Commitments and Contingencies | Note 13 - Commitments and Contingencies Leases The components of lease expense were as follows: Schedule of Operating Leases Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating leases Operating lease cost $ 467 $ 312 $ 779 $ 410 Variable lease cost - 3 - 76 Operating lease expense 467 315 779 486 Short-term lease rent expense - 166 - 166 Total rent expense $ 467 $ 481 $ 779 $ 652 Supplemental cash flow information related to leases were as follows: Schedule of Supplemental Cash Flow Information Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating cash flows from operating leases $ 305 $ 305 $ 610 $ 305 Right of use assets exchanged for operating lease liabilities $ 3,522 $ 5,373 $ 3,522 $ 5,373 Weighted average remaining lease term - operating leases 5.2 6.6 5.2 6.6 Weighted average remaining discount rate - operating leases 5.7 % 5.3 % 5.7 % 5.3 % As of June 30, 2021, future minimum payments for the operating leases are as follows: Schedule of Future Minimum Payments for Operating Leases Year Ended December 31, 2021 $ 887 Year Ended December 31, 2022 1,725 Year Ended December 31, 2023 1,773 Year Ended December 31, 2024 1,794 Thereafter 2,779 Total 8,958 Less present value discount (1,232 ) Operating lease liabilities $ 7,726 Total 8,958 On February 23, 2021, the Company entered into a lease agreement (the “Lease”) for approximately 55,042 twelve years October 1, 2021 ● $ 4,128,150 ● $ 4,403,360 ● $ 4,678,570 The Company has an option to extend the term of the Lease for an additional five years , at a fixed annual rate that is the fair market rent as of the beginning of the extension term as agreed to by the parties or determined by a neutral arbitration process. On March 19, 2021, the Company entered into a sublease agreement for approximately 28,300 four years 932,747 953,741 974,936 996,130 Contingencies The Company may be involved in certain legal proceedings that arise from time to time in the ordinary course of its business. When the Company determines that a loss is both probable and reasonably estimable, a liability is recorded and disclosed if the amount is material to the financial statements taken as a whole. When a material loss contingency is only reasonably possible, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can reasonably be made. Legal expenses associated with any contingency are expensed as incurred. fuboTV Inc. Notes to the Condensed Consolidated Financial Statements Legal Proceedings The Company is and may in the future be involved in various legal proceedings arising from the normal course of business activities. Although the results of litigation and claims cannot be predicted with certainty, currently, the Company believes that the likelihood of any material adverse impact on the Company’s consolidated results of operations, cash flows or our financial position for any such litigation or claims is remote. Regardless of the outcome, litigation can have an adverse impact on the Company because of the costs to defend lawsuits, diversion of management resources and other factors. Said-Ibrahim v. fuboTV Inc., David Gandler, Edgar M. Bronfman Jr., & Simone Nardi, Case No. 21-cv-01412 (S.D.N.Y) & Lee v. fuboTV, Inc., David Gandler, Edgar M. Bronfman Jr., & Simone Nardi, Case No. 21-cv-01641 (S.D.N.Y.) (consolidated as In re fuboTV Inc. Securities Litigation, No. 21-cv-01412 (S.D.N.Y.)) On February 17, 2021, putative shareholders Wafa Said-Ibrahim and Adhid Ibrahim filed a class action lawsuit against the Company, co-founder and CEO David Gandler, Executive Chairman Edgar M. Bronfman Jr., and CFO Simone Nardi (collectively, the “Class Action Defendants”). Plaintiffs allege that Class Action Defendants violated federal securities laws by disseminating false and misleading statements regarding the Company’s financial health and operating condition, including the Company’s ability to grow subscription levels, prospects, future profitability, seasonality factors, cost escalations, ability to generate advertising revenue, valuation, and entering the online sports wagering market. The Plaintiffs allege that Class Action Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, as well as Section 20(a) of the Exchange Act, and seek damages and other relief. Plaintiffs seek to pursue this claim on behalf of themselves as well as all other persons who purchased or otherwise