC [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Majority interest, percentage | 85% | 85% | ||||
Profit interest percentage | 11% | |||||
Iconic [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 35% | 27% | ||||
Iconic [Member] | Consolidated revenues [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 16% | 8% | ||||
Distribution Solutions [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 16% | 11% | 19% | 9% | ||
Distribution Solutions [Member] | Consolidated revenues [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 7% | 9% | 5% | 6% | ||
Amazon.com, Inc., [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 14% | 15% | 25% | 24% | ||
Amazon.com, Inc., [Member] | Consolidated revenues [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 14% | 13% | 11% | 17% | ||
Tubi [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 5% | 7% | 10% | |||
Tubi [Member] | Consolidated revenues [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 6% | 6% | 5% | |||
Alliance Entertainment and Roku, Inc., [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 10% | |||||
Alliance Entertainment and Roku, Inc., [Member] | Consolidated revenues [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk percentage | 7% | |||||
Cinema Equipment [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Administrative fee percentage | 5% | |||||
Hong Kong [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Foreign currency exchange rate, translation | 7.8 | 7.8 | 7.8 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property and equipment, net | 9 Months Ended |
Dec. 31, 2022 | |
Computer equipment and software [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Computer equipment and software [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Digital cinema projection systems [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Machinery and equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 10 years |
Furniture and fixtures [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 3 years |
Furniture and fixtures [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 6 years |
Internal use software [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives | 5 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of amortization expense | 9 Months Ended |
Dec. 31, 2022 | |
Trademarks and Trade Names [Member] | Minimum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 2 years |
Trademarks and Trade Names [Member] | Maximum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 15 years |
Advertiser relationships and Channel [Member] | Minimum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 3 years |
Advertiser relationships and Channel [Member] | Maximum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 13 years |
Content Library [Member] | Minimum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 3 years |
Content Library [Member] | Maximum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 20 years |
Customer Relationships [Member] | Minimum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 13 years |
Supplier Agreements [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 2 years |
Software [Member] | |
Amortization Expense Per Equivalent Unit of Production or Per Dollar of Gross Revenue [Line Items] | |
Estimated useful lives | 10 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of intangible assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Impairment | $ 0 | $ 0 | |
Content Library [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 23,685,000 | $ 23,685,000 | |
Accumulated Amortization | (21,038,000) | (20,665,000) | |
Impairment | |||
Total | 2,647,000 | 3,020,000 | |
Advertiser Relationships and Channel [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 11,104,000 | 10,081,000 | |
Accumulated Amortization | (759,000) | (161,000) | |
Impairment | |||
Total | 10,345,000 | 9,920,000 | |
Customer Relationships [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 10,658,000 | 10,658,000 | |
Accumulated Amortization | (7,531,000) | (7,327,000) | |
Impairment | (1,968,000) | (1,968,000) | |
Total | 1,159,000 | 1,363,000 | |
Software [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 3,200,000 | 3,200,000 | |
Accumulated Amortization | (480,000) | (240,000) | |
Impairment | |||
Total | 2,720,000 | 2,960,000 | |
Trademarks and Trade Names [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 4,026,000 | 4,026,000 | |
Accumulated Amortization | 2,033,000 | 1,301,000 | |
Impairment | |||
Total | 1,993,000 | 2,725,000 | |
Supplier Agreements [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 11,430,000 | ||
Accumulated Amortization | (11,384,000) | ||
Impairment | |||
Total | 46,000 | ||
Total Intangible Assets [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets [Line Items] | |||
Cost Basis | 52,673,000 | 63,080,000 | |
Accumulated Amortization | (31,841,000) | (41,078,000) | |
