0001558370-22-008334 | 10-Q | XBRL Viewer | Chicken Soup FOR THE Soul Entertainment INC

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Business Combination - Proforma Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Combinations [Abstract]
Net revenue	$ 29,206,197	$ 28,196,550
Net loss	$ (14,126,960)	$ (11,181,104)
Basic net loss per common share	$ (0.92)	$ (0.82)
Diluted net loss per common share	$ (0.92)	$ (0.82)

Commitments and Contingencies	3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15 - Commitments and Contingencies Content Obligations Content obligations include amounts related to the acquisition, licensing and production of content. An obligation for the acquisition and licensing of content is incurred at the time we enter into an agreement to obtain future titles. Once a title is delivered, accepted and becomes available for exploitation, a content liability is recorded on the condensed consolidated balance sheet. As of March 31, 2022, the Company had $52,827,962 of content obligations, comprised of $19,139,499 in film library acquisition obligations, $15,570,000 of programming obligations and $18,118,463 of accrued participation costs. As of December 31, 2021, the Company had $38,638,445 of content obligations, comprised of $24,673,866 in film library acquisition obligations, $1,641,250 of programming obligations and $12,323,329 of accrued participation costs. In the ordinary course of business, the Company from time to time enters into contractual arrangements under which it agrees to commitments with producers and other content providers for the acquisition of content and distribution rights which are in production or have not yet been completed, delivered to, and accepted by the Company ready for exploitation. Based on those contractual arrangements, the Company is committed but is not contractually liable to transfer any financial consideration until final delivery and acceptance has occurred. These commitments are expected to be fulfilled in the normal course of business. Sonar Acquisition The Company owes contingent consideration related to the acquisition of Sonar of $6,639,061 at March 31, 2022. The liability is an estimate and is payable upon the collection of receipts from defined receivables, noncontracted TV business receipts and profit participation on a slate of development projects. Additionally, the Company has a Put obligation for $11,500,000 to acquire 5% of the shares of CSS AVOD Inc., that can be triggered any time during the three-year period immediately following the 18-month anniversary of the asset purchase agreement. See Notes 4 and 12 for additional information. Legal and Other Matters The Company is not presently a party to any legal proceedings the resolution of which the Company believes would have a material adverse effect on its business, financial condition, operating results, or cash flows. However, any legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on its business, financial position, results of operations, and /or cash flows. Additionally, although the Company has specific insurance for certain potential risks, the Company may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on its business, financial condition, or results of operations.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 15 - Commitments and Contingencies

Content Obligations

Content obligations include amounts related to the acquisition, licensing and production of content. An obligation for the acquisition and licensing of content is incurred at the time we enter into an agreement to obtain future titles. Once a title is delivered, accepted and becomes available for exploitation, a content liability is recorded on the condensed consolidated balance sheet.

As of March 31, 2022, the Company had $52,827,962 of content obligations, comprised of $19,139,499 in film library acquisition obligations, $15,570,000 of programming obligations and $18,118,463 of accrued participation costs.

As of December 31, 2021, the Company had $38,638,445 of content obligations, comprised of $24,673,866 in film library acquisition obligations, $1,641,250 of programming obligations and $12,323,329 of accrued participation costs.

In the ordinary course of business, the Company from time to time enters into contractual arrangements under which it agrees to commitments with producers and other content providers for the acquisition of content and distribution rights which are in production or have not yet been completed, delivered to, and accepted by the Company ready for exploitation. Based on those contractual arrangements, the Company is committed but is not contractually liable to transfer any financial consideration until final delivery and acceptance has occurred. These commitments are expected to be fulfilled in the normal course of business.

Sonar Acquisition

The Company owes contingent consideration related to the acquisition of Sonar of $6,639,061 at March 31, 2022. The liability is an estimate and is payable upon the collection of receipts from defined receivables, noncontracted TV business receipts and profit participation on a slate of development projects. Additionally, the Company has a Put obligation for $11,500,000 to acquire 5% of the shares of CSS AVOD Inc., that can be triggered any time during the three-year period immediately following the 18-month anniversary of the asset purchase agreement. See Notes 4 and 12 for additional information.

