Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________ (MARK ONE) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number: 001-39139 CURIOSITYSTREAM INC. (Exact Name of Registrant as Specified in It ...

Exhibit 99.1 CURIOSITYSTREAM REPORTS 53% YEAR-OVER-YEAR REVENUE INCREASE TO $19 MILLION FOR Q2 2025 SILVER SPRING, Md. (August 5, 2025) – CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the quarter ended June 30, 2025. In addition, the Company's Board of Directors declared the Company's third quarter cash dividend of $0.08 per share, payable on September 19, 2025, to stockholders of record on September 5, 2025. "We delivered strong secon ...

Investment and Ownership - The Company reported a carrying value of its equity method investment in Nebula at $3,697,000 as of March 31, 2025, down from $3,848,000 at December 31, 2024, reflecting an equity method investment loss of $151,000[37]. - The Company acquired a 32% ownership in the Spiegel Venture for an initial investment of $3.3 million, which operates documentary channels and an SVOD service in Germany[38]. - The Company holds a 16.875% ownership interest in Nebula as of March 31, 2025, after making incremental purchases totaling $6.4 million since its initial investment[44]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of March 31, 2025[38][44]. Revenue and Financial Performance - Total revenues for the three months ended March 31, 2025, were $15,090,000, a 25.6% increase compared to $12,001,000 for the same period in 2024[54]. - Direct-to-Consumer revenue decreased to $6,530,000, accounting for 43% of total revenue, down from 68% in the prior year[54]. - The company expects to recognize $1,955,000 in revenue related to remaining performance obligations for the year ending December 31, 2025[55]. - Revenue from the United States accounted for 71% of total revenue in the three months ended March 31, 2025, up from 62% in the same period of 2024[86]. - For the three months ended March 31, 2025, revenues were $0, a decrease from $111,000 in the same period of 2024[88]. Expenses and Liabilities - Total accrued expenses and other liabilities increased to $7,484,000 as of March 31, 2025, from $7,003,000 as of December 31, 2024, representing a rise of 6.9%[52]. - The company’s total operating expenses for the three months ended March 31, 2025, were $15,011,000, a decrease from $15,655,000 in 2024[85]. - Content amortization for the three months ended March 31, 2025, totaled $3,513,000, down from $5,215,000 in the same period of 2024, indicating a reduction of 32.6%[51]. - Content obligations increased to $0.6 million as of March 31, 2025, from $0.4 million as of December 31, 2024[95][96]. Cash and Investments - Cash and cash equivalents increased to $9,183,000 as of March 31, 2025, from $7,826,000 as of December 31, 2024, representing a growth of 17.4%[46]. - The Company’s investments in debt securities are classified as held-to-maturity and reported at amortized cost, with interest income recognized as non-operating income[27][28]. - The fair value of Private Placement Warrants increased to $96,000 as of March 31, 2025, compared to $88,000 as of December 31, 2024[53]. - The fair value of the Private Placement Warrants was estimated at $0.03 per warrant as of March 31, 2025, compared to $0.02 per warrant as of December 31, 2024[70]. Net Income and Operating Income - The net income for the three months ended March 31, 2025, was $319,000, a significant improvement from a net loss of $5,035,000 in the same period of 2024[72]. - The company’s operating income for the three months ended March 31, 2025, was $79,000, compared to an operating loss of $3,654,000 for the same period in 2024[85]. Future Commitments and Dividends - Future advertising commitments totaled $1.7 million, expected to be paid during the year ending December 31, 2025[98]. - The Company declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.6 million, to be paid on June 20, 2025[100]. Other Financial Metrics - The Company expects to no longer qualify as an emerging growth company after December 31, 2025, which will affect its adoption of new accounting pronouncements[34]. - The Company’s financial instruments are subject to concentration of credit risk, primarily from cash, cash equivalents, and accounts receivable, with the majority of customers located in the United States[25][26]. - The weighted average discount rate used for measuring operating lease liabilities was 4.4% as of March 31, 2025[91]. - The total operating lease cost for the three months ended March 31, 2025, was $133,000, slightly up from $131,000 in 2024[92].