acquired Company securities publicly traded on the New York Stock Exchange (“NYSE”) between March 23, 2020 and January 4, 2021, inclusive, and who were allegedly damaged thereby. On February 24, 2021, putative shareholder Steven Lee filed a nearly identical class action lawsuit against the same Defendants. On April 29, 2021, the court consolidated Said-Ibrahim v. fuboTV Inc., David Gandler, Edgar M. Bronfman Jr., & Simone Nardi Lee v. fuboTV, Inc., David Gandler, Edgar M. Bronfman Jr., & Simone Nardi In re FuboTV Inc. Securities Litigation, On July 12, 2021, Plaintiff filed an Amended Class Action Complaint. The deadline for Class Action Defendants to file a motion to dismiss the Amended Class Action Complaint is September 10, 2021. The Company believes the claims alleged in both lawsuits are without merit and intends to vigorously defend these litigations. Rosenfeld v. Edgar Bronfman Jr., Henry Ahn, Ignacio Figueras, Daniel Leff, Laura Onopchenko, David Gandler, Par-Jorgen Parson, & Simone Nardi, Case No. 21-cv-01953 (S.D.N.Y.) On March 5, 2021, putative shareholder Robert Rosenfeld filed a derivative lawsuit against the Company and certain Company directors and officers, including Edgar Bronfman Jr., Henry Ahn, Ignacio Figueras, Daniel Leff, Laura Onopchenko, David Gandler, Par-Jorgen Parson, and Simone Nardi (collectively, the “Derivative Defendants”). Plaintiff’s complaint closely tracks the allegations in the Securities Class Action and alleges that the Derivative Defendants violated Sections 10(b) and 21D of the Securities Exchange Act of 1934, breached their fiduciary duties, and committed corporate waste. Plaintiff seeks to prosecute the action on behalf of the Company, and seeks, among other relief, an order directing Derivative Defendants to take all necessary actions to reform and improve the Company’s corporate governance, risk management, and internal operating procedures to comply with applicable laws, and an award of damages to the Company for the harm suffered as a result of the alleged wrongful conduct. On April 21, 2021, Derivative Defendants filed a Motion to Dismiss the Original Complaint. In light of the arguments made in Derivative Defendants’ Motion, Plaintiff filed his Amended Verified Shareholder Derivative Complaint on May 12, 2021. Derivative Defendants filed a Motion to Dismiss the Amended Complaint on June 2, 2021. On June 23, 2021, after thoroughly considering Derivative Defendants’ arguments in their Motion, Plaintiff concluded that Derivative Defendants’ arguments were well founded and he jointly, with Derivative Defendants, asked the Court to voluntarily dismiss the derivative action with prejudice, following a proposed Notice of the dismissal to current shareholders. On June 25, 2021, the court entered an order approving the form of the proposed Notice of dismissal to current shareholders and ordering fuboTV to file a Form 8-K with the SEC attaching the Notice and to post the Form 8-K with the Notice to the investor relations section of fuboTV’s corporate website. On June 28, 2021, fuboTV filed a Form 8-K with the SEC attaching the Notice and posted the Form 8-K with the Notice to the investor relations section of fuboTV’s corporate website. On July 28, 2021, the court entered an order dismissing with prejudice the derivative lawsuit filed by Robert Rosenfeld. Andrew Kriss and Eric Lerner vs. FaceBank Group, Inc. et. al. (Index No. 605474/20 Supreme Court of the State of New York. On June 8, 2020, Andrew Kriss and Eric Lerner filed a Summons with Notice in the Supreme Court of the State of New York, Nassau County naming as defendants the Company, PEC, John Textor and Frank Patterson, among others. On November 12, 2020, plaintiffs filed a Complaint, which asserts claims for breach of express contract and implied duties, fraud in the inducement, unjust enrichment, conversion, declaratory relief, fraud, and fraudulent conveyance. The claims arise from an alleged relationship between Plaintiffs and defendant PEC. Plaintiffs seek monetary damages in an amount to be proven at trial, but not less than six million dollars ($ 6,000,000 ). The Company believes the claims are without merit and intends to vigorously defend this litigation and on January 19, 2021, the Company filed a motion to dismiss all claims asserted against it. That motion has been fully submitted and is pending resolution by the court. |