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SEGMENT INFORMATION
 3 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION

The Company is comprised of four reportable segments: Phase I Deployment, Phase II Deployment, Services and Content & Entertainment. The segments were determined based on the products and services provided by each segment and how management reviews and makes decisions regarding segment operations. Performance of the segments is evaluated on the segment’s income (loss) from continuing operations before interest, taxes, depreciation and amortization.  
 
The Phase I Deployment and Phase II Deployment segments consist of the following:
Operations of:
Products and services provided:
Phase 1 DC
Financing vehicles and administrators for the Company’s 3,724 Systems installed nationwide in Phase 1 DC’s deployment to theatrical exhibitors.  The Company retains ownership of the Systems and the residual cash flows related to the Systems after the repayment of all non-recourse debt at the expiration of exhibitor master license agreements.
Phase 2 DC
Financing vehicles and administrators for the Company’s 8,530 Systems installed in the second digital cinema deployment, through Phase 2 DC.  The Company retains no ownership of the residual cash flows and digital cinema equipment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.

The Services segment consists of the following:
Operations of:
Products and services provided:
Services
Provides monitoring, billing, collection, verification and other management services to the Company’s Phase I Deployment, Phase II Deployment, Holdings, as well as to exhibitors who purchase their own equipment. Collects and disburses VPFs from motion picture studios and distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors.
Software
Develops and licenses software to the theatrical distribution and exhibition industries as well as other content owners, provides ASP services, and provides software enhancements and consulting services.

The Content & Entertainment segment consists of the following:
Operations of:
Products and services provided:
CEG
As a leading distributor of independent digital content, CEG collaborates with producers and the exhibition community to market, source, curate and distribute independent content to targeted and profitable audiences in theatres and homes, and via mobile and emerging platforms.


Information related to the segments of the Company and its subsidiaries is detailed below:

 
 
As of June 30, 2013
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Total intangible assets, net
 
$
332

 
$
5

 
$
42

 
$
12,044

 
$
—

 
$
12,423

Total goodwill
 
$
—

 
$
—

 
$
4,197

 
$
8,542

 
$
—

 
$
12,739

Total assets
 
$
131,731

 
$
75,366

 
$
21,299

 
$
43,018

 
$
4,371

 
$
275,785

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable, non-recourse
 
$
186,519

 
$
43,252

 
$
—

 
$
—

 
$
—

 
$
229,771

Capital leases
 
—

 
—

 
—

 
—

 
4,487

 
4,487

Total debt
 
$
186,519

 
$
43,252

 
$
—

 
$
—

 
$
4,487

 
$
234,258


 
 
As of March 31, 2013
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Total intangible assets, net
 
$
344

 
$
6

 
$
49

 
$
12,449

 
$
—

 
$
12,848

Total goodwill
 
$
—

 
$
—

 
$
4,197

 
$
8,542

 
$
—

 
$
12,739

Total assets
 
$
137,880

 
$
79,139

 
$
21,864

 
$
39,158

 
$
6,017

 
$
284,058

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes payable, non-recourse
 
$
192,609

 
$
45,300

 
$
—

 
$
—

 
$
—

 
$
237,909

Capital leases
 
—

 
—

 
—

 
—

 
4,518

 
4,518

Total debt
 
$
192,609

 
$
45,300

 
$
—

 
$
—

 
$
4,518

 
$
242,427





 
 
Statements of Operations
 
 
For the Three Months Ended June 30, 2013
 
 
(Unaudited)
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Revenues from external customers
 
$
8,919

 
$
2,954

 
$
4,478

 
$
3,274

 
$
—

 
$
19,625

Intersegment revenues (1)
 
—

 
—

 
70

 
11

 
—

 
81

Total segment revenues
 
8,919

 
2,954

 
4,548

 
3,285

 
—

 
19,706

Less: Intersegment revenues
 
—

 
—

 
(70
)
 
(11
)
 
—

 
(81
)
Total consolidated revenues
 
$
8,919

 
$
2,954

 
$
4,478

 
$
3,274

 
$
—

 
$
19,625

Direct operating (exclusive of depreciation and amortization shown below) (2)
 