Financial Performance - Revenue for Q1 2025 was $15.1 million, representing a 26% increase year-over-year from $12.0 million in Q1 2024[5] - Net income improved to $0.3 million in Q1 2025, compared to a net loss of $5.0 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $1.1 million, a significant turnaround from an adjusted EBITDA loss of $2.8 million in Q1 2024[6] - Revenues for the three months ended March 31, 2025, increased to $15,090,000, up 25.6% from $12,001,000 in the same period of 2024[23] - Operating income improved to $79,000 compared to a loss of $3,654,000 in the prior year, marking a significant turnaround[23] - Net income for Q1 2025 was $319,000, a recovery from a net loss of $5,035,000 in Q1 2024, resulting in a basic and diluted net income per share of $0.01[23] - Adjusted EBITDA for Q1 2025 was $1,102,000, compared to a loss of $2,848,000 in Q1 2024, indicating improved operational efficiency[27] - Net cash provided by operating activities increased to $1,922,000 from $666,000 year-over-year, reflecting stronger cash generation[29] - Adjusted Free Cash Flow for Q1 2025 was $2,005,000, up from $1,186,000 in the same quarter of 2024, demonstrating enhanced cash management[29] Guidance and Future Outlook - The company has guided for Q2 2025 revenue growth of 30-37% year-over-year[5] - The annual dividend was increased by 100% to $0.32, reflecting the company's confidence in future growth[5] Cost Management and Expenses - Total advertising and marketing expenses decreased by 11% year-over-year to $7.9 million[6] - Total operating expenses decreased slightly to $15,011,000 from $15,655,000, indicating cost control efforts[23] - The company incurred $863,000 in stock-based compensation, up from $689,000 in the previous year, reflecting ongoing investment in talent[27] Assets and Cash Position - CuriosityStream's cash, restricted cash, and held-to-maturity securities balance was $39.1 million with no debt as of March 31, 2025[6] - CuriosityStream's total assets as of March 31, 2025, were $85.3 million, a slight decrease from $86.2 million at the end of 2024[21] - Cash, cash equivalents, and restricted cash at the end of the period totaled $9,308,000, compared to $38,875,000 at the end of Q1 2024[25] Investment and Content Acquisition - The company launched new services including Curiosity University and secured rights to over 210,000 hours of video and audio content[10] - The company reported a loss of $151,000 from equity method investments, a significant improvement from a loss of $1,756,000 in the prior year[23]

Financial Performance - For the year ended December 31, 2024, CuriosityStream reported revenue of $51.1 million and a net loss of $12.9 million[42]. - The company reported an accumulated deficit of $308.4 million as of December 31, 2024, and incurred a net loss of $12.9 million for the year[64]. - The company generated positive cash flow from operations for the first time in 2024, but future sustainability of this cash flow is uncertain[64]. - The company achieved positive net cash flow from operating activities in 2024, reversing a trend of negative operating cash flows historically[133]. - The company anticipates continued net losses in the foreseeable future due to significant operating and capital expenditures associated with its business plan[64][76]. Business Operations - The company operates its Direct Business in over 175 countries, providing subscription services through its website and mobile applications[34]. - CuriosityStream's content library features more than 15,000 programs, with new titles launched weekly in high or ultra-high definition[28]. - The company has expanded its offerings through acquisitions, including over 500 lectures from One Day University and approximately 5,000 audio episodes from Learn25[30]. - CuriosityStream's revenue sources include Direct Business, Content Licensing, Bundled Distribution, and Other revenue, such as advertising and sponsorships[32]. - The company began implementing a price increase for legacy subscribers in March 2023, impacting the majority of Direct Business revenue[36]. Market Strategy - The company aims to broaden and stabilize revenue sources, increase the number of paying subscribers, and potentially raise subscription prices to achieve profitability[65]. - The company plans to expand into international markets and develop new content offerings, including a free ad-supported streaming channel and a Smart Bundle plan[61][74]. - The company has partnerships with major MVPDs and vMVPDs, including Comcast and Amazon Prime