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Business Segment and Geographic Reporting
 9 Months Ended
Dec. 31, 2022
Business Segment and Geographic Reporting [Abstract]  
Business Segment and Geographic Reporting

Note 19 — Business Segment and Geographic Reporting

 

The Company determined its operating segments in accordance with ASC 280, “Segment Reporting” (“ASC 280”).

 

Beginning in the second quarter of fiscal 2023, management has determined that the Company has two operating segments (Audio Group and Media Group). As a result of the PC1 Bridge Loan and the potential for a spin-off of PodcastOne the Company’s chief operating decision maker (“CODM”) began to make decisions based on two operating segments of the business (Audio and Media). The Company’s reporting segments reflects the manner in which its CODM reviews results and allocates resources. The CODM reviews operating segment performance exclusive of: share-based compensation expense, amortization of intangible assets, depreciation, and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and certain other non-cash charges. As a result, the segment information for the prior periods has been recast to confirm with the current period presentation.

 

The Company’s two operating segments are also consistent with its internal organizational structure, the way the Company assesses operating performance and allocates resources.

 

Customers

 

The Company has one external customer within their audio segment that accounts for more than 10% of its revenue during the nine months ended December 31, 2022 and 2021. Such customer is an original equipment manufacturer (the “OEM”) who provides premium Slacker service in all of their new vehicles. Total revenues for this customer were 43% and 25% of the Company’s consolidated revenues for the nine months ended December 31, 2022 and 2021, respectively. For the three months ended December 31, 2022 and 2021, this customer accounted for 42% and 31%, respectively of the Company’s consolidated revenues.

 

Geographic Information

 

The Company’s operations are based in the United States. All material revenues of the Company are derived from the United States. All long-lived assets of the Company are located in the United States.

 

We manage our working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, our management to allocate resources to or assess performance of our segments, and therefore, total segment assets and related depreciation and amortization have not been presented.

 

The following table presents the results of operations for our reportable segments for the three and nine months ended December 31, 2022 and 2021: 

 

   Three Months Ended
December 31, 2022		 
   Audio   Media   Total 
             
Revenue  $21,952   $5,357   $27,309 
Net income (loss)  $(903)  $(1,645)  $(2,548)

 

   Three Months Ended
December 31, 2021		 
   Audio   Media   Total 
             
Revenue  $19,084   $13,811   $32,895 
Net income (loss)  $620   $(12,411)  $(11,791)

 

    Nine Months Ended
December 31, 2022		  
    Audio     Media     Total  
                   
Revenue   $ 63,939     $ 10,124     $ 74,063  
Net income (loss)   $ 4,049     $ (8,658 )   $ (4,609 )

 

    Nine Months Ended
December 31, 2021		  
    Audio     Media     Total  
                   
Revenue   $ 54,778     $ 38,808     $ 93,586  
Net income (loss)   $ (2,511 )   $ (32,567 )   $ (35,078 )