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Discontinued Operations | 3 Months Ended
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Mar. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 2. Discontinued Operations On March 18, 2024, the Company discontinued the Sports Illustrated media business (the “SI Business”) that was operated under the Licensing Agreement with ABG-SI, LLC (“ABG”) dated June 14, 2019 (as amended to date, the “Licensing Agreement”). This discontinuation of the SI Business (i.e., discontinued operations) followed the termination of the Licensing Agreement by ABG on January 18, 2024. The last date of any obligation of the Company to perform under the Licensing Agreement was March 18, 2024. In connection with the termination, certain ABG Warrants vested (further details are provided under the heading Modification of Warrants in Note 15). The table below sets forth the loss from discontinued operations: Schedule of Discontinued Operations
|  | 2024 |  |  | 2023 |
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Revenue |  | $ | 21,848 |  |  | $ | 22,962 |
Cost of revenue |  |  | 13,981 |  |  |  | 11,945 |
Gross profit |  |  | 7,867 |  |  |  | 11,017 |
Operating expense |  |  |  |  |  |  |  |
Selling and marketing |  |  | 11,503 |  |  |  | 12,122 |
General and administrative(1) |  |  | 45,192 |  |  |  | 78 |
Depreciation and amortization |  |  | 2,401 |  |  |  | 3,670 |
Loss on impairment of assets |  |  | 39,391 |  |  |  | - |
Total operating expenses |  |  | 98,487 |  |  |  | 15,870 |
Loss from discontinued operations |  |  | (90,620 | ) |  |  | (4,853 | )
Income tax benefit |  |  | (18 | ) |  |  | - |
Net loss from discontinued operations |  | $ | (90,638 | ) |  | $ | (4,853 | )
(1) | Includes $45,000 termination fee liability.
The table below sets forth the major classes of assets and liabilities of the discontinued operations:
|  | March 31, 2024 |  |  | December 31, 2023 |
|  | As of |
|  | March 31, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |  |  |
Accounts receivable, net |  | $ | 5,691 |  |  | $ | 13,135 |
Subscription acquisition costs, current portion |  |  | - |  |  |  | 29,706 |
Prepayments and other current assets |  |  | - |  |  |  | 807 |
Current assets from discontinued operations |  |  | 5,691 |  |  |  | 43,648 |
Subscription acquisition costs, net of current portion |  |  | - |  |  |  | 7,215 |
Acquired and other intangibles assets, net |  |  | - |  |  |  | 11,002 |
Noncurrent assets from discontinued operations |  |  | - |  |  |  | 18,217 |
Total assets from discontinued operations |  | $ | 5,691 |  |  | $ | 61,865 |
Liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,458 |  |  | $ | 2,554 |
Accrued expenses and other |  |  | 2,406 |  |  |  | 1,868 |
Subscription refund liability |  |  | 423 |  |  |  | 403 |
Royalty fee liability |  |  | 3,750 |  |  |  | - |
Termination fee liability |  |  | 45,000 |  |  |  | - |
Subscription liability, current portion |  |  | 45,837 |  |  |  | 42,848 |
Current liabilities from discontinued operations |  |  | 98,874 |  |  |  | 47,673 |
Subscription liability, net of current portion |  |  | - |  |  |  | 10,137 |
Noncurrent liabilities from discontinued operations |  |  | - |  |  |  | 10,137 |
Total liabilities from discontinued operations |  | $ | 98,874 |  |  | $ | 57,810 |
The table below sets forth the cash flows of the discontinued operations:
|  | 2024 |  |  | 2023 |
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Cash flows from operating activities from discontinued operations |  |  |  |  |  |  |  |
Net loss from discontinued operations |  | $ | (90,638 | ) |  | $ | (4,853 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Amortization of intangible assets |  |  | 2,401 |  |  |  | 3,670 |
Loss on impairment of assets |  |  | 39,391 |  |  |  | - |
Stock-based compensation |  |  | 538 |  |  |  | 190 |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | 7,444 |  |  |  | 5,000 |
Subscription acquisition costs |  |  | 6,131 |  |  |  | (4,304 | )
Prepayments and other current assets |  |  | 807 |  |  |  | 190 |
Accounts payable |  |  | 2,654 |  |  |  | 229 |
Accrued expenses and other |  |  | 538 |  |  |  | 118 |
Subscription refund liability |  |  | 20 |  |  |  | (150 | )
Subscription liability |  |  | (7,148 | ) |  |  | 4,233 |
Termination fee liability |  |  | 45,000 |  |  |  | - |
Net cash used in operating activities from discontinued operations |  | $ | 7,138 |  |  | $ | 4,323 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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