Video Channels, to enhance distribution[37]. - The company is investing in original programming to differentiate its service and enhance brand loyalty, but faces risks related to production costs and potential liabilities[86]. User Growth and Retention - The company has experienced significant user growth but faces challenges in attracting and retaining users due to competition and macroeconomic conditions[58][60]. - The company has experienced a decline in subscribers following the termination of its agreement with Nebula, which may lead to increased user churn[80]. - The company must continually add new users to replace those who cancel subscriptions and to grow its business, as user churn is influenced by various factors including subscription type and pricing[79]. Competition and Market Challenges - The company faces intense competition from established players like Netflix and Amazon, which have greater resources and broader user bases, potentially impacting market share and profitability[83]. - The company is facing challenges from piracy-based video offerings, which could capture significant market segments and threaten its business model[101]. - The company may face increased programming costs as competition rises and content providers withdraw content on short notice[125]. Regulatory and Compliance Risks - The company is subject to regulatory changes that could increase operational costs or alter business practices, particularly in international markets[104]. - The company faces significant compliance obligations related to data privacy laws, including the GDPR and CCPA, which could increase operational costs and legal risks[187]. - The company has been sued under the VPPA, with potential statutory damages of up to $2,500 per violation being sought[185]. Financial and Operational Risks - The company may incur substantial indebtedness in the future, which could adversely affect its financial position and ability to generate sufficient cash to service obligations[137]. - The company relies heavily on Amazon Web Services (AWS) for its computing infrastructure, making it vulnerable to disruptions or interference that could impact operations[149]. - The company has obligations related to streaming content that may not be tied to user base size, potentially impacting margins if user acquisition and retention do not meet expectations[139]. Employee and Organizational Structure - The company employed an average of 47 full-time employees in 2024, down from 57 in 2023, with a total of 45 employees as of December 31, 2024, following a restructuring that eliminated 4 positions[53]. - The company is committed to diversity and inclusion, with a compensation program designed to attract and retain qualified employees, including equity grants for almost all current employees[55]. - The company may face challenges in recruiting and retaining key employees, which could disrupt operations and increase expenses[193]. Stock and Shareholder Information - The company received a notice from Nasdaq on September 19, 2023, indicating non-compliance with the $1.00 minimum bid price requirement for continued listing[164]. - On April 19, 2024, the company regained compliance with the Bid Price Rule after the closing bid price was at $1.00 or greater for 10 consecutive business days[164]. - The company has 7,725,000 shares reserved for future issuance under its Omnibus Incentive Plan, which may lead to dilution for existing shareholders[170]. - The company declared a cash dividend of $0.025 per share on November 5, 2024, which was subsequently increased to $0.040 per share, amounting to an expected aggregate of $2.3 million[214]. Cybersecurity and Data Privacy - The company has established a comprehensive cybersecurity program to manage risks, which includes regular risk assessments and advanced security measures[201]. - The company’s cybersecurity measures are overseen by a Vice President with 17 years of experience in software and security[204]. - The company relies on third parties for payment processing and data security, which poses risks of unauthorized access to user data[191]. Miscellaneous Risks - The military invasion of Ukraine and subsequent sanctions may disrupt the company’s operations and reputation in affected regions[99]. - Changes in U.S. and non-U.S. tax laws could materially impact the company's cash flow and results of operations[159]. - The company is classified as an "emerging growth company" and may remain so until December 31, 2025, unless it achieves total annual gross revenue of at least $1.235 billion[174].

