Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 14, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-54389 | |
Entity Registrant Name | KARTOON STUDIOS, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-4118216 | |
Entity Address, Address Line One | 190 N. Canon Drive | |
Entity Address, Address Line Two | 4th FL | |
Entity Address, City or Town | Beverly Hills | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90210 | |
City Area Code | 310 | |
Local Phone Number | 273-4222 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | TOON | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,387,500 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001355848 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash | $ 2,763 | $ 4,095 |
Investments in Marketable Securities (amortized cost of $10,109 and $12,838, respectively) | 9,382 | 11,950 |
Accounts Receivable (net of allowance of $226 and $189, respectively) | 13,389 | 18,072 |
Tax Credits Receivable, net | 11,955 | 20,714 |
Prepaid Expenses and Other Assets | 1,580 | 740 |
Total Current Assets | 41,011 | 57,109 |
Noncurrent Assets: | ||
Property and Equipment, net | 1,780 | 1,877 |
Operating Lease Right-of-Use Assets, net | 6,758 | 7,076 |
Finance Lease Right-of-Use Assets, net | 1,473 | 1,867 |
Film and Television Costs, net | 1,389 | 1,295 |
Investment in Your Family Entertainment AG | 18,681 | 19,094 |
Intangible Assets, net | 22,115 | 22,993 |
Other Assets | 123 | 125 |
Total Assets | 93,330 | 111,436 |
Current Liabilities: | ||
Accounts Payable | 12,000 | 16,864 |
Participations Payable | 1,674 | 1,915 |
Accrued Expenses | 1,812 | 691 |
Accrued Salaries and Wages | 2,114 | 1,926 |
Deferred Revenue | 3,762 | 3,127 |
Margin Loan | 2,940 | 782 |
Production Facilities | 8,292 | 15,336 |
Bank Indebtedness | 0 | 2,905 |
Current Portion of Operating Lease Liabilities | 1,156 | 908 |
Current Portion of Finance Lease Liabilities | 877 | 1,120 |
Warrant Liability | 26 | 63 |
Total Current Liabilities | 34,885 | 45,640 |
Noncurrent Liabilities: | ||
Deferred Revenue | 3,416 | 3,458 |
Operating Lease Liabilities, Net Current Portion | 6,400 | 6,736 |
Finance Lease Liabilities, Net Current Portion | 751 | 928 |
Deferred Tax Liability, net | 1,399 | 1,399 |
Other Noncurrent Liabilities | 5 | 14 |
Total Liabilities | 46,856 | 58,175 |
Commitments and Contingencies (Note 19) | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Common Stock, $0.001 par value, 190,000,000 and 190,000,000 shares authorized, 35,426,663 and 35,323,217 shares issued and $35,351,190 and 35,247,744 outstanding as of March 31, 2024 and December 31, 2023, respectively | 352 | 352 |
Additional Paid-in Capital | 774,286 | 773,986 |
Treasury Stock at Cost, 75,473 shares of common stock as of March 31, 2024 and December 31, 2023 | (339) | (339) |
Accumulated Deficit | (725,591) | (718,546) |
Accumulated Other Comprehensive Loss | (3,906) | (3,883) |
Total Kartoon Studios, Inc. Stockholders' Equity | 44,802 | 51,570 |
Non-Controlling Interests in Consolidated Subsidiaries | 1,672 | 1,691 |
Total Stockholders' Equity | 46,474 | 53,261 |
Total Liabilities and Stockholders’ Equity | 93,330 | 111,436 |
Related Party | ||
Current Assets: | ||
Other Receivable | 1,403 | 1,435 |
Current Liabilities: | ||
Other Current Liabilities | 1 | 3 |
Nonrelated Party | ||
Current Assets: | ||
Other Receivable | 539 | 103 |
Current Liabilities: | ||
Other Current Liabilities | 231 | 0 |
0% Series A Convertible Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Preferred Stock Series B | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 0 |
Preferred Stock Series C | ||
Stockholders’ Equity: | ||
Preferred stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Amortized cost | $ 10,109 | $ 12,838 |
Allowance | $ 226 | $ 189 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 9,943,999 | 9,943,999 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 |
Common stock, shares, issued (in shares) | 35,426,663 | 35,323,217 |
Common stock, shares outstanding (in shares) | 35,351,190 | 35,247,744 |
Treasury stock, shares (in shares) | 75,473 | 75,473 |
0% Series A Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 6,000 | 6,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, dividend rate | 0% | 0% |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1 | 1 |
Preferred stock, shares issued (in shares) | 1 | 1 |
Preferred stock, shares outstanding (in shares) | 1 | 1 |
Series C Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Total Revenues | $ 6,078,000 | $ 14,189,000 |
Operating Expenses: | ||
Marketing and Sales | 444,000 | 245,000 |
Direct Operating Costs | 4,325,000 | 11,285,000 |
General and Administrative | 7,603,000 | 9,225,000 |
Impairment of Property and Equipment | 0 | 120,000 |
Impairment of Intangible Assets | 0 | 4,023,000 |
Impairment of Goodwill | 0 | 11,287,000 |
Total Operating Expenses | 12,372,000 | 36,185,000 |
Loss from Operations | (6,294,000) | (21,996,000) |
Interest Expense | (203,000) | (1,085,000) |
Other Expense, net | (567,000) | (1,712,000) |
Loss Before Income Tax Benefit (Expense) | (7,064,000) | (24,793,000) |
Income Tax Benefit | 0 | 934,000 |
Net Loss | (7,064,000) | (23,859,000) |
Net Loss Attributable to Non-Controlling Interests | 19,000 | 31,000 |
Net Loss Attributable to Kartoon Studios, Inc. | $ (7,045,000) | $ (23,828,000) |
Net Loss per Share (Basic) (in dollars per share) | $ (0.20) | $ (0.74) |
Net Loss per Share (Diluted) (in dollars per share) | $ (0.20) | $ (0.74) |
Weighted Average Shares Outstanding (Basic) (in shares) | 35,297,746 | 31,978,335 |
Weighted Average Shares Outstanding (Diluted) (in shares) | 35,297,746 | 31,978,335 |
Production Services | ||
Revenues: | ||
Total Revenues | $ 2,763,000 | $ 9,886,000 |
Content Distribution | ||
Revenues: | ||
Total Revenues | 2,329,000 | 3,301,000 |
Licensing & Royalties | ||
Revenues: | ||
Total Revenues | 100,000 | 46,000 |
Media Advisory & Advertising Services | ||
Revenues: | ||
Total Revenues | $ 886,000 | $ 956,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net Loss | $ (7,064) | $ (23,859) |
Change in Accumulated Other Comprehensive Income (Loss): | ||
Change in Unrealized Gain on Marketable Securities | 20 | 830 |
Realized Losses on Marketable Securities Reclassified from AOCI into Earnings | 141 | 1,537 |
Foreign Currency Translation Adjustments | (184) | 3 |
Total Change in Accumulated Other Comprehensive Income (Loss) | (23) | 2,370 |
Total Comprehensive Net Loss | (7,087) | (21,489) |
Net Loss Attributable to Non-Controlling Interests | 19 | 31 |
Total Comprehensive Net Loss Attributable to Kartoon Studios, Inc. | $ (7,068) | $ (21,458) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 31,918,552 | |||||||
Beginning balance at Dec. 31, 2022 | $ 112,869 | $ 319 | $ 0 | $ 762,418 | $ (290) | $ (641,443) | $ (9,925) | $ 1,790 |
Beginning balance (in shares) at Dec. 31, 2022 | 1 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 42,633 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of Common Stock for Vested Restricted Stock Units, Net of Shares Withheld for Taxes (in shares) | 78,088 | 3,700 | ||||||
Issuance of Common Stock for Vested Restricted Stock Units, Net of Shares Withheld for Taxes | (9) | $ 1 | (1) | $ (9) | ||||
Fractional Shares Issued Upon Reverse Stock Split (in shares) | 117,144 | |||||||
Share-Based Compensation | 910 | 910 | ||||||
Realized Loss Reclassified from AOCI to Earnings, net change in Unrealized Loss | 2,367 | 2,367 | ||||||
Currency Translation Adjustment | 3 | 3 | ||||||
Net Loss | (23,859) | (23,828) | (31) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 32,113,784 | |||||||
Ending balance at Mar. 31, 2023 | $ 92,281 | $ 320 | $ 0 | 763,327 | $ (299) | (665,271) | (7,555) | 1,759 |
Ending balance (in shares) at Mar. 31, 2023 | 1 | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 46,333 | |||||||
Beginning balance (in shares) at Dec. 31, 2023 | 35,247,744 | 35,247,744 | ||||||
Beginning balance at Dec. 31, 2023 | $ 53,261 | $ 352 | $ 0 | 773,986 | $ (339) | (718,546) | (3,883) | 1,691 |
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 1 | ||||||
Beginning balance (in shares) at Dec. 31, 2023 | 75,473 | 75,473 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of Common Stock for Services (in shares) | 53,497 | |||||||
Issuance of Common Stock for Services | $ 74 | 74 | ||||||
Issuance of Common Stock for Vested Restricted Stock Units, Net of Shares Withheld for Taxes (in shares) | 49,949 | |||||||
Share-Based Compensation | 226 | 226 | ||||||
Realized Loss Reclassified from AOCI to Earnings, net change in Unrealized Loss | 161 | 161 | ||||||
Currency Translation Adjustment | (184) | (184) | ||||||
Net Loss | $ (7,064) | (7,045) | (19) | |||||
Ending balance (in shares) at Mar. 31, 2024 | 35,351,190 | 35,351,190 | ||||||
Ending balance at Mar. 31, 2024 | $ 46,474 | $ 352 | $ 0 | $ 774,286 | $ (339) | $ (725,591) | $ (3,906) | $ 1,672 |
Ending balance (in shares) at Mar. 31, 2024 | 0 | 1 | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 75,473 | 75,473 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash Flows from Operating Activities: | |||
Net Loss | $ (7,064,000) | $ (23,859,000) | |
Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities: | |||
Amortization of Film and Television Costs | 62,000 | 236,000 | |
Depreciation and Amortization of Property, Equipment & Intangible Assets | 610,000 | 705,000 | |
Amortization of Right-of-Use Asset | 561,000 | 748,000 | |
Amortization of Premium on Marketable Securities | 26,000 | 169,000 | |
Share-Based Compensation Expense | 226,000 | 910,000 | |
Impairment of Intangible Assets | 0 | 4,023,000 | |
Impairment of Goodwill | 0 | 11,287,000 | |
Impairment of Property and Equipment | 0 | 120,000 | |
Deferred Income Taxes | 0 | (934,000) | |
Loss on Revaluation of Equity Investments in Your Family Entertainment AG | 0 | 895,000 | |
Unrealized (Gain) Loss on Foreign Currency of Equity Investments in Your Family Entertainment AG | 413,000 | (308,000) | |
Gain on Warrant Revaluation | (37,000) | (139,000) | |
Realized Loss on Marketable Securities | 141,000 | 1,537,000 | |
Stock Issued for Services | 74,000 | 0 | |
Credit Loss Expense | 65,000 | 161,000 | |
Other Non-Cash Items | 5,000 | 2,000 | |
Decrease (Increase) in Operating Assets: | |||
Accounts Receivable, net | 4,620,000 | 5,107,000 | |
Other Receivable | (436,000) | 294,000 | |
Tax Credits Earned (less capitalized) | (1,970,000) | (4,597,000) | |
Tax Credits Received, net | 10,251,000 | 7,237,000 | |
Film and Television Costs, net | (162,000) | (365,000) | |
Prepaid Expenses and Other Assets | (849,000) | 379,000 | |
Increase (Decrease) in Operating Liabilities: | |||
Accounts Payable | (4,860,000) | (5,838,000) | |
Accrued Salaries & Wages | 219,000 | 370,000 | |
Accrued Expenses | 1,121,000 | 129,000 | |
Accrued Production Costs | 366,000 | (94,000) | |
Participations Payable | (224,000) | (373,000) | |
Deferred Revenue | 652,000 | (2,749,000) | |
Lease Liability | 41,000 | (195,000) | |
Due to Related Party | (1,000) | (2,000) | |
Other Liabilities | (5,000) | (21,000) | |
Net Cash Provided by (Used in) Operating Activities | 3,845,000 | (5,165,000) | |
Cash Flows from Investing Activities: | |||
Repayments from/(Loans to) Related Party for Note Receivables | 32,000 | (52,000) | |
Proceeds from Principal Collections on Marketable Securities | 0 | 460,000 | |
Proceeds from Sales and Maturities of Marketable Securities | 2,562,000 | 14,257,000 | |
Purchase of Property & Equipment | (34,000) | (17,000) | |
Net Cash Provided by Investing Activities | 2,560,000 | 14,648,000 | |
Cash Flows from Financing Activities: | |||
Proceeds from Margin Loan | 3,081,000 | 4,408,000 | |
Repayments of Margin Loan | (923,000) | (15,648,000) | |
Proceeds from Production Facilities | 2,828,000 | 3,771,000 | |
Repayment of Production Facilities | (9,654,000) | (5,966,000) | |
(Repayments of )/Proceeds from Bank Indebtedness, net | (2,841,000) | 2,117,000 | |
Principal Payments on Finance Lease Obligations | (362,000) | (535,000) | |
Debt Issuance Costs | (20,000) | (45,000) | |
Shares Withheld for Taxes on Vested Restricted Shares | 0 | (9,000) | |
Payment for Warrant Put Option Exercise | 0 | (250,000) | |
Net Cash Used in Financing Activities | (7,891,000) | (12,157,000) | |
Effect of Exchange Rate Changes on Cash | 154,000 | 7,000 | |
Net Decrease in Cash | (1,332,000) | (2,667,000) | |
Beginning Cash | 4,095,000 | 7,432,000 | $ 7,432,000 |
Ending Cash | 2,763,000 | 4,765,000 | $ 4,095,000 |
Non-Cash Financing and Investing Activities | |||
