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Discontinued Operations | 3 Months Ended
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Mar. 31, 2025
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 Vesting of Warrants in Note 12). The table below sets forth the income (loss) from discontinued operations: Schedule of Discontinued Operations
|  | 2025 |  |  | 2024 |
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
|  | ($ in thousands, except share data) |
Revenue |  | $ | - |  |  | $ | 21,848 |
Cost of revenue (1) |  |  | (23 | ) |  |  | 13,981 |
Gross profit (loss) |  |  | 23 |  |  |  | 7,867 |
Operating expense |  |  |  |  |  |  |  |
Selling and marketing |  |  | - |  |  |  | 11,503 |
General and administrative (2) |  |  | - |  |  |  | 45,192 |
Depreciation and amortization |  |  | - |  |  |  | 2,401 |
Loss on impairment of assets (3) |  |  | - |  |  |  | 39,391 |
Total operating expenses |  |  | - |  |  |  | 98,487 |
Income (loss) from discontinued operations |  |  | 23 |  |  |  | (90,620 | )
Income tax provision |  |  | - |  |  |  | (18 | )
Net income (loss) from discontinued operations |  | $ | 23 |  |  | $ | (90,638 | )
(1) | Cost of revenue for the three months ended March 31, 2025, includes an adjustment to previously reported accounts payable that was settled for a reduced amount.
(2) | General and administrative expenses for the three months ended March 31, 2024, includes a $45,000 termination fee liability as described in Note 16.
(3) | Loss on impairment of assets for the three months ended March 31, 2024 of $39,391 includes $8,601 for the impairment of intangible assets and $30,790 for the impairment of subscription acquisition costs.
The table below sets forth the major classes of liabilities of the discontinued operations:
|  | March 31, 2025 |  |  | December 31, 2024 |
|  | As of |
|  | March 31, 2025 |  |  | December 31, 2024 |
Liabilities |  |  |  |  |  |
Accounts payable |  | $ | 1,680 |  |  | $ | 1,783 |
Accrued expenses and other |  |  | 519 |  |  |  | 519 |
Subscription refund liability |  |  | 423 |  |  |  | 423 |
Royalty fee liability (1) |  |  | 3,750 |  |  |  | 3,750 |
Termination fee liability (1) |  |  | 45,000 |  |  |  | 45,000 |
Subscription liability, current portion |  |  | 44,684 |  |  |  | 44,684 |
Current/total liabilities from discontinued operations |  | $ | 96,056 |  |  | $ | 96,159 |
(1) | Further details related to the royalty fee liability of $3,750 and termination fee liability of $45,000 are described under the heading ABG Group Legal Matters in Note 16.
The table below sets forth the cash flows of the discontinued operations:
|  | 2025 |  |  | 2024 |
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Cash flows from operating activities from discontinued operations |  |  |  |  |  |  |  |
Net income (loss) from discontinued operations |  | $ | 23 |  |  | $ | (90,638 | )
Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |  |  |  |  |
Amortization of intangible assets |  |  | - |  |  |  | 2,401 |
Loss on impairment of assets |  |  | - |  |  |  | 39,391 |
Stock-based compensation |  |  | - |  |  |  | 538 |
Change in operating assets and liabilities: |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | - |  |  |  | 7,444 |
Subscription acquisition costs |  |  | - |  |  |  | 6,131 |
Prepayments and other current assets |  |  | - |  |  |  | 807 |
Accounts payable |  |  | (103 | ) |  |  | 2,654 |
Accrued expenses and other |  |  | - |  |  |  | 538 |
Subscription refund liability |  |  | - |  |  |  | 20 |
Subscription liability |  |  | - |  |  |  | (7,148 | )
Termination fee liability |  |  | - |  |  |  | 45,000 |
Net cash (used in) provided by operating activities from discontinued operations |  | $ | (80 | ) |  | $ | 7,138 |
Further details regarding legal matters in connection with the discontinued operations are provided under the heading ABG Group Legal Matters in Note 16.

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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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