Revenue Performance - Revenue for Q4 2024 was $14.1 million, a 12% increase from $12.6 million in Q3 2024, but a decrease from $14.8 million in Q4 2023[6] - Full year 2024 revenue totaled $51.1 million, down from $56.9 million in 2023[6] - CuriosityStream expects Q1 2025 revenue to be in the range of $14.5 - $15.5 million[10] - Total revenues for 2024 were $51,134, a decrease of 10.4% compared to $56,889 in 2023[24] Cash Flow and Losses - Generated significant free cash flow of $9.5 million for 2024, an improvement of $25.5 million over 2023[2] - Achieved highest quarterly adjusted free cash flow of $3.3 million in Q4 2024, an improvement of $5.7 million from Q4 2023[6] - Net loss for Q4 2024 was $2.8 million, improved from a net loss of $4.7 million in Q4 2023[6] - Operating loss for 2024 was $13,333, significantly improved from a loss of $44,471 in 2023[24] - Net loss for 2024 was $12,941, down from $48,896 in 2023, representing a reduction of 73.5%[24] - Adjusted Free Cash Flow for 2024 was $9,507, a significant improvement from $(16,033) in 2023[29] Expenses and Cost Management - Total advertising and marketing and general and administrative expenses for 2024 were $39.1 million, a 17% year-over-year reduction[10] - The company incurred $5,698 in additions to content assets in 2024, down from $18,316 in 2023[26] Assets and Equity - Cash and cash equivalents decreased to $7,826 in 2024 from $37,715 in 2023, a decline of 79.3%[22] - Total assets decreased to $86,182 in 2024 from $101,022 in 2023, a reduction of 14.7%[22] - Total stockholders' equity fell to $57,848 in 2024 from $72,646 in 2023, a decrease of 20.3%[22] Subscriber Growth and Content Expansion - Launched three new US Hispanic FAST channels and increased content volume by over 200,000 hours[10] - Grew Curiosity University partner subscribers by approximately 50%[10] Dividend Information - New dividend program increased to $0.16 per share annually, with a cash dividend of $0.04 per share for Q1 2025[1][5] EBITDA Performance - Adjusted EBITDA for 2024 was $(6,042), an improvement from $(20,187) in 2023[28] - Net cash provided by operating activities was $8,151 in 2024, compared to $(16,172) in 2023[26]

Equity Method Investments - The Company reported a balance of equity method investments totaling $4.179 million as of September 30, 2024, down from $6.354 million at December 31, 2023, reflecting an equity method investment loss of $2.175 million[43]. - The Company made a Holdback Payment of $0.9 million in July 2023 related to its 32% equity ownership in the Spiegel Venture, which achieved certain financial targets during its 2022 fiscal period[45]. - The Company holds a 16.875% ownership interest in Nebula as of September 30, 2024, after making incremental purchases totaling $2.4 million since its initial investment of $6.0 million[50]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[51]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of September 30, 2024[44][50]. Financial Performance - For the three months ended September 30, 2024, total revenues were $12.604 million, a decrease of 19.4% compared to $15.630 million for the same period in 2023[59]. - Direct-to-Consumer revenue for the three months ended September 30, 2024, was $7.750 million, accounting for 61% of total revenue, compared to 47% in the same period of 2023[59]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of $26,565,000 in 2023, indicating an improvement of 88.5%[77]. - The net loss per share for the three months ended September 30, 2024, was $0.06, significantly better than the $0.50 loss per share reported in 2023[77]. - Total revenue for the nine months ended September 30, 2024, was $37.00 million, compared to $42.11 million for the same period in 2023, indicating a decline of 12%[89]. Cash and Cash Equivalents - As of September 30, 2024, the company's cash and cash equivalents decreased to $9.588 million from $37.715 million as of December 31, 2023, representing a decline of approximately 74.5%[52]. - The Company’s cash and cash equivalents are maintained with high credit quality financial institutions, with balances sometimes exceeding FDIC-insured limits[31]. Deferred Revenues and Future Obligations - Total deferred revenues were $11.8 million as of September 30, 2024, down from $15.2 million as of December 31, 2023, indicating a decrease of approximately 22.4%[61]. - The company expects to recognize $2.323 million in future revenues related to remaining performance obligations as of September 30, 2024[60]. Content and Amortization - Total content assets decreased to $33.885 million as of September 30, 2024, down from $44.943 million as of December 31, 2023, reflecting a reduction of about 24.7%[54]. - Content amortization for the three months ended September 30, 2024, totaled $4.569 million, compared to $5.389 million for the same period in 2023, a decrease of about 15.2%[56]. - The company anticipates amortizing $5.1 million, $3.3 million, and $1.0 million of licensed content costs over the next three years[54]. Stock and Share Repurchase - As of September 30, 2024, the company had repurchased 195,190 shares of its common stock at an average price of $1.12 per share, totaling $0.2 million[69]. - The company authorized a share repurchase program for up to $4 million of its common stock on June 10, 2024[68]. Liabilities and Fair Value Measurements - The Company’s liabilities measured at fair value include Private Placement Warrants, valued using the Black-Scholes model, classified as Level 3[38]. - The fair value of Private Placement Warrants increased to $110,000 as of September 30, 2024, from $44,000 as of December 31, 2023[58]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 as of September 30, 2024, compared to $0.01 at December 31, 2023[75]. Operating Costs and Lease Obligations - The company's total operating lease cost for Q3 2024 was $134,000, slightly up from $133,000 in Q3 2023[96]. - The company held operating lease ROU assets of $3.1 million as of September 30, 2024, with current lease liabilities of $0.4 million[95]. - Future advertising commitments totaled $2.7 million as of September 30, 2024, all expected to be paid within the year ending December 31, 2024[102]. Tax and Related-Party Transactions - Income tax expense for Q3 2024 was $0.1 million, consistent with the same period in 2023[103]. - The company recognized $0.1 million in revenue from related-party transactions for Q3 2024, with a total of $0.2 million for the nine months ended September 30, 2024[90]. - As of September 30, 2024, accounts receivable related to related-party transactions was $265,000, down from $811,000 as of December 31, 2023[92]. Segment Reporting - The company operates as one reporting segment, with financial information reviewed on an entity-wide basis[88]. - The Company is currently evaluating the impact of adopting ASU 2023-07 and ASU 2023-09, which will require enhanced disclosures regarding segment reporting and income taxes, respectively[41][42].

