Financial Performance - As of March 31, 2024, Cineverse reported a positive working capital of 5.2 million[76]. - The company incurred 14 million of impairment in the current fiscal year[90]. - The company has a total equity of 14.0 million during the twelve months ended March 31, 2024, due to a sustained decline in share price from 1.39[116]. - The company has incurred long-term net losses and cash outflows, which may increase as business operations expand and additional marketing and content acquisition activities are undertaken[99]. - Changes in economic conditions could materially impact the company's financial position and results of operations[104]. Stock Information - Cineverse's common stock is listed on the Nasdaq under the symbol "CNVS" and underwent a 1-for-20 reverse stock split on June 9, 2023[59]. - Approximately 20.8% of the company's outstanding Common Stock is beneficially owned by directors, executive officers, and principal stockholders, which may significantly influence business affairs[100]. - The company has never paid cash dividends on its Common Stock and has no current plans to do so, with certain credit facilities restricting dividend payments[117]. - The liquidity of the company's Common Stock is uncertain, with limited trading volume potentially depressing stock prices[108]. - The company's stock price has been volatile, which may affect the price at which Common Stock can be sold in the future[110]. Business Strategy - The company aims to acquire premium content and streaming channels while leveraging its proprietary MatchpointTM technology[56]. - Cineverse's strategy includes licensing film and TV content to key players in the OTT streaming ecosystem, including Amazon, Apple, Netflix, and Google[58]. - The company operates in various specialty sectors, including faith and family, anime, action, horror, and sports, to capture underserved market opportunities[54]. Risks and Challenges - The company faces substantial risks in the media content industry, where commercial success is unpredictable and heavily influenced by audience reactions and competitive releases[102]. - The company is subject to cybersecurity risks and global health threats that may adversely affect its business[106]. - The company has not established significant "key person" life insurance policies for key employees, which may adversely affect operations if key personnel are lost[101].
Cineverse (CNVS) - 2024 Q4 - Annual Report