Leased Assets Obtained in Exchange for New Finance Lease Liabilities | $ 0 | $ 1,216,000 |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Organization and Nature of Business Kartoon Studios, Inc. (formerly known as Genius Brands International, Inc.) (the “Company” or “we,” “us” or “our”) is a global content and brand management company that creates, produces, licenses, and broadcasts timeless and educational, multimedia animated content for children. Led by experienced industry personnel, the Company distributes its content primarily on streaming platforms and television, and licenses properties for a broad range of consumer products based on the Company’s characters. The Company is a “work for hire” producer for many of the streaming outlets and animated content intellectual property (“IP”) holders. In the children’s media sector, the Company’s portfolio features “content with a purpose” for toddlers to tweens, providing enrichment as well as entertainment. With the exception of selected WOW Unlimited Media Inc. (“Wow”) titles, the Company’s programs, along with licensed programs, are being broadcast in the United States on the Company’s wholly-owned advertisement supported video on demand (“AVOD”) service, its free ad supported TV (“FAST”) channels and subscription video on demand (“SVOD”) outlets, Kartoon Channel! and Ameba TV, as well as linear streaming platforms . These streaming platforms include Comcast, Cox, DISH, Sling TV, Amazon Prime Video, Amazon Fire, Roku, Apple TV, Apple iOS, Android TV, Android mobile, Pluto TV, Xumo, Tubi, YouTube, YouTube Kids and via KartoonChannel.com, as well as Samsung and LG smart TVs. The Company's in-house owned and produced animated shows include Stan Lee’s Superhero Kindergarten starring Arnold Schwarzenegger, Llama Llama starring Jennifer Garner, and Rainbow Rangers, KC Pop Quiz and Shaq’s Garage starring Shaquille O’Neal. The Company’s library titles include the award-winning Baby Genius , adventure comedy Thomas Edison’s Secret Lab®, and Warren Buffett’s Secret Millionaires Club , created with and starring iconic investor Warren Buffett, Team Zenko Go!, Reboot , Bee & PuppyCat: Lazy in Space and Castlevania . The Company also licenses its programs to other services worldwide, in addition to the operation of its own channels, including, but not limited to, Netflix, Paramount+, Max, Nickelodeon, and satellite, cable and terrestrial broadcasters around the world. Through the Company’s investments in Germany’s Your Family Entertainment AG (“YFE”), a publicly traded company on the Frankfurt Stock Exchange (RTV-Frankfurt), it has gained access to one of the largest animation catalogues in Europe with over 50 titles consisting of over 1,600 episodes, and a global distribution network which currently covers over 60 territories worldwide. Through the ownership of Wow, the Company established an affiliate relationship with Mainframe Studios, which is one of the largest animation producers in the world. In addition, Wow owns Frederator Networks Inc. (“Frederator”) and its Channel Frederator Network , the largest animation focused multi-channel network on YouTube with over 2,500 channels. Frederator also owns Frederator Studios, focused on developing and producing shorts and series for and with partners. Over the past 20 years, Frederator Studios has partnered with Nickelodeon, Nick Jr., Netflix, Sony Pictures Animation and Amazon. The Company has rights to a select amount of valuable IP, including among them a controlling interest in Stan Lee Universe, LLC (“SLU”), through which it controls the name, likeness, signature, and all consumer product and IP rights to Stan Lee (the “Stan Lee Assets”). The Company also owns The Beacon Media Group, LLC (“Beacon Media”) and The Beacon Communications Group, Ltd. (“Beacon Communications”) (collectively, “Beacon”), a leading North American marketing and media agency and its first-class media research, planning and buying division. Beacon represents over 30 kids and family clients, including Bandai Namco, Moose Toys, Bazooka Candy Brands and Playmobil. In addition, the Company owns the Canadian company Ameba Inc. (“Ameba”), which distributes SVOD service for kids and has become a focal point of revenue for TOON Media Networks’ subscription offering. Recent Transactions Subsequent to March 31, 2024, the Company announced the initial closing of its registered direct offering of up to $7,000,000 (the “Offering”) on April 23, 2024. In the initial closing, the Company sold 3,900,000 shares of its common stock, par value $0.001 per share (the “Common Stock”), and pre-funded warrants to purchase up to 100,000 shares of Common Stock (the “Pre-funded Warrants”) to an institutional investor (the "Investor"), at $1.00 per share of Common Stock and $0.99 per Pre-funded Warrant, for aggregate gross proceeds of approximately $4,000,000, prior to deducting placement agent fees and other offering expenses, pursuant to a securities purchase agreement, dated April 18, 2024 (the “SPA”). Pursuant to the terms of the SPA, the Investor has the sole option to purchase up to an additional 3,000,000 shares of Common Stock and/or Pre-funded Warrants as part of the Offering, at $1.00 per share of Common Stock and $0.99 per Pre-Funded Warrant, in up to three subsequent closings during the 180-day period following the date of the SPA in which each subsequent closing is equal to no less than $1,000,000, whereby the Company would receive additional aggregate gross proceeds of up to $3,000,000 (together with the gross proceeds from the initial closing, up to a total of $7,000,000), prior to deducting placement agent fees and other offering expenses. Additionally, the Company has 4,784,909 warrants with a reprice option that was triggered by the registered direct offering which reduced the exercise price from $2.50 per share to $1.00 per share. Liquidity As of March 31, 2024, the Company had cash of $2.8 million, which decreased by $1.3 million as compared to December 31, 2023. The decrease was primarily due to cash used in financing activities of $7.9 million, offset by cash provided by operating activities of $3.8 million and investing activities of $2.6 million. The cash used in financing activities was primarily due to the net repayment of the production facilities and bank indebtedness, partially offset by the net proceeds from the margin loan, resulting in cash used of $7.5 million, and payments on finance leases of $0.4 million. The cash provided by investing activities was due to sales of marketable securities of $2.6 million. The cash provided by operating activities of $3.8 million is driven primarily by the collection of production tax credits of $8.3 million and depreciation and amortization of $1.2 million, offset by the $7.1 million net loss in the period . As of March 31, 2024, the Company held available-for-sale marketable securities with a fair value of $9.4 million, a decrease of $2.6 million as compared to December 31, 2023 due to sales and maturities during the three months ended March 31, 2024. The available-for-sale securities consist principally of corporate and government debt securities and are also available as a source of liquidity. As of March 31, 2024 and December 31, 2023, the Company’s margin loan balance was $2.9 million and $0.8 million, respectively. During the three months ended March 31, 2024, the Company borrowed an additional $3.1 million from its investment margin account and repaid $0.9 million primarily with cash received from sales and maturities of marketable securities. The borrowed amounts were primarily used for operational costs. The interest rates for the borrowings fluctuate based on the Fed Funds Upper Target plus 0.60%. The weighted average interest rates were 0.95% and 0.98%, respectively, on average margin loan balances of $14.2 million and $27.4 million as of March 31, 2024 and December 31, 2023, respectively. The Company incurred interest expense on the loan of $18,632 and $0.7 million during the three months ended March 31, 2024 and 2023, respectively. The investment margin account borrowings do not mature but are collateralized by the marketable securities held by the same custodian and the custodian can issue a margin call at any time, effecting a payable on demand loan. Due to the call option, the margin loan is recorded as a current liability on the Company’s condensed consolidated balance sheets. The Company is subject to financial and customary affirmative and negative non-financial covenants on the revolving demand facility and the revolving equipment lease line that have an aggregate total outstanding balance of $1.0 million U.S. dollars (“USD”) or $1.4 million Canadian dollars (“CAD”). During March 2024, the Company amended the revolving demand facility, equipment lease line, and treasury risk management facility. As a result of the amendment, the revolving demand facility allows for draws of up to CAD 1.0 million to be made by way of CAD prime rate loans, CAD overdrafts, USD base rate loans or letters of credit up to a maximum of $200,000 in either CAD or USD and having a term of up to 1 year. The CAD prime borrowings and overdrafts bear interest at a rate equal to bank prime plus 2.00% per annum. The USD base rate borrowings bear interest at a rate equal to bank base rate plus 2.00% per annum. In addition, the equipment lease line was terminated, however, the Company has and will continue to make the regular principal and interest payments under the specific financing terms of the existing equipment lease agreements. The amendment removed the treasury risk management facility that allowed for advances of up to CAD 0.5 million. As of March 31, 2024 and the date of the amendment, there were no outstanding amounts drawn under the treasury risk management facility. The amendment also introduced revised financial covenants that are effective as of March 15, 2024. The Company was in compliance with its covenants as of March 31, 2024. The amendment did not have any impact on the Company’s existing production facilities that are separate from the revolving demand facility and are used for financing specific productions. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying interim condensed consolidated financial statements of the Company have been prepared in conformity with U.S. Generally Accepted Accounting Principles (U.S. 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 December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 9, 2024. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the condensed consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed 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. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the Company’s 2023 Annual Report. The following is provided to update the Company’s significant accounting policies previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Foreign Currency Forward Contracts As of March 31, 2024, the gross amounts of FX forwards in an asset and liability position subject to a master netting arrangement resulted in a net liability of $0.2 million recorded within Other Current Liabilities on the condensed consolidated balance sheet. The total net change in fair value of $0.2 million and an insignificant realized loss for the three months ended March 31, 2024 is recorded as an unrealized loss within Production Services Revenue on the condensed consolidated statement of operations. Trade Accounts Receivable and Allowance for Credit Loss As of March 31, 2024 and December 31, 2023, the Company recorded an allowance for credit loss of $0.2 million and $0.2 million, respectively. Tax Credits Receivable As of March 31, 2024 and December 31, 2023, $12.0 million and $20.7 million, respectively, in current tax credit receivables related to Wow’s film and television productions were recorded, net of $0.5 million and $0.5 million, respectively, recorded as an allowance for credit loss. It is estimated that the Company will collect the receivables balance; therefore, no additional reserve was recorded. Concentration of Risk The Company maintains its cash in bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation’s (“FDIC”) or the Canadian Deposit Insurance Corporation’s (“CDIC”) insured amounts. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account and deposits in banks in Canada are insured by the CDIC up to CAD 100,000. As of March 31, 2024 and December 31, 2023, the Company had eleven and ten bank deposit accounts with an aggregate uninsured balance of $1.6 million and $2.5 million, respectively. The Company has a managed account with a financial institution. The managed account maintains its investments in marketable securities of approximately $9.4 million and $12.0 million as of March 31, 2024 and December 31, 2023, respectively. Assets in the managed account are protected by the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (with a limit of $250,000 for cash). In addition, the financial institution provides additional “excess of SIPC” coverage which insures up to $1.0 billion. As of March 31, 2024 and December 31, 2023, the Company did not have account balances held at this financial institution that exceed the insured balances. The Company’s investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. The Company’s policy limits the amount of credit exposure to any one security issue or issuer and the Company believes no significant concentration of credit risk exists with respect to these investments. During the three months ended March 31, 2024, the Company had two customers, whose total revenue exceeded 10% of the total condensed consolidated revenue. These customers accounted for 61.7% of the total revenue. As of March 31, 2024, the Company had two customers whose total accounts receivable exceeded 10% of the total accounts receivable. These customers accounted for 52.8% of the total accounts receivable as of March 31, 2024. During the three months ended March 31, 2023, the Company had three customers whose total revenue exceeded 10% of the total condensed consolidated revenue. These customers accounted for 71.9% of the total revenue. There is significant financial risk associated with a dependence upon a small number of customers. The Company periodically assesses the financial strength of these customers and establishes allowances for any anticipated credit losses. Fair Value of Financial Instruments The following table summarizes the marketable securities measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2024 (in thousands): Level 1 Level 2 Total Fair Value Investments in Marketable Securities: Corporate Bonds $ 4,898 $ – $ 4,898 U.S. agency and government sponsored securities – 1,851 1,851 U.S. states and municipalities – 2,633 2,633 Total $ 4,898 $ 4,484 $ 9,382 Fair values were determined for each individual security in the investment portfolio. The Company’s marketable securities are considered to be available-for-sale investments as defined under FASB ASC 320, Investments – Debt and Equity Securities . An allowance for credit loss was not recorded for the marketable securities as of March 31, 2024 and December 31, 2023. Refer to Note 5 for additional details. New Accounting Standards Issued but Not Yet Adopted In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements . The new guidance clarifies or improves disclosure and presentation requirements on a variety of topics in the codification. The amendments will align the requirements in the FASB Accounting Standard Codification with the SEC’s regulations. The amendments are effective prospectively on the date each individual amendment is effectively removed from Regulation S-X or Regulation S-K. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is not expected to be material. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures . The amendments enhance disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM), extend certain annual disclosures to interim periods, and permit more than one measure of segment profit or loss to be reported under certain conditions. The amendments are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendment is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this Update are effective for annual periods beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity In July 2020, the Company entered into a binding term sheet with POW! Entertainment, LLC. (“POW”) in which the Company agreed to form an entity with POW to exploit certain rights in intellectual property created by Stan Lee, as well as the name and likeness of Stan Lee. The entity is called “Stan Lee Universe, LLC” (“SLU”). POW and the Company executed an Operating Agreement for the joint venture, effective as of June 1, 2021. The purpose of the acquisition was to enable the Company to assume the worldwide rights, in perpetuity, to the name, physical likeness, physical signature, live-action and animated motion picture, television, online, digital, publishing, comic book, merchandising and licensing rights to Stan Lee and over 100 original Stan Lee creations (the “Stan Lee Assets”), from which the Company plans to develop and license multiple properties each year. During the three months ended March 31, 2024 and 2023, SLU generated an insignificant amount of net income. There were no contributions or distributions during the three months ended March 31, 2024 and 2023 and there were no changes in facts and circumstances that would result in a re-evaluation of the VIE assessment. |
Investment in Equity Interest
Investment in Equity Interest | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Interest | Investment in Equity Interest As of March 31, 2024 and December 31, 2023, the Company owned 6,857,132 shares of YFE. At the time of the initial investment in 2021, it was determined that based on the Company’s 28.69% ownership in YFE, the Company had significant influence over the entity. Therefore, under the equity method of accounting, the Company elected to account for the investment at fair value under the fair value option. Under the fair value option, the investment is remeasured and recorded at fair value each reporting period, with the change recorded through earnings. As of March 31, 2024, the fair value of the investment was determined to be $18.7 million recorded within noncurrent assets on the Company’s consolidated balance sheets. The fair value as of March 31, 2024 decreased by net $0.4 million, as compared to December 31, 2023. The decrease is the effect of foreign currency remeasurement from EURO to USD, resulting in a loss of $0.4 million. The total change in fair value is recorded within Other Expense, net on the Company’s condensed consolidated statement of operations. As of March 31, 2024 and December 31, 2023, the Company’s ownership in YFE was 44.8%. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities The Company classifies and accounts for its marketable debt securities as available-for-sale securities (“AFS”) and the securities are stated at fair value. On January 1, 2023, the Company adopted ASU 2016-13 Measurement of Credit Losses on Financial Instruments (Topic 326) , which replaced the legacy GAAP other-than-temporary impairment (“OTTI”) model with a credit loss model. The credit loss model applicable to AFS debt securities requires the recognition of credit losses through an allowance account but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. The adoption of the ASU did not have a material impact on the Company's condensed consolidated financial statements. The investments in marketable securities had an adjusted cost basis of $10.1 million and a market value of $9.4 million as of March 31, 2024. The balances consisted of the following securities (in thousands) : Adjusted Cost Unrealized Loss Fair Value Corporate Bonds $ 5,263 $ (365) $ 4,898 U.S. Agency and Government Sponsored Securities 1,999 (148) 1,851 U.S. States and Municipalities 2,847 (214) 2,633 Total $ 10,109 $ (727) $ 9,382 The investments in marketable securities as of December 31, 2023 had an adjusted cost basis of $12.8 million and a market value of $12.0 million. The balances consisted of the following securities (in thousands) : Adjusted Cost Unrealized Loss Fair Value Corporate Bonds $ 6,333 $ (425) $ 5,908 U.S. Treasury 646 (37) 609 U.S. Agency and Government Sponsored Securities 2,000 (148) 1,852 U.S. States and Municipalities 3,859 (278) 3,581 Total $ 12,838 $ (888) $ 11,950 The Company holds 9 AFS securities, all of which were in an unrealized loss position and have been in an unrealized loss position for a period greater than 12 months as of March 31, 2024. The AFS securities held by the Company as of December 31, 2023 had also been in an unrealized loss position for a period greater than 12 months. The Company reported the net unrealized losses in accumulated other comprehensive income (loss), a component of stockholders’ equity. As of March 31, 2024 and December 31, 2023, an allowance for credit loss was not recognized as the issuers of the securities had not established a cause for default, various rating agencies had reaffirmed each security's investment grade status and the Company did not have the intent, nor is it required to sell its securities prior to recovery. Realized losses of $0.1 million and $1.5 million were recognized in earnings during the three months ended March 31, 2024 and 2023, respectively, primarily due to selling securities prior to maturity to prevent further market condition losses on the securities. The contractual maturities of the Company’s marketable investments as of March 31, 2024 were as follows (in thousands): Fair Value Due within 1 year $ 184 Due after 1 year through 5 years 9,198 Total $ 9,382 The Company may sell certain of its marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation. |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The Company has property and equipment as follows (in thousands): As of March 31, 2024 December 31, 2023 Furniture and Equipment $ 117 $ 117 Computer Equipment 224 219 Leasehold Improvements 2,209 2,200 Software 218 192 Property and Equipment, gross 2,768 2,728 Less Accumulated Depreciation (823) (724) Foreign Currency Translation Adjustment (165) (127) Property and Equipment, net $ 1,780 $ 1,877 During the three months ended March 31, 2024 and 2023, the Company recorded depreciation expense of $0.1 million for both respective periods. The Company did not incur any impairment charges on its property and equipment during the three months ended March 31, 2024. During the three months ended March 31, 2023, due to changes in the Company's estimated undiscounted future cash flows, a reassessment of its long-lived assets was performed. As a result, the carrying value of one of the Company's asset group’s property and equipment assets were written down to zero and an Impairment of Property and Equipment of $0.1 million was recorded within Operating Expenses in the condensed consolidated statement of operations. |
Leased Right-of-Use Assets, net
Leased Right-of-Use Assets, net | 3 Months Ended |
Mar. 31, 2024 | |
Right Of Use Leased Asset [Abstract] | |
Leased Right-of-Use Assets, net | Leased Right-of-Use Assets, net Leased right-of-use assets consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Office Lease Assets $ 9,437 $ 9,437 Equipment Lease Assets 5,360 5,360 Right-of-Use Assets, Gross 14,797 14,797 Accumulated Amortization (5,787) (5,237) Foreign Currency Translation Adjustment (779) (617) Leased Right-of-Use Assets, net $ 8,231 $ 8,943 As of March 31, 2024, the weighted-average lease term for the Company’s operating leases was 81 months and the weighted-average discount rate was 11.1%. As of December 31, 2023, the weighted-average lease term for operating leases was 83 months and the weighted-average discount rate was 11.1%. Operating lease costs during the three months ended March 31, 2024 and 2023 were $0.4 million and $0.4 million, respectively, recorded within General and Administrative Expenses on the Company’s condensed consolidated statements of operations. |
Film and Television Costs, net
Film and Television Costs, net | 3 Months Ended |
Mar. 31, 2024 | |
Other Industries [Abstract] | |
Film and Television Costs, net | Film and Television Costs, net The following table highlights the activity in Film and Television Costs as of March 31, 2024 and December 31, 2023 (in thousands): Film and Television Costs, net as of December 31, 2022 $ 7,780 Additions to Film and Television Costs 1,078 Disposals (41) Film Amortization Expense & Impairment Losses (7,536) Foreign Currency Translation Adjustment 14 Film and Television Costs, net as of December 31, 2023 1,295 Additions to Film and Television Costs 162 Film Amortization Expense & Impairment Losses (62) Foreign Currency Translation Adjustment (6) Film and Television Costs, net as of March 31, 2024 $ 1,389 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible Assets, net The Company had the following intangible assets (in thousands) with their weighted average remaining amortization period (in years) : Intangible Assets, net Weighted Average Remaining Amortization Period As of March 31, 2024 December 31, 2023 Customer Relationships 6.2 $ 17,396 $ 17,325 Digital Networks 14.0 803 803 Trade Names 67.2 9,971 9,970 Intangible Assets, gross 28,170 28,098 Less Accumulated Amortization (4,381) (3,794) Foreign Currency Translation Adjustment (1,674) (1,311) Intangible Assets, net $ 22,115 $ 22,993 _______________________ During the three months ended March 31, 2024 and 2023, the Company recorded intangible asset amortization expense of $0.5 million and $0.6 million, respectively. During the three months ended March 31, 2023, due to changes in the Company's financial projections, the Company reassessed its definite and indefinite-lived intangible asset values to determine whether impairments existed. As a result, the Company recorded a total Impairment of Intangible Assets of $4.0 million within Operating Expenses in the condensed consolidated statement of operations for the three months ended March 31, 2023. Expected future amortization of intangible assets subject to amortization as of March 31, 2024 is as follows (in thousands): Fiscal Year: 2024 $ 1,544 2025 2,059 2026 2,059 2027 2,059 2028 2,059 Thereafter 6,787 Total $ 16,567 |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Deferred RevenueAs of March 31, 2024 and December 31, 2023, the Company had aggregate short term and long term deferred revenue of $7.2 million and $6.6 million, respectively. The increase in deferred revenue is primarily related to productions on various shows nearing completion of the project as of March 31, 2024, compared to the progress as of December 31, 2023. Wow's deferred revenue balance relates to cash received from customers for productions in progress. Revenue is fully recognized upon production completion. Deferred revenue also includes both (i) variable fee contracts with licensees and customers in which the Company collected advances and minimum guarantees against future royalties and (ii) fixed fee contracts. The Company recognizes revenue related to these contracts when all revenue recognition criteria have been met. |
Margin Loan
Margin Loan | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instruments [Abstract] | |
Margin Loan | Margin Loan As of March 31, 2024 and December 31, 2023, the Company’s margin loan balance was $2.9 million and $0.8 million, respectively. During the three months ended March 31, 2024, the Company borrowed an additional $3.1 million from its investment margin account and repaid $0.9 million primarily with cash received from sales and maturities of marketable securities. The borrowed amounts were primarily used for operational costs. The interest rates for the borrowings fluctuate based on the Fed Funds Upper Target plus 0.60%. The weighted average interest rates were 0.95% and 0.98%, respectively, on average margin loan balances of $14.2 million and $27.4 million as of March 31, 2024 and December 31, 2023, respectively. The Company incurred interest expense on the loan of $18,632 and $0.7 million during the three months ended March 31, 2024 and 2023, respectively. The investment margin account borrowings do not mature but are collateralized by the marketable securities held by the same custodian and the custodian can issue a margin call at any time, effecting a payable on demand loan. Due to the call option, the margin loan is recorded as a current liability on the Company’s condensed consolidated balance sheets. |
