Curiosity(CURI) - 2025 Q1 - Quarterly Report

Investment and Ownership - The carrying value of the Company's equity method investment in Nebula decreased from $3,848,000 as of December 31, 2024, to$3,697,000 as of March 31, 2025, reflecting an equity method investment loss of $151,000[37]. - The Company acquired a 32$3.3 million in July 2021, which operates two documentary channels and an SVOD service[38]. - The Company holds a 16.875% ownership interest in Nebula as of March 31, 2025, after making incremental purchases totaling $6.0 million since August 2021[44]. - The Company has a Call Option to acquire the remaining ownership interests in the Spiegel Venture, exercisable after the adoption of the Spiegel Venture's audited financial statements for the fiscal year 2025[40]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of March 31, 2025[38][44]. Financial Performance - Total revenues for the three months ended March 31, 2025, were$15,090,000, a 25.6% increase compared to $12,001,000 for the same period in 2024[54]. - Direct-to-Consumer revenue decreased to$6,530,000, accounting for 43% of total revenue, down from 68% in the prior year[54]. - The net income for the three months ended March 31, 2025, was $319,000, a significant improvement from a net loss of$5,035,000 in the same period of 2024[72]. - For the three months ended March 31, 2025, the company reported revenues of $15,090,000, an increase of 25.9$12,001,000 for the same period in 2024[85]. - The company’s international revenue accounted for 29% of total revenue in Q1 2025, with Switzerland contributing 10% of total revenue[86]. Expenses and Liabilities - Total operating expenses for the three months ended March 31, 2025, were $15,011,000, a decrease of 4.1$15,655,000 in the same period of 2024[85]. - Content amortization for the three months ended March 31, 2025, was $3,513,000, down from$5,215,000 in the same period of 2024[51]. - Content amortization expenses decreased to $3,513,000 in Q1 2025 from$5,215,000 in Q1 2024, reflecting a reduction of 32.6%[85]. - Total deferred revenues decreased to $10.9 million as of March 31, 2025, from$11.4 million as of December 31, 2024[56]. - The total operating lease cost for the three months ended March 31, 2025, was $133,000, slightly up from$131,000 in 2024[92]. Cash and Investments - As of March 31, 2025, the company's cash and cash equivalents increased to $9,183,000 from$7,826,000 as of December 31, 2024, representing a growth of approximately 17.4%[46]. - The Company’s investments in debt securities are classified as held-to-maturity and reported at amortized cost, with interest income recognized as non-operating income[27][28]. - The fair value of Private Placement Warrants increased to $96,000 as of March 31, 2025, compared to$88,000 as of December 31, 2024[53]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 per warrant as of March 31, 2025, compared to$0.02 per warrant as of December 31, 2024[70]. Shareholder Actions - The Company paid a Holdback Payment of $900,000 to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets during its 2022 fiscal period[39]. - The Company declared a quarterly cash dividend of$0.08 per share, totaling approximately $4.6 million, to be paid on June 20, 2025[100]. - The company had repurchased 216,000 shares of its common stock at an average price of$1.16 per share, totaling $0.3 million as of December 31, 2024[64]. - The company had a weighted-average of 57,132,000 shares outstanding for the three months ended March 31, 2025, compared to 53,301,000 shares for the same period in 2024[72]. Future Expectations - The company expects to recognize future revenues of$1,955,000 in 2025 related to remaining performance obligations[55]. - The Company has not yet adopted new accounting pronouncements under the JOBS Act and expects to no longer qualify as an emerging growth company after December 31, 2025[34]. - The company anticipates amortizing $5.3 million,$2.5 million, and $0.7 million of licensed content costs over the next three years[49]. - Future advertising commitments totaled$1.7 million, expected to be paid during the year ending December 31, 2025[98]. Tax and Valuation - Income tax expense for the three months ended March 31, 2025, was immaterial due to a full valuation allowance position[99]. - The weighted average discount rate used for measuring operating lease liabilities was 4.4% as of March 31, 2025[91]. - Total lease payments due are $4.96 million, with a present value of total lease liabilities at$4.187 million[93].