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Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended
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Mar. 31, 2025
Accounting Policies [Abstract] |
Reclassifications | Reclassifications The Company identified a disclosure error in the presentation of the Note 6 Property and Equipment, net reported in the Form 10-K for the year ended December 31, 2024. While the balance sheet correctly reflected the net book value of property and equipment, the footnote disclosure overstated by $0.7 million both the gross asset cost and accumulated depreciation as of December 31, 2024. The disclosure error did not impact the total net carrying amount of property and equipment or the consolidated financial statements as a whole. The comparative balances as of December 31, 2024 in Note 6 have been revised to reflect the correct gross cost and accumulated depreciation amounts. The outstanding warrant balance as of December 31, 2024, previously included 100,000 warrants that had been exercised in April 2024. This exercised amount was identified in the Q1 2025 review and the prior period balance has been corrected accordingly. The correction was not material to the financial statements, did not result in any adjusting entry, and had no impact on the Company’s results of operations or financial position.
Foreign Currency Forward Contracts | Foreign Currency Forward Contracts As of March 31, 2025 and December 31, 2024, the gross amounts of FX forwards in an asset and liability position subject to a master netting arrangement resulted in a net liability of $0.5 million and $0.6 million, respectively, recorded within Other Current Liabilities on the condensed consolidated balance sheets. For the three months ended March 31, 2025 and 2024, the Company recorded a realized loss of $139,424 and $15,507, respectively, on FX forward contracts within Production Services Revenue on the condensed consolidated statements of operations.
Trade Accounts Receivable and Allowance for Credit Loss | Trade Accounts Receivable and Allowance for Credit Loss As of March 31, 2025 and December 31, 2024, the Company recorded an allowance for credit loss of $0.2 million and $0.2 million, respectively. The following table summarizes the activity in the allowance for credit losses related to trade accounts receivable as of March 31, 2025 and December 31, 2024 (in thousands):
Schedule of allowance for credit losses trade accounts receivable |  |  |  |
Balance, net as of December 31, 2023 |  | $ | 189 |
Charged to costs and expenses |  |  | 64 |
Recoveries |  |  | (14 | )
Balance, net as of December 31, 2024 |  | $ | 239 |
Recoveries |  |  | (35 | )
Balance, net as of March 31, 2025 |  | $ | 204 |
Tax Credits Receivable | Tax Credits Receivable The Company classifies majority of its tax credits receivable as current based on their normal operating cycle. As of March 31, 2025, a portion of the Company’s tax credits receivable is presented as a long-term asset due to uncertainty regarding the timing of obtaining the necessary certifications required to process the tax credits. Management will continue to monitor the status of the outstanding items and reclassify the receivable to current when the timing of collection becomes reasonably estimable. As of March 31, 2025 and December 31, 2024, $10.8 million and $12.7 million in tax credit receivables related to Wow’s film and television productions were recorded, net of $0.6 million and $0.6 million, respectively, recorded as an allowance for credit loss. As of March 31, 2025, $2.5 million in tax credits receivable net of $0.4 million allowance for credit loss was presented as non-current asset. As of December 31, 2024 $2.4 million in tax credits receivable net of $0.4 million allowance for credit loss was presented as non-current asset.