Financial Performance - For the three months ended June 30, 2024, total revenues were $12.4 million, a decrease of 12.1% compared to $14.1 million for the same period in 2023[59] - Total revenue for the three months ended June 30, 2024, was $12,395,000, a decrease from $14,097,000 in the same period of 2023, with U.S. revenue accounting for 61% of total revenue[89] - The Company recognized $10.5 million in revenues for the six months ended June 30, 2024, related to amounts deferred as of December 31, 2023[62] - Direct-to-Consumer revenue for the three months ended June 30, 2024, was $8.0 million, representing 65% of total revenue, up from 51% in the same period of 2023[59] - Trade and barter revenues for the three months ended June 30, 2024, were $864,000, a decrease of 68.8% from $2.8 million in the same period of 2023[67] Cash and Investments - The Company reported cash and cash equivalents of $39.519 million as of June 30, 2024, an increase from $37.715 million as of December 31, 2023, reflecting a growth of about 4.3%[53] - The Company’s cash and cash equivalents and restricted cash totaled $39.644 million as of June 30, 2024, compared to $38.215 million as of December 31, 2023, an increase of approximately 3.7%[53] - The fair value of the Company's investments in money market funds was $38.625 million as of June 30, 2024, compared to $36.072 million as of December 31, 2023, indicating an increase of approximately 7%[53] - The fair value of Private Placement Warrants increased to $74,000 as of June 30, 2024, compared to $44,000 as of December 31, 2023[58] Content Assets and Obligations - As of June 30, 2024, the total content assets decreased to $36.736 million from $44.943 million as of December 31, 2023, representing a decline of approximately 18.3%[54] - The total licensed content, net, decreased from $16.628 million as of December 31, 2023, to $14.070 million as of June 30, 2024, a reduction of about 15.4%[54] - The Company’s total produced content, net, decreased from $28.315 million as of December 31, 2023, to $22.666 million as of June 30, 2024, a decline of about 19.9%[54] - The Company expects to amortize $4.7 million, $3.2 million, and $1.1 million of the unamortized cost of licensed content over the next three years[54] - The company’s content obligations as of June 30, 2024, amounted to $0.6 million, down from $1.1 million as of December 31, 2023[97][98] Expenses and Losses - For the three months ended June 30, 2024, the net loss was $2,031,000, compared to a net loss of $9,921,000 for the same period in 2023, resulting in a basic and diluted net loss per share of $0.04, down from $0.19[78] - For the six months ended June 30, 2024, the net loss was $7,066,000, compared to a net loss of $17,672,000 for the same period in 2023, resulting in a basic and diluted net loss per share of $0.13, down from $0.33[78] - Stock-based compensation expense for the three months ended June 30, 2024, totaled $1,325,000, compared to $1,422,000 for the same period in 2023[87] - As of June 30, 2024, total accrued expenses and other liabilities were $4.5 million, an increase of 20.9% from $3.7 million as of December 31, 2023[57] Deferred Revenues and Future Commitments - Total deferred revenues were $14.0 million as of June 30, 2024, a slight decrease from $14.6 million as of December 31, 2023[61] - Remaining performance obligations as of June 30, 2024, totaled $1.3 million, with $513,000 expected to be recognized in the remainder of 2024[60] - The Company has not received any dividends from its equity investments in Spiegel Venture and Nebula as of June 30, 2024[45][51] - The company held operating lease ROU assets of $3.2 million and current lease liabilities of $0.4 million as of June 30, 2024[93] Shareholder Actions - The Company repurchased 22,001 shares of its common stock at an average price of $1.18 per share, totaling $25,961[70] - On August 12, 2024, the Board declared a quarterly cash dividend of $0.025 per share, equivalent to $0.10 annually, totaling approximately $1.3 million to be paid on October 31, 2024[102] Other Financial Metrics - The Company made a Holdback Payment of $0.9 million to the Spiegel Venture in July 2023 due to the achievement of certain financial targets[46] - Total content amortization for the three months ended June 30, 2024, was $4.7 million, a decrease of 27.5% from $6.5 million in the same period of 2023[59] - The weighted average remaining lease term as of June 30, 2024, was 8.7 years, with total lease payments amounting to $5,383,000[95] - For the three and six months ended June 30, 2024, income tax expense was immaterial, compared to a provision of $0.3 million for the same periods in 2023[101] - The company recognized $0.1 million in revenue related to license fees from the Spiegel Venture for the three months ended June 30, 2024[90]

Financial Position - As of March 31, 2024, the company's cash and cash equivalents totaled $38.75 million, an increase from $37.715 million as of December 31, 2023[49]. - The total content assets decreased from $44.943 million as of December 31, 2023, to $40.154 million as of March 31, 2024[50]. - The company's equity method investment in Spiegel Venture decreased from $1.736 million to $0.217 million, a decline of approximately 87.5% from December 31, 2023, to March 31, 2024[40]. - The fair value of the company's money market funds as of March 31, 2024, was $36.544 million, up from $36.072 million as of December 31, 2023[49]. - As of March 31, 2024, the Company held operating lease ROU assets of $3.3 million and total lease liabilities of $4.6 million[82]. Revenue Performance - For the three months ended March 31, 2024, total revenues were $12.001 million, a decrease of 3.1% compared to $12.387 million for the same period in 2023[54]. - Direct-to-Consumer revenue increased to $8.068 million, representing 67% of total revenue, up from 60% in the prior year[54]. - Revenue from the United States was $7,425 million, accounting for 62% of total revenue, compared to $6,686 million (54%) in 2023[77]. - International revenue totaled $4,576 million, representing 38% of total revenue, down from $5,701 million (46%) in 2023[77]. - The Company recognized $0.1 million in revenue from license fees related to the Spiegel Venture for the three months ended March 31, 2024[78]. - The company recognized $6.3 million in revenue related to amounts deferred as of December 31, 2023[57]. Loss and Earnings - The net loss for the three months ended March 31, 2024, was $5.035 million, compared to a net loss of $7.751 million in the same period of 2023[65]. - Basic and diluted net loss per share improved to $0.09 from $0.15 year-over-year[65]. - Stock-based compensation expense totaled $689,000 for the three months ended March 31, 2024, down from $1.267 million in the prior year[75]. Deferred Revenues and Obligations - Total deferred revenues remained stable at $15.2 million as of March 31, 2024, with non-current portions at $0.6 million[56]. - Remaining performance obligations expected to be recognized in the future total $1.963 million[55]. - Content obligations as of March 31, 2024, amounted to $0.6 million, down from $1.1 million as of December 31, 2023[86][87]. Investments and Dividends - The company recorded a loss of $1.519 million from its equity method investment in Spiegel Venture for the three months ended March 31, 2024[40]. - The company has not received any dividends from either Spiegel Venture or Nebula as of March 31, 2024[41][47]. - The company’s investment in Nebula increased from 12% to 16.875% as of March 31, 2024, following three incremental purchases[47]. - The Company declared a quarterly cash dividend of $0.025 per share, totaling approximately $1.3 million, to be paid on July 31, 2024[91]. Future Commitments - Future advertising commitments as of March 31, 2024, totaled $1.4 million, with $0.8 million expected to be paid in 2024[89]. - The company expects to amortize $4.7 million, $3.1 million, and $1.4 million of licensed content costs over the next three years[50]. Lease Costs - Total operating lease cost for the three months ended March 31, 2024, was $131 thousand, slightly down from $134 thousand in 2023[83].

