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Segment Information
 12 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION

9. SEGMENT INFORMATION

 

We operate in two reportable segments: Cinema Equipment Business and Content & Entertainment Business. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our CODM to evaluate performance, which is generally the segment’s operating income (loss) before depreciation and amortization.

 

Operations of:   Products and services provided:
Cinema Equipment Business  

Financing vehicles and administrators for 696 Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for 2,147 Systems installed domestically and internationally in our second deployment phase (“Phase II Deployment”).

 

We retain ownership of the Systems and the residual cash flows related to the Systems in Phase I Deployment after the repayment of all non-recourse debt at the expiration of exhibitor master license agreements. For certain Phase II Deployment Systems, we do not retain ownership of the residual cash flows and digital cinema equipment in Phase II Deployment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.

 

The Cinema Equipment Business segment also provides monitoring, collection, verification and management services to this segment, as well as to exhibitors who purchase their own equipment, and also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors (collectively, “Services”).

     
Content & Entertainment Business   Leading independent streaming company of content and channels. We collaborate with producers and other content owners to market, source, curate and distribute independent content to targeted and under-served audiences in theatres and homes, and via mobile and emerging platforms.

 

The following tables present certain financial information related to our reportable segments and Corporate:

 

    As of March 31, 2022  
(In thousands)   Intangible
Assets, net		     Goodwill     Total
Assets		     Notes
Payable,
Non-
Recourse		     Notes
Payable		     Operating
lease
liabilities		  
Cinema Equipment Business   $ —     $ —     $ 24,445     $     —     $ —     $ —  
Content & Entertainment Business     19,946       21,084       68,873       —       —       —  
Corporate     88         -       11,318       —       —       749  
Total   $ 20,034     $ 21,084     $ 104,636     $ —     $ —     $     749  

 

   As of March 31, 2021 
(In thousands)  Intangible
Assets, net		   Goodwill   Total
Assets		   Notes
Payable,
Non-
Recourse		   Notes
Payable		   Operating
lease
liabilities		 
Cinema Equipment Business  $
—
   $
—
   $13,169   $7,786   $
—
   $1 
Content & Entertainment Business   9,858    8,701    42,733    
—
    
—
    69 
Corporate   2    
—
    19,544    
—
    4,108    30 
Total  $9,860   $8,701   $75,446   $7,786   $4,108   $100 

 

    Statements of Operations  
    Year Ended March 31, 2022  
    (in thousands)  
    Cinema
Equipment
Business		     Content & Entertainment
Business		     Corporate     Consolidated  
Revenues   $ 18,159     $ 37,895     $ -     $ 56,054  
Direct operating (exclusive of depreciation and amortization shown below)     687       20,207       -       20,894  
Selling, general and administrative     1,890       13,935       14,211       30,036  
Allocation of corporate overhead     560       3,752       (4,312 )     -  
Provision for (recovery of) doubtful accounts     (485 )     -       -       (485 )
Intangible Impairment     -       1,968       -       1,968  
Depreciation and amortization of property and equipment     1,160       571       3       1,734  
Amortization of intangible assets     -       2,830       2       2,832  
Total operating expenses     3,812       43,263       9,904       56,979  
Income (loss) from operations   $ 14,347     $ (5,368 )   $ (9,904 )   $ (925 )

  

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

 

(In thousands) 

Cinema

Equipment

Business

   Content & Entertainment
Business		   Corporate   Consolidated 
Direct operating  $
—
   $
—
   $
—
   $
—
 
Selling, general and administrative   
—
    1,034    4,453    5,487 
Total stock-based compensation  $
—
   $1,034   $4,453   $5,487 

  

   Statements of Operations 
   Year Ended March 31, 2021 
   (in thousands) 
   Cinema
Equipment
Business		   Content & Entertainment
Business		   Corporate   Consolidated 
Revenues  $3,222   $28,197   $
—
   $31,419 
Direct operating (exclusive of depreciation and amortization shown below)   683    15,420    
—
    16,103 
Selling, general and administrative   2,277    9,798    9,917    21,992 
Allocation of corporate overhead   586    3,872    (4,458)   
—
 
Provision for (recovery of) doubtful accounts   (121)   (1)   
—
    (122)
Depreciation and amortization of property and equipment   3,916    461    27    4,404 
Amortization and impairment of intangible assets   23    2,488    4    2,515 
Total operating expenses   7,364    32,038    5,490    44,892 
Income (loss) from operations  $(4,142)  $(3,841)  $(5,490)  $(13,473)

 

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

 

   Cinema
Equipment
Business		   Content &
Entertainment		   Corporate   Consolidated 
Direct operating  $
—
   $
 —
   $
—
   $
—
 
Selling, general and administrative   
—
    264    2,628    2,892 
Total stock-based compensation  $
—
   $264   $2,628   $2,892