Impairment | (1,968,000) | (1,968,000) | |
Total | $ 18,864,000 | $ 20,034,000 |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of amortization expense for intangible assets - Intangible assets [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Summary of Significant Accounting Policies (Details) - Schedule of amortization expense for intangible assets [Line Items] | |
Remainder of fiscal year 2023 | $ 1,252 |
2024 | 3,343 |
2025 | 2,137 |
2026 | 1,745 |
2027 | 1,269 |
Thereafter | 9,118 |
Total | $ 18,864 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of fair value measurements of our financial assets and liabilities - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Assets: | ||
Equity investment in Metaverse, at fair value | $ 5,200 | $ 7,028 |
Total Assets | 5,200 | 7,028 |
Liabilities: | ||
Current portion of earnout consideration on purchase of a business | 768 | 1,081 |
Long term portion of earnout consideration on purchase of a business | 676 | 603 |
Total Liabilities | 1,444 | 1,684 |
Level 1 [Member] | ||
Assets: | ||
Equity investment in Metaverse, at fair value | 7,028 | |
Total Assets | 7,028 | |
Liabilities: | ||
Current portion of earnout consideration on purchase of a business | ||
Long term portion of earnout consideration on purchase of a business | ||
Total Liabilities | ||
Level 2 [Member] | ||
Assets: | ||
Equity investment in Metaverse, at fair value | ||
Total Assets | ||
Liabilities: | ||
Current portion of earnout consideration on purchase of a business | ||
Long term portion of earnout consideration on purchase of a business | ||
Total Liabilities | ||
Level 3 [Member] | ||
Assets: | ||
Equity investment in Metaverse, at fair value | 5,200 | |
Total Assets | 5,200 | |
Liabilities: | ||
Current portion of earnout consideration on purchase of a business | 768 | 1,081 |
Long term portion of earnout consideration on purchase of a business | 676 | 603 |
Total Liabilities | $ 1,444 | $ 1,684 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of accounts payable and accrued expenses - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Schedule Of Accounts Payable And Accrued Expenses [Abstract] | ||
Accounts payable | $ 17,720 | $ 34,177 |
Amounts due to producers | 15,967 | 10,430 |
Accrued compensation and benefits | 3,390 | 3,507 |
Accrued other expenses | 3,642 | 3,911 |
Total accounts payable and accrued expenses | $ 40,719 | $ 52,025 |
Basis of Presentation and Su_10
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of prepaid and other current assets - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Schedule Of Prepaid And Other Current Assets [Abstract] | ||
Advances | $ 3,244 | $ 2,117 |
Due from producers | 1,549 | 1,861 |
Other receivables | 1,134 | 826 |
Inventory | 209 | 116 |
Other prepaid expenses | 1,167 | 989 |
Total prepaid and other current assets | $ 7,303 | $ 5,909 |
Basis of Presentation and Su_11
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of revenue categories - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 27,882 | $ 14,084 | $ 55,478 | $ 39,202 |
Cinema Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,186 | 2,060 | 11,218 | 11,544 |
Content & Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 20,696 | 12,024 | 44,260 | 27,658 |
Deployment [Member] | Cinema Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,458 | 220 | 9,340 | 1,263 |
Services [Member] | Cinema Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (316) | 506 | (88) | 1,171 |
Digital System Sales [Member] | Cinema Equipment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 44 | 1,334 | 1,966 | 9,110 |
Base Distribution Business [Member] | Content & Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,121 | 3,668 | 11,145 | 6,368 |
OTT Streaming and Digital [Member] | Content & Entertainment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 12,575 | $ 8,356 | $ 33,115 | $ 21,290 |
Basis of Presentation and Su_12
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic net income (loss) per share: | ||||
Net income (loss) attributable to common stockholders | $ 4,926 | $ (474) | $ (6,919) | $ 4,351 |
Weighted-average shares of common stock outstanding | 178,899,605 | 173,167,450 | 177,077,803 | 169,413,873 |
Basic net income (loss) per share | $ 0.03 | $ 0 | $ (0.04) | $ 0.03 |
Diluted net income (loss) per share: | ||||
Weighted-average shares of common stock outstanding | 178,899,605 | 173,167,450 | 177,077,803 | 169,413,873 |
Stock options and SARs | 3,603,491 | |||
Weighted-average number of shares | 178,899,605 | 173,167,450 | 177,077,803 | 173,017,364 |
Diluted net income (loss) per share | $ 0.03 | $ 0 | $ (0.04) | $ 0.03 |
Basis of Presentation and Su_13
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Summary of Significant Accounting Policies - shares | 3 Months Ended | 9 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential shares of common stock | 13,483,851 | 12,799,903 |