155

 
142

 
809

 
3,385

 
—

 
4,491

Selling, general and administrative
 
63

 
87

 
1,136

 
2,755

 
3,082

 
7,123

Plus: Allocation of Corporate overhead
 
—

 
—

 
1,033

 
733

 
(1,766
)
 
—

Research and development
 
—

 
—

 
28

 
—

 
—

 
28

Provision for doubtful accounts
 
43

 
14

 
5

 
—

 
—

 
62

Depreciation and amortization of property and equipment
 
7,137

 
1,881

 
102

 
3

 
152

 
9,275

Amortization of intangible assets
 
11

 
2

 
7

 
405

 
—

 
425

Total operating expenses
 
7,409

 
2,126

 
3,120

 
7,281

 
1,468

 
21,404

Income (loss) from operations
 
$
1,510

 
$
828

 
$
1,358

 
$
(4,007
)
 
$
(1,468
)
 
$
(1,779
)

(1) Intersegment revenues of the Services segment principally represent service fees earned from the Phase I and Phase II Deployments.
(2) Included in direct operating of the Services segment is $314 for the amortization of capitalized software development costs.

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Direct operating
 
$
—

 
$
—

 
$
16

 
$
2

 
$
—

 
$
18

Selling, general and administrative
 
—

 
—

 
21

 
23

 
653

 
697

Research and development
 
—

 
—

 
22

 
—

 
—

 
22

Total stock-based compensation
 
$
—

 
$
—

 
$
59

 
$
25

 
$
653

 
$
737




 
 
Statements of Operations
 
 
For the Three Months Ended June 30, 2012
 
 
(Unaudited)
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Revenues from external customers
 
$
9,916

 
$
3,159

 
$
5,064

 
$
2,765

 
$
—

 
$
20,904

Intersegment revenues (1)
 
—

 
—

 
241

 
7

 
—

 
248

Total segment revenues
 
9,916

 
3,159

 
5,305

 
2,772

 
—

 
21,152

Less: Intersegment revenues
 
—

 
—

 
(241
)
 
(7
)
 
—

 
(248
)
Total consolidated revenues
 
$
9,916

 
$
3,159

 
$
5,064

 
$
2,765

 
$
—

 
$
20,904

Direct operating (exclusive of depreciation and amortization shown below) (2)
 
115

 
166

 
1,116

 
1,038

 
—

 
2,435

Selling, general and administrative
 
17

 
25

 
890

 
1,695

 
3,266

 
5,893

Plus: Allocation of Corporate overhead
 
—

 
—

 
1,263

 
924

 
(2,187
)
 
—

Research and development
 
—

 
—

 
38

 
 
 
—

 
38

Provision for doubtful accounts
 
52

 
16

 
8

 
—

 
—

 
76

Merger and acquisition expenses
 
—

 
—

 
—

 
—

 
1,267

 
1,267

Depreciation and amortization of property and equipment
 
7,138

 
1,801

 
42

 
5

 
111

 
9,097

Amortization of intangible assets
 
11

 
2

 
7

 
138

 
—

 
158

Total operating expenses
 
7,333

 
2,010

 
3,364

 
3,800

 
2,457

 
18,964

Income (loss) from operations
 
$
2,583

 
$
1,149

 
$
1,700

 
$
(1,035
)
 
$
(2,457
)
 
$
1,940


(1) Intersegment revenues of the Services segment represent service fees earned from the Phase I and Phase II Deployments.
(2) Included in direct operating of the Services segment is $250 for the amortization of capitalized software development costs.

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:
 
 
Phase I
 
Phase II
 
Services
 
Content & Entertainment
 
Corporate
 
Consolidated
Direct operating
 
$
—

 
$
—

 
$
18

 
$
4

 
$
—

 
$
22

Selling, general and administrative
 
—

 
—

 
15

 
17

 
700

 
732

Research and development
 
—

 
—

 
37

 
—

 
—

 
37

Total stock-based compensation
 
$
—

 
$
—

 
$
70

 
$
21

 
$
700

 
$
791