Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39139 | |
Entity Registrant Name | CURIOSITYSTREAM INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1797523 | |
Entity Address, Address Line One | 8484 Georgia Ave | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Silver Spring | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20910 | |
City Area Code | 301 | |
Local Phone Number | 755-2050 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,075,952 | |
Entity Central Index Key | 0001776909 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Trading Symbol | CURI | |
Security Exchange Name | NASDAQ | |
Warrants | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each exercisable for one share of Common Stock at an exercise price of $11.50 per share | |
Trading Symbol | CURIW | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 40,304 | $ 40,007 |
Restricted cash | 500 | 500 |
Short-term investments in debt securities | 0 | 14,986 |
Accounts receivable | 6,877 | 10,899 |
Other current assets | 1,410 | 3,118 |
Total current assets | 49,091 | 69,510 |
Investments in equity method investees | 6,666 | 10,766 |
Property and equipment, net | 822 | 1,094 |
Content assets, net | 45,900 | 68,502 |
Operating lease right-of-use assets | 3,418 | 3,702 |
Other assets | 411 | 539 |
Total assets | 106,308 | 154,113 |
Current liabilities | ||
Content liabilities | 128 | 2,862 |
Accounts payable | 6,963 | 6,065 |
Accrued expenses and other liabilities | 4,154 | 7,752 |
Deferred revenue | 12,997 | 14,281 |
Total current liabilities | 24,242 | 30,960 |
Warrant liability | 74 | 257 |
Non-current operating lease liabilities | 4,378 | 4,648 |
Other liabilities | 675 | 622 |
Total liabilities | 29,369 | 36,487 |
Stockholders’ equity | ||
Common stock, $0.0001 par value – 125,000 shares authorized as of September 30, 2023, and December 31, 2022; 53,071 shares issued and outstanding as of September 30, 2023; 52,853 issued and outstanding as of December 31, 2022 | 5 | 5 |
Additional paid-in capital | 362,270 | 358,760 |
Accumulated other comprehensive loss | 0 | (40) |
Accumulated deficit | (285,336) | (241,099) |
Total stockholders’ equity | 76,939 | 117,626 |
Total liabilities and stockholders’ equity | $ 106,308 | $ 154,113 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 53,071,000 | 52,853,000 |
Common stock, shares outstanding (in shares) | 53,071,000 | 52,853,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Total revenues | $ 15,630 | $ 23,569 | $ 42,114 | $ 63,544 |
Operating expenses | ||||
Cost of revenues | 8,494 | 13,566 | 27,428 | 38,404 |
Advertising and marketing | 5,106 | 5,626 | 12,424 | 31,602 |
General and administrative | 6,959 | 8,757 | 22,998 | 29,863 |
Impairment of content assets | 18,970 | 0 | 18,970 | 0 |
Impairment of goodwill and intangible assets | 0 | 0 | 0 | 3,603 |
Total operating expenses | 39,529 | 27,949 | 81,820 | 103,472 |
Operating loss | (23,899) | (4,380) | (39,706) | (39,928) |
Change in fair value of warrant liability | 74 | 514 | 184 | 4,852 |
Interest and other income (expense) | 31 | (478) | 856 | (564) |
Equity method investment loss | (2,638) | (94) | (5,092) | (566) |
Loss before income taxes | (26,432) | (4,438) | (43,758) | (36,206) |
Provision for income taxes | 133 | 64 | 479 | 165 |
Net loss | $ (26,565) | $ (4,502) | $ (44,237) | $ (36,371) |
Net loss per share | ||||
Basic (in dollars per share) | $ (0.50) | $ (0.09) | $ (0.83) | $ (0.69) |
Diluted (in dollars per share) | $ (0.50) | $ (0.09) | $ (0.83) | $ (0.69) |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 53,040,000 | 52,793,000 | 52,999,000 | 52,773,000 |
Diluted (in Shares) | 53,040,000 | 52,793,000 | 52,999,000 | 52,773,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (26,565) | $ (4,502) | $ (44,237) | $ (36,371) |
Other comprehensive income (loss): | ||||
Unrealized gain on available for sale securities | 0 | 270 | 40 | 40 |
Total comprehensive loss | $ (26,565) | $ (4,232) | $ (44,197) | $ (36,331) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 52,677,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 161,935 | $ 5 | $ 352,334 | $ (222) | $ (190,182) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (36,371) | (36,371) | |||
Stock-based compensation, net (in shares) | 125,000 | ||||
Stock-based compensation, net | 4,877 | 4,877 | |||
Other comprehensive income (loss) | 40 | 40 | |||
Ending balance (in shares) at Sep. 30, 2022 | 52,802,000 | ||||
Ending balance at Sep. 30, 2022 | 130,481 | $ 5 | 357,211 | (182) | (226,553) |
Beginning balance (in shares) at Jun. 30, 2022 | 52,786,000 | ||||
Beginning balance at Jun. 30, 2022 | 133,057 | $ 5 | 355,555 | (452) | (222,051) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (4,502) | (4,502) | |||
Stock-based compensation, net (in shares) | 16,000 | ||||
Stock-based compensation, net | 1,656 | 1,656 | |||
Other comprehensive income (loss) | 270 | 270 | |||
Ending balance (in shares) at Sep. 30, 2022 | 52,802,000 | ||||
Ending balance at Sep. 30, 2022 | 130,481 | $ 5 | 357,211 | (182) | (226,553) |
Beginning balance (in shares) at Dec. 31, 2022 | 52,853,000 | ||||
Beginning balance at Dec. 31, 2022 | 117,626 | $ 5 | 358,760 | (40) | (241,099) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (44,237) | (44,237) | |||
Stock-based compensation, net (in shares) | 218,000 | ||||
Stock-based compensation, net | 3,510 | 3,510 | |||
Other comprehensive income (loss) | 40 | $ 40 | |||
Ending balance (in shares) at Sep. 30, 2023 | 53,071,000 | ||||
Ending balance at Sep. 30, 2023 | 76,939 | $ 5 | 362,270 | (285,336) | |
Beginning balance (in shares) at Jun. 30, 2023 | 53,026,000 | ||||
Beginning balance at Jun. 30, 2023 | 102,626 | $ 5 | 361,392 | (258,771) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (26,565) | (26,565) | |||
Stock-based compensation, net (in shares) | 45,000 | ||||
Stock-based compensation, net | 878 | 878 | |||
Ending balance (in shares) at Sep. 30, 2023 | 53,071,000 | ||||
Ending balance at Sep. 30, 2023 | $ 76,939 | $ 5 | $ 362,270 | $ (285,336) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (44,237) | $ (36,371) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Change in fair value of warrant liability | (183) | (4,852) |
Additions to content assets | (14,074) | (31,729) |
Change in content liabilities | (2,734) | (4,706) |
Amortization of content assets | 17,706 | 29,510 |
Depreciation and amortization expenses | 370 | 573 |
Impairment of content assets | 18,970 | 0 |
Impairment of goodwill and intangible assets | 0 | 3,603 |
Amortization of premiums and accretion of discounts associated with investments in debt securities, net | 26 | 1,087 |
Stock-based compensation | 3,586 | 5,055 |
Equity method investment loss | 5,092 | 566 |
Other non-cash items | 363 | 288 |
Changes in operating assets and liabilities | ||
Accounts receivable | 4,022 | 6,342 |
Other assets | 1,737 | 4,994 |
Accounts payable | 903 | 4,188 |
Accrued expenses and other liabilities | (3,947) | (4,792) |
Deferred revenue | (1,230) | (4,500) |
Net cash used in operating activities | (13,630) | (30,744) |
Cash flows from investing activities | ||
Purchases of property and equipment | (5) | (130) |
Investment in equity method investees | (992) | (2,438) |
Sales of investments in debt securities | 0 | 22,893 |
Maturities of investments in debt securities | 15,000 | 41,873 |
Purchases of investments in debt securities | 0 | (1,497) |
Net cash provided by investing activities | 14,003 | 60,701 |
Cash flows from financing activities | ||
Payments related to tax withholding | (76) | (178) |
Net cash used in financing activities | (76) | (178) |
Net increase in cash, cash equivalents and restricted cash | 297 | 29,779 |
Cash, cash equivalents and restricted cash, beginning of period | 40,507 | 17,547 |
Cash, cash equivalents and restricted cash, end of period | 40,804 | 47,326 |
Supplemental disclosure: | ||
Cash paid for taxes | 144 | 571 |
Cash paid for operating leases | 360 | 352 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 3,965 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS The principal business of CuriosityStream Inc. (the “Company” or “CuriosityStream”) is providing customers with access to high quality factual content via a direct subscription video on-demand (SVOD) platform accessible by internet connected devices, or indirectly via distribution partners that deliver CuriosityStream content via the distributor’s platform or system. The Company’s online library available for streaming spans the entire category of factual entertainment including science, history, society, nature, lifestyle, and technology. The library is composed of thousands of accessible on-demand and ad-free productions and includes shows and series from leading nonfiction producers.The Company’s content assets are available for consuming directly through its owned and operated website (“O&O Service”), mobile applications developed for iOS and Android operating systems (“App Services”), and via the platforms and systems of third-party partners in exchange for license fees. The Company offers subscribers a monthly or annual subscription. The price for a subscription varies depending on the content included (e.g., Direct Service or Smart Bundle service) and the length of the subscription (e.g., monthly or annual) selected by the customer. As an additional part of the Company’s App Services, it has built applications to make its service accessible on almost every major customer device, including streaming media players like Roku, Apple TV and Amazon Fire TV, major smart TV brands (e.g., LG, Vizio, Samsung) and gaming consoles. In addition, CuriosityStream has affiliate agreement relationships with, and its content assets are available through, certain multichannel video programming distributors (“MVPDs”) and virtual MVPDs (“vMVPDs”). The Company also has distribution agreements which grant other media companies certain distribution rights to the Company’s programs, referred to as content licensing deals. The Company also sells selected rights to content it creates before production begins. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistent in all material respects with those applied in the Company’s consolidated financial statements as of and for the year ended December 31, 2022. In the opinion of management, the unaudited consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes and Management’s Discussion and Analysis of Financial Condition, and Results of Operations included in the Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023. In the second quarter of 2023, the Company began entering into trade and barter transactions primarily for the purpose of exchanging content assets through licensing agreements with media counterparties. Refer to Note 5 - Revenue for discussion of our accounting policy related to these transactions. Outside of these transactions, there have been no material changes in the Company’s significant accounting policies compared to the significant accounting policies described in the Company’s consolidated financial statements as of and for the year ended December 31, 2022. Impairment During the three months ended September 30, 2023, the Company identified certain indicators of impairment related to its content assets and performed an analysis of these assets to assess if fair value was less than unamortized costs. Refer to Note 4 - Balance Sheet Components for further discussion. In addition, during the three months ended September 30, 2023, the Company separately performed an analysis of its Investments in equity method investees to determine if an “other-than-temporary” impairment existed. Refer to Note 3 - Equity Investments , for further discussion on the results of this analysis. The Company periodically reviews and evaluates the recoverability of its long-lived assets. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue and operating performance estimates. If appropriate and where deemed necessary, a reduction in the carrying value is recorded based on the difference between the carrying value and the fair value based on discounted cash flows. During the three months ended September 30, 2023, the Company identified certain indicators of impairment with respect to its long-lived asset group, including the continual decline in the Company’s stock price. Based on the resulting impairment analysis, the Company determined that the undiscounted cash flows of the long-lived asset group, exceeded the carrying value as of September 30, 2023, subsequent to the impairment of content assets discussed above. As such, no impairment charges with respect to the long-lived asset group were required to be recorded by the Company during the three months ended September 30, 2023. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to such estimates include amortization and fair value of content assets, the assessment of the recoverability of equity method investments, and the determination of fair value estimates related to non-monetary transactions, share-based awards, and liability classified warrants. Concentration of Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, investments, and accounts receivable. The Company maintains its cash, cash equivalents, and investments with high credit quality financial institutions; at times, such balances with the financial institutions may exceed the applicable FDIC-insured limits. Accounts receivable, net are typically unsecured and are derived from revenues earned from customers primarily located in the United States. Fair Value Measurement of Financial Instruments Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The applicable accounting guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: • Level 1 : Quoted prices in active markets for identical assets or liabilities. • Level 2 : Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification at each reporting period. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s assets measured at fair value on a recurring basis have included its investments in money market funds and corporate debt securities (at December 31, 2022). Level 1 inputs were derived by using unadjusted quoted prices for identical assets in active markets and were used to value the Company’s investments in money market funds and U.S. government debt securities. Level 2 inputs were derived using prices for similar investments and were used to value the Company’s investments in corporate and municipal debt securities. The Company’s liabilities measured at fair value on a recurring basis include its private placement warrants issued to Software Acquisition Holdings LLC, the Company’s former Sponsor, in a private placement offering (the “Private Placement Warrants”). The fair value of the Private Placement Warrants is considered a Level 3 valuation and is determined using the Black-Scholes valuation model. Refer to Note 6 - Stockholders’ Equity for significant assumptions which the Company used in the fair value model for the Private Placement Warrants. Ce rtain assets are measured at fair value on a nonrecurring basis and are subject to fair value adjustments only in certain circumstances, e.g., when there is evidence of impairment indicators. During the three-months ended September 30, 2023 , the Company performed an analysis of its investments in equity method investees to determine if an “other-than-temporary” impairment exists. In addition, the Company assessed the fair value of its content as a result of identifying indicators of impairment related to those assets. The resulting fair value measurements of the equity-method investments and content assets are considered to be Level 3 measurements. Refer to Note 3 - Equity Investments and Note 4 - Balance Sheet Components for further discussion of the results of these analyses. The Company’s remaining financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses and other liabilities are carried at cost, which approximates fair value because of the short-term maturity of these instruments. RECENTLY ADOPTED FINANCIAL ACCOUNTING STANDARDS The Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company, as an emerging growth company (“EGC”), to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENTS | EQUITY INVESTMENTS The Company’s carrying values for its equity method investments as of September 30, 2023, and December 31, 2022, were as follows: (In thousands) Spiegel Venture Nebula Total Balance at December 31, 2022 $ 2,899 $ 7,867 $ 10,766 Investments in equity method investees 992 — 992 Equity method investment loss (2,025) (3,067) (5,092) Balance at September 30, 2023 $ 1,866 $ 4,800 $ 6,666 SPIEGEL VENTURE In July 2021, the Company acquired a 32% ownership in Spiegel TV Geschichte und Wissen GmbH & Co. KG (the “Spiegel Venture”) for an initial investment of $3.3 million. The Spiegel Venture, which prior to the Company’s equity purchase, was jointly owned and operated by Spiegel TV GmbH (“Spiegel TV”) and Autentic GmbH (“Autentic”), operates two documentary channels, together with an SVOD service as well as a FAST channel, which provide factual content to pay television audiences in Germany and certain German-speaking countries. The Company has not received any dividends from the Spiegel Venture as of September 30, 2023. Per the Share Purchase Agreement (as amended in early 2023, the “SPA”), in the event Spiegel Venture achieved certain financial targets during its 2022 fiscal period, the Company is required to make an additional payment related to its 32% equity ownership to both Spiegel TV and Autentic (the “Holdback Payment”). During the three months ended June 30, 2023, the Company determined Spiegel Venture had achieved such financial targets, resulting in the Company paying a Holdback Payment in the amount of $0.9 million to Spiegel Venture during July 2023. The Company has a call option that permits it to require Spiegel TV and Autentic to sell their ownership interests in Spiegel Venture (“Call Option”) to the Company. The Call Option, exercisable at a value based on a determinable calculation in the SPA, is initially exercisable only during the period that is the later of (i) the 30-day period following the adoption of Spiegel Venture’s audited financial statements for the fiscal year 2025, and (ii) the period between March 1, 2026, and March 30, 2026. Together with the Call Option, each of Spiegel TV and Autentic has a put option that permits it to require the Company to purchase their interest (“Put Option”) at a value based on a determinable calculation outlined in the SPA. The Put Option is only exercisable upon the achievement of certain defined conditions, as outlined in the SPA, and is initially exercisable only during the period that is the later of (i) the 60-day period following the adoption of Spiegel Venture’s audited financial statements for the fiscal year 2025, and (ii) the period between April 1, 2026 and April 30, 2026. In the event the Call Option or Put Option is not exercised, both options will continue to be available to each respective party in the following year through perpetuity, with its exercise limited to the same date range as outlined above. The Put Option is not currently considered to be probable of becoming exercisable based on the defined conditions in the SPA. NEBULA Watch Nebula LLC (“Nebula”) is an SVOD technology platform built for and by a group of independent content creators. On August 23, 2021, the Company purchased a 12% ownership interest in Nebula for $6.0 million. Upon its initial investment, the Company obtained 25% representation on Nebula’s Board of Directors, providing the Company with significant influence, but not a controlling interest. Since the time of its original investment, the Company has been obligated to purchase additional incremental ownership interests, each for a payment of $0.8 million and representing 1.625% of equity ownership, if Nebula meets certain quarterly targets. The Company has made three subsequent incremental purchases, bringing its total ownership interest in Nebula to 16.875% as of September 30, 2023. The Company did not make further investments in Nebula during the three and nine months ended September 30, 2023, and the obligation to make additional purchases ended as of September 30, 2023. The Company has not received dividends from Nebula as of September 30, 2023. Since August 2021, the Company has included access to Nebula’s SVOD service as a part of a combined CuriosityStream / Watch Nebula subscription offer and as part of the Company’s Smart Bundle subscription package. As part of this arrangement, the Company has shared revenue with Nebula, based on certain metrics, and paid monthly. On September 26, 2023, Nebula provided the Company with a notice of non-renewal (the “Nebula Non-Renewal”), which will result in the expiration of the revenue share at the end of 2023. Nebula is still required to make its service available to subscribers to either of these offerings through the end of the term of any such subscription that exists as of December 31, 2023. IMPAIRMENT ASSESSMENT The Company regularly reviews its Investments in equity method investees for impairment, including when the carrying value of an investment exceeds its related market or fair value. If it has been determined that an investment has sustained an “other-than-temporary” decline in value, the investment is written-down to its fair value. The factors the Company considers in determining an “other-than-temporary” decline has occurred includes, but is not limited to, (i) the determined market value of the investee in relation to its cost basis, (ii) the financial condition and operating performance of the investee, and (iii) the Company’s intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. As a result of the Company’s impairment analysis, it determined the fair value of its investment in the Spiegel Venture exceeded the carrying value as of September 30, 2023, and as such no “other-than-temporary” impairment charge was required. As a result of the Company’s impairment analysis related to Nebula, it determined that the carrying value of this investment exceeded the fair value as of September 30, 2023 . As such, the Company recorded a $2.3 million impairment, which is included in equity method investment loss, for the three months ended September 30, 2023. The primary factor impacting the decrease in fair value of this investment is the expected decrease in Nebula’s revenue share as a result of the Nebula Non-Renewal, as discussed above. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 9 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS CASH, CASH EQUIVALENTS AND RESTRICTED CASH A reconciliation of the Company’s cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statements of cash flows is: (In thousands) September 30, December 31, Cash and cash equivalents $ 40,304 $ 40,007 Restricted cash 500 500 Cash and cash equivalents and restricted cash $ 40,804 $ 40,507 As of September 30, 2023, and December 31, 2022 , restricted cash includes cash deposits required by a bank as collateral related to corporate credit card agreements. To determine the fair value of its investments in money market funds and corporate debt securities, the Company uses unadjusted quoted market prices (Level 1 inputs), and quoted prices for comparable assets (Level 2 inputs), respectively. As of September 30, 2023, and December 31, 2022, the fair values of the Company’s securities investments was as follows: September 30, 2023 December 31, 2022 (In thousands) Cash and cash equivalents Short-term investments Total Cash and cash equivalents Short-term investments Total Level 1 securities: Money market funds $ 38,375 $ — $ 38,375 $ 17,724 $ — $ 17,724 Total Level 1 securities $ 38,375 — $ 38,375 $ 17,724 — $ 17,724 Level 2 securities: Corporate debt securities — — — — $ 14,986 $ 14,986 Total Level 2 securities — — — — $ 14,986 $ 14,986 Total $ 38,375 — $ 38,375 $ 17,724 $ 14,986 $ 32,710 December 31, 2022 (In thousands) Amortized Gross Gross Estimated Debt securities: Corporate $ 15,026 — $ (40) $ 14,986 Total $ 15,026 — $ (40) $ 14,986 The Company recorded no material realized gains or losses during the three and nine months ended September 30, 2023, and 2022. CONTENT ASSETS Content assets consisted of the following as of the dates indicated: (in thousands) September 30, December 31, Licensed content, net: Released, less amortization and impairment 1 $ 6,308 $ 11,154 Prepaid and unreleased 7,997 4,014 Total Licensed content, net 14,305 15,168 Produced content, net: Released, less amortization and impairment 2 20,792 33,094 In production 10,803 20,240 Total produced content, net 31,595 53,334 Total content assets $ 45,900 $ 68,502 1 The September 30, 2023, amount reflects a $4.4 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below. 2 The September 30, 2023, amount reflects a $14.6 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below. Of the $6.3 million unamortized cost of licensed content that had been released as of September 30, 2023, the Company expects that $3.1 million, $1.6 million and $0.9 million will be amortized in each of the next three years. Of the $20.8 million unamortized cost of produced content that had been released as of September 30, 2023, the Company expects that $6.4 million, $5.9 million and $4.9 million will be amortized in each of the next three years. Impairment Assessment The Company’s business model is generally subscription-based as opposed to a model based on generating revenues at a specific title level. Content assets are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. If such changes are identified, the aggregated content assets will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs are written off for content assets that have been or are expected to be abandoned. During the three months ended September 30, 2023, due to the continued adverse macro and microeconomic conditions, including the competitive environment and its impact on the Company’s subscriber growth, the Company revised its forecasted subscriber growth and forecasted cash flow assumptions. Additionally, companies in the streaming industry have experienced a decline in market valuations, and reflecting this market trend and the factors above, the market price of the Company’s common shares had declined significantly through September 30, 2023. Given these factors, as well as the Company’s declining market capitalization and operating losses during the quarter, the Company identified an indicator of impairment related to its content asset group and performed an analysis of content assets to assess if the fair value was less than unamortized cost. To determine if an impairment existed, the Company utilized a traditional discounted cash flow approach based on expectations for the monetization of its content assets in the aggregate, including estimates for future cash inflows and outflows. As a result of this impairment analysis of content assets, the Company determined that the unamortized cost exceeded the fair value, and as such, the Company recorded a $19.0 million impairment for the three months ended September 30, 2023. The discounted cash flow analysis includes cash flow estimates of revenue and costs, as well as a discount rate (a Level 3 fair value measurement). Estimates of future revenue and costs involve measurement uncertainty, and it is therefore possible that further reductions in the carrying value of content assets may be required as a consequence of changes in management’s future revenue estimates. The discount rate utilized in the discount cash flow analysis was based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with the Company’s content assets. The discount rate may be impacted by adverse changes in the macroeconomic environment and volatility in the debt and equity markets. Amortization In accordance with its accounting policy for content assets, the Company amortizes licensed content costs and produced content costs, which is included within cost of revenues in the Company’s unaudited consolidated statements of operations. For the three and nine months ended September 30, 2023, and 2022, content amortization was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Licensed content $ 1,728 $ 1,793 $ 5,478 $ 6,590 Produced content 3,661 8,588 12,229 22,920 Total $ 5,389 $ 10,381 $ 17,707 $ 29,510 WARRANT LIABILITY As described in Note 6 - Stockholders’ Equity , the Private Placement Warrants are classified as a non-current liability and reported at fair value at each reporting period. As of September 30, 2023, and December 31, 2022, t he fair value of the Private Placement Warrants, as determined using Level 3 inputs, was as follows: (in thousands) September 30, December 31, Private Placement Warrants $ 74 $ 257 |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table sets forth the Company’s revenues disaggregated by type for the three and nine months ended September 30, 2023, and 2022, as well as the relative percentage of each revenue type to total revenue: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Subscriptions: O&O Service $ 6,601 42 % $ 7,890 33 % $ 19,664 47 % $ 23,110 36 % App Services 830 5 % 960 4 % 2,556 6 % 3,018 5 % Subscriptions total 7,431 47 % 8,850 38 % 22,220 53 % 26,128 41 % License fees: Partner Direct Business 1,177 8 % 1,157 5 % 3,361 8 % 3,491 5 % Bundled Distribution 1,504 10 % 2,595 11 % 4,487 11 % 10,250 16 % Content Licensing 5,082 32 % 10,790 46 % 10,715 25 % 21,692 34 % License fees total 7,763 50 % 14,542 62 % 18,563 44 % 35,433 56 % Other* 436 3 % 177 1 % 1,331 3 % 1,983 3 % Total revenues $ 15,630 $ 23,569 $ 42,114 $ 63,544 * Other revenue primarily relates to other marketing services REMAINING PERFORMANCE OBLIGATIONS As of September 30, 2023, the Company expects to recognize revenues in the future related to performance obligations that were unsatisfied as follows: Remainder of December 31, (in thousands) 2024 2025 2026 2027 Thereafter Total Remaining performance obligations $ 1,671 $ 4,972 $ 2,179 $ 417 $ 34 $ 219 $ 9,492 These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (a) contracts with an original expected term of one year or less or (b) licenses of content that are solely based on sales or usage-based royalties. DEFERRED REVENUES Contract liabilities (i.e., deferred revenue) consist of subscriber and affiliate license fees billed that have not been recognized, amounts contractually billed or collected for content licensing sales in advance of the related content being made available to the customer, and unredeemed gift cards and other prepaid subscriptions that have not been redeemed. Total deferred revenues were $13.7 million and $14.9 million as of September 30, 2023, and December 31, 2022, respectively. For the nine months ended September 30, 2023, the Company recognized revenues of $12.9 million related to amounts deferred as December 31, 2022, primarily resulting from recognition of annual subscription plan balances. TRADE AND BARTER TRANSACTIONS In the second quarter of 2023, the Company began entering into trade and barter transactions primarily for the purpose of exchanging content assets through licensing agreements with media counterparties. Certain transactions may also include the exchange of advertising, whereby the Company and its counterparty exchange media campaigns or other promotional services. For content acquired through trade and barter transactions, the Company records the acquired assets in the consolidated balance sheet and amortizes those assets over the term of the content license, in accordance with the Company’s content and amortization policies. For other products and services received through trade and barter transactions, the Company records operating expenses upon receipt of such products and services, as applicable. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable; in which case, the consideration is measured based on the standalone selling price of the services provided. For an exchange of content, the performance obligation is satisfied at the time the content is made available for the counterparty to use, which represents the point in time that control is transferred. For advertising, the performance obligation is satisfied upon the Company’s delivery of the media campaign or other service to the counterparty. For the three and nine months ended September 30, 2023, and 2022, trade and barter revenues were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Trade and barter license fees: Content Licensing $ 4,949 $ — $ 7,416 $ — Other trade and barter revenue* 250 — 774 — Total trade and barter revenues $ 5,199 $ — $ 8,190 $ — * Other revenue primarily relates to other marketing services For the three and nine months ended September 30, 2023, and 2022, trade and barter advertising and marketing expenses were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Trade and barter advertising and marketing $ 648 $ — $ 1,172 $ — For the nine months ended September 30, 2023, and 2022, additions to content assets resulting from trade and barter transactions were as follows: Nine Months Ended (in thousands) 2023 2022 Trade and barter additions to content assets $ 7,124 $ — |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY COMMON STOCK As of September 30, 2023, and December 31, 2022, the Company had authorized the issuance of 126,000,000 shares of capital stock, par value of $0.0001 per share, consisting of (a) 125,000,000 shares of common stock, and (b) 1,000,000 shares of preferred stock. WARRANTS As of September 30, 2023, the Company had 3,054,203 publicly traded warrants outstanding that were sold as part of the units of Software Acquisition Group Inc. in its initial public offering on November 22, 2019, and that were issued to the PIPE Investors in connection with the business combination that closed on October 14, 2020 (the “Public Warrants” and, together with the Private Placement Warrants, the “Warrants”) and 3,676,000 Private Placement Warrants outstanding. The Private Placement Warrants are liability-classified, and the Public Warrants are equity-classified. Each whole warrant entitles the registered holder to purchase one share of the Company’s common stock at an exercise price of $11.50 per share. All Warrants expire on October 14, 2025. The Company has the right to redeem the outstanding Public Warrants in whole and not in part at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, if and only if the last sale price of the Company’s common stock matched or exceeded $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sent the notice of redemption to the warrant holders. The Private Placement Warrants are identical to the Public Warrants except that, so long as they are held by Software Acquisition Holdings LLC or its permitted transferees: (a) they will not be redeemable by the Company; (b) they may be exercised by the holders on a cashless basis; and (c) they are subject to registration rights. There were no exercises of warrants during the three and nine months ended September 30, 2023. The warrant liability related to the Private Placement Warrants is recorded at fair value as of each reporting date with the change in fair value reported within other income (expense) in the accompanying unaudited consolidated statements of operations as “Change in fair value of warrant liability” until the warrants are exercised, expired or other facts and circumstances lead the warrant liability to be reclassified to stockholders’ equity. The fair value of the warrant liability for the Private Placement Warrants was estimated using a Black-Scholes pricing model using Level 3 inputs. The significant assumptions used in preparing the Black-Scholes option pricing model to determine fair value a s of September 30, 2023, and December 31, 2022, we re as follows: September 30, December 31, Exercise price $ 11.50 $ 11.50 Stock price (CURI) $ 0.71 $ 1.14 Expected volatility 92.00 % 77.00 % Expected warrant term (years) 2.0 2.8 Risk-free interest rate 5.03 % 4.22 % Dividend yield 0 % 0 % Fair Value per Private Placement Warrant $ 0.02 $ 0.07 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE Basic and diluted earnings (loss) per share are calculated on the basis of the weighted average number of shares of the Company’s common stock outstanding during the respective periods. Diluted earnings (loss) per share give effect to all dilutive potential common shares outstanding during the period using the treasury stock method for stock options and other potentially dilutive securities. In computing diluted earnings (loss) per share, the average fair value of the Company’s common stock for the period is used to determine the number of shares assumed to be purchased from the exercise price of the options. Purchases of treasury stock reduce the outstanding shares commencing on the date that the stock is purchased. Common stock equivalents are excluded from the calculation when a loss is incurred as their effect would be anti-dilutive. For the three and nine months ended September 30, 2023, and 2022, the components of basic and diluted net loss per share were as follows: (In thousands except per share amounts) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator — Basic and Diluted EPS: Net loss $ (26,565) $ (4,502) $ (44,237) $ (36,371) Denominator — Basic and Diluted EPS: Weighted–average shares 53,040 52,793 52,999 52,773 Net loss per share — Basic and Diluted $ (0.50) $ (0.09) $ (0.83) $ (0.69) Common shares issuable for warrants, options, and restricted stock units (RSU) represent the total amount of outstanding warrants, stock options, and restricted stock units at September 30, 2023, and 2022. For the three and nine months ended September 30, 2023, and 2022, the following share equivalents were excluded from the computation of diluted net loss per share as the inclusion of such shares would have been anti-dilutive. Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 (in thousands) (in thousands) Options 33 5,190 33 5,190 Restricted stock units 2,430 1,047 2,430 1,047 Warrants 6,730 6,730 6,730 6,730 Total 9,193 12,967 9,193 12,967 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value is recognized in earnings over the period during which an employee is required to provide the service. The Company accounts for forfeitures as they occur. In October 2020, the Company’s Board of Directors adopted the CuriosityStream 2020 Omnibus Plan (the “2020 Plan”). Upon adoption of the 2020 Plan, a total of 7,725,000 shares were approved to be issued as stock options, share appreciation rights, restricted stock units and restricted stock. The following table summarizes stock option and RSU activity, prices, and values for the nine months ended September 30, 2023: Number of Shares Available for Issuance Under the Plan Stock Options Restricted Stock Units (In thousands except share price and fair value amounts) Number of Shares Weighted- Number of Shares Weighted- Balance at December 31, 2022 1,815 4,632 $ 7.13 759 $ 7.14 Granted (1,923) — — 1,923 1.06 Options exercised and RSUs vested 71 — — (209) 8.75 Forfeited or expired 4,642 (4,599) 7.17 (43) 11.91 Balance at September 30, 2023 4,605 33 $ 5.30 2,430 $ 2.46 There were no options exercised during the three and nine months ended September 30 2023, and 2022. Stock options and RSU awards generally vest on a monthly, quarterly or annual basis over a period of four years from the grant date. When options are exercised, the Company issues previously unissued shares of Common Stock to satisfy share option exercises. Upon vesting and distribution of RSUs, the Company issues previously unissued shares of Common Stock to satisfy restricted stock units vested, net of shares withheld for taxes if elected by the RSU holder. The fair value of stock option awards is estimated using the Black-Scholes option pricing model, which includes a number of assumptions including Company’s estimates of stock price volatility, employee stock option exercise behaviors, future dividend payments, and risk-free interest rates. The expected term of options granted is the estimated period of time from the beginning of the vesting period to the date of expected exercise or other settlement, based on historical exercises and post-vesting terminations. The Company generally estimates expected term based on the midpoint between the vesting date and the end of the contractual term, also known as the simplified method, given the lack of historical exercise behavior. On April 28, 2023, the Company’s Board of Directors authorized, and on June 14, 2023, the Company’s shareholders approved, a stock option exchange program (the “Exchange“) that permitted certain current employees and executive officers to exchange certain outstanding stock options with exercise prices substantially above the current market price of the Company’s common stock for RSUs of an equivalent fair value. The Exchange was completed in July 2023. For options that had already vested at the time of the Exchange, the resulting RSUs will vest in July 2024. Otherwise, the vesting schedules for unvested options at the time of the Exchange will remain the same for the resulting RSUs. As a result of the Exchange, 4.6 million of outstanding eligible stock options were exchanged for 1.6 million new RSUs, with a fair value of $0.99 per share on the date of the Exchange. There was no incremental compensation expense recorded by the Company as a result of the Exchange. The Company uses its own historical volatility as well as the historical volatility of similar public companies for estimating volatility. The risk-free interest rate is estimated using the rate of return on U.S. Treasury securities with maturities that approximate to the expected term of the option. The Company does not currently anticipate declaring any dividends. For the three and nine months ended September 30, 2023, and 2022, the assumptions used to value the options granted and the resulting weighted-average grant date fair value and stock-based compensation expense were as follows: (Stock-based compensation data in thousands) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Dividend yield N/A N/A N/A 0 % Expected volatility N/A 65% - 70% N/A 60% - 70% Expected term (years) N/A N/A N/A 6.00 - 6.50 Risk-free interest rate N/A 2.81% - 2.95% N/A 1.40% - 2.95% Weighted average grant date fair value N/A N/A N/A $ 1.91 Stock-based compensation — Options $ 5 $ 999 $ 1,553 $ 2,913 Stock-based compensation — RSUs $ 892 $ 674 $ 2,033 $ 2,142 Total stock-based compensation $ 897 $ 1,673 $ 3,586 $ 5,055 |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company operates as one reporting segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on an entity-wide basis for purposes of making operating decisions, assessing financial performance and allocating resources. All long-lived tangible assets are located in the United States. For the three and nine months ended September 30, 2023, and 2022, revenue by geographic location based on customer location was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 8,973 57 % $ 13,845 59 % $ 23,595 56 % $ 40,348 63 % International: Canada 1,674 11 % 412 2 % 2,566 6 % 1,215 2 % Germany 149 1 % 3,287 14 % 1,797 4 % 4,704 7 % Netherlands 1,566 10 % 516 2 % 3,216 8 % 1,068 2 % Other 3,268 21 % 5,509 23 % 10,940 26 % 16,209 26 % Total International 6,657 43 % 9,724 41 % 18,519 44 % 23,196 37 % Total revenue $ 15,630 100 % $ 23,569 100 % $ 42,114 100 % $ 63,544 100 % Revenue from three foreign countries, Canada, Germany and Netherlands, each comprised 10% or greater of total revenue for one or more of the periods presented. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS EQUITY INVESTMENTS For the three months ended September 30, 2023, the Company recognized no revenue related to license fees from the Spiegel Venture. For the nine months ended September 30, 2023, the Company recognized $1.1 million of revenue related to license fees from the Spiegel Venture. The Company also incurred $1.1 million and $3.4 million in cost of revenues during the three and nine months ended September 30, 2023, respectively, from its revenue share to Nebula from subscription sales to certain bundled subscription packages. This revenue share is recorded in Cost of revenues on the consolidated statements of operations. As of September 30, 2023, and December 31, 2022, the impacts of the arrangements with the Spiegel Venture and Nebula on the Company’s consolidated balance sheets were as follows: (In thousands) September 30, December 31, Accounts receivable $ 1,045 $ 3,358 Accounts payable $ 376 $ 404 For the three and nine months ended September 30, 2023, and 2022, the impacts of arrangements with the Spiegel Venture and Nebula on the Company’s consolidated statements of operations were as follows: Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 Revenues $ — $ 2,192 $ 1,084 $ 4,233 Cost of revenues $ 1,142 $ 1,096 $ 3,508 $ 3,135 OPERATING LEASE The Company sublets a portion of its office space to Hendricks Investment Holdings, LLC, which is considered a related party as it is managed by various members of the Company’s Board of Directors. The Company accounts for the arrangement as an operating lease. Refer to Note 11 - Leases |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES COMPANY AS LESSEE The Company is a party to a non-cancellable operating lease agreement for office space, which expires in 2033. The Company’s operating lease for this office space includes fixed rent payments and variable lease payments, which are primarily related to common area maintenance and utility charges. The Company elected not to separate lease and non-lease components, and as such, all amounts paid under the lease are classified as either fixed or variable lease payments. Fixed lease payments were included in the calculation of right of use (“ROU”) asset and leases liabilities with variable lease payments being recognized as lease expense as incurred. The Company has determined that no renewal clauses are reasonably certain of being exercised and therefore has not included any renewal periods within the lease term for this lease. As of September 30, 2023, the Company had operating lease ROU assets of $3.4 million, current lease liabilities of $0.3 million, and non-current lease liabilities of $4.4 million. In measuring operating lease liabilities, the Company used a weighted average discount rate of 4.4% in existence as of the January 1, 2022, adoption date of the new lease accounting standard. The weighted average remaining lease term as of September 30, 2023, was 9.42 years. Components of Lease Cost For the three and nine months ended September 30, 2023, the Company’s total operating lease cost was comprised of the following: Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 Operating lease cost $ 120 $ 121 $ 362 $ 363 Short-term lease cost* — 6 (16) 42 Variable lease cost 13 12 38 36 Total lease cost $ 133 $ 139 $ 384 $ 441 * Short term lease cost includes a refund received by the Company during the nine months ended September 30, 2023, for office space it previously occupied. Maturity of Lease Liabilities As of September 30, 2023, maturities of the Company’s operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows: (In thousands) Three remaining months of 2023 $ 106 2024 557 2025 571 2026 585 2027 600 Thereafter 3,346 Total lease payments $ 5,765 Less: imputed interest (1,061) Present value of total lease liabilities $ 4,704 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES CONTENT COMMITMENTS As of September 30, 2023, the Company’s content obligations amounted to $1.6 million, including $0.1 million recorded within in content liabilities in the accompanying unaudited consolidated balance sheets, and $1.5 million of obligations not yet recorded as they did not yet meet the asset recognition criteria for content assets. Of the content obligations amount, $0.8 million and $0.6 million are expected to be paid by December 31, 2023, and December 31, 2024, respectively. As of December 31, 2022, the Company’s content obligations amounted to $11.5 million, including $2.9 million recorded within current content liabilities in the accompanying unaudited consolidated balance sheets and $8.6 million of obligations not yet recorded as they did not yet meet the asset recognition criteria for content assets. Content obligations include amounts related to licensed, commissioned and internally produced streaming content. An obligation for the production of content includes non-cancelable commitments under creative talent and employment agreements. An obligation for the licensed and commissioned content is incurred at the time the Company enters into an agreement to obtain future titles. Once a title becomes available, a content liability is generally recorded. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company recorded a provision for income taxes of $0.1 million for the three months ended September 30, 2023 and 2022, and $0.5 million and $0.2 million for the nine months ended September 30, 2023 and 2022, respectively, primarily related to foreign withholding income taxes. The Company’s provision for income taxes differs from the federal statutory rate primarily due to the Company being in a full valuation allowance position and not recognizing a tax benefit attributable to generated losses for either federal or state income tax purposes. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are consistent in all material respects with those applied in the Company’s consolidated financial statements as of and for the year ended December 31, 2022. In the opinion of management, the unaudited consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes and Management’s Discussion and Analysis of Financial Condition, and Results of Operations included in the Annual Report on Form 10-K for the year ended December 31, 2022. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023. In the second quarter of 2023, the Company began entering into trade and barter transactions primarily for the purpose of exchanging content assets through licensing agreements with media counterparties. Refer to Note 5 - Revenue for discussion of our accounting policy related to these transactions. Outside of these transactions, there have been no material changes in the Company’s significant accounting policies compared to the significant accounting policies described in the Company’s consolidated financial statements as of and for the year ended December 31, 2022. |
Impairment | The Company periodically reviews and evaluates the recoverability of its long-lived assets. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue and operating performance estimates. If appropriate and where deemed necessary, a reduction in the carrying value is recorded based on the difference between the carrying value and the fair value based on discounted cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to such estimates include amortization and fair value of content assets, the assessment of the recoverability of equity method investments, and the determination of fair value estimates related to non-monetary transactions, share-based awards, and liability classified warrants. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, investments, and accounts receivable. The Company maintains its cash, cash equivalents, and investments with high credit quality financial institutions; at times, such balances with the financial institutions may exceed the applicable FDIC-insured limits. |
Fair Value Measurement of Financial Instruments | Fair Value Measurement of Financial Instruments Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The applicable accounting guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability. The guidance establishes three levels of inputs that may be used to measure fair value: • Level 1 : Quoted prices in active markets for identical assets or liabilities. • Level 2 : Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification at each reporting period. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s assets measured at fair value on a recurring basis have included its investments in money market funds and corporate debt securities (at December 31, 2022). Level 1 inputs were derived by using unadjusted quoted prices for identical assets in active markets and were used to value the Company’s investments in money market funds and U.S. government debt securities. Level 2 inputs were derived using prices for similar investments and were used to value the Company’s investments in corporate and municipal debt securities. The Company’s liabilities measured at fair value on a recurring basis include its private placement warrants issued to Software Acquisition Holdings LLC, the Company’s former Sponsor, in a private placement offering (the “Private Placement Warrants”). The fair value of the Private Placement Warrants is considered a Level 3 valuation and is determined using the Black-Scholes valuation model. Refer to Note 6 - Stockholders’ Equity for significant assumptions which the Company used in the fair value model for the Private Placement Warrants. Ce rtain assets are measured at fair value on a nonrecurring basis and are subject to fair value adjustments only in certain circumstances, e.g., when there is evidence of impairment indicators. During the three-months ended September 30, 2023 , the Company performed an analysis of its investments in equity method investees to determine if an “other-than-temporary” impairment exists. In addition, the Company assessed the fair value of its content as a result of identifying indicators of impairment related to those assets. The resulting fair value measurements of the equity-method investments and content assets are considered to be Level 3 measurements. Refer to Note 3 - Equity Investments and Note 4 - Balance Sheet Components for further discussion of the results of these analyses. |