Bank Indebtedness and Productio
Bank Indebtedness and Production Facilities | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instruments [Abstract] | |
Bank Indebtedness and Production Facilities | Bank Indebtedness and Production Facilities The Company has certain credit facilities (together, the “Facilities”) that are comprised of the following: Revolving Demand Facility As of December 31, 2023, the Company had an outstanding balance of $2.9 million (CAD 3.8 million) on the revolving demand facility by way of bank prime rate loan draws, included as Bank Indebtedness within current liabilities on the Company’s condensed consolidated balance sheets. During the three months ended March 31, 2024, the Company paid the outstanding balance. During March 2024, the Company amended the revolving demand facility. As a result of the amendment, the revolving demand facility allows for draws of up to CAD 1.0 million to be made by way of CAD prime rate loans, CAD overdrafts, USD base rate loans or letters of credit up to a maximum of $200,000 in either CAD or USD and having a term of up to 1 year. The CAD prime borrowings and overdrafts bear interest at a rate equal to bank prime plus 2.00% per annum. The USD base rate borrowings bear interest at a rate equal to bank base rate plus 2.00% per annum. Treasury Risk Management Facility During March 2024, an amendment was entered into that removed the treasury risk management facility. Production Facilities The production facilities are used for financing specific productions. The Company’s production facilities bear interest at rates ranging from bank prime plus 1.00% - 1.25% per annum. The production facilities are generally repayable on demand and are guaranteed and secured by the Company with no limitations for maximum potential future payments. The security reflects substantially all of the Company's tangible and intangible assets including a combination of federal and provincial tax credits, other government incentives, production service agreements and license agreements. As of March 31, 2024 and December 31, 2023, the Company had an outstanding balance of USD 8.3 million (CAD 11.2 million), including USD 1.1 million (CAD 1.5 million) of interest, and USD 15.3 million (CAD 20.3 million), including USD 1.4 million (CAD 1.9 million) of interest, respectively, recorded as Production Facilities, net within current liabilities on the Company’s condensed consolidated balance sheets. Equipment Lease Line During March 2024, the equipment lease line was terminated, however, the Company has and will continue to make the regular principal and interest payments under the specific financing terms of the existing equipment lease agreements. Each existing transaction under the equipment lease line has specific financing terms in respect of the leased equipment such as term, finance amount, rate, and payment terms. The finance rates for these equipment leases range from 4.19% to 7.18% with remaining lease terms of 4 - 28 months as of March 31, 2024. As of March 31, 2024, the outstanding balance of $1.0 million (CAD 1.4 million) was included within current and noncurrent Finance Lease Liabilities on the Company’s condensed consolidated balance sheets. Equipment Lease Facility The Company also entered into an equipment lease agreement with a Canadian bank. This additional equipment lease facility allows the Company to finance equipment purchases of up to CAD 1.4 million in total. Each transaction under the equipment lease line has specific financing terms in respect of the leased equipment such as term, finance amount, rate, and payment terms. As of March 31, 2024, the Company has leases remaining under this facility with finance rates of 7.52% to 8.20% and remaining lease terms of 20 - 29 months. As of March 31, 2024, the outstanding balance of $0.5 million (CAD 0.7 million) was included within current and noncurrent Finance Lease Liabilities on the Company’s condensed consolidated balance sheets. As of March 31, 2024, the Company met all required financial and non-financial covenants. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Common Stock As of March 31, 2024 and December 31, 2023 the total number of authorized shares of common stock was 190,000,000. As of March 31, 2024 and December 31, 2023, there were 35,351,190 and 35,247,744 shares of common stock outstanding, respectively. Preferred Stock The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001 per share. The board of directors is authorized, subject to any limitations prescribed by law, without further vote or action by our stockholders, to issue from time-to-time shares of preferred stock in one or more series. Each series of preferred stock will have such number of shares, designations, preferences, voting powers, qualifications and special or relative rights or privileges as shall be determined by the board of directors, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights. In connection with the Company’s acquisition of Wow, certain eligible Canadian stockholders, noteholders and optionholders of Wow elected to receive the Exchangeable Shares in the capital of the Wow Exchange Co. Inc. (“ExchangeCo”) instead of shares of the Company’s common stock to which they were otherwise entitled. The shares of ExchangeCo are exchangeable into shares of the Company’s common stock in accordance with their terms. Holders of the ExchangeCo shares are entitled to defined voting rights (the “Voting Rights”) in the Company pursuant to a voting and exchange trust agreement (the “Voting Agreement”) dated April 6, 2022 among the Company, ExchangeCo, 1329258 B.C. Ltd. and Computershare Trust Company of Canada (the “Voting Trustee”). The Voting Trustee holds a single share of Series B Preferred Stock in the capital of the Company (the “Special Voting Share”), which grants the Voting Trustee that number of votes at the meetings of the Company’s stockholders as is equal to the number of shares of the Company’s common stock that at such time have not been delivered pursuant to the tender of ExchangeCo shares. The Voting Trustee is required to exercise each vote attached to the Special Voting Share only as directed by the relevant holder of the underlying Company shares of common stock and, in the absence of any instructions, will not exercise voting rights with respect to the applicable shares. |
Stock Options
Stock Options | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Options | Stock Options On September 1, 2020, the Company adopted the Kartoon Studios, Inc. 2020 Incentive Plan (the “2020 Plan”) as voted by the Board of Directors. The Board of Directors approved the maximum number of shares available for issuance up to an aggregate of 3,000,000 shares of common stock, which does not include shares that the Company may issue related to acquisitions. The 2020 Plan replaced the previously adopted 2015 Incentive Plan (the “2015 Plan”) that had a total number of authorized shares of 216,767, however the remaining 57,800 outstanding shares granted under the 2015 Plan, as of March 31, 2024, remain to be governed under such plan. All expired or terminated shares granted under the 2015 Plan, that have not been vested or exercised, reverts to and again becomes available for issuance under the 2020 Plan. During the three months ended March 31, 2024 and 2023, the Company did not grant any stock options. The following table summarizes the Company’s option activity: Stock Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Outstanding at December 31, 2023 1,183,908 5.56 $ 14.96 Granted – – $ – Exercised – – $ – Forfeited/Cancelled (117,969) – $ 11.81 Expired (5,800) – $ 19.90 Outstanding at March 31, 2024 1,060,139 5.47 $ 15.28 Unvested at March 31, 2024 90,348 4.93 $ 7.04 Vested and exercisable at March 31, 2024 969,791 5.52 $ 16.05 Restricted stock units (“RSUs”) are granted under the Company’s 2020 Plan. During the three months ended March 31, 2024 and 2023, the Company granted 95,229 and 11,070 fully vested RSUs to the Company’s board members and consultants, with a fair market value of $131,379 and $30,000, respectively. An aggregate of 103,446 shares of common stock were issued during the three months ended March 31, 2024 as a result of RSUs vested during the current and prior periods. The following table summarizes the Company’s RSU activity: Restricted Stock Units Weighted- Unvested at December 31, 2023 982,625 $ 13.42 Granted 95,229 $ 1.38 Vested (97,021) $ 1.61 Forfeited – $ – Unvested at March 31, 2024 980,833 $ 13.42 During the three months ended March 31, 2024 and 2023, the Company recognized $0.2 million and $0.5 million, respectively, in share-based compensation expense related to RSU awards included in General & Administrative Expense on the Company’s condensed consolidated statements of operations. The unvested share-based compensation as of March 31, 2024 was $0.3 million which will be recognized through the fourth quarter of 2026 assuming the underlying grants are not cancelled or forfeited. The total fair value of shares vested during the three months ended March 31, 2024 was $0.2 million. |
Restricted Stock Units
Restricted Stock Units | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Units | Stock Options On September 1, 2020, the Company adopted the Kartoon Studios, Inc. 2020 Incentive Plan (the “2020 Plan”) as voted by the Board of Directors. The Board of Directors approved the maximum number of shares available for issuance up to an aggregate of 3,000,000 shares of common stock, which does not include shares that the Company may issue related to acquisitions. The 2020 Plan replaced the previously adopted 2015 Incentive Plan (the “2015 Plan”) that had a total number of authorized shares of 216,767, however the remaining 57,800 outstanding shares granted under the 2015 Plan, as of March 31, 2024, remain to be governed under such plan. All expired or terminated shares granted under the 2015 Plan, that have not been vested or exercised, reverts to and again becomes available for issuance under the 2020 Plan. During the three months ended March 31, 2024 and 2023, the Company did not grant any stock options. The following table summarizes the Company’s option activity: Stock Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Outstanding at December 31, 2023 1,183,908 5.56 $ 14.96 Granted – – $ – Exercised – – $ – Forfeited/Cancelled (117,969) – $ 11.81 Expired (5,800) – $ 19.90 Outstanding at March 31, 2024 1,060,139 5.47 $ 15.28 Unvested at March 31, 2024 90,348 4.93 $ 7.04 Vested and exercisable at March 31, 2024 969,791 5.52 $ 16.05 Restricted stock units (“RSUs”) are granted under the Company’s 2020 Plan. During the three months ended March 31, 2024 and 2023, the Company granted 95,229 and 11,070 fully vested RSUs to the Company’s board members and consultants, with a fair market value of $131,379 and $30,000, respectively. An aggregate of 103,446 shares of common stock were issued during the three months ended March 31, 2024 as a result of RSUs vested during the current and prior periods. The following table summarizes the Company’s RSU activity: Restricted Stock Units Weighted- Unvested at December 31, 2023 982,625 $ 13.42 Granted 95,229 $ 1.38 Vested (97,021) $ 1.61 Forfeited – $ – Unvested at March 31, 2024 980,833 $ 13.42 During the three months ended March 31, 2024 and 2023, the Company recognized $0.2 million and $0.5 million, respectively, in share-based compensation expense related to RSU awards included in General & Administrative Expense on the Company’s condensed consolidated statements of operations. The unvested share-based compensation as of March 31, 2024 was $0.3 million which will be recognized through the fourth quarter of 2026 assuming the underlying grants are not cancelled or forfeited. The total fair value of shares vested during the three months ended March 31, 2024 was $0.2 million. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants The following table summarizes the Company’s warrant activity: Warrants Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Outstanding at December 31, 2023 6,852,952 4.16 $ 8.19 Granted – – $ – Exercised – – $ – Expired (26,000) – $ 26.88 Forfeitures – – $ – Outstanding at March 31, 2024 6,826,952 3.93 $ 8.12 Exercisable at March 31, 2024 6,826,952 3.93 $ 8.12 Exercisable at December 31, 2023 6,852,952 4.16 $ 8.19 As of March 31, 2024, 89,286 derivative warrants classified as a liability as issued with convertible notes in 2020 to purchase shares of the Company’s common stock remained outstanding and are revalued each reporting period. As of March 31, 2024, the warrants were revalued at approximately $25,741, resulting in a decrease of $37,334 in liability as compared to December 31, 2023. The change in value was recorded as a Gain on Revaluation of Warrants within Other Expense, net on the condensed consolidated statements of operations and within the Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities on the condensed consolidated statements of cash flows. The fair value of the outstanding derivative warrants was determined by using the Black-Scholes Merton option pricing model based on the following assumptions as of March 31, 2024: Market Price $ 1.37 Exercise Price $ 2.10 Dividend Yield – % Volatility 87 % Risk-free Interest Rate 5.03 % Expected Life of Warrants 0.95 years |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Other Expense, net Components of Other Expense, net, are summarized as follows (in thousands): Three Months Ended March 31, 2024 2023 Interest Expense (a) $ (203) $ (1,085) Gain on Revaluation of Warrants (b) $ 37 $ 139 Loss on Revaluation of Equity Investment in YFE (c) – (895) Realized Loss on Marketable Securities Investments (d) (141) (1,537) Gain (Loss) on Foreign Exchange (e) (650) 320 Interest Income (f) 53 310 Finance Lease Interest Expense (g) (30) (50) Other (h) 164 1 Other Expense, net $ (567) $ (1,712) (a) Interest Expense during the three months ended March 31, 2024 primarily consisted of $0.1 million of interest incurred on the production facilities and $0.1 million of interest incurred on bank indebtedness. (b) The Gain on Revaluation of Warrants during the three months ended March 31, 2024 is primarily related to the changes in fair value of the remaining outstanding warrant classified as a liability due to decreases in market price. (c) As accounted for using the fair value option, the Loss on Revaluation of Equity Investment in YFE is a result of the increases or decreases in YFE’s stock price as of the current reporting period when compared to the prior reporting period. This excludes the impact of foreign currency recorded separately. The stock price of YFE as of March 31, 2024 did not change from the prior period. (d) The Realized Loss on Marketable Securities Investments reflects the loss that will not be recovered from the investments due to selling securities prior to maturity. (e) The Gain (Loss) on Foreign Exchange during the three months ended March 31, 2024 primarily related to the revaluation of the YFE investment, resulting in a loss of $0.4 million due to the EURO fluctuation to USD as compared to the prior reporting period. The remaining balance is related to remeasurements of transactions made in foreign currencies that are outstanding as of the balance sheet date. (f) Interest Income during the three months ended March 31, 2024 primarily consisted of interest income, net of premium amortization expense, recorded for the investments in marketable securities. (g) The Finance Lease Interest Expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. (h) Other Income is primarily related to late fees from select clients on a payment plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes , which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. ASC 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company’s financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the consolidated financial statements. During the first quarter of 2023, the Frederator indefinite-lived intangible asset was determined to be impaired as previously reported. The Deferred Tax Liability, net balance associated with the tradename decreased by $0.2 million on the unaudited condensed consolidated balance sheet, with a corresponding increase to Income Tax Benefit on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2023. In addition, as part of the Ameba purchase price allocation, a $0.7 million deferred tax liability was previously recorded on the intangible assets. Due to the impairment write-off of the intangible assets, the Company reversed the Deferred Tax Liability, net balance associated with the related intangible assets by $0.7 million and recorded a corresponding increase to Income Tax Benefit on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2023. During the first quarter of 2024, there was no activity that effected the Deferred Tax Liability balance. Kartoon Studios, Inc. and its wholly-owned U.S. subsidiaries are subject to U.S. income taxes and file a consolidated tax return in the U.S. The Beacon Communications Group, Ltd., Ameba Inc. and WOW Unlimited Media Inc. are subject to Canadian income taxes on a stand-alone basis and file separate tax returns in Canada. The Company files income tax returns in the U.S. federal jurisdiction and in the states of California, Florida, Massachusetts, New Jersey, New York, as well as Canada. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses were generated and carried forward to make adjustments up to the amount of the net operating losses. The Company is currently subject to U.S. federal, state and local and foreign tax examinations by tax authorities. The Company is no longer subject to audits by U.S. federal, state, local or foreign authorities for years prior to 2019. Kartoon Studios, Inc. and its wholly-owned U.S. subsidiaries are subject to U.S. income taxes and file a consolidated tax return in the U.S. The Beacon Communications Group, Ltd., Ameba Inc. and WOW Unlimited Media Inc. are subject to Canadian income taxes on a stand-alone basis and file separate tax returns in Canada. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following is a schedule of future minimum cash contractual obligations as of March 31, 2024 (in thousands): 2024 2025 2026 2027 2028 Thereafter Total Operating Leases $ 1,438 $ 1,638 $ 1,643 $ 1,413 $ 1,069 $ 3,379 $ 10,580 Finance Leases 782 668 281 – – – 1,731 Employment Contracts 2,519 1,127 – – – – 3,646 Consulting Contracts 825 – – – – – 825 Debt 2,940 8,292 – – – – 11,232 $ 8,504 $ 11,725 $ 1,924 $ 1,413 $ 1,069 $ 3,379 $ 28,014 The present value discount of the minimum operating lease payments above was $3.0 million which when deducted from the cash commitments for the leases included in the table above, equates to the lease liabilities of $7.6 million recorded as of March 31, 2024 on the Company’s condensed consolidated balance sheet. Other Funding Commitments The Company enters into various agreements associated with its individual properties. Some of these agreements call for the potential future payment of royalties or “profit” participations for either (i) the use of third party intellectual property, in which the Company is obligated to share net profits with the underlying rights holders on a certain basis as defined in the respective agreements, or (ii) services rendered by animation studios, post-production studios, writers, directors, musicians or other creative talent for which the Company is obligated to share with these service providers a portion of the net profits of the properties on which they have rendered services, as defined in each respective agreement. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Pursuant to his employment agreement dated December 7, 2020, Andy Heyward, the Company’s CEO, is entitled to an executive producer fee of $12,500 per one-half hour episode for each episode he provides services as an executive producer . During the three months ended March 31, 2024, Mr. Heyward did not earn any executive producer fees. During the three months ended March 31, 2023 Mr. Heyward earned and was paid $162,500 in executive producer fees. Mr. Heyward also earned his $55,000 quarterly bonus during the three months ended March 31, 2024 and 2023. On August 25, 2022, Mr. Heyward’s employment agreement was amended to include assignment of music royalties to Mr. Heyward for all musical compositions in which he provides services as a composer for or on behalf of the Company, in the event that the Company acquires up to 50% of the writer's share of the royalties for that musical composition. If the Company acquires more than 50% of the writer's share of the royalties on musical compositions Mr. Heyward provided services for, he has the option to purchase the additional royalties from the Company at the price the Company paid to acquire the additional royalties. During the three months ended March 31, 2024 and 2023, Mr. Heyward has not earned royalties from musical compositions. On February 27, 2023, Mr. Heyward’s employment agreement was further amended to provide him a creative producer fee of $100,000 per quarter, prorated for the three months ended March 31, 2023, for services rendered to Wow. During the three months ended March 31, 2024 and 2023, Mr. Heyward earned $100,000 and $25,556 in creative producer fees. On July 21, 2020, the Company entered into a merchandising and licensing agreement with Andy Heyward Animation Art (“AHAA”), whose principal is Andy Heyward. The Company entered into a customary merchandise license agreement with AHAA for the use of characters and logos related to Warren Buffett’s Secret Millionaires Club and Stan Lee’s Mighty 7 in connection with certain products to be sold by AHAA. The terms and conditions of such license are customary within the industry, and the Company earns an arm’s-length industry standard royalty on all sales made by AHAA utilizing the licensed content. During the three months ended March 31, 2024 and 2023, Mr. Heyward has not earned royalties from this agreement. On July 19, 2022, the Company entered into a Shareholder Loan Agreement with YFE in the amount of EURO 1.3 million, accruing interest at the fixed annualized rate of 5%, with successive interest periods of three months due on the last day of each calendar quarter. The principal plus interest must be repaid by no later than June 30, 2026. As of March 31, 2024 and December 31, $1.4 million is included within Notes and Accounts Receivable from Related Party on the Company’s condensed consolidated balance sheets. During 2022, the Company entered into a sublease agreement with a related party to lease one office in the general office space at 190 N. Canon Drive, Suite 400, Beverly Hills, CA 90210. The monthly payments were $595 for the three months ended March 31, 2024 and 2023 and recorded within Other Expense, net in the Company's condensed consolidated statements of operations. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s Chief Operating Decision Maker (“CODM”) uses revenue and net earnings to evaluate the profitability and performance of each operating segment. All other financial information is reviewed by the CODM on a condensed consolidated basis. The CODM does not evaluate the operating segments using asset information and it is therefore not disclosed. All expenses directly attributable to each reportable segment are included in the operating results for each segment. However, the CODM does not evaluate the expenses by operating segment and, therefore, it is not separately presented. The following table presents the revenue and net earnings within the Company's two operating segments (in thousands): Three Months Ended March 31, 2024 2023 Total Revenues: Content Production & Distribution $ 5,192 $ 13,233 Media Advisory & Advertising Services 886 956 Total Revenues $ 6,078 $ 14,189 Net Loss: Content Production & Distribution $ (6,739) $ (23,274) Media Advisory & Advertising Services (306) (554) Total Net Loss $ (7,045) $ (23,828) Geographic Information The following table provides information about disaggregated revenue by geographic area (in thousands): Three Months Ended March 31, 2024 2023 Total Revenues: United States $ 3,181 $ 8,624 Canada 140 3,616 United Kingdom 2,559 1,799 Other 198 150 Total Revenues $ 6,078 $ 14,189 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to March 31, 2024, the Company announced the initial closing of its registered direct offering of up to $7,000,000 (the “Offering”) on April 23, 2024. In the initial closing, the Company sold 3,900,000 shares of its common stock, par value $0.001 per share (the “Common Stock”), and pre-funded warrants to purchase up to 100,000 shares of Common Stock (the “Pre-funded Warrants”) to an institutional investor (the "Investor"), at $1.00 per share of Common Stock and $0.99 per Pre-funded Warrant, for aggregate gross proceeds of approximately $4,000,000, prior to deducting placement agent fees and other offering expenses, pursuant to a securities purchase agreement, dated April 18, 2024 (the “SPA”). Pursuant to the terms of the SPA, the Investor has the sole option to purchase up to an additional 3,000,000 shares of Common Stock and/or Pre-funded Warrants as part of the Offering, at $1.00 per share of Common Stock and $0.99 per Pre-Funded Warrant, in up to three subsequent closings during the 180-day period following the date of the SPA in which each subsequent closing is equal to no less than $1,000,000, whereby the Company would receive additional aggregate gross proceeds of up to $3,000,000 (together with the gross proceeds from the initial closing, up to a total of $7,000,000), prior to deducting placement agent fees and other offering expenses. Additionally, the Company has 4,784,909 warrants with a reprice option that was triggered by the registered direct offering which reduced the exercise price from $2.50 per share to $1.00 per share. Subsequent to March 31, 2024, the Company sold marketable securities and received proceeds of $2.5 million and incurred a realized loss of $0.2 million. The Company paid down the margin loan and invested $0.8 million in a money market fund. Refer to Part II Item. 1 Legal Proceedings of this Form 10Q for recent developments in legal matters subsequent to March 31, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ (7,045) | $ (23,828) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying interim condensed consolidated financial statements of the Company have been prepared in conformity with U.S. Generally Accepted Accounting Principles (U.S. 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 December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on April 9, 2024. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other comprehensive income/(loss) that are reported in the condensed consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed 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. Interim results are not necessarily indicative of financial results for a full year. The information included in this Form 10-Q should be read in conjunction with the Company’s 2023 Annual Report. The following is provided to update the Company’s significant accounting policies previously described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. |
