Leases

9 Months Ended

Sep. 30, 2025

The Company’s lease assets and lease liabilities for its studios and corporate offices were as follows:


	Successor		Predecessor
	September 30,		December 28,
	2025		2024
Assets:
Operating leases	$	3,229	$	42,047
Total lease assets	$	3,229	$	42,047

Liabilities:
Current
Operating leases	$	1,256	$	8,168
Noncurrent
Operating leases		2,198		44,322
Total lease liabilities	$	3,454	$	52,490

The components of the Company’s lease expense were as follows:


	Successor		Predecessor
	Three Months Ended		Three Months Ended
	September 30, 2025		September 28, 2024
Operating lease cost:
Fixed lease cost	$	431	$	3,874
Lease termination cost		—		21
Variable lease cost		—		4
Total operating lease cost		431	$	3,899
Finance lease cost:
Amortization of leased assets		—		1
Interest on lease liabilities		—		0
Total finance lease cost	$	—	$	1
Total lease cost	$	431	$	3,900


	Successor		Predecessor
	Period from		Period from
	June 25, 2025		December 29, 2024		Nine Months Ended
	through September 30, 2025		through June 24, 2025		September 28, 2024
Operating lease cost:
Fixed lease cost	$	448	$	6,574	$	11,766
Lease termination cost (benefit)		—		740		(135	)
Variable lease cost		—		4		21
Total operating lease cost	$	448	$	7,318	$	11,652
Finance lease cost:
Amortization of leased assets		—		—		4
Interest on lease liabilities		—		—		0
Total finance lease cost	$	—	$	—	$	4
Total lease cost	$	448	$	7,318	$	11,656

As previously disclosed, in conjunction with the continued rationalization of its real estate portfolio, the Company entered into subleases with commencement dates in the first quarter of fiscal 2023 (Predecessor). The Company recorded sublease income for the three months ended September 30, 2025 (Successor), the period from June 25, 2025 through September 30, 2025 (Successor) and the period from December 29, 2024 through June 24, 2025 (Predecessor) of $390, $415 and $2,205, respectively, as an offset to selling, general and administrative expenses. The Company recorded sublease income for the three and nine months ended September 28, 2024 (Predecessor) of $914 and $2,741, respectively, as an offset to selling, general and administrative expenses.

In connection with the Chapter 11 bankruptcy, on June 3, 2025 the Company filed a motion with the Court to reject the lease of our nonresidential real property located at our New York City, New York location (“Corporate Headquarters Lease”). By order dated June 12, 2025 (Docket No. 161), the Court approved such rejection, effective June 30, 2025. The rejected lease was abandoned and the Company derecognized the operating lease right-of-use assets of $32,660 and the related leasehold improvements of $10,371, which are included in the caption “Reorganization items, net” in the Company’s unaudited consolidated financial statement of operations for the period from December 29, 2024 through June 24, 2025 (Predecessor). As part of the fresh start accounting adjustments, the Company adjusted the operating lease liabilities to the estimated allowable claim of $8,100, which resulted in a net reduction in the operating lease liabilities of $34,796, consisting of a decrease of $38,545 in long-term operating lease liabilities partially offset by an increase of $3,749 in portion of operating lease liabilities due within one year, as of June 24, 2025 (Predecessor).

The Company’s weighted average remaining lease term and weighted average discount rates were as follows:


	Successor		Predecessor
	September 30,		December 28,
	2025		2024
Weighted Average Remaining Lease Term (years)
Operating leases		2.87		6.84

Weighted Average Discount Rate
Operating leases		9.41		7.68

The Company’s leases have remaining lease terms of 1 to 4 years with a weighted average lease term of 2.87 years at September 30, 2025 (Successor).

At September 30, 2025 (Successor), the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:


	Operating Leases
Remainder of fiscal 2025	$	147
Fiscal 2026		1,774
Fiscal 2027		978
Fiscal 2028		674
Fiscal 2029		423
Fiscal 2030		—
Thereafter		—
Total lease payments	$	3,996
Less imputed interest		542
Present value of lease liabilities	$	3,454

Supplemental cash flow information related to leases were as follows:


	Successor		Predecessor
	Period from		Period from
	June 25, 2025		December 29, 2024			Nine Months Ended
	through September 30, 2025		through June 24, 2025			September 28, 2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	471	$	7,160		$	11,939
Operating cash flows from finance leases	$	—	$	—		$	0
Financing cash flows from finance leases	$	—	$	—		$	4

Lease assets obtained (modified) in exchange for new (modified) operating lease liabilities	$	95	$	(34,172	)	$	1,451
Lease assets modified in exchange for modified finance lease liabilities	$	—	$	—		$	(1	)