Financial Position - As of September 30, 2023, the Company reported cash and cash equivalents of $40.304 million, an increase from $40.007 million as of December 31, 2022[55]. - The Company’s cash and cash equivalents and restricted cash totaled $40.804 million as of September 30, 2023, compared to $40.507 million as of December 31, 2022[55]. - As of September 30, 2023, the fair value of the Company's total securities investments was $38,375,000, an increase from $17,724,000 as of December 31, 2022[56]. - The fair value of Private Placement Warrants decreased to $74,000 as of September 30, 2023, from $257,000 as of December 31, 2022[64]. - As of September 30, 2023, the Company had 3,054,203 publicly traded warrants and 3,676,000 private placement warrants outstanding[73]. - The fair value of the private placement warrant liability was estimated at $0.02 per warrant as of September 30, 2023, down from $0.07 per warrant at the end of 2022[77]. - As of September 30, 2023, the company had operating lease ROU assets of $3.4 million and total lease liabilities of $4.7 million[95]. Impairment and Investments - The Company recorded a $2.3 million impairment related to its investment in Nebula for the three months ended September 30, 2023, primarily due to the expected decrease in revenue share following the Nebula Non-Renewal[54]. - The carrying values for the Company's equity method investments as of September 30, 2023, totaled $6.666 million, down from $10.766 million as of December 31, 2022[43]. - The Company performed an impairment analysis on its content assets and determined that no impairment charges were required for its long-lived asset group as of September 30, 2023[31]. - The Company identified indicators of impairment related to its content assets during the three months ended September 30, 2023, prompting further analysis[29]. - The Company recorded a $19,000,000 impairment charge for content assets during the three months ended September 30, 2023, due to declining market conditions and subscriber growth forecasts[61]. - Total content assets decreased to $45,900,000 as of September 30, 2023, down from $68,502,000 as of December 31, 2022[58]. - The Company has not made further investments in Nebula during the three and nine months ended September 30, 2023, and the obligation to make additional purchases ended as of that date[50]. Revenue and Performance - Total revenues for the three months ended September 30, 2023, were $15,630,000, a decrease of 33.8% compared to $23,569,000 for the same period in 2022[65]. - Subscription revenues accounted for 47% of total revenues in Q3 2023, down from 38% in Q3 2022[65]. - Deferred revenues decreased to $13,700,000 as of September 30, 2023, from $14,900,000 as of December 31, 2022[67]. - The Company expects to recognize $9,492,000 in future revenues related to unsatisfied performance obligations as of September 30, 2023[66]. - For the three months ended September 30, 2023, total trade and barter revenues were $5,199,000, a decrease from $8,190,000 in the same period of 2022, representing a decline of approximately 36.3%[71]. - For the nine months ended September 30, 2023, total trade and barter revenues were $8,190,000, compared to $7,416,000 in 2022, indicating an increase of approximately 10.4%[71]. - The net loss for the three months ended September 30, 2023, was $26,565,000, compared to a net loss of $4,502,000 in the same period of 2022, reflecting a significant increase in losses[79]. - The net loss per share for the three months ended September 30, 2023, was $0.50, compared to $0.09 for the same period in 2022, indicating a deterioration in earnings performance[79]. - For the nine months ended September 30, 2023, total revenue was $42.11 million, down from $63.54 million in the same period of 2022, marking a decline of 33.7%[90]. - Revenue from the United States accounted for 57% of total revenue, amounting to $8.97 million, while international revenue totaled $6.66 million, representing 43% of total revenue[90]. - The company recognized $1.1 million in revenue related to license fees from the Spiegel Venture for the nine months ended September 30, 2023[91]. Costs and Expenses - The amortization of licensed content costs for Q3 2023 was $1,728,000, compared to $1,793,000 in Q3 2022[63]. - Operating lease costs for the three months ended September 30, 2023, were $133,000, slightly down from $139,000 in the same period of 2022[96]. - The company's content obligations as of September 30, 2023, amounted to $1.6 million, with $0.8 million expected to be paid by December 31, 2023[99]. - Future advertising commitments totaled $1.3 million, with expected payments of $0.5 million and $0.8 million during the three months ending December 31, 2023, and the year ending December 31, 2024, respectively[102]. - The company incurred $1.1 million and $3.4 million in cost of revenues related to revenue share from subscription sales for the three and nine months ended September 30, 2023, respectively[91]. Stock and Compensation - Stock-based compensation for the three months ended September 30, 2023, totaled $897,000, a decrease from $1,673,000 in the same period of 2022[88]. - The Company had 4,605,000 shares available for issuance under the 2020 Omnibus Plan as of September 30, 2023[82]. - The expected volatility for options granted was 92.00% as of September 30, 2023, compared to 77.00% at the end of 2022[77]. Operational Overview - The Company operates as one reporting segment, with financial information reviewed on an entity-wide basis for decision-making purposes[89]. - The Company began entering into trade and barter transactions in Q2 2023 to exchange content assets through licensing agreements[68].
CURIOSITYSTREAM EQ. WARRT(CURIW) - 2023 Q3 - Quarterly Report