Legal and Other Matters

The Company is not presently a party to any legal proceedings the resolution of which the Company believes would have a material adverse effect on its business, financial condition, operating results, or cash flows. However, any legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on its business, financial position, results of operations, and /or cash flows. Additionally, although the Company has specific insurance for certain potential risks, the Company may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on its business, financial condition, or results of operations.

Description of the Business (Details)	3 Months Ended
Description of the Business (Details)	Mar. 31, 2022 USD ($) country segment	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments \| segment	1
Number of countries and territories worldwide the company has a presence \| country	56
Deficit	$ (150,589,204)		$ (136,462,244)
Net loss	$ (14,126,960)	$ (9,193,381)

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

- Definition

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

Intangible Assets and Goodwill - Amortization Expense (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2022	$ 5,192,199
2023	6,828,028
2024	5,525,096
2025	3,096,675
2026	1,007,518
Amortization expense	$ 21,649,516	$ 18,035,091

Put Option Obligation (Tables)

3 Months Ended

Mar. 31, 2022

CSS AVOD Inc.

Business Acquisition [Line Items]

Schedule of interest in acquire


	March 31,
	2022
Put Option Obligation	$	11,400,000
Noncontrolling Interests		95,592
Total	$	11,495,592

Business Combination - Purchase Price Consideration Allocation (Details) - USD ($)			3 Months Ended
	Mar. 04, 2022	May 21, 2021	Mar. 31, 2022
Business Acquisition [Line Items]
Cash consideration			$ 6,672,474
1091 Media, LLC
Business Acquisition [Line Items]
Cash consideration	$ 8,000,000
Total	13,283,750
Less: cash acquired	(1,327,524)
Total Estimated Purchase Price	11,956,226
Sonar Entertainment Inc.
Business Acquisition [Line Items]
Cash consideration		$ 18,902,000
Total		53,812,000
Total Estimated Purchase Price		53,812,000
Fair Value of Additional Purchase Price - Library Account Receivable \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		1,580,000
Fair Value of Additional Purchase Price - Contracted TV Cash Flow \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		13,700,000
Fair Value of Additional Purchase Price - % of Film Cash Flow \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		630,000
Fair Value of Additional Purchase Price - % of Non-TV Business Cash Flow \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		2,300,000
Fair Value of Additional Purchase Price - Development Slate Cash Flow \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		5,200,000
Fair Value of Additional Purchase Price - CSS AVOD Equity Put \| Sonar Entertainment Inc.
Business Acquisition [Line Items]
Total		$ 11,500,000
Common Stock \| Common Class A \| 1091 Media, LLC
Business Acquisition [Line Items]
Equity consideration	3,303,750
Preferred Stock \| Series A Preferred Stock \| 1091 Media, LLC
Business Acquisition [Line Items]
Equity consideration	$ 1,980,000

Content Assets

3 Months Ended

Mar. 31, 2022

Entertainment [Abstract]

Content Assets

Note 8 – Content Assets

Content assets consists of the following:


	March 31,		December 31,
	2022		2021
Original productions:
Programming costs released	$	25,965,912	$	25,669,921
In production		—		562,808
In development		7,943,139		6,662,591
Accumulated amortization ^(a)		(23,571,721)		(23,268,306)
Programming costs, net		10,337,330		9,627,014

Film library:
Film library acquisition costs		146,878,460		134,463,191
Accumulated amortization ^(b)		(85,210,986)		(80,847,748)
Film library costs, net		61,667,474		53,615,443

Licensed program rights:
Programming rights		15,829,362		1,209,362
Accumulated amortization		(1,018,002)		(806,423)
Programming rights, net		14,811,360		402,939

Content assets, net	$	86,816,164	$	63,645,396

^(a) ^{As of March 31, 2022 and December 31, 2021, accumulated amortization includes impairment expense of}^$8,262,663^{, respectively.}

^(b) ^{As of March 31, 2022, and December 31, 2021, accumulated amortization includes impairment expense}^of^$5,506,069^{, respectively.}

Original productions programming costs consists primarily of episodic television programs which are available for distribution through a variety of platforms, including Crackle. Amounts capitalized include development costs, production costs and direct production overhead costs.