Recently Adopted Financial Accounting Standards | RECENTLY ADOPTED FINANCIAL ACCOUNTING STANDARDS The Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company, as an emerging growth company (“EGC”), to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The Company’s carrying values for its equity method investments as of September 30, 2023, and December 31, 2022, were as follows: (In thousands) Spiegel Venture Nebula Total Balance at December 31, 2022 $ 2,899 $ 7,867 $ 10,766 Investments in equity method investees 992 — 992 Equity method investment loss (2,025) (3,067) (5,092) Balance at September 30, 2023 $ 1,866 $ 4,800 $ 6,666 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Reconciliation of Cash and Cash Equivalents | A reconciliation of the Company’s cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statements of cash flows is: (In thousands) September 30, December 31, Cash and cash equivalents $ 40,304 $ 40,007 Restricted cash 500 500 Cash and cash equivalents and restricted cash $ 40,804 $ 40,507 |
Restrictions on Cash and Cash Equivalents | A reconciliation of the Company’s cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statements of cash flows is: (In thousands) September 30, December 31, Cash and cash equivalents $ 40,304 $ 40,007 Restricted cash 500 500 Cash and cash equivalents and restricted cash $ 40,804 $ 40,507 |
Schedule of Fair Values of Securities Investments | As of September 30, 2023, and December 31, 2022, the fair values of the Company’s securities investments was as follows: September 30, 2023 December 31, 2022 (In thousands) Cash and cash equivalents Short-term investments Total Cash and cash equivalents Short-term investments Total Level 1 securities: Money market funds $ 38,375 $ — $ 38,375 $ 17,724 $ — $ 17,724 Total Level 1 securities $ 38,375 — $ 38,375 $ 17,724 — $ 17,724 Level 2 securities: Corporate debt securities — — — — $ 14,986 $ 14,986 Total Level 2 securities — — — — $ 14,986 $ 14,986 Total $ 38,375 — $ 38,375 $ 17,724 $ 14,986 $ 32,710 |
Schedule of Debt Securities | December 31, 2022 (In thousands) Amortized Gross Gross Estimated Debt securities: Corporate $ 15,026 — $ (40) $ 14,986 Total $ 15,026 — $ (40) $ 14,986 |
Schedule of Content Assets | Content assets consisted of the following as of the dates indicated: (in thousands) September 30, December 31, Licensed content, net: Released, less amortization and impairment 1 $ 6,308 $ 11,154 Prepaid and unreleased 7,997 4,014 Total Licensed content, net 14,305 15,168 Produced content, net: Released, less amortization and impairment 2 20,792 33,094 In production 10,803 20,240 Total produced content, net 31,595 53,334 Total content assets $ 45,900 $ 68,502 1 The September 30, 2023, amount reflects a $4.4 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below. 2 The September 30, 2023, amount reflects a $14.6 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below. |
Schedule of Amortized Licensed Content Costs and Produced Content Costs | For the three and nine months ended September 30, 2023, and 2022, content amortization was as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Licensed content $ 1,728 $ 1,793 $ 5,478 $ 6,590 Produced content 3,661 8,588 12,229 22,920 Total $ 5,389 $ 10,381 $ 17,707 $ 29,510 |
Schedule of Private Placement Warrants | As of September 30, 2023, and December 31, 2022, t he fair value of the Private Placement Warrants, as determined using Level 3 inputs, was as follows: (in thousands) September 30, December 31, Private Placement Warrants $ 74 $ 257 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues Disaggregated by Type | The following table sets forth the Company’s revenues disaggregated by type for the three and nine months ended September 30, 2023, and 2022, as well as the relative percentage of each revenue type to total revenue: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Subscriptions: O&O Service $ 6,601 42 % $ 7,890 33 % $ 19,664 47 % $ 23,110 36 % App Services 830 5 % 960 4 % 2,556 6 % 3,018 5 % Subscriptions total 7,431 47 % 8,850 38 % 22,220 53 % 26,128 41 % License fees: Partner Direct Business 1,177 8 % 1,157 5 % 3,361 8 % 3,491 5 % Bundled Distribution 1,504 10 % 2,595 11 % 4,487 11 % 10,250 16 % Content Licensing 5,082 32 % 10,790 46 % 10,715 25 % 21,692 34 % License fees total 7,763 50 % 14,542 62 % 18,563 44 % 35,433 56 % Other* 436 3 % 177 1 % 1,331 3 % 1,983 3 % Total revenues $ 15,630 $ 23,569 $ 42,114 $ 63,544 * Other revenue primarily relates to other marketing services |
Schedule of Revenues Expected to be Recognized in the Future Related to Performance Obligations | As of September 30, 2023, the Company expects to recognize revenues in the future related to performance obligations that were unsatisfied as follows: Remainder of December 31, (in thousands) 2024 2025 2026 2027 Thereafter Total Remaining performance obligations $ 1,671 $ 4,972 $ 2,179 $ 417 $ 34 $ 219 $ 9,492 |
Schedule of Trade and Barter Revenues | For the three and nine months ended September 30, 2023, and 2022, trade and barter revenues were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Trade and barter license fees: Content Licensing $ 4,949 $ — $ 7,416 $ — Other trade and barter revenue* 250 — 774 — Total trade and barter revenues $ 5,199 $ — $ 8,190 $ — * Other revenue primarily relates to other marketing services |
Schedule of Trade and Barter Expenses | For the three and nine months ended September 30, 2023, and 2022, trade and barter advertising and marketing expenses were as follows: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Trade and barter advertising and marketing $ 648 $ — $ 1,172 $ — |
Schedule of Trade and Barter Transactions | For the nine months ended September 30, 2023, and 2022, additions to content assets resulting from trade and barter transactions were as follows: Nine Months Ended (in thousands) 2023 2022 Trade and barter additions to content assets $ 7,124 $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Fair Value Black-Scholes Option | The significant assumptions used in preparing the Black-Scholes option pricing model to determine fair value a s of September 30, 2023, and December 31, 2022, we re as follows: September 30, December 31, Exercise price $ 11.50 $ 11.50 Stock price (CURI) $ 0.71 $ 1.14 Expected volatility 92.00 % 77.00 % Expected warrant term (years) 2.0 2.8 Risk-free interest rate 5.03 % 4.22 % Dividend yield 0 % 0 % Fair Value per Private Placement Warrant $ 0.02 $ 0.07 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings (Loss) Per Share | For the three and nine months ended September 30, 2023, and 2022, the components of basic and diluted net loss per share were as follows: (In thousands except per share amounts) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator — Basic and Diluted EPS: Net loss $ (26,565) $ (4,502) $ (44,237) $ (36,371) Denominator — Basic and Diluted EPS: Weighted–average shares 53,040 52,793 52,999 52,773 Net loss per share — Basic and Diluted $ (0.50) $ (0.09) $ (0.83) $ (0.69) |
Schedule of Antidilutive Shares Excluded | For the three and nine months ended September 30, 2023, and 2022, the following share equivalents were excluded from the computation of diluted net loss per share as the inclusion of such shares would have been anti-dilutive. Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 (in thousands) (in thousands) Options 33 5,190 33 5,190 Restricted stock units 2,430 1,047 2,430 1,047 Warrants 6,730 6,730 6,730 6,730 Total 9,193 12,967 9,193 12,967 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option and RSU Activity | The following table summarizes stock option and RSU activity, prices, and values for the nine months ended September 30, 2023: Number of Shares Available for Issuance Under the Plan Stock Options Restricted Stock Units (In thousands except share price and fair value amounts) Number of Shares Weighted- Number of Shares Weighted- Balance at December 31, 2022 1,815 4,632 $ 7.13 759 $ 7.14 Granted (1,923) — — 1,923 1.06 Options exercised and RSUs vested 71 — — (209) 8.75 Forfeited or expired 4,642 (4,599) 7.17 (43) 11.91 Balance at September 30, 2023 4,605 33 $ 5.30 2,430 $ 2.46 |
Schedule of Assumptions Used to Value Options Granted | For the three and nine months ended September 30, 2023, and 2022, the assumptions used to value the options granted and the resulting weighted-average grant date fair value and stock-based compensation expense were as follows: (Stock-based compensation data in thousands) Three Months Ended Nine Months Ended 2023 2022 2023 2022 Dividend yield N/A N/A N/A 0 % Expected volatility N/A 65% - 70% N/A 60% - 70% Expected term (years) N/A N/A N/A 6.00 - 6.50 Risk-free interest rate N/A 2.81% - 2.95% N/A 1.40% - 2.95% Weighted average grant date fair value N/A N/A N/A $ 1.91 Stock-based compensation — Options $ 5 $ 999 $ 1,553 $ 2,913 Stock-based compensation — RSUs $ 892 $ 674 $ 2,033 $ 2,142 Total stock-based compensation $ 897 $ 1,673 $ 3,586 $ 5,055 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Location | For the three and nine months ended September 30, 2023, and 2022, revenue by geographic location based on customer location was as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 8,973 57 % $ 13,845 59 % $ 23,595 56 % $ 40,348 63 % International: Canada 1,674 11 % 412 2 % 2,566 6 % 1,215 2 % Germany 149 1 % 3,287 14 % 1,797 4 % 4,704 7 % Netherlands 1,566 10 % 516 2 % 3,216 8 % 1,068 2 % Other 3,268 21 % 5,509 23 % 10,940 26 % 16,209 26 % Total International 6,657 43 % 9,724 41 % 18,519 44 % 23,196 37 % Total revenue $ 15,630 100 % $ 23,569 100 % $ 42,114 100 % $ 63,544 100 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Balance Sheet Impact of Arrangements with Related Parties | As of September 30, 2023, and December 31, 2022, the impacts of the arrangements with the Spiegel Venture and Nebula on the Company’s consolidated balance sheets were as follows: (In thousands) September 30, December 31, Accounts receivable $ 1,045 $ 3,358 Accounts payable $ 376 $ 404 |
Schedule of Statement of Operations Impact of Arrangements with Related Parties | For the three and nine months ended September 30, 2023, and 2022, the impacts of arrangements with the Spiegel Venture and Nebula on the Company’s consolidated statements of operations were as follows: Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 Revenues $ — $ 2,192 $ 1,084 $ 4,233 Cost of revenues $ 1,142 $ 1,096 $ 3,508 $ 3,135 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Total Operating Lease Cost | For the three and nine months ended September 30, 2023, the Company’s total operating lease cost was comprised of the following: Three Months Ended Nine Months Ended (In thousands) 2023 2022 2023 2022 Operating lease cost $ 120 $ 121 $ 362 $ 363 Short-term lease cost* — 6 (16) 42 Variable lease cost 13 12 38 36 Total lease cost $ 133 $ 139 $ 384 $ 441 * Short term lease cost includes a refund received by the Company during the nine months ended September 30, 2023, for office space it previously occupied. |
