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Segment Reporting
 9 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING

6. SEGMENT REPORTING

 

We operate in two reportable segments: Cinema Equipment and Content & Entertainment. 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 Chief Operating Decision Maker ("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

 

Financing vehicles and administrators for 343 Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for 54 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 after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.

 

Provides monitoring, collection, verification and management services 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

 

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 (in thousands):

 

 

 

As of December 31, 2022

 

 

 

Intangible
Assets, Net

 

 

Goodwill

 

 

Total
Assets

 

 

Line
of Credit,
Net

 

Cinema Equipment

 

$

—

 

 

$

—

 

 

$

7,977

 

 

$

—

 

Content & Entertainment

 

 

18,638

 

 

 

21,025

 

 

 

77,118

 

 

 

—

 

Corporate

 

 

226

 

 

 

—

 

 

 

9,800

 

 

 

4,867

 

Total

 

$

18,864

 

 

$

21,025

 

 

$

94,895

 

 

$

4,867

 

 

 

 

As of March 31, 2022

 

 

 

Intangible
Assets, Net

 

 

Goodwill

 

 

Total
Assets

 

 

Line
of Credit,
Net

 

Cinema Equipment

 

$

—

 

 

$

—

 

 

$

24,445

 

 

$

—

 

Content & Entertainment

 

 

19,946

 

 

 

21,084

 

 

 

68,873

 

 

 

—

 

Corporate

 

 

88

 

 

 

—

 

 

 

11,318

 

 

 

—

 

Total

 

$

20,034

 

 

$

21,084

 

 

$

104,636

 

 

$

—

 

 

 

 

Condensed Consolidated Statement of Operations

 

 

 

Three Months Ended December 31, 2022

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Revenues

 

$

7,186

 

 

$

20,696

 

 

$

—

 

 

$

27,882

 

Direct operating

 

 

89

 

 

 

14,322

 

 

 

—

 

 

 

14,411

 

Selling, general and administrative

 

 

912

 

 

 

3,794

 

 

 

4,401

 

 

 

9,107

 

Allocation of corporate overhead

 

 

88

 

 

 

2,407

 

 

 

(2,495

)

 

 

—

 

Depreciation and amortization

 

 

82

 

 

 

734

 

 

 

108

 

 

 

924

 

Total operating expenses

 

 

1,171

 

 

 

21,257

 

 

 

2,014

 

 

 

24,442

 

Operating income (loss)

 

$

6,015

 

 

$

(561

)

 

$

(2,014

)

 

$

3,440

 

 

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):

 

 

 

Three Months Ended December 31, 2022

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Direct operating

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Selling, general and administrative

 

 

—

 

 

 

—

 

 

 

708

 

 

 

708

 

Total stock-based compensation

 

$

—

 

 

$

—

 

 

$

708

 

 

$

708

 

 

 

 

Condensed Consolidated Statement of Operations

 

 

 

Three Months Ended December 31, 2021

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Revenues

 

$

2,060

 

 

$

12,024

 

 

$

—

 

 

$

14,084

 

Direct operating

 

 

139

 

 

 

6,320

 

 

 

—

 

 

 

6,459

 

Selling, general and administrative

 

 

99

 

 

 

3,720

 

 

 

3,539

 

 

 

7,358

 

Allocation of corporate overhead

 

 

143

 

 

 

964

 

 

 

(1,107

)

 

 

—

 

Depreciation and amortization

 

 

196

 

 

 

831

 

 

 

4

 

 

 

1,031

 

Total operating expenses

 

 

577

 

 

 

11,835

 

 

 

2,436

 

 

 

14,848

 

Operating income (loss)

 

$

1,483

 

 

$

189

 

 

$

(2,436

)

 

$

(764

)

 

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):

 

 

 

Three Months Ended December 31, 2021

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Direct operating

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Selling, general and administrative

 

 

—

 

 

 

552

 

 

 

797

 

 

 

1,349

 

Total stock-based compensation

 

$

—

 

 

$

552

 

 

$

797

 

 

$

1,349

 

 

 

 

Condensed Consolidated Statement of Operations

 

 

 

Nine Months Ended December 31, 2022

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Revenues

 

$

11,218

 

 

$

44,260

 

 

$

—

 

 

$

55,478

 

Direct operating

 

 

359

 

 

 

29,500

 

 

 

—

 

 

 

29,859

 

Selling, general and administrative

 

 

2,553

 

 

 

11,452

 

 

 

15,011

 

 

 

29,016

 

Allocation of corporate overhead

 

 

284

 

 

 

7,651

 

 

 

(7,935

)

 

 

—

 

Depreciation and amortization

 

 

303

 

 

 

2,282

 

 

 

323

 

 

 

2,908

 

Total operating expenses

 

 

3,499

 

 

 

50,885

 

 

 

7,399

 

 

 

61,783

 

Operating income (loss)

 

$

7,719

 

 

$

(6,625

)

 

$

(7,399

)

 

$

(6,305

)

 

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):

 

 

 

Nine Months Ended December 31, 2022

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Direct operating

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Selling, general and administrative

 

 

—

 

 

 

—

 

 

 

3,906

 

 

 

3,906

 

Total stock-based compensation

 

$

—

 

 

$

—

 

 

$

3,906

 

 

$

3,906

 

 

 

 

Condensed Consolidated Statement of Operations

 

 

 

Nine Months Ended December 31, 2021

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Revenues

 

$

11,544

 

 

$

27,658

 

 

$

—

 

 

$

39,202

 

Direct operating

 

 

560

 

 

 

13,863

 

 

 

—

 

 

 

14,423

 

Selling, general and administrative

 

 

856

 

 

 

10,081

 

 

 

9,583

 

 

 

20,520

 

Allocation of corporate overhead

 

 

412

 

 

 

2,763

 

 

 

(3,175

)

 

 

—

 

Depreciation and amortization

 

 

1,001

 

 

 

2,658

 

 

 

4

 

 

 

3,663

 

Total operating expenses

 

 

2,829

 

 

 

29,365

 

 

 

6,412

 

 

 

38,606

 

Operating income (loss)

 

$

8,715

 

 

$

(1,707

)

 

$

(6,412

)

 

$

596

 

 

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):

 

 

 

Nine Months Ended December 31, 2021

 

 

 

Cinema
Equipment

 

 

Content & Entertainment

 

 

Corporate

 

 

Consolidated

 

Direct operating

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Selling, general and administrative

 

 

—

 

 

 

1,063

 

 

 

2,215

 

 

 

3,278

 

Total stock-based compensation

 

$

—

 

 

$

1,063

 

 

$

2,215

 

 

$

3,278