New Accounting Standards Issued but Not Yet Adopted | New Accounting Standards Issued but Not Yet Adopted In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements . The new guidance clarifies or improves disclosure and presentation requirements on a variety of topics in the codification. The amendments will align the requirements in the FASB Accounting Standard Codification with the SEC’s regulations. The amendments are effective prospectively on the date each individual amendment is effectively removed from Regulation S-X or Regulation S-K. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is not expected to be material. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures . The amendments enhance disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM), extend certain annual disclosures to interim periods, and permit more than one measure of segment profit or loss to be reported under certain conditions. The amendments are effective for the Company in fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendment is permitted, including adoption in any interim periods for which financial statements have not been issued. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this Update are effective for annual periods beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the condensed consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Marketable Security Measured at Fair Value | The following table summarizes the marketable securities measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2024 (in thousands): Level 1 Level 2 Total Fair Value Investments in Marketable Securities: Corporate Bonds $ 4,898 $ – $ 4,898 U.S. agency and government sponsored securities – 1,851 1,851 U.S. states and municipalities – 2,633 2,633 Total $ 4,898 $ 4,484 $ 9,382 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Marketable Securities [Abstract] | |
Schedule of Marketable Securities | The balances consisted of the following securities (in thousands) : Adjusted Cost Unrealized Loss Fair Value Corporate Bonds $ 5,263 $ (365) $ 4,898 U.S. Agency and Government Sponsored Securities 1,999 (148) 1,851 U.S. States and Municipalities 2,847 (214) 2,633 Total $ 10,109 $ (727) $ 9,382 (in thousands) : Adjusted Cost Unrealized Loss Fair Value Corporate Bonds $ 6,333 $ (425) $ 5,908 U.S. Treasury 646 (37) 609 U.S. Agency and Government Sponsored Securities 2,000 (148) 1,852 U.S. States and Municipalities 3,859 (278) 3,581 Total $ 12,838 $ (888) $ 11,950 |
Schedule of Investments Classified by Contractual Maturity Date | The contractual maturities of the Company’s marketable investments as of March 31, 2024 were as follows (in thousands): Fair Value Due within 1 year $ 184 Due after 1 year through 5 years 9,198 Total $ 9,382 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, net | The Company has property and equipment as follows (in thousands): As of March 31, 2024 December 31, 2023 Furniture and Equipment $ 117 $ 117 Computer Equipment 224 219 Leasehold Improvements 2,209 2,200 Software 218 192 Property and Equipment, gross 2,768 2,728 Less Accumulated Depreciation (823) (724) Foreign Currency Translation Adjustment (165) (127) Property and Equipment, net $ 1,780 $ 1,877 |
Leased Right-of-Use Assets, n_2
Leased Right-of-Use Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Right Of Use Leased Asset [Abstract] | |
Schedule of Right of Use Asset | Leased right-of-use assets consisted of the following (in thousands): As of March 31, 2024 December 31, 2023 Office Lease Assets $ 9,437 $ 9,437 Equipment Lease Assets 5,360 5,360 Right-of-Use Assets, Gross 14,797 14,797 Accumulated Amortization (5,787) (5,237) Foreign Currency Translation Adjustment (779) (617) Leased Right-of-Use Assets, net $ 8,231 $ 8,943 |
Film and Television Costs, net
Film and Television Costs, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Industries [Abstract] | |
Schedule of Film and Television Costs Activity | The following table highlights the activity in Film and Television Costs as of March 31, 2024 and December 31, 2023 (in thousands): Film and Television Costs, net as of December 31, 2022 $ 7,780 Additions to Film and Television Costs 1,078 Disposals (41) Film Amortization Expense & Impairment Losses (7,536) Foreign Currency Translation Adjustment 14 Film and Television Costs, net as of December 31, 2023 1,295 Additions to Film and Television Costs 162 Film Amortization Expense & Impairment Losses (62) Foreign Currency Translation Adjustment (6) Film and Television Costs, net as of March 31, 2024 $ 1,389 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset | The Company had the following intangible assets (in thousands) with their weighted average remaining amortization period (in years) : Intangible Assets, net Weighted Average Remaining Amortization Period As of March 31, 2024 December 31, 2023 Customer Relationships 6.2 $ 17,396 $ 17,325 Digital Networks 14.0 803 803 Trade Names 67.2 9,971 9,970 Intangible Assets, gross 28,170 28,098 Less Accumulated Amortization (4,381) (3,794) Foreign Currency Translation Adjustment (1,674) (1,311) Intangible Assets, net $ 22,115 $ 22,993 _______________________ |
Schedule of Expected Future Intangible Asset Amortization | Expected future amortization of intangible assets subject to amortization as of March 31, 2024 is as follows (in thousands): Fiscal Year: 2024 $ 1,544 2025 2,059 2026 2,059 2027 2,059 2028 2,059 Thereafter 6,787 Total $ 16,567 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the Company’s option activity: Stock Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Outstanding at December 31, 2023 1,183,908 5.56 $ 14.96 Granted – – $ – Exercised – – $ – Forfeited/Cancelled (117,969) – $ 11.81 Expired (5,800) – $ 19.90 Outstanding at March 31, 2024 1,060,139 5.47 $ 15.28 Unvested at March 31, 2024 90,348 4.93 $ 7.04 Vested and exercisable at March 31, 2024 969,791 5.52 $ 16.05 |
Restricted Stock Units (Tables)
Restricted Stock Units (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Units | The following table summarizes the Company’s RSU activity: Restricted Stock Units Weighted- Unvested at December 31, 2023 982,625 $ 13.42 Granted 95,229 $ 1.38 Vested (97,021) $ 1.61 Forfeited – $ – Unvested at March 31, 2024 980,833 $ 13.42 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Warrant Activity | The following table summarizes the Company’s warrant activity: Warrants Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Outstanding at December 31, 2023 6,852,952 4.16 $ 8.19 Granted – – $ – Exercised – – $ – Expired (26,000) – $ 26.88 Forfeitures – – $ – Outstanding at March 31, 2024 6,826,952 3.93 $ 8.12 Exercisable at March 31, 2024 6,826,952 3.93 $ 8.12 Exercisable at December 31, 2023 6,852,952 4.16 $ 8.19 |
Schedule of Assumptions for Warrant Activity | The fair value of the outstanding derivative warrants was determined by using the Black-Scholes Merton option pricing model based on the following assumptions as of March 31, 2024: Market Price $ 1.37 Exercise Price $ 2.10 Dividend Yield – % Volatility 87 % Risk-free Interest Rate 5.03 % Expected Life of Warrants 0.95 years |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Expense, net | Components of Other Expense, net, are summarized as follows (in thousands): Three Months Ended March 31, 2024 2023 Interest Expense (a) $ (203) $ (1,085) Gain on Revaluation of Warrants (b) $ 37 $ 139 Loss on Revaluation of Equity Investment in YFE (c) – (895) Realized Loss on Marketable Securities Investments (d) (141) (1,537) Gain (Loss) on Foreign Exchange (e) (650) 320 Interest Income (f) 53 310 Finance Lease Interest Expense (g) (30) (50) Other (h) 164 1 Other Expense, net $ (567) $ (1,712) (a) Interest Expense during the three months ended March 31, 2024 primarily consisted of $0.1 million of interest incurred on the production facilities and $0.1 million of interest incurred on bank indebtedness. (b) The Gain on Revaluation of Warrants during the three months ended March 31, 2024 is primarily related to the changes in fair value of the remaining outstanding warrant classified as a liability due to decreases in market price. (c) As accounted for using the fair value option, the Loss on Revaluation of Equity Investment in YFE is a result of the increases or decreases in YFE’s stock price as of the current reporting period when compared to the prior reporting period. This excludes the impact of foreign currency recorded separately. The stock price of YFE as of March 31, 2024 did not change from the prior period. (d) The Realized Loss on Marketable Securities Investments reflects the loss that will not be recovered from the investments due to selling securities prior to maturity. (e) The Gain (Loss) on Foreign Exchange during the three months ended March 31, 2024 primarily related to the revaluation of the YFE investment, resulting in a loss of $0.4 million due to the EURO fluctuation to USD as compared to the prior reporting period. The remaining balance is related to remeasurements of transactions made in foreign currencies that are outstanding as of the balance sheet date. (f) Interest Income during the three months ended March 31, 2024 primarily consisted of interest income, net of premium amortization expense, recorded for the investments in marketable securities. (g) The Finance Lease Interest Expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line. (h) Other Income is primarily related to late fees from select clients on a payment plan. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | The following is a schedule of future minimum cash contractual obligations as of March 31, 2024 (in thousands): 2024 2025 2026 2027 2028 Thereafter Total Operating Leases $ 1,438 $ 1,638 $ 1,643 $ 1,413 $ 1,069 $ 3,379 $ 10,580 Finance Leases 782 668 281 – – – 1,731 Employment Contracts 2,519 1,127 – – – – 3,646 Consulting Contracts 825 – – – – – 825 Debt 2,940 8,292 – – – – 11,232 $ 8,504 $ 11,725 $ 1,924 $ 1,413 $ 1,069 $ 3,379 $ 28,014 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information by Revenues and Net Earnings | The following table presents the revenue and net earnings within the Company's two operating segments (in thousands): Three Months Ended March 31, 2024 2023 Total Revenues: Content Production & Distribution $ 5,192 $ 13,233 Media Advisory & Advertising Services 886 956 Total Revenues $ 6,078 $ 14,189 Net Loss: Content Production & Distribution $ (6,739) $ (23,274) Media Advisory & Advertising Services (306) (554) Total Net Loss $ (7,045) $ (23,828) |
Schedule of Segments by Geographic Area | The following table provides information about disaggregated revenue by geographic area (in thousands): Three Months Ended March 31, 2024 2023 Total Revenues: United States $ 3,181 $ 8,624 Canada 140 3,616 United Kingdom 2,559 1,799 Other 198 150 Total Revenues $ 6,078 $ 14,189 |
Organization and Business - Nat
Organization and Business - Nature of Business (Details) | 3 Months Ended |
Mar. 31, 2024 territory channel episode company title | |
Wow | |
Offsetting Assets [Line Items] | |
Number of multi channel | channel | 2,500 |
Beacon Media Group | |
Offsetting Assets [Line Items] | |
Number of toy companies | company | 30 |
Y F E | YFE Acquisition | |
Offsetting Assets [Line Items] | |
Number of titles | title | 50 |
Number of episodes over | episode | 1,600 |
Number of network coverage, territories | territory | 60 |
Organization and Business - Rec
Organization and Business - Recent Transactions (Details) | Apr. 23, 2024 USD ($) closing $ / shares shares | Mar. 31, 2024 $ / shares | Dec. 31, 2023 $ / shares |
Offsetting Assets [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Registered Direct Offering | Warrant, repricing option | |||
Offsetting Assets [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 2.50 | ||
Subsequent Event | Registered Direct Offering | |||
Offsetting Assets [Line Items] | |||
Sale of stock, maximum authorized consideration | $ | $ 7,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Sale of stock, consideration received per transaction | $ | $ 4,000,000 | ||
Subsequent Event | Registered Direct Offering | Pre-funded Warrants | |||
Offsetting Assets [Line Items] | |||
Number of securities called by warrants or rights (in shares) | shares | 100,000 | ||
Exercise price of warrants (in dollars per share) | $ 0.99 | ||
Subsequent Event | Registered Direct Offering | Warrant, repricing option | |||
Offsetting Assets [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 1 | ||
Class of warrant or right, outstanding (in shares) | shares | 4,784,909 | ||
Subsequent Event | Registered Direct Offering | Common Stock | |||
Offsetting Assets [Line Items] | |||
Sale of stock, number of issued in transaction (in shares) | shares | 3,900,000 | ||
Sale of stock, price per share (in dollars per share) | $ 1 | ||
Subsequent Event | Over-Allotment Option | |||
Offsetting Assets [Line Items] | |||
Sale of stock, number of issued in transaction (in shares) | shares | 3,000,000 | ||
Sale of stock, number of subsequent closings | closing | 3 | ||
Sale of stock, subsequent closings period | 180 days | ||
Subsequent Event | Over-Allotment Option | Minimum | |||
Offsetting Assets [Line Items] | |||
Sale of stock, consideration received per transaction | $ | $ 1,000,000 | ||
Subsequent Event | Over-Allotment Option | Maximum | |||