Schedule of Maturities of Operating Lease Liabilities | As of September 30, 2023, maturities of the Company’s operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows: (In thousands) Three remaining months of 2023 $ 106 2024 557 2025 571 2026 585 2027 600 Thereafter 3,346 Total lease payments $ 5,765 Less: imputed interest (1,061) Present value of total lease liabilities $ 4,704 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Sep. 30, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Impairment of long-lived assets | $ 0 |
EQUITY INVESTMENTS - Schedule o
EQUITY INVESTMENTS - Schedule of Equity Method Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Beginning balance | $ 10,766,000 | |
Investments in equity method investees | 992,000 | |
Equity method investment loss | (5,092,000) | |
Ending balance | $ 6,666,000 | 6,666,000 |
Spiegel Venture | ||
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Beginning balance | 2,899,000 | |
Investments in equity method investees | 992,000 | |
Equity method investment loss | (2,025,000) | |
Ending balance | 1,866,000 | 1,866,000 |
Nebula | ||
Increase (Decrease) In Equity Method Investments [Roll Forward] | ||
Beginning balance | 7,867,000 | |
Investments in equity method investees | 0 | 0 |
Equity method investment loss | (3,067,000) | |
Ending balance | $ 4,800,000 | $ 4,800,000 |
EQUITY INVESTMENTS - Narrative
EQUITY INVESTMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2023 | Jul. 31, 2023 | Aug. 23, 2021 | Jul. 31, 2021 | |
Equity Investments [Line Items] | |||||
Investments in equity method investees | $ 992,000 | ||||
Spiegel Venture | |||||
Equity Investments [Line Items] | |||||
Ownership percentage | 32% | 32% | 32% | ||
Ownership amount | $ 3,300,000 | ||||
Call option, exercise period | 30 days | 30 days | |||
Put option, exercise period | 60 days | 60 days | |||
Investments in equity method investees | $ 992,000 | ||||
Impairment of equity method investment | $ 0 | ||||
Spiegel Venture | Accounts Payable | |||||
Equity Investments [Line Items] | |||||
Equity method investments holdback payment liability | $ 900,000 | ||||
Nebula | |||||
Equity Investments [Line Items] | |||||
Ownership percentage | 16.875% | 16.875% | 12% | ||
Ownership amount | $ 6,000,000 | ||||
Payment for additional ownership interest | $ 800,000 | $ 800,000 | |||
Additional ownership interest, percentage | 1.625% | 1.625% | |||
Investments in equity method investees | $ 0 | $ 0 | |||
Board representation, percentage | 25% | ||||
Impairment of equity method investment | $ 2,300,000 |
BALANCE SHEET COMPONENTS - Sche
BALANCE SHEET COMPONENTS - Schedule of Reconciliation of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Cash and cash equivalents | $ 40,304 | $ 40,007 |
Restricted cash | 500 | 500 |
Cash and cash equivalents and restricted cash | $ 40,804 | $ 40,507 |
BALANCE SHEET COMPONENTS - Sc_2
BALANCE SHEET COMPONENTS - Schedule of Fair Values of Securities Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Balance Sheet ComponentS,Schedule of Investments in Debt Securities at Fair Value [Line Items] | ||
Cash and cash equivalents | $ 38,375 | $ 17,724 |
Short-term investments | 0 | 14,986 |
Total | 38,375 | 32,710 |
Level 1 Securities | ||
Balance Sheet ComponentS,Schedule of Investments in Debt Securities at Fair Value [Line Items] | ||
Cash and cash equivalents | 38,375 | 17,724 |
Short-term investments | 0 | 0 |
Total | 38,375 | 17,724 |
Level 1 Securities | Money market funds | ||
Balance Sheet ComponentS,Schedule of Investments in Debt Securities at Fair Value [Line Items] | ||
Cash and cash equivalents | 38,375 | 17,724 |
Short-term investments | 0 | 0 |
Total | 38,375 | 17,724 |
Level 2 Securities | ||
Balance Sheet ComponentS,Schedule of Investments in Debt Securities at Fair Value [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 14,986 |
Total | 0 | 14,986 |
Level 2 Securities | Corporate debt securities | ||
Balance Sheet ComponentS,Schedule of Investments in Debt Securities at Fair Value [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 14,986 |
Total | $ 0 | $ 14,986 |
BALANCE SHEET COMPONENTS - Sc_3
BALANCE SHEET COMPONENTS - Schedule of Debt Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Securities: | |
Amortized Cost | $ 15,026 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (40) |
Estimated Fair Value | 14,986 |
Corporate | |
Debt Securities: | |
Amortized Cost | 15,026 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (40) |
Estimated Fair Value | $ 14,986 |
BALANCE SHEET COMPONENTS - Narr
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Realized gains (losses) | $ 0 | $ 0 | $ 0 | $ 0 |
Unamortized cost of content assets, total | 6,300,000 | 6,300,000 | ||
Unamortized cost of content assets, current | 3,100,000 | 3,100,000 | ||
Unamortized cost of content assets to be released in two years | 1,600,000 | 1,600,000 | ||
Unamortized cost of the content assets to be released in three years | 900,000 | 900,000 | ||
Unamortized cost of produced content, total | 20,800,000 | 20,800,000 | ||
Unamortized cost of produced content, current | 6,400,000 | 6,400,000 | ||
Unamortized cost of produced content to be amortized in two years | 5,900,000 | 5,900,000 | ||
Unamortized cost of produced content to be amortized in three years | 4,900,000 | 4,900,000 | ||
Impairment of content assets | $ 18,970,000 | $ 0 | $ 18,970,000 | $ 0 |
BALANCE SHEET COMPONENTS - Sc_4
BALANCE SHEET COMPONENTS - Schedule of Content Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Produced content, net: | |||||
Impairment of content assets | $ 18,970 | $ 0 | $ 18,970 | $ 0 | |
Licensed content | |||||
Produced content, net: | |||||
Impairment of content assets | 4,400 | ||||
Produced content | |||||
Produced content, net: | |||||
Impairment of content assets | $ 14,600 | ||||
Related Party | |||||
Licensed content, net: | |||||
Total Licensed content, net | 14,305 | $ 15,168 | |||
Produced content, net: | |||||
Total produced content, net | 31,595 | 53,334 | |||
Total content assets | 45,900 | 68,502 | |||
Related Party | Released, less amortization and impairment | |||||
Licensed content, net: | |||||
Total Licensed content, net | 6,308 | 11,154 | |||
Produced content, net: | |||||
Total produced content, net | 20,792 | 33,094 | |||
Related Party | Prepaid and unreleased | |||||
Licensed content, net: | |||||
Total Licensed content, net | 7,997 | 4,014 | |||
Related Party | In production | |||||
Produced content, net: | |||||
Total produced content, net | $ 10,803 | $ 20,240 |
BALANCE SHEET COMPONENTS - Sc_5
BALANCE SHEET COMPONENTS - Schedule of Amortized Licensed Content Costs and Produced Content Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance Sheet Components, Schedule of Company Amortized Licensed Content Costs [Line Items] | ||||
Amortization of content assets | $ 5,389 | $ 10,381 | $ 17,707 | $ 29,510 |
Licensed content | ||||
Balance Sheet Components, Schedule of Company Amortized Licensed Content Costs [Line Items] | ||||
Amortization of content assets | 1,728 | 1,793 | 5,478 | 6,590 |
Produced content | ||||
Balance Sheet Components, Schedule of Company Amortized Licensed Content Costs [Line Items] | ||||
Amortization of content assets | $ 3,661 | $ 8,588 | $ 12,229 | $ 22,920 |
BALANCE SHEET COMPONENTS - Sc_6
BALANCE SHEET COMPONENTS - Schedule of Private Placement Warrants (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Level 3 | ||
Warrant liability | $ 74 | $ 257 |
Level 3 | Private Placement Warrants | ||
Level 3 | ||
Warrant liability | $ 74 | $ 257 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenues | $ 13.7 | $ 14.9 |
Revenues recognized | $ 12.9 |
REVENUE - Schedule of Revenues
REVENUE - Schedule of Revenues Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 15,630 | $ 23,569 | $ 42,114 | $ 63,544 |
Concentration risk, percentage | 100% | 100% | 100% | 100% |
O&O Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 6,601 | $ 7,890 | $ 19,664 | $ 23,110 |
App Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 830 | 960 | 2,556 | 3,018 |
Subscriptions total | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,431 | 8,850 | 22,220 | 26,128 |
Partner Direct Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,177 | 1,157 | 3,361 | 3,491 |
Bundled Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,504 | 2,595 | 4,487 | 10,250 |
Content Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,082 | 10,790 | 10,715 | 21,692 |
License fees total | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,763 | 14,542 | 18,563 | 35,433 |
Other* | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 436 | $ 177 | $ 1,331 | $ 1,983 |
Revenue Benchmark | Product Concentration Risk | O&O Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 42% | 33% | 47% | 36% |
Revenue Benchmark | Product Concentration Risk | App Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 5% | 4% | 6% | 5% |
Revenue Benchmark | Product Concentration Risk | Subscriptions total | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 47% | 38% | 53% | 41% |
Revenue Benchmark | Product Concentration Risk | Partner Direct Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 8% | 5% | 8% | 5% |
Revenue Benchmark | Product Concentration Risk | Bundled Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 10% | 11% | 11% | 16% |
Revenue Benchmark | Product Concentration Risk | Content Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 32% | 46% | 25% | 34% |
Revenue Benchmark | Product Concentration Risk | License fees total | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 50% | 62% | 44% | 56% |
Revenue Benchmark | Product Concentration Risk | Other* | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 3% | 1% | 3% | 3% |
REVENUE - Schedule of Revenue_2
REVENUE - Schedule of Revenues Expected to be Recognized in the Future Related to Performance Obligations (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remainder of year ending December 31, 2023 | $ 1,671 |
2024 | 4,972 |
2025 | 2,179 |
2026 | 417 |
2027 | 34 |
Thereafter | 219 |
Total | $ 9,492 |
REVENUE - Trade and Barter Reve
REVENUE - Trade and Barter Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 15,630 | $ 23,569 | $ 42,114 | $ 63,544 |
Trade And Barter Transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,199 | 0 | 8,190 | 0 |
Trade And Barter Transactions, Content Licensing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,949 | 0 | 7,416 | 0 |
Trade And Barter Transactions, Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 250 | $ 0 | $ 774 | $ 0 |
REVENUE - Trade and Barter Expe
