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].
CURIOSITYSTREAM EQ. WARRT(CURIW) - 2024 Q3 - Quarterly Report