SARs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential shares of common stock | 13,471,351 | 12,787,403 |
Stock option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential shares of common stock | 12,500 | 12,500 |
Other Interests (Details)
Other Interests (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 15, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Other Interests Details [Line Items] | ||||||
Purchase price shares (in Shares) | 316,937 | |||||
Investments for purchase of roundtable securities | $ 200,000 | |||||
Digital Cinema Servicing Revenue from CDF2 Holdings Member | ||||||
Other Interests Details [Line Items] | ||||||
Consolidated statement of operations | $ 200,000 | $ 500,000 | ||||
CDF2 Holdings [Member] | ||||||
Other Interests Details [Line Items] | ||||||
Ownership percentage | 100% | |||||
Accounts receivable | $ 2,100,000 | $ 2,100,000 | $ 800,000 | |||
Digital cinema servicing revenue | 100,000 | $ 200,000 | ||||
Total stockholders’ deficit | 59,200,000 | 59,200,000 | 55,600,000 | |||
Initial investment amount | $ 2,000,000 | $ 2,000,000 | $ 0 | |||
Series A Preferred Stock [Member] | ||||||
Other Interests Details [Line Items] | ||||||
Preferred stock shares (in Shares) | 500 | |||||
Warrant shares (in Shares) | 100 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2017 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Stockholders’ Equity (Details) [Line Items] | ||||||
Shares of common stock | 3,595,895 | |||||
Preferred stock dividends | 224,359 | 510,955 | ||||
Shares issued | 684,024 | 2,750,903 | ||||
Shares earnout commitment | 334,037 | |||||
Dividends preferred stock (in Dollars) | $ 0.1 | $ 0.1 | ||||
Stock dividends | 510,955 | |||||
Treasury stock shares | 1,315,851 | 1,315,851 | 1,315,851 | |||
Share-based payment arrangement, option, exercise price range, shares outstanding | 212,037 | 212,037 | 217,337 | |||
Share-based payment arrangement, option, exercise price range, outstanding, weighted average exercise price (in Dollars per share) | $ 14.46 | $ 14.46 | $ 14.49 | |||
Options outstanding, weighted average remaining contractual term | 9 months 25 days | 1 year 6 months 14 days | ||||
Issued for vested awards | 482,628 | |||||
Granted stock appreciation rights | 100,000 | |||||
Except granted shares | 600,000 | |||||
Cinedigm Equity Incentive Plan [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Percent voting power threshold | 10% | |||||
Exercise price if voting threshold is met, percent | 110% | |||||
Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Common stock, shares authorized | 275,000,000 | 275,000,000 | ||||
Shares issued in payment of earnout commitment | 334,037 | |||||
Performance Stock Units [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Issued for vested awards | 482,628 | 482,628 | ||||
Shares withheld to pay taxes | 199,498 | 199,498 | ||||
Vested, shares | 682,126 | 682,126 | ||||
Shares under option, granted | 0 | 0 | ||||
Options, outstanding shares | 696,280 | 696,280 | ||||
Restricted Stock Awards [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Stock based compensation (in Dollars) | $ 0.1 | $ 0.3 | $ 0.3 | |||
Class A Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Common stock, shares authorized | 275,000,000 | 275,000,000 | 275,000,000 | |||
Shares of common stock | 8,642,648 | |||||
Common stock shares | 18,098,270 | |||||
Class A Common Stock [Member] | Cinedigm Equity Incentive Plan [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Number of shares authorized | 2,380,000 | 2,380,000 | ||||
Class A Common Stock [Member] | Common Stock [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Shares of common stock | 908,383 | |||||
Gaiam Americas, Inc. and Gaiam, Inc. GVE [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Options, outstanding shares | 12,500 | |||||
Board of Directors [Member] | ||||||
Stockholders’ Equity (Details) [Line Items] | ||||||
Restricted shares issued | 684,024 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - Schedule of analysis of option activity - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 0.49 | |
Options Outstanding and Exercisable (in Shares) | 212,037 | 217,337 |
Weighted Average Remaining Life in Years | 9 months 25 days | 1 year 6 months 14 days |
Weighted Average Exercise Price | $ 14.46 | $ 14.49 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range One [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 7.40 | |
Options Outstanding and Exercisable (in Shares) | 5,000 | 5,000 |
Weighted Average Remaining Life in Years | 2 years 6 months | 3 years 3 months |
Weighted Average Exercise Price | $ 7.40 | $ 7.40 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range One [Member] | Minimum [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 1.16 | |
Exercise Price Range One [Member] | Maximum [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 7.40 | |