Film library consists primarily of the cost of acquiring film distribution rights and related acquisition costs.

Costs related to original productions and film library are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenues expected to be recognized from various forms of exploitation.

Programming rights consists of licenses to various titles which the company makes available for streaming on Crackle for an agreed upon license period.

Amortization of content assets is as follows:



	Three Months Ended
	March 31,
	2022		2021
Original productions	$	303,414	$	2,205,861
Film library		4,363,238		6,903,916
Licensed program rights		211,580		24,751
Total content asset amortization	$	4,878,232	$	9,134,528

During the three months ended Mach 31, 2022 and 2021, the Company did not record any impairments related to content assets.

Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Note 11 – Debt

Long-term debt for the periods presented was as follows:


	March 31,		December 31,
	2022		2021
Notes due 2025	$	32,895,900	$	32,895,900
Revolving loan		22,035,713		17,585,699
Film acquisition advances		12,970,779		6,196,909
Total debt		67,902,392		56,678,508
Less: debt issuance costs		1,303,991		1,402,880
Less: current portion		8,440,108		6,196,909
Total long-term debt	$	58,158,293	$	49,078,719

Revolving Loan

On May 21, 2021, the Company entered into a Credit Agreement with Midcap Financial Trust. The credit agreement provides the Company with a revolving loan in an aggregate principal amount not to exceed $30,000,000 at any time outstanding. On the closing date, the Company made an initial draw down on the loan of $18,272,931 in connection with funding the SEI acquisition. The availability under the loan at any time is subject to the borrowing base, which is equal to 85% of the eligible accounts receivable minus the sum of all reserves and is adjusted monthly, as necessary.

The loan bears interest at 4% plus the greater of LIBOR or 0.75% per annum. In addition the loan contains an unused line fee of 0.5% per annum and a collateral management fee of 0.504% per annum. Interest and fees on the loan are payable in arrears on the first day of each month and on the maturity of the loan.

The Credit Agreement and other loan documents contain customary representations and warranties and affirmative and negative covenants. Under the Credit Agreement, the Company is required to maintain minimum liquidity in the form of borrowing base availability or cash on hand in an aggregate amount of not less than $6,000,000. The Company is in compliance with all covenants as of March 31, 2022.

9.50% Notes Due 2025

On July 17, 2020, the Company completed a public offering of 9.50% Notes due 2025 (the “Notes”) in the aggregate principal amount of $21,000,000. On August 5, 2020, the Company sold an additional $1,100,000 of Notes pursuant to the partial exercise of the overallotment option. The Notes bear interest at 9.50% per annum, payable every March 31, June 30, September 30, and December 31, and at maturity. The Notes mature on July 31, 2025.

The sale of the Notes resulted in net proceeds of approximately $20,995,000 after deducting underwriting discounts and commissions of approximately $1,105,000. The Company used $13,333,333 of the net proceeds to repay the outstanding principal under the Commercial Loan.

On December 22, 2020, the Company completed a public offering of 9.50% Notes due 2025 (the “December Notes”) in the aggregate principal amount of $9,387,750. On December 29, 2020, the Company sold an additional $1,408,150 of December Notes pursuant to the partial exercise of the overallotment option. The stated principal of $25.00 per note was discounted 2% to the public offering price of $24.50 per note.

Film Acquisition Advance: Great Point Media Limited

On August 27, 2020, the Company entered into a Film Acquisition Advance Agreement with Great Point Media Limited (“GPM”). GPM advanced to the Company $10,210,000 of acquisition advances on August 28, 2020 (the “Acquisition Advance”) and may, directly, or through affiliated entities, fund additional acquisition advances in the future. Pursuant to the agreement, GPM has formed a US-based special purpose vehicle (the “SPV”), which has been assigned the territorial licenses and distribution rights in certain films and productions owned or to be acquired by Screen Media Ventures Inc., CSSE’s wholly owned subsidiary. The Company pays the SPV on a quarterly basis adjusted gross receipts generated on each of the assigned productions during the two-year term of the agreement, until the SPV has recouped the full Acquisition Advance for each of the productions together with interest and additional participation amounts on gross receipts generated by the productions. The Acquisition Advance bears interest at 10% per annum compounded monthly on the amount outstanding. In the event the SPV has not recouped the full Acquisition Advance from gross receipts generated within the two-year contractual term, the Company shall pay the remaining balance outstanding, if any, by no later than November 30, 2022. During the three months ended March 31, 2022, the Company repaid $22,130 of the principal outstanding under the Film Acquisition Advance.