Financial Performance - For the year ended December 31, 2023, CuriosityStream reported revenue of $56.9 million and a net loss of $48.9 million[43]. - The company incurred a net loss of $48.9 million for the year ended December 31, 2023, with an accumulated deficit of $290.0 million[65]. - The company has experienced negative cash flows from operating activities since inception, raising concerns about its ability to service future obligations and debt[133]. - The company expects to incur significant operating and capital expenditures as it pursues growth strategies, which may lead to continued net losses in the future[77]. - The company has a history of net losses and anticipates continuing to incur losses for the foreseeable future due to significant operating and capital expenditures[65]. Subscriber and User Metrics - The company has experienced significant user growth but faces challenges in attracting and retaining users due to competition and macroeconomic conditions[59]. - User churn rates significantly impact revenue; the company must minimize existing user loss while attracting new subscribers to grow its business[78]. - The termination of the agreement with Nebula has resulted in a decline in subscribers, with risks of further churn from users seeking access to Nebula's service directly[80]. Content and Services - The company has over 17,000 programs in its content library, including approximately 10,000 originally produced titles and nearly 7,000 internationally licensed videos[29][33]. - CuriosityStream's Direct-to-Consumer service is available in more than 175 countries, providing access to its content on major consumer devices[35]. - The company introduced a new free ad-supported streaming channel, Curiosity Now, and a Smart Bundle plan in 2022 to expand service offerings[62]. - The company has a content licensing business that allows it to provide factual content to media companies, reducing risk in content development[39]. - CuriosityStream's Partner Direct Business includes relationships with MVPDs like Comcast and Cox, and digital distributors such as Amazon Prime Video Channels and YouTube TV[37]. Pricing and Revenue Strategies - As of March 27, 2023, the standard pricing for new subscribers was increased to $4.99 per month or $39.99 per year, while legacy subscribers previously paid $2.99 per month or $19.99 per year[36]. - The company is currently raising prices for its legacy subscribers, which may positively impact revenue from this business line[36]. - The company aims to broaden and stabilize its sources of revenue, increase the number of paying subscribers, and rationalize costs to achieve profitability[66]. Operational Efficiency and Workforce - As of December 31, 2023, the company employed 48 full-time employees, down from an average of 78 in 2022, reflecting a reduction of 20 positions during the year[54]. - The company has undertaken cost-savings initiatives, including workforce reductions, to control expenditures and improve operational efficiency[64]. - In 2023, the company initiated a plan to eliminate 20 full-time positions, approximately 30% of its workforce as of December 31, 2022, potentially affecting company culture and employee retention[199]. Market and Competitive Landscape - The company faces intense competition from established players like Netflix and Amazon, which have larger user bases and greater resources, potentially leading to pricing pressures and reduced market share[84]. - The competitive landscape is evolving rapidly, with piracy and new technological developments posing significant threats to the company's market position[101]. - The company is exploring partnerships in international markets and developing its in-house production studio, Curiosity Studios, to increase revenue[75]. Regulatory and Compliance Risks - Changes in government regulations regarding the internet and telecommunications could increase operating expenses and affect business conduct[104]. - The company faces potential fines for noncompliance with the GDPR, which imposes strict requirements for processing personal data of individuals within the EEA[187]. - Compliance with various state privacy laws is challenging and may increase operational burdens as more states enact similar regulations[192]. Cybersecurity and Data Privacy - The company has established a comprehensive cybersecurity program to manage risks and protect sensitive information, overseen by senior management[207]. - The company maintains personal data of users, including billing data, and relies on third-party services for data security, which poses risks of unauthorized access and potential regulatory penalties[195]. - The company faces risks related to unauthorized access attempts through cyberattacks, which could negatively affect key performance indicators and investor confidence[155]. Future Outlook and Strategic Initiatives - The company is expanding internationally and developing technology to manage anticipated growth in users and features[69]. - The company is classified as an "emerging growth company" and may remain so for up to five years, allowing it to rely on reduced disclosure requirements[177]. - The company announced the initiation of its first-ever quarterly cash dividend on March 13, 2024, but future dividends are subject to financial conditions and may be discontinued or reduced[173].