Concentration of Risk | Concentration of Risk The Company maintains its cash in bank deposit accounts which, at times, may exceed the Federal Deposit Insurance Corporation’s (“FDIC”) or the Canadian Deposit Insurance Corporation’s (“CDIC”) insured amounts. Balances on interest bearing deposits at banks in the United States are insured by the FDIC up to $250,000 per account and deposits in banks in Canada are insured by the CDIC up to CAD 100,000. As of March 31, 2025 and December 31, 2024, the Company had ten and twelve bank deposit accounts with an aggregate uninsured balance of $0.8 million and $6.7 million, respectively. The Company has a managed account with a financial institution. The managed account maintains its investments in marketable securities of approximately $3.2 million and $2.0 million as of March 31, 2025 and December 31, 2024, respectively. Assets in the managed account are protected by the Securities Investor Protection Corporation (“SIPC”) up to $500,000 (with a limit of $250,000 for cash). In addition, the financial institution provides additional “excess of SIPC” coverage which insures up to $1.0 billion. As of March 31, 2025 and December 31, 2024, the Company did not have account balances held at this financial institution that exceed the insured balances. The Company’s investment portfolio, consists of investment-grade securities and, although reduced in size compared to prior years, remains reasonably diversified among security types, industries and issuers. The Company’s policy limits the amount of credit exposure to any one security issue or issuer and the Company believes no significant concentration of credit risk exists with respect to these investments. During the three months ended March 31, 2025, the Company had four customers, whose total revenue exceeded 10% of the total condensed consolidated revenue. These customers accounted for 85.1% of the total revenue. During the three months ended March 31, 2024, the Company had two customers whose total revenue exceeded 10% of the total condensed consolidated revenue. These customers accounted for 61.7% of the total revenue. As of March 31, 2025, the Company had three customers whose total accounts receivable exceeded 10% of the total accounts receivable. These customers accounted for 53.2% of the total accounts receivable as of March 31, 2025. As of December 31, 2024, the Company had three customers whose total accounts receivable exceeded 10% of the total accounts receivable. These customers accounted for 53.2% of the total accounts receivable as of December 31, 2024. There is significant financial risk associated with a dependence upon a small number of customers. The Company periodically assesses the financial strength of these customers and establishes allowances for any anticipated credit losses.
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table summarizes the marketable securities measured at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2025 (in thousands):
Schedule of marketable securities measured at fair value on a recurring basis |  |  |  |  |  |
|  | Level 1 |  | Level 2 |  | Total Fair Value
Investments in Marketable Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate Bonds |  | $ | 540 |  |  | $ | – |  |  | $ | 540 |
U.S. Treasury |  |  | – |  |  |  | 1,181 |  |  |  | 1,181 |
U.S. Agency and Government Sponsored Securities |  |  | – |  |  |  | 1,119 |  |  |  | 1,119 |
U.S. States and Municipalities |  |  | – |  |  |  | 386 |  |  |  | 386 |
Total |  | $ | 540 |  |  | $ | 2,686 |  |  | $ | 3,226 |
The following table summarizes the marketable securities measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2024 (in thousands):
|  | Level 1 |  | Level 2 |  | Total Fair Value
Investments in Marketable Securities: |  |  |  |  |  |  |  |  |  |  |  |
Corporate Bonds |  | $ | 537 |  |  | $ | – |  |  | $ | 537 |
U.S. Agency and Government Sponsored Securities |  |  | – |  |  |  | 1,107 |  |  |  | 1,107 |
U.S. States and Municipalities |  |  | – |  |  |  | 385 |  |  |  | 385 |
Total |  | $ | 537 |  |  | $ | 1,492 |  |  | $ | 2,029 |
Fair values were determined for each individual security in the investment portfolio. The Company’s marketable securities are considered to be available-for-sale investments as defined under FASB ASC 320, Investments – Debt and Equity Securities. An allowance for credit loss was not recorded for the marketable securities as of March 31, 2025 and December 31, 2024. Refer to Note 5 for additional details.
New Accounting Standards Issued but Not Yet Adopted | New Accounting Standards Issued but Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. In March 2024, the FASB issued ASU 2024-01, Scope Application of Profits Interests and Similar Awards. The ASU is intended to help entities determine whether profits interest and similar awards are in the scope of ASC 718, Stock Compensation. The ASU solely focuses on scope and does not address guidance on recognition, classification, attribution, or measurement. For public business entities, it is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods. For all other entities, it is effective for annual periods beginning after December 15, 2025. Early adoption is permitted for both interim and annual financial statements. The amendments would be applied either retrospectively to all prior periods presented in the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date at which the entity first applies the amendments. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures. In November, 2024 the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense. This update mandates that public companies provide more detailed information about specific expenses in their financial statement notes. The effective date for this guidance is annual reporting periods beginning after December 15, 2026, with interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have to the consolidated financial statements and related disclosures, which is expected to result in enhanced disclosures.

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