Offsetting Assets [Line Items] | |||
Sale of stock, consideration received per transaction | $ | $ 3,000,000 | ||
Subsequent Event | Over-Allotment Option | Pre-funded Warrants | |||
Offsetting Assets [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 0.99 | ||
Subsequent Event | Over-Allotment Option | Common Stock | |||
Offsetting Assets [Line Items] | |||
Sale of stock, price per share (in dollars per share) | $ 1 |
Organization and Business - Liq
Organization and Business - Liquidity (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2024 CAD ($) | |
Offsetting Assets [Line Items] | |||||
Cash | $ 2,763,000 | $ 2,763,000 | $ 4,095,000 | ||
Net decrease in cash, cash equivalents and restricted cash | 1,332,000 | $ 2,667,000 | |||
Net cash used in financing activities | 7,891,000 | 12,157,000 | |||
Net cash provided by (used in) operating activities | 3,845,000 | (5,165,000) | |||
Net cash used in investing activities | 2,560,000 | 14,648,000 | |||
Proceeds from debt | 7,500,000 | ||||
Principal payments on finance lease obligations | 362,000 | 535,000 | |||
Proceeds from sale and maturity of marketable securities | 2,562,000 | 14,257,000 | |||
Collection of production tax credits | 8,300,000 | ||||
Depreciation and amortization | 1,200,000 | ||||
Net losses | 7,064,000 | 23,859,000 | |||
Marketable securities, fair value | 9,382,000 | 9,382,000 | 11,950,000 | ||
Available for sale, decrease during period | 2,600,000 | ||||
Margin loan balance | 2,940,000 | 2,940,000 | 782,000 | ||
Proceeds from lines of credit | 2,828,000 | 3,771,000 | |||
Repayments of lines of credit | 9,654,000 | 5,966,000 | |||
Accumulated deficit | 725,591,000 | 725,591,000 | 718,546,000 | ||
Stockholders' equity | 46,500,000 | 46,500,000 | |||
Current assets | 41,011,000 | 41,011,000 | 57,109,000 | ||
Marketable securities | 9,382,000 | 9,382,000 | 11,950,000 | ||
Current liabilities | 34,885,000 | 34,885,000 | 45,640,000 | ||
Working capital | 6,100,000 | 6,100,000 | 11,500,000 | ||
Equipment Lease Line | |||||
Offsetting Assets [Line Items] | |||||
Line of credit | 1,000,000 | 1,000,000 | $ 1,400,000 | ||
Revolving Demand Facility | |||||
Offsetting Assets [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 1,000,000 | ||||
Letter of Credit | |||||
Offsetting Assets [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 200,000 | 200,000 | |||
Debt instrument, term | 1 year | ||||
Treasury Risk Management Facility | |||||
Offsetting Assets [Line Items] | |||||
Line of credit | 0 | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000 | ||||
Prime Rate | Revolving Demand Facility | |||||
Offsetting Assets [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2% | ||||
Margin Loan | |||||
Offsetting Assets [Line Items] | |||||
Margin loan balance | $ 2,900,000 | 2,900,000 | $ 800,000 | ||
Proceeds from lines of credit | 3,100,000 | ||||
Repayments of lines of credit | $ 900,000 | ||||
Debt, weighted average interest rate | 0.95% | 0.95% | 0.98% | 0.95% | |
Interest expense, debt | $ 18,632 | $ 700,000 | |||
Margin Loan | Median | |||||
Offsetting Assets [Line Items] | |||||
Proceeds from lines of credit | $ 14,200,000 | $ 27,400,000 | |||
Margin Loan | Federal Funds Rate | |||||
Offsetting Assets [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.60% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) account | Mar. 31, 2023 | Dec. 31, 2023 USD ($) account | |
Product Information [Line Items] | |||
Accounts receivable, allowance for doubtful accounts | $ 200,000 | $ 200,000 | |
Tax credits receivable, net, current | 11,955,000 | 20,714,000 | |
Tax credits receivable, allowance for tax credits receivable | $ 500,000 | $ 500,000 | |
Cash, number of accounts with uninsured balance | account | 11 | 10 | |
Cash, uninsured amount | $ 1,600,000 | $ 2,500,000 | |
Marketable securities | 9,382,000 | 11,950,000 | |
Allowance for credit losses for marketable securities | $ 0 | $ 0 | |
Revenue Benchmark | Customer Concentration Risk | Two Customers | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 61.70% | ||
Revenue Benchmark | Customer Concentration Risk | Three Customers | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 71.90% | ||
Accounts Receivable | Customer Concentration Risk | Two Customers | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 52.80% | ||
FX Forwards | |||
Product Information [Line Items] | |||
Derivative liability | $ 200,000 | ||
FX Forwards | Production Services | |||
Product Information [Line Items] | |||
Realized loss | $ 200,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | $ 9,382 | $ 11,950 |
Corporate Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 4,898 | 5,908 |
U.S. agency and government sponsored securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 1,851 | 1,852 |
U.S. states and municipalities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 2,633 | $ 3,581 |
Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 4,898 | |
Level 1 | Corporate Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 4,898 | |
Level 1 | U.S. agency and government sponsored securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 0 | |
Level 1 | U.S. states and municipalities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 0 | |
Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 4,484 | |
Level 2 | Corporate Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 0 | |
Level 2 | U.S. agency and government sponsored securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | 1,851 | |
Level 2 | U.S. states and municipalities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Marketable securities | $ 2,633 |
Variable Interest Entity (Detai
Variable Interest Entity (Details) | Jul. 31, 2020 creation |
Stan Lee Universe | |
Variable Interest Entity [Line Items] | |
Number of creations | 100 |
Investment in Equity Interest (
Investment in Equity Interest (Details) - YFE Acquisition - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ownership percentage | 44.80% | 44.80% | 28.69% |
Equity method investment, fair value, decrease | $ 0.4 | ||
Equity method investment, fair value, foreign currency impact, loss | 0.4 | ||
Other Noncurrent Assets | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity method investments | $ 18.7 | ||
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Ownership percentage (in shares) | 6,857,132 | 6,857,132 |
Marketable Securities - Narrati
Marketable Securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) security | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | |||
Marketable securities, cost | $ 10,109,000 | $ 12,838,000 | |
Marketable securities, fair value | $ 9,382,000 | 11,950,000 | |
Debt securities, available-for-sale, unrealized loss position, number of positions | security | 9 | ||
Allowance for credit losses for marketable securities | $ 0 | $ 0 | |
Realized loss | $ 100,000 | $ 1,500,000 | |
Minimum | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, period | 12 months | 12 months |
Marketable Securities - Marketa
Marketable Securities - Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | $ 10,109 | $ 12,838 |
Unrealized Loss | (727) | (888) |
Fair Value | 9,382 | 11,950 |
Corporate Bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 5,263 | 6,333 |
Unrealized Loss | (365) | (425) |
Fair Value | 4,898 | 5,908 |
U.S. Treasury | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 646 | |
Unrealized Loss | (37) | |
Fair Value | 609 | |
U.S. Agency and Government Sponsored Securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 1,999 | 2,000 |
Unrealized Loss | (148) | (148) |
Fair Value | 1,851 | 1,852 |
U.S. States and Municipalities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 2,847 | 3,859 |
Unrealized Loss | (214) | (278) |
Fair Value | $ 2,633 | $ 3,581 |
Marketable Securities - Contrac
Marketable Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Marketable Securities [Abstract] | ||
Due within 1 year | $ 184 | |
Due after 1 year through 5 years | 9,198 | |
Total | $ 9,382 | $ 11,950 |
Property and Equipment, net - C
Property and Equipment, net - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 2,768 | $ 2,728 |
Less Accumulated Depreciation | (823) | (724) |
Foreign Currency Translation Adjustment | (165) | (127) |
Property and Equipment, net | 1,780 | 1,877 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 117 | 117 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 224 | 219 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 2,209 | 2,200 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 218 | $ 192 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 100,000 | $ 100,000 |
Write-down of property and equipment | 0 | 100,000 |
Impairment of property and equipment | $ 0 | $ 120,000 |
Leased Right-of-Use Assets, n_3
Leased Right-of-Use Assets, net - Components of Right of Use Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Assets, Gross | $ 14,797 | $ 14,797 |
Accumulated Amortization | (5,787) | (5,237) |
Foreign Currency Translation Adjustment | (779) | (617) |
Leased Right-of-Use Assets, net | 8,231 | 8,943 |
Office Lease Assets | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Assets, Gross | 9,437 | 9,437 |
Equipment Lease Assets | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Assets, Gross | $ 5,360 | $ 5,360 |
Leased Right-of-Use Assets, n_4
Leased Right-of-Use Assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Right Of Use Leased Asset [Abstract] | |||
Operating lease, weighted average remaining lease term | 81 months | 83 months | |
Operating lease, weighted average discount rate, percent | 11.10% | 11.10% | |
Operating lease, expense | $ 0.4 | $ 0.4 | |
Finance lease costs | 0.4 | 0.6 | |
Finance lease, right-of-use asset, amortization | $ 0.4 | $ 0.5 |
Film and Television Costs, ne_2
Film and Television Costs, net - Activity In Film And Television Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Film and Television Costs, net [Roll Forward] | ||
Film and television costs, beginning balance | $ 1,295 | $ 7,780 |
Additions to Film and Television Costs | 162 | 1,078 |
Disposals | (41) | |
Film Amortization Expense & Impairment Losses | (62) | (7,536) |
Foreign Currency Translation Adjustment | (6) | 14 |
Film and television costs, ending balance | $ 1,389 | $ 1,295 |
Film and Television Costs, ne_3
Film and Television Costs, net - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Industries [Abstract] | ||
Film and television costs, amortization expenses | $ 100,000 | $ 200,000 |
Film and television costs, write-downs | 0 | 0 |
Film and television costs, impairment losses | $ 0 | $ 0 |
Intangible Assets, net - Compon
Intangible Assets, net - Components of Intangible Assets, net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | $ 28,170 | $ 28,098 |
Less Accumulated Amortization | (4,381) | (3,794) |
Foreign Currency Translation Adjustment | (1,674) | (1,311) |
Intangible Assets, net | $ 22,115 | 22,993 |
Customer Relationships | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 6 years 2 months 12 days | |
Intangible Assets, gross | $ 17,396 | 17,325 |
Digital Networks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 14 years | |
Intangible Assets, gross | $ 803 | 803 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 67 years 2 months 12 days | |
Intangible Assets, gross | $ 9,971 | $ 9,970 |
Intangible Assets, net - Narrat
Intangible Assets, net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill [Line Items] | |||
Amortization of intangible assets | $ 500 | $ 600 | |
Impairment of intangible assets | $ 4,000 | ||
Intangible assets | 28,170 | $ 28,098 | |
Wow | Trade Names | |||
Goodwill [Line Items] | |||
Intangible assets | $ 5,500 |
Intangible Assets, net - Expect
Intangible Assets, net - Expected Future Intangible Asset Amortization (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 1,544 |
2025 | 2,059 |
2026 | 2,059 |
2027 | 2,059 |
2028 | 2,059 |
Thereafter | 6,787 |
Total | $ 16,567 |
Deferred Revenue (Details)
Deferred Revenue (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 7.2 | $ 6.6 |
Margin Loan (Details)
Margin Loan (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Margin loan balance | $ 2,940,000 | $ 782,000 | |
Proceeds from lines of credit | 2,828,000 | $ 3,771,000 | |
Repayments of lines of credit | 9,654,000 | 5,966,000 | |
Margin Loan | |||
Line of Credit Facility [Line Items] | |||
Margin loan balance | 2,900,000 | $ 800,000 | |
Proceeds from lines of credit | 3,100,000 | ||
Repayments of lines of credit | $ 900,000 | ||
Debt, weighted average interest rate | 0.95% | 0.98% | |
Interest expense, debt | $ 18,632 | $ 700,000 | |
Margin Loan | Median | |||
Line of Credit Facility [Line Items] | |||
Proceeds from lines of credit | $ 14,200,000 | $ 27,400,000 | |
Margin Loan | Federal Funds Rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.60% |
Bank Indebtedness and Product_2
Bank Indebtedness and Production Facilities (Details) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | |
Line of Credit Facility [Line Items] | |||||
Bank Indebtedness | $ 0 | $ 0 | $ 2,905,000 | ||
Production facilities, net | $ 8,292,000 | 8,292,000 | 15,336,000 | ||
Revolving Demand Facility | |||||
Line of Credit Facility [Line Items] | |||||
Bank Indebtedness | 2,900,000 | $ 3,800,000 | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000 | ||||
Revolving Demand Facility | Prime Rate | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2% | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 200,000 | 200,000 | |||
Debt instrument, term | 1 year | ||||