Exercise Price Range Two [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable (in Shares) | 207,037 | |
Weighted Average Remaining Life in Years | 9 months 10 days | 1 year 6 months |
Weighted Average Exercise Price | $ 14.63 | $ 14.65 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range Two [Member] | Minimum [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 13.70 | $ 14 |
Exercise Price Range Two [Member] | Maximum [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of Prices | $ 24.40 | $ 24.40 |
$14.00 - $24.40 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Options Outstanding and Exercisable (in Shares) | 212,337 |
Stockholders_ Equity (Details_2
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Options Outstanding (in Shares) | 13,471,353 | 10,893,598 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 1,208 |
Exercise Price Range One [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Range of Prices, Minimum | $ 0.54 | |
Range of Prices, Maximum | $ 0.74 | |
Options Outstanding (in Shares) | 8,650,000 | 5,550,000 |
Weighted Average Remaining Life in Years | 8 years 7 months 9 days | 8 years 8 months 26 days |
Weighted Average Exercise Price | $ 0.56 | $ 0.62 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 1,208 |
Exercise Price Range Two [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Range of Prices, Minimum | $ 1.16 | $ 1.16 |
Range of Prices, Maximum | $ 1.47 | $ 1.47 |
Options Outstanding (in Shares) | 2,128,277 | 2,283,610 |
Weighted Average Remaining Life in Years | 6 years 6 months 18 days | 7 years 10 months 24 days |
Weighted Average Exercise Price | $ 1.39 | $ 1.37 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range Three [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Range of Prices, Minimum | $ 1.71 | $ 1.71 |
Range of Prices, Maximum | $ 2.10 | $ 2.10 |
Options Outstanding (in Shares) | 2,237,493 | 2,455,738 |
Weighted Average Remaining Life in Years | 8 years 4 months 9 days | 8 years 10 months 28 days |
Weighted Average Exercise Price | $ 1.92 | $ 1.97 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range Four [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Range of Prices, Minimum | $ 2.23 | $ 2.23 |
Range of Prices, Maximum | $ 2.56 | $ 2.56 |
Options Outstanding (in Shares) | 455,583 | 604,250 |
Weighted Average Remaining Life in Years | 8 years 9 months 21 days | 9 years 7 months 6 days |
Weighted Average Exercise Price | $ 2.28 | $ 2.32 |
Aggregate Intrinsic Value (in Dollars) | $ 0 | $ 0 |
Exercise Price Range Five [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Range of Prices, Minimum | $ 0.33 | |
Range of Prices, Maximum | $ 0.74 | |
Options Exercisable [Member] | ||
Stockholders’ Equity (Details) - Schedule of stock appreciation rights outstanding [Line Items] | ||
Weighted Average Remaining Life in Years | 7 years 9 months | |
Weighted Average Exercise Price | $ 1.13 | |
Aggregate Intrinsic Value (in Dollars) | ||
Options Exercisable (in Shares) | 5,448,345 |
Stockholders_ Equity (Details_3
Stockholders’ Equity (Details) - Schedule of SARs outstanding - Stock appreciation rights [Member] | 6 Months Ended |
Sep. 30, 2022 shares | |
Stockholders’ Equity (Details) - Schedule of SARs outstanding [Line Items] | |
SARs Outstanding March 31, 2022 | 10,893,598 |
Issued | 3,100,000 |
Forfeited | (522,245) |
Total SARs Outstanding - December 31, 2022 | 13,471,353 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Weighted Average Assumptions used to Estimate the Fair Value of SARs (Details) | 9 Months Ended |
Dec. 31, 2022 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Expected equity volatility | 111.89% |
Expected term (years) | 6 years 6 months |
Risk-free interest rate | 4.49% |
Exercise price | $ 0.49 |
Market price per share | $ 0.49 |
Weighted average fair value per SAR | 0.43% |
Stockholders_ Equity (Details_4
Stockholders’ Equity (Details) - Schedule of stock-based compensation expense - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Selling, general and administrative [Member] | ||||
Stockholders’ Equity (Details) - Schedule of stock-based compensation expense [Line Items] | ||||
Selling, general and administrative | $ 708 | $ 1,349 | $ 3,906 | $ 3,278 |
Line of Credit Facility (Detail
Line of Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Sep. 15, 2022 | Mar. 31, 2022 | |
Line of Credit Facility [Line Items] | ||||
Out standing line of credit facility | $ 4,867 | $ 4,867 | ||
Revolving Credit Facility [Member] | East West Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving line of credit | 5,000 | $ 5,000 | $ 5,000 | |
Credit facility expiration date | Sep. 15, 2023 | |||
Out standing line of credit facility | 5,000 | $ 5,000 | ||
Debt instrument maturity date extension period | 1 year | |||
Interest expense | $ 100 | $ 100 | ||