Film Acquisition Advance: Media Entertainment Partners

In January 2022, the Company began entering into individual film acquisition advance agreements with Media Entertainment Partners (“MEP”). Under the agreements, MEP financed the Company $6,796,000 of acquisition advances and may, directly, or through affiliated entities, fund additional acquisition advances in the future. Pursuant to an arrangement, MEP has formed a US-based special purpose vehicle (the “SPV”), which has been assigned the territorial licenses and distribution rights in certain films and productions owned or to be acquired by Screen Media Ventures Inc., CSSE’s wholly owned subsidiary. The Company will pay the SPV on a quarterly basis over 30 months the advance plus interest at 12% per annum compounded monthly on the amount outstanding. Under the distribution agreement with the SPV, after Screen Media Ventures recoupment, the SPV is entitled to receive a profit participation in the net receipts of the film and provide Screen Media Venture a bargain purchase option to reacquire the film rights after 6 years.

As of March 31, 2022, the expected aggregate maturities of debt for each of the next five years are as follows:



Remainder of 2022	$	7,684,998
2023		3,020,446
2024		24,301,048
2025		32,895,900
	$	67,902,392

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Note 10 – Leases

At March 31, 2022, the following amounts were recorded on the Condensed Consolidated Balance Sheets relating to operating our leases.


		March 31,
		2022
Right-of-Use Assets
Operating lease right-of-use assets	$	8,385,948

Lease Liabilities:
Operating lease liabilities	$	9,799,043

		March 31,
		2022
Weighted average remaining lease term		9 years
Weighted average discount rate		6%

As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date. Upon transition to ASC Topic 842, the Company used the incremental borrowing rate on January 1, 2022 for all operating leases that commenced prior to that date. We have operating leases primarily for office space. Lease costs are generally fixed, with certain contracts containing escalations in the lessors’ annual costs.

For the three months ended March 31, 2022 and 2021, rent expense including short-term leases was $548,669 and $499,711, respectively. Cash paid for amounts included in operating lease liabilities was $305,153 as of March 31, 2022.

The expected future payments relating to our operating lease liabilities at March 31, 2022 are as follows:


Remainder of 2022	$	930,803
2023		1,260,675
2024		1,285,888
2025		1,311,606
2026		1,400,731
2027 and thereafter		6,732,415
Total minimum payments		12,922,118
Less amounts representing interest		3,123,075
Present value of minimum payments	$	9,799,043

Related Party Transactions (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Due to affiliated companies		$ 489,959
Due from affiliated companies	$ 684,946
Total due to/due from affiliated companies	$ 684,946	$ 489,959

- Definition

Receivables to be collected from (obligations owed to) related parties, net as of the balance sheet date where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth.

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-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

+ Details

Subsequent Events (Details)	Apr. 22, 2022 USD ($)	May 10, 2022 $ / shares	Mar. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares	Aug. 05, 2020 USD ($)	Jul. 17, 2020 USD ($)
Subsequent Event [Line Items]
Interest rate			9.50%	9.50%
9.50% Notes Due 2025 [Member]
Subsequent Event [Line Items]
Interest rate						9.50%
Aggregate principal amount \| $					$ 1,100,000	$ 21,000,000
Common Class A
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.0001	$ 0.0001
Common Class B
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share			$ 0.0001	$ 0.0001
Subsequent Event \| 9.50% Notes Due 2025 [Member]
Subsequent Event [Line Items]
Interest rate	9.50%
Aggregate principal amount \| $	$ 10,400,000
Net proceeds \| $	11,094,946
Subsequent Event \| 9.50% Notes Due 2025 [Member] \| Over-Allotment option
Subsequent Event [Line Items]
Aggregate principal amount \| $	$ 1,560,000
Subsequent Event \| Common Class A
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share		$ 0.0001
Subsequent Event \| Redbox Entertainment Inc. [Member]
Subsequent Event [Line Items]
Fixed Exchange Ratio Of Company Shares In Business Acquisition		0.087
Subsequent Event \| Redbox Entertainment Inc. [Member] \| Common Class A
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share		$ 0.0001
Subsequent Event \| Redbox Entertainment Inc. [Member] \| Common Class B
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share		$ 0.0001