Production Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Production facilities, net | $ 8,300,000 | 8,300,000 | 11,200,000 | 15,300,000 | 20,300,000 |
Production facilities, interest | 1,100,000 | $ 1,100,000 | 1,500,000 | $ 1,400,000 | $ 1,900,000 |
Production Facilities | Prime Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1% | ||||
Production Facilities | Prime Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
Equipment Lease Line | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit | $ 1,000,000 | $ 1,000,000 | $ 1,400,000 | ||
Equipment Lease Line | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, interest rate during period | 4.19% | ||||
Lessee, finance lease, term of contract | 4 months | 4 months | 4 months | ||
Equipment Lease Line | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, interest rate during period | 7.18% | ||||
Lessee, finance lease, term of contract | 28 months | 28 months | 28 months | ||
Equipment Lease Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 1,400,000 | ||||
Line of credit | $ 500,000 | $ 500,000 | $ 700,000 | ||
Equipment Lease Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, interest rate during period | 7.52% | ||||
Lessee, finance lease, term of contract | 20 months | 20 months | 20 months | ||
Equipment Lease Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, interest rate during period | 8.20% | ||||
Lessee, finance lease, term of contract | 29 months | 29 months | 29 months |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 | Feb. 06, 2023 |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 190,000,000 | 190,000,000 | |
Common stock, shares outstanding (in shares) | 35,351,190 | 35,247,744 | |
Preferred stock, shares authorized (in shares) | 9,943,999 | 9,943,999 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Series A Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 6,000 | 6,000 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 1 | 1 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding (in shares) | 1 | 1 | |
Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stock Options - Narrative (Deta
Stock Options - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 01, 2020 | |
Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 0 | 0 | |
Share-based compensation expense | $ 100,000 | $ 400,000 | |
Unrecognized share-based compensation expense | 100,000 | ||
Aggregated intrinsic value | $ 0 | ||
Plan 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 3,000,000 | ||
Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 57,800 | 216,767 |
Stock Options - Option Activity
Stock Options - Option Activity (Details) - Share-based Payment Arrangement, Option - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Stock Options | |||
Beginning balance (in shares) | 1,183,908 | ||
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | ||
Forfeited/Cancelled (in shares) | (117,969) | ||
Expired (in shares) | (5,800) | ||
Ending balance (in shares) | 1,060,139 | 1,183,908 | |
Unvested (in shares) | 90,348 | ||
Vested and exercisable (in shares) | 969,791 | ||
Weighted- Average Grant Date Fair Value per Share | |||
Outstanding, term | 5 years 5 months 19 days | 5 years 6 months 21 days | |
Unvested, term | 4 years 11 months 4 days | ||
Vested and exercisable, term | 5 years 6 months 7 days | ||
Weighted-Average Exercise Price per Share | |||
Beginning balance (in dollars per share) | $ 14.96 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited/Cancelled (in dollars per share) | 11.81 | ||
Expired (in dollars per share) | 19.90 | ||
Ending balance (in dollars per share) | 15.28 | $ 14.96 | |
Unvested options (in dollars per share) | 7.04 | ||
Vested and exercisable (in dollars per share) | $ 16.05 |
Restricted Stock Units - Narrat
Restricted Stock Units - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares issued (in shares) | 103,446 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 95,229 | |
Share-based compensation expense | $ 200,000 | $ 500,000 |
Unrecognized share-based compensation expense | 300,000 | |
Vested, fair value of vested shares | $ 200,000 | |
Restricted Stock Units (RSUs) | Boards Members and Consultants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 95,229 | 11,070 |
Granted, fair value | $ 131,379 | $ 30,000 |
Restricted Stock Units - RSU Ac
Restricted Stock Units - RSU Activity (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Stock Options | |
Beginning balance (in shares) | shares | 982,625 |
Granted (in shares) | shares | 95,229 |
Vested (in shares) | shares | (97,021) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 980,833 |
Weighted- Average Grant Date Fair Value per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 13.42 |
Granted (in dollars per share) | $ / shares | 1.38 |
Vested (in dollars per share) | $ / shares | 1.61 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 13.42 |
Warrants - Warrant Activity (De
Warrants - Warrant Activity (Details) - Warrant - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Warrants | ||
Number of Warrants outstanding beginning balance (in shares) | 6,852,952 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Expired (in shares) | (26,000) | |
Forfeitures (in shares) | 0 | |
Number of Warrants outstanding, ending balance (in shares) | 6,826,952 | 6,852,952 |
Exercisable (in shares) | 6,826,952 | 6,852,952 |
Weighted-Average Remaining Contractual Life | ||
Weighted-Average Remaining Contractual Life | 3 years 11 months 4 days | 4 years 1 month 28 days |
Exercisable | 3 years 11 months 4 days | 4 years 1 month 28 days |
Weighted-Average Exercise Price per Share | ||
Weighted average exercise price per share, beginning balance (in dollars per share) | $ 8.19 | |
Expired (in dollars per share) | 26.88 | |
Weighted average exercise price per share, ending balance (in dollars per share) | 8.12 | $ 8.19 |
Weighted average exercise price per share, exercisable (in dollars per share) | $ 8.12 | $ 8.19 |
Warrants - Narrative (Details)
Warrants - Narrative (Details) - Warrant | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Class of Warrant or Right [Line Items] | |
Warrants issued (in shares) | shares | 89,286 |
Warrants revaluation | $ 25,741 |
Decrease in liability | $ 37,334 |
Warrants - Assumptions (Details
Warrants - Assumptions (Details) - Warrant | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Class of Warrant or Right [Line Items] | |
Market Price (in dollars per share) | $ 1.37 |
Exercise Price (in dollars per share) | $ 2.10 |
Dividend Yield | 0% |
Volatility | 87% |
Risk-free Interest Rate | 5.03% |
Expected Life of Warrants | 11 months 12 days |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Components of Other Expense, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest Expense | $ (203) | $ (1,085) |
Gain on Revaluation of Warrants | 37 | 139 |
Loss on Revaluation of Equity Investment in YFE | 0 | (895) |
Realized Loss on Marketable Securities Investments | (141) | (1,537) |
Gain (Loss) on Foreign Exchange | (650) | 320 |
Interest Income | 53 | 310 |
Finance Lease Interest Expense | (30) | (50) |
Other | 164 | 1 |
Other Expense, net | (567) | $ (1,712) |
YFE Acquisition | ||
Debt Instrument [Line Items] | ||
Equity method investment, fair value, foreign currency impact, loss | 400 | |
Production Facilities Loans | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | 100 | |
Bank Indebtedness | ||
Debt Instrument [Line Items] | ||
Interest expense, debt | $ 100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax benefit | $ 0 | $ 934 |
Frederator | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax liability | 200 | |
Income tax benefit | 200 | |
Ameba | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred tax liability | 700 | |
Income tax benefit | $ 700 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Lease Commitments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating lease | |
2024 | $ 1,438 |
2025 | 1,638 |
2026 | 1,643 |
2027 | 1,413 |
2028 | 1,069 |
Thereafter | 3,379 |
Total | 10,580 |
Finance lease | |
2024 | 782 |
2025 | 668 |
2026 | 281 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 1,731 |
Contractual obligation | |
2024 | 8,504 |
2025 | 11,725 |
2026 | 1,924 |
2027 | 1,413 |
2028 | 1,069 |
Thereafter | 3,379 |
Total | 28,014 |
Employment Contracts | |
Contractual obligation | |
2024 | 2,519 |
2025 | 1,127 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 3,646 |
Consulting Contracts | |
Contractual obligation | |
2024 | 825 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | 825 |
Debt | |
Contractual obligation | |
2024 | 2,940 |
2025 | 8,292 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 11,232 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum operating lease payments | $ 3 |
Operating lease, liability | $ 7.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party € in Millions | 3 Months Ended | |||||||
Feb. 27, 2023 USD ($) | Aug. 25, 2022 | Jul. 19, 2022 EUR (€) | Dec. 07, 2020 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 office | |
Related Party Transaction [Line Items] | ||||||||
Other receivables | $ 1,403,000 | $ 1,435,000 | ||||||
Employment Contracts | Chief Executive Officer | ||||||||
Related Party Transaction [Line Items] | ||||||||
Executive producer fee per half hour episode | $ 12,500 | |||||||
Producer fees | 0 | $ 162,500 | ||||||
Quarterly bonus compensation | 55,000 | 55,000 | ||||||
Royalty percentage | 50% | |||||||
Royalty revenue | 0 | 0 | ||||||
Creative development fee per quarter | $ 100,000 | |||||||
Creative producer fees expense | 100,000 | 25,556 | ||||||
Merchandising and Licensing Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Royalty revenue | 0 | 0 | ||||||
Shareholder Loan Agreement | Y F E | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest payable, current | € | € 1.3 | |||||||
Related party transaction, rate | 5% | |||||||
Successive interest period | 3 months | |||||||
Other receivables | 1,400,000 | $ 1,400,000 | ||||||
Sublease Agreement | Beverly Hills, CA | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of leased office spaces | office | 1 | |||||||
Monthly sublease payment | $ 595 | $ 595 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Information by Revenues and Net Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 6,078 | $ 14,189 |
Total Net Loss | (7,045) | (23,828) |
Content Production & Distribution | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 5,192 | 13,233 |
Total Net Loss | (6,739) | (23,274) |
Media Advisory & Advertising Services | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 886 | 956 |
Total Net Loss | $ (306) | $ (554) |
Segment Reporting - Disaggregat
Segment Reporting - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 6,078 | $ 14,189 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 3,181 | 8,624 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 140 | 3,616 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | 2,559 | 1,799 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 198 | $ 150 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | |||
Apr. 23, 2024 USD ($) closing $ / shares shares | May 14, 2024 USD ($) | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 $ / shares | |
Subsequent Event [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Realized loss on marketable securities | $ | $ 141,000 | $ 1,537,000 | |||
Registered Direct Offering | Warrant, repricing option | |||||
Subsequent Event [Line Items] | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 2.50 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Sale of marketable securities | $ | $ 2,500,000 | ||||
Realized loss on marketable securities | $ | 200,000 | ||||
Payments to acquire money market funds | $ | $ 800,000 | ||||
Subsequent Event | Registered Direct Offering | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, maximum authorized consideration | $ | $ 7,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||
Sale of stock, consideration received per transaction | $ | $ 4,000,000 | ||||
Subsequent Event | Registered Direct Offering | Pre-funded Warrants | |||||
Subsequent Event [Line Items] | |||||
Number of securities called by warrants or rights (in shares) | shares | 100,000 | ||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.99 | ||||
Subsequent Event | Registered Direct Offering | Warrant, repricing option | |||||
Subsequent Event [Line Items] | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||
Class of warrant or right, outstanding (in shares) | shares | 4,784,909 | ||||
Subsequent Event | Registered Direct Offering | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, number of issued in transaction (in shares) | shares | 3,900,000 | ||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 1 | ||||
Subsequent Event | Over-Allotment Option | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, number of issued in transaction (in shares) | shares | 3,000,000 | ||||
Sale of stock, number of subsequent closings | closing | 3 | ||||
Sale of stock, subsequent closings period | 180 days | ||||
Subsequent Event | Over-Allotment Option | Minimum | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, consideration received per transaction | $ | $ 1,000,000 | ||||
Subsequent Event | Over-Allotment Option | Maximum | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, consideration received per transaction | $ | $ 3,000,000 | ||||
Subsequent Event | Over-Allotment Option | Pre-funded Warrants | |||||
Subsequent Event [Line Items] | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.99 | ||||
Subsequent Event | Over-Allotment Option | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 1 |