Revolving Credit Facility [Member] | East West Bank [Member] | Prime Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate percentage over the prime rarte | 1.50% | |||
Interest rate, stated percentage | 9% | 9% |
Segment Reporting (Details)
Segment Reporting (Details) | 9 Months Ended |
Dec. 31, 2022 Segments | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of reportable segments and corporate - USD ($) $ in Thousands | Dec. 31, 2022 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Intangible Assets, Net | $ 18,864 | $ 20,034 |
Goodwill | 21,025 | 21,084 |
Total Assets | 94,895 | 104,636 |
Line of Credit, Net | 4,867 | |
Cinema Equipment [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangible Assets, Net | ||
Goodwill | ||
Total Assets | 7,977 | 24,445 |
Line of Credit, Net | ||
Content & Entertainment [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangible Assets, Net | 18,638 | 19,946 |
Goodwill | 21,025 | 21,084 |
Total Assets | 77,118 | 68,873 |
Line of Credit, Net | ||
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangible Assets, Net | 226 | 88 |
Goodwill | ||
Total Assets | 9,800 | 11,318 |
Line of Credit, Net | $ 4,867 |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of Condensed Consolidated Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 27,882 | $ 14,084 | $ 55,478 | $ 39,202 |
Selling, general and administrative | 9,107 | 7,358 | 29,016 | 20,520 |
Depreciation and amortization | 924 | 1,031 | 2,908 | 3,663 |
Total operating expenses | 24,442 | 14,848 | 61,783 | 38,606 |
Operating income (loss) | 3,440 | (764) | (6,305) | 596 |
Cinema Equipment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,186 | 2,060 | 11,218 | 11,544 |
Direct operating | 89 | 139 | 359 | 560 |
Selling, general and administrative | 912 | 99 | 2,553 | 856 |
Allocation of corporate overhead | 88 | 143 | 284 | 412 |
Depreciation and amortization | 82 | 196 | 303 | 1,001 |
Total operating expenses | 1,171 | 577 | 3,499 | 2,829 |
Operating income (loss) | 6,015 | 1,483 | 7,719 | 8,715 |
Content & Entertainment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 20,696 | 12,024 | 44,260 | 27,658 |
Direct operating | 14,322 | 6,320 | 29,500 | 13,863 |
Selling, general and administrative | 3,794 | 3,720 | 11,452 | 10,081 |
Allocation of corporate overhead | 2,407 | 964 | 7,651 | 2,763 |
Depreciation and amortization | 734 | 831 | 2,282 | 2,658 |
Total operating expenses | 21,257 | 11,835 | 50,885 | 29,365 |
Operating income (loss) | (561) | 189 | (6,625) | (1,707) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | ||||
Direct operating | ||||
Selling, general and administrative | 4,401 | 3,539 | 15,011 | 9,583 |
Allocation of corporate overhead | (2,495) | (1,107) | (7,935) | (3,175) |
Depreciation and amortization | 108 | 4 | 323 | 4 |
Total operating expenses | 2,014 | 2,436 | 7,399 | 6,412 |
Operating income (loss) | (2,014) | (2,436) | (7,399) | (6,412) |
Consolidated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,882 | 14,084 | 55,478 | 39,202 |
Direct operating | 14,411 | 6,459 | 29,859 | 14,423 |
Selling, general and administrative | 9,107 | 7,358 | 29,016 | 20,520 |
Allocation of corporate overhead | ||||
Depreciation and amortization | 924 | 1,031 | 2,908 | 3,663 |
Total operating expenses | 24,442 | 14,848 | 61,783 | 38,606 |
Operating income (loss) | $ 3,440 | $ (764) | $ (6,305) | $ 596 |
Segment Reporting (Details) -_3
Segment Reporting (Details) - Schedule of employee and director stock-based compensation expense related to our stock-based awards - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | $ 708 | $ 1,349 | $ 3,906 | $ 3,278 |
Cinema Equipment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Content & Entertainment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | 552 | 1,063 | ||
Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | 708 | 797 | 3,906 | 2,215 |
Operating Expense [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Operating Expense [Member] | Cinema Equipment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Operating Expense [Member] | Content & Entertainment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Operating Expense [Member] | Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Selling, General and Administrative Expenses [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | 708 | 1,349 | 3,906 | 3,278 |
Selling, General and Administrative Expenses [Member] | Cinema Equipment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | ||||
Selling, General and Administrative Expenses [Member] | Content & Entertainment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | 552 | 1,063 | ||
Selling, General and Administrative Expenses [Member] | Corporate [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total stock-based compensation | $ 708 | $ 797 | $ 3,906 | $ 2,215 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense benefit | $ 0 | $ 0 | $ 0 | $ 600,000 |
Tax rate | 0% | 4% | 0% | (14.00%) |