Financial Position - As of June 30, 2023, the Company reported cash and cash equivalents of $44.337 million, an increase from $40.007 million as of December 31, 2022[51]. - The total carrying value of the Company's equity method investments decreased from $10.766 million as of December 31, 2022, to $9.303 million as of June 30, 2023[50]. - The Company has not received any dividends from its investments in Spiegel Venture and Nebula as of June 30, 2023[43][48]. - The Company’s investments in money market funds were valued at $43.333 million as of June 30, 2023, with no Level 2 securities reported[52]. - The Company recorded a Holdback Payment liability of $0.9 million related to its equity ownership in Spiegel Venture, which was paid in July 2023[44]. - The Company had $5.8 million in content obligations as of June 30, 2023, with $1.8 million included in current liabilities[93]. Impairment and Investments - The Company recorded a $2.0 million impairment related to its investment in Spiegel Venture during the three months ended June 30, 2023, reflecting a decline in fair value[49]. - The Company performed an impairment analysis on its equity method investments and determined that the fair value of its investment in Nebula exceeded its carrying value as of June 30, 2023, thus no impairment charge was required[49]. - The Company has a call option to acquire additional ownership in Spiegel Venture, which is exercisable based on specific conditions outlined in the Share Purchase Agreement[45]. - The fair value of Private Placement Warrants decreased to $0.04 per warrant as of June 30, 2023, down from $0.07 as of December 31, 2022[69]. - The company recognized a gain of $0.2 million related to the change in fair value of the Private Placement Warrants for the three months ended June 30, 2023[69]. Revenue and Performance - For the three months ended June 30, 2023, total revenues were $14.1 million, down 37% from $22.3 million in the same period of 2022[59]. - Subscription revenues from O&O Service for the three months ended June 30, 2023, were $6.4 million, representing 45% of total revenues, compared to $7.9 million and 35% in the prior year[59]. - The net loss for the three months ended June 30, 2023, was $9.9 million, an improvement from a net loss of $16.0 million in the same period of 2022[71]. - The company expects to recognize $3.6 million in revenue for the remainder of 2023 related to unsatisfied performance obligations as of June 30, 2023[60]. - Total deferred revenues were $13.6 million as of June 30, 2023, compared to $14.9 million at December 31, 2022[62]. - For the six months ended June 30, 2023, total revenue was $26.5 million, down from $40.0 million in 2022, indicating a decrease of 34%[82]. - The United States accounted for 56% of total revenue in Q2 2023, while international revenue was 44%, with the United Kingdom contributing 13%[82]. Costs and Expenses - Stock-based compensation for options was $771,000 for the three months ended June 30, 2023, compared to $946,000 in 2022, reflecting a decrease of 18.5%[80]. - The total operating lease cost for the three months ended June 30, 2023, was $117,000, compared to $152,000 in the same period of 2022, a decrease of 23%[89]. - The Company incurred $1.2 million in costs related to revenue share from subscription sales to Nebula for the three months ended June 30, 2023[83]. Shareholder Information - The weighted average shares outstanding for the three months ended June 30, 2023, were 53,006,000, compared to 52,775,000 in the same period of 2022[71]. - The Company exchanged 4.6 million outstanding stock options for 1.6 million new RSUs in July 2023, with a fair value of $0.99 per share at the time of the exchange[98].
CURIOSITYSTREAM EQ. WARRT(CURIW) - 2023 Q2 - Quarterly Report