REVENUE - Trade and Barter Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Trade And Barter Transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Trade and barter advertising and marketing | $ 648 | $ 0 | $ 1,172 | $ 0 |
REVENUE - Trade and Borrow Tran
REVENUE - Trade and Borrow Transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Trade and barter additions to content assets | $ 7,124 | $ 0 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Oct. 14, 2020 | |
Class of Stock [Line Items] | ||||||
Shares authorized (shares) | 126,000,000 | 126,000,000 | 126,000,000 | |||
Par value, price per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | 125,000,000 | |||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||
Shares available for purchase per warrant (shares) | 1 | 1 | ||||
Exercise price of warrants (dollars per share) | $ 11.50 | $ 11.50 | ||||
Redemption price (dollars per share) | 0.01 | 0.01 | ||||
Warrant redemption threshold price (dollars per share) | $ 18 | $ 18 | ||||
Warrant redemption threshold trading days | 20 days | 20 days | ||||
Warrant redemption threshold consecutive trading days | 30 days | 30 days | ||||
Warrants exercised (in shares) | 0 | 0 | ||||
Change in gain (loss) of warrant liability | $ 0.1 | $ 0.5 | $ 0.2 | $ 4.9 | ||
Private Placement Warrants | ||||||
Class of Stock [Line Items] | ||||||
Warrants outstanding (shares) | 3,676,000 | |||||
Publicly Traded Warrants | ||||||
Class of Stock [Line Items] | ||||||
Warrants outstanding (shares) | 3,054,203 | 3,054,203 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Fair Value Black-Scholes Option (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Exercise price (in dollars per share) | $ 11.50 | $ 11.50 |
Stock price (CURI) (in dollars per share) | $ 0.71 | $ 1.14 |
Expected volatility | 92% | 77% |
Expected warrant term (years) | 2 years | 2 years 9 months 18 days |
Risk-free interest rate | 5.03% | 4.22% |
Dividend yield | 0% | 0% |
Fair value per private placement warrant (in dollars per share) | $ 0.02 | $ 0.07 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) PER SHARE - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator — Basic and Diluted EPS: | ||||
Net loss | $ (26,565) | $ (4,502) | $ (44,237) | $ (36,371) |
Denominator — Basic and Diluted EPS: | ||||
Weighted-average shares, basic (in shares) | 53,040,000 | 52,793,000 | 52,999,000 | 52,773,000 |
Weighted–average shares, diluted (in shares) | 53,040,000 | 52,793,000 | 52,999,000 | 52,773,000 |
Net loss per share — basic (in dollars per share) | $ (0.50) | $ (0.09) | $ (0.83) | $ (0.69) |
Net loss per share — diluted (in dollars per share) | $ (0.50) | $ (0.09) | $ (0.83) | $ (0.69) |
EARNINGS (LOSS) PER SHARE - S_2
EARNINGS (LOSS) PER SHARE - Schedule of Antidilutive Shares Excluded (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 9,193 | 12,967 | 9,193 | 12,967 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 33 | 5,190 | 33 | 5,190 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 2,430 | 1,047 | 2,430 | 1,047 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from computation of earnings per share (in shares) | 6,730 | 6,730 | 6,730 | 6,730 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Oct. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares approved to be issued (in Shares) | 7,725,000 | |||||
Options exercised (in shares) | 0 | 0 | 0 | 0 | ||
Vesting period | 4 years | |||||
Share price (in dollars per share) | $ 0.99 | |||||
Compensation expense due to modification | $ 0 | |||||
Options | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares sold in period (in shares) | 4,600,000 | |||||
Restricted Stock Units | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares issued for exchange (in shares) | 1,600,000 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Stock Option and RSU Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Number of Shares Available for Issuance Under the Plan | ||||
Beginning balance (in shares) | 1,815,000 | |||
Granted (in shares) | (1,923,000) | |||
Options exercised and RSUs vested (in shares) | 71,000 | |||
Forfeited or expired (in shares) | 4,642,000 | |||
Ending balance (in shares) | 4,605,000 | 4,605,000 | ||
Stock Options, Number of Shares | ||||
Beginning balance (in shares) | 4,632,000 | |||
Granted (in shares) | 0 | |||
Options exercised (in shares) | 0 | 0 | 0 | 0 |
Forfeited or expired (in shares) | (4,599,000) | |||
Ending balance (in shares) | 33,000 | 33,000 | ||
Stock Options, Weighted-Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 7.13 | |||
Granted (in dollars per share) | 0 | |||
Options exercised (in dollars per share) | 0 | |||
Forfeited or expired (in dollars per share) | 7.17 | |||
Ending balance (in dollars per share) | $ 5.30 | $ 5.30 | ||
Restricted Stock Units | ||||
Restricted Stock Units, Number of Shares | ||||
Beginning balance (in shares) | 759,000 | |||
Granted (in shares) | 1,923,000 | |||
RSUs vested (in shares) | (209,000) | |||
Forfeited or expired (in shares) | (43,000) | |||
Ending balance (in shares) | 2,430,000 | 2,430,000 | ||
Restricted Stock Units, Weighted-Average Grant Date Fair Value | ||||
Beginning balance (in dollars per share) | $ 7.14 | |||
Granted (in dollars per share) | 1.06 | |||
RSUs vested (in dollars per share) | 8.75 | |||
Forfeited or expired (in dollars per share) | 11.91 | |||
Ending balance (in dollars per share) | $ 2.46 | $ 2.46 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Assumptions Used to Value Options Granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Dividend yield | 0% | ||||
Risk-free interest rate | 5.03% | 4.22% | |||
Weighted average grant date fair value (in dollars per share) | $ 1.91 | ||||
Total stock-based compensation | $ 897 | $ 1,673 | $ 3,586 | $ 5,055 | |
Options | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total stock-based compensation | 5 | 999 | 1,553 | 2,913 | |
Restricted Stock Units | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 892 | $ 674 | $ 2,033 | $ 2,142 | |
Minimum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Expected volatility | 65% | 60% | |||
Expected term (years) | 6 years | ||||
Risk-free interest rate | 2.81% | 1.40% | |||
Maximum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Expected volatility | 70% | 70% | |||
Expected term (years) | 6 years 6 months | ||||
Risk-free interest rate | 2.95% | 2.95% |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details) - reporting_segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Number of reporting segments | 1 | |||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Canada | Geographic Concentration Risk | Revenue Benchmark | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 10% |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Revenues by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 15,630 | $ 23,569 | $ 42,114 | $ 63,544 |
Concentration risk, percentage | 100% | 100% | 100% | 100% |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 8,973 | $ 13,845 | $ 23,595 | $ 40,348 |
United States | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 57% | 59% | 56% | 63% |
Total International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 6,657 | $ 9,724 | $ 18,519 | $ 23,196 |
Total International | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 43% | 41% | 44% | 37% |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 1,674 | $ 412 | $ 2,566 | $ 1,215 |
Canada | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 11% | 2% | 6% | 2% |
Germany | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 149 | $ 3,287 | $ 1,797 | $ 4,704 |
Germany | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 1% | 14% | 4% | 7% |
Netherlands | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 1,566 | $ 516 | $ 3,216 | $ 1,068 |
Netherlands | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 10% | 2% | 8% | 2% |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total revenues | $ 3,268 | $ 5,509 | $ 10,940 | $ 16,209 |
Other | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 21% | 23% | 26% | 26% |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transactions [Line Items] | ||||
Total revenues | $ 15,630 | $ 23,569 | $ 42,114 | $ 63,544 |
Related Party | Nebula | ||||
Related Party Transactions [Line Items] | ||||
Cost of revenues | 1,100 | 3,400 | ||
Related Party | License Fees [Member] | Spiegel Venture | ||||
Related Party Transactions [Line Items] | ||||
Total revenues | $ 0 | $ 1,100 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Balance Sheet Impact of Arrangements with Related Parties (Details) - Related Party - Spiegel Venture and Nebula - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party Transactions [Line Items] | ||
Accounts receivable | $ 1,045 | $ 3,358 |
Accounts payable | $ 376 | $ 404 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Schedule of Statement of Operations Impact of Arrangements with Related Parties (Details) - Related Party - Spiegel Venture and Nebula - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transactions [Line Items] | ||||
Revenues | $ 0 | $ 2,192 | $ 1,084 | $ 4,233 |
Cost of revenues | $ 1,142 | $ 1,096 | $ 3,508 | $ 3,135 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 3,418 | $ 3,418 | $ 3,702 |
Current lease liabilities | 300 | 300 | |
Non-current lease liabilities | $ 4,378 | $ 4,378 | $ 4,648 |
Weighted average discount rate, percentage | 4.40% | 4.40% | |
Weighted average remaining lease term (in years) | 9 years 5 months 1 day | 9 years 5 months 1 day | |
Operating lease income | $ 100 | $ 100 | |
Operating lease future minimum payments receivable | $ 300 | $ 300 |
LEASES - Schedule of Total Oper
LEASES - Schedule of Total Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 120 | $ 121 | $ 362 | $ 363 |
Short-term lease cost | 0 | 6 | (16) | 42 |
Variable lease cost | 13 | 12 | 38 | 36 |
Total lease cost | $ 133 | $ 139 | $ 384 | $ 441 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Three remaining months of 2023 | $ 106 |
2024 | 557 |
2025 | 571 |
2026 | 585 |
2027 | 600 |
Thereafter | 3,346 |
Total lease payments | 5,765 |
Less: imputed interest | (1,061) |
Present value of total lease liabilities | $ 4,704 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2024 | Dec. 31, 2022 | |
Commitments and Contingencies (Details) [Line Items] | ||||
Content obligations | $ 1.6 | $ 11.5 | ||
Current content liabilities | 0.1 | 2.9 | ||
Content assets obligations | 1.5 | $ 8.6 | ||
Content obligations to be paid, remainder of fiscal year | 0.8 | |||
Content obligations to be paid, year one | 0.6 | |||
Advertising commitments | $ 1.3 | |||
Forecast | ||||
Commitments and Contingencies (Details) [Line Items] | ||||
Advertising obligations | $ 0.5 | $ 0.8 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 0.1 | $ 0.1 | $ 0.5 | $ 0.2 |