Company Overview - Cineverse has over 71,000 film and TV assets and has reached over 82 million streaming viewers, with more than 1.4 million SVOD subscribers[18]. - The company aims to grow its audience significantly beyond the current base of 82 million monthly viewers to potentially hundreds of millions across billions of connected devices[20]. - Cineverse's proprietary technology platform, Matchpoint™, enables the company to automate content distribution and features a robust data analytics platform[16]. - The company has a strategy focused on acquiring premium content and streaming channels, exploring new technology and revenue channels, and leveraging its Matchpoint™ platform for concurrent acquisitions[20]. - The company has experienced significant growth in viewership and subscription metrics, positioning itself as a leading independent distributor in the streaming market[18]. - Cineverse's focus on enthusiast content provides a significant and underserved market opportunity on a global basis[18]. - The company transformed from a digital cinema equipment distributor to a leading independent streaming company[210]. - The company has played a pioneering role in transitioning movie screens from analog film prints to digital distribution[210]. - The company was incorporated in Delaware on March 31, 2000[209]. Financial Performance - For the fiscal year ended March 31, 2025, total revenue increased by $29.1 million to $78.2 million, with streaming and digital revenue growing by 19% to $44.4 million[145]. - Revenues for the fiscal year ended March 31, 2025, increased to $78,181,000, up 59.3% from $49,131,000 in 2024[197]. - Operating income for the same period was $7,924,000, compared to a loss of $15,700,000 in the previous year, marking a significant turnaround[197]. - For the fiscal year ended March 31, 2025, the company reported a net income attributable to common stockholders of $3.2 million, while maintaining an accumulated deficit of $500.9 million[115]. - The company reported a significant reduction in goodwill impairment, with no impairment recorded in 2025 compared to $14,025,000 in 2024[197]. - The total stockholders' equity increased to $38,752,000 from $33,273,000, indicating improved financial health[195]. - The company generated net cash from operations amounting to $17.4 million for the year ended March 31, 2025[211]. - The company has positive working capital of $3.6 million as of March 31, 2025[211]. - The company reported a net income of $3.8 million, a significant recovery from a net loss of $21.3 million in the previous year[168]. - Adjusted EBITDA for the fiscal year ended March 31, 2025 was $13.9 million, compared to $4.4 million for the fiscal year ended March 31, 2024, reflecting improved operational performance[168]. Cash Flow and Liquidity - The company generated $17.4 million of net positive cash flows from operations for the year ended March 31, 2025, with cash and cash equivalents of $13.9 million and total equity of $37.8 million[47]. - The company had cash and cash equivalents of $13.9 million as of March 31, 2025, up from $5.2 million as of March 31, 2024, indicating a strong liquidity position[171]. - The Company anticipates sufficient cash and cash equivalents to support operations for at least twelve months from the report filing date[125]. - Cash used in financing activities for the year ended March 31, 2025 was $8.0 million, primarily due to repayments of the Line of Credit Facility and the T3 Loan[174]. Debt and Financing - As of March 31, 2025, CDF2 Holdings had a total stockholder's deficit of $59.2 million, with the company's financial exposure limited to an initial investment of $2.0 million[40]. - CDF2 Holdings has incurred long-term losses and financed operations primarily through equity investments and borrowings, indicating a reliance on external funding sources[47]. - The company is party to a Line of Credit Facility with East West Bank providing for $12.5 million, expandable to $15.0 million[212]. - The Line of Credit Facility bears interest at a rate of 8.75% as of March 31, 2025[212]. - The company may need to adopt alternative strategies, such as reducing capital expenditures or seeking additional funding, if unable to service its indebtedness[50]. - The company may face challenges in raising capital in the future, which could hinder its ability to fund operations and expansion[82]. Risks and Liabilities - Cineverse recorded $14 million in goodwill impairment in the prior fiscal year, indicating potential future risks related to asset valuation[33]. - Risks related to market downturns could lead to significant fluctuations in revenues and earnings, affecting overall financial stability[54]. - The company faces potential liability claims for media content, which could adversely affect its financial condition and operating results[53]. - Changes in economic conditions, such as increased energy costs and consumer confidence, could materially impact demand for the company's products and services[56]. - The ability to utilize net operating loss carryforwards is subject to substantial limitations due to ownership changes, potentially resulting in increased future tax payments[58]. - The company's reliance on Amazon Web Services (AWS) for computing infrastructure poses a risk, as any disruption could adversely affect operations[64]. - The company has experienced periodic service interruptions and lacks live fail-over capability to switch to another cloud provider, which could impair service delivery[65]. - The liquidity of the company's Common Stock is uncertain, with limited trading volume potentially leading to significant price fluctuations[67]. - The company has 2.7 million shares of Common Stock potentially subject to dilution due to outstanding warrants[69]. - The company is subject to significant costs associated with being a public company, which may disrupt operations and increase compliance expenses[84]. Stock and Shareholder Information - The company has no current intention of paying dividends on its Common Stock, which may limit returns for investors[81]. - The company approved a share repurchase program in March 2023, renewed in February 2024 and 2025, contingent on favorable market conditions[83]. - The company's stock repurchase program allows for the purchase of up to 500,000 shares, with the program renewed to expire on March 31, 2026[107]. - The reported closing price per share of the company's Common Stock on June 20, 2025, was $3.89[104]. - The company issued 2,150,000 shares of Common Stock and raised approximately $7.4 million in gross proceeds from a public offering in June 2023[122]. - The company has never paid cash dividends on its Common Stock and does not anticipate doing so in the foreseeable future[105].
CINEDIGM DIGIT-A(CIDM) - 2025 Q4 - Annual Report