Revenue Performance - For the three months ended June 30, 2025, total revenue increased by $2.0 million, or 22%, to $11.1 million compared to the same period in 2024[142]. - Streaming and digital revenue rose by $1.4 million, primarily due to a $0.5 million increase in subscriber revenue and $0.5 million in transaction revenue related to Terrifier 3[142]. Financial Losses - The Company reported a net loss of $3.6 million for the three months ended June 30, 2025, compared to a net loss of $3.1 million in the prior year[135]. - Adjusted EBITDA for the three months ended June 30, 2025, was a loss of $2.1 million, compared to a loss of $1.4 million in the same period in 2024[155]. Expenses - Direct operating expenses increased by $0.3 million to $4.5 million, primarily due to increased variable costs associated with revenue growth[146]. - Selling, general and administrative expenses rose by $2.4 million to $9.0 million, driven by a $1.1 million increase in compensation expense and a $1.2 million rise in other operating expenses[147]. Cash Flow and Working Capital - As of June 30, 2025, the Company had an accumulated deficit of $504.6 million and a working capital deficit of $(0.3) million[135]. - For the three months ended June 30, 2025, net cash used in operating activities was $(14,524) thousand, compared to $(2,344) thousand in the same period of 2024[156]. - Cash used in investing activities was $(16) thousand for the three months ended June 30, 2025, primarily related to expenditures towards long-lived intangible and fixed assets[157]. - Cash provided by financing activities was $2,568 thousand for the three months ended June 30, 2025, driven by proceeds from the Line of Credit Facility[158]. - The net change in cash and cash equivalents for the three months ended June 30, 2025, was $(11,972) thousand, compared to $(1,267) thousand in 2024[156]. - Operating cash flows are typically seasonally lower during the first two fiscal quarters and higher during the fiscal third and fourth quarters due to revenues earned during the holiday season[160]. Credit Facilities and Investments - The Company has a Line of Credit Facility with East West Bank providing for borrowings of up to $12.5 million, which can be expanded to $15.0 million[136]. - The Line of Credit Facility bears interest at a rate of 1.25% above the prime rate, which was 8.75% as of June 30, 2025[137]. - The Company plans to continue investing in content development and acquisitions, with short-term content advances totaling $5.2 million as of June 30, 2025[138]. Equity Interests - The company holds a 100% equity interest in CDF2 Holdings, which is an unconsolidated variable interest entity (VIE)[161].
CINEDIGM DIGIT-A(CIDM) - 2026 Q1 - Quarterly Report