Curiosity(CURI) - 2024 Q3 - Quarterly Report

Financial Position - The Company reported cash and cash equivalents of $9.588 million as of September 30, 2024, down from$37.715 million as of December 31, 2023[48]. - The Company holds equity investments in Spiegel TV Geschichte und Wissen GmbH and Watch Nebula LLC, with total carrying values of $4.179 million as of September 30, 2024, down from$6.354 million as of December 31, 2023[39]. - The Company’s cash and cash equivalents and restricted cash totaled $9.713 million as of September 30, 2024, compared to$38.215 million as of December 31, 2023[48]. - As of September 30, 2024, total cash and cash equivalents amounted to $36,072,000, with Level 1 securities totaling$18,671,000 and Level 2 securities totaling $20,592,000[50]. - The fair value of Private Placement Warrants was not disclosed but is classified as a non-current liability, indicating potential future financial obligations[57]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at$0.03 as of September 30, 2024, compared to $0.01 at December 31, 2023[77]. - As of September 30, 2024, the company had 3,054,203 publicly traded warrants outstanding with an exercise price of$11.50 per share[72]. - The company had authorized the issuance of 126,000,000 shares of capital stock, including 125,000,000 shares of common stock as of September 30, 2024[69]. - The company incurred a net loss of $10.1 million for the nine months ended September 30, 2024, while generating$5.1 million of net cash from operating activities[154]. - The net loss for the nine months ended September 30, 2024, was $10.1 million, down from a net loss of$44.2 million in the same period of 2023[165][166]. Revenue and Earnings - For the three months ended September 30, 2024, total revenues were $12,604,000, a decrease from$15,630,000 in the same period of 2023, with direct-to-consumer revenue contributing $7,750,000, representing 61$13,400,000 in revenues for the nine months ended September 30, 2024, related to amounts deferred as of December 31, 2023[62]. - Total trade and barter revenues for the three months ended September 30, 2024, were $1,416,000, a decrease of 71.5$5,199,000 for the same period in 2023[67]. - For the nine months ended September 30, 2024, total trade and barter revenues were $2,504,000, down 69.5$8,190,000 in 2023[67]. - For the three months ended September 30, 2024, total revenue was $12.6 million, a decrease from$15.6 million in the same period of 2023, representing a decline of 19%[91]. - Revenue from the United States accounted for 60% of total revenue in Q3 2024, compared to 57% in Q3 2023[91]. - International revenue totaled $5.1 million in Q3 2024, down from$6.7 million in Q3 2023, marking a decrease of 24%[91]. - The company recognized $0.1 million and$0.2 million in revenue from license fees related to the Spiegel Venture for the three and nine months ended September 30, 2024, respectively[92]. - For the nine months ended September 30, 2024, total revenue was $37.0 million, a decrease of$5.1 million, or 12%, compared to $42.1 million in 2023[120]. Expenses and Losses - Operating loss for the three months ended September 30, 2024, was$3.3 million, a decrease of $20.6 million, or 86$23.9 million in 2023[116]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of$26,565,000 for the same period in 2023[79]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.06), an improvement from$(0.50) in 2023[79]. - Operating expenses decreased by $35.4 million, or 43$15.9 million, a 60% reduction from $39.5 million in 2023[136]. - Cost of revenues decreased to$5.8 million for the three months ended September 30, 2024, a 31% reduction from $8.5 million in 2023[142]. - General and administrative expenses decreased to$6.4 million for the three months ended September 30, 2024, an 8% decline from $7.0 million in 2023[146]. - The company recorded no impairment charges for content assets for the three and nine months ended September 30, 2024, compared to a$19.0 million impairment charge in the same periods in 2023[147]. Investments and Assets - The Company made a Holdback Payment of $0.9 million to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets[41]. - The Company has not received any dividends from the Spiegel Venture or Nebula as of September 30, 2024[40][46]. - The Company’s investment in Nebula increased to 16.875$0.8 million each[46]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[47]. - The total content assets decreased from $44,943,000 as of December 31, 2023, to$33,885,000 as of September 30, 2024, reflecting a reduction in both licensed and produced content[53]. - Content amortization for the three months ended September 30, 2024, was $4,569,000, compared to$5,389,000 for the same period in 2023, showing a decline in amortization expenses[55]. - The company reported $10,300,000 in unamortized costs for licensed content released as of September 30, 2024, with expected amortization of$5,100,000, $3,300,000, and$1,000,000 over the next three years[53]. - Total deferred revenues decreased from $15,200,000 as of December 31, 2023, to$11,800,000 as of September 30, 2024, indicating a reduction in unrecognized subscriber and affiliate license fees[61]. Shareholder Actions - The company repurchased 195,190 shares of common stock at an average price of $1.12 per share, totaling$0.2 million[71]. - A share repurchase program was authorized for up to $4 million, with$218 thousand repurchased as of September 30, 2024[160]. - The company declared a cash dividend of $0.025 per share, with an expected aggregate amount of$1.3 million to be paid on March 28, 2025[159]. Future Outlook - The company expects to recognize future revenues related to remaining performance obligations totaling $2,323,000, with$352,000 expected in 2025[60]. - Future advertising commitments totaled $2.7 million, expected to be paid during the year ending December 31, 2024[104]. - The company plans to continue capital expenditures for content assets and property purchases, albeit at a slower rate than previous periods[170]. - Future operating results will depend on the company's ability to grow its subscriber base and expand service offerings[117]. - The company has begun entering into trade and barter transactions for content assets, which may impact future revenue recognition and asset valuation[63]. Operational Performance - The company operates as a single reporting segment, focusing on premium video and audio programming across various factual entertainment categories[110]. - CuriosityStream's content library features over 15,000 programs, with new titles launched weekly and localized into eleven different languages[113]. - Direct Business revenue increased by$1.1 million, or 13%, to $9.8 million for the three months ended September 30, 2024, compared to$8.7 million in 2023[125]. - Content Licensing revenue decreased by $3.4 million, or 67$1.7 million for the three months ended September 30, 2024, compared to $5.1 million in 2023[128]. - For the three months ended September 30, 2024, Bundled Distribution revenue was$1.0 million, a 33% decline from $1.5 million in the same period in 2023[132]. - For the nine months ended September 30, 2024, Bundled Distribution revenue was$3.2 million, reflecting a 26% decline from $4.3 million in 2023[132]. - Other revenue for the three months ended September 30, 2024, was$0.2 million, a 56% decline from $0.4 million in the same period in 2023[135]. - Interest and other income for the three months ended September 30, 2024, was$0.5 million, compared to a de minimis amount in 2023[149]. Compliance and Controls - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024[177]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[178].