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of long-term debt


	March 31,		December 31,
	2022		2021
Notes due 2025	$	32,895,900	$	32,895,900
Revolving loan		22,035,713		17,585,699
Film acquisition advances		12,970,779		6,196,909
Total debt		67,902,392		56,678,508
Less: debt issuance costs		1,303,991		1,402,880
Less: current portion		8,440,108		6,196,909
Total long-term debt	$	58,158,293	$	49,078,719

Schedule of aggregate maturities of long-term debt



Remainder of 2022	$	7,684,998
2023		3,020,446
2024		24,301,048
2025		32,895,900
	$	67,902,392

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents includes restricted cash of $1,923,216 at March 31, 2022 and $1,552,052 at December 31, 2021.

Intangible Assets and Goodwill - Goodwill (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	May 21, 2021	Dec. 31, 2020
Goodwill	$ 44,906,055	$ 39,986,530
Sonar Entertainment Inc.
Goodwill			$ 19,838,743
Online networks
Goodwill	18,911,027	18,911,027		$ 18,911,027
Distribution and Production
Goodwill	25,995,028	21,075,503		1,236,760
Acquisitions	$ 4,919,525	19,838,743
SVOD
Goodwill				$ 1,300,319
Accumulated impairment losses		$ (1,300,319)

Put Option Obligation (Details) - USD ($)		3 Months Ended
Put Option Obligation (Details) - USD ($)	May 21, 2021	Mar. 31, 2022
Business Acquisition [Line Items]
Cash consideration		$ 6,672,474
CSS AVOD Inc.
Business Acquisition [Line Items]
Percentage of shares of common stock	5.00%	5.00%
Cash consideration	$ 11,500,000	$ 11,500,000
Notice period		60 days
Election period		3 years
CSS AVOD Inc. \| Put Option
Business Acquisition [Line Items]
Open Option Contracts Written, at Fair Value		$ 11,495,592
CSS AVOD Inc. \| Put Option \| Parent
Business Acquisition [Line Items]
Open Option Contracts Written, at Fair Value		11,400,000
CSS AVOD Inc. \| Put Option \| Noncontrolling Interests
Business Acquisition [Line Items]
Open Option Contracts Written, at Fair Value		$ 95,592

Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets, net


		Gross				Net
		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount
March 31, 2022:
Crackle Plus content rights	$	1,708,270	$	1,637,092	$	71,178
Crackle Plus brand value		18,807,004		7,724,305		11,082,699
Crackle Plus partner agreements		4,005,714		2,303,286		1,702,428
Distribution network		3,600,000		1,000,000		2,600,000
Locomotive contractual rights		1,500,986		227,300		1,273,686
1091 intangible asset		4,919,525		—		4,919,525
Total	$	34,541,499	$	12,891,983	$	21,649,516

December 31, 2021:
Crackle Plus content rights	$	1,708,270	$	1,494,736	$	213,534.00
Crackle Plus brand value		18,807,004		7,052,626		11,754,378.00
Crackle Plus partner agreements		4,005,714		2,103,000		1,902,714.00
Distribution network		3,600,000		700,000		2,900,000.00
Locomotive contractual rights		1,356,868		92,403		1,264,465.00
Total	$	29,477,856	$	11,442,765	$	18,035,091

Schedule of future amortization expense


Remainder of 2022	$	5,192,199
2023		6,828,028
2024		5,525,096
2025		3,096,675
2026		1,007,518
Total	$	21,649,516

Schedule of goodwill


	March 31, 2022
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	21,075,503	$	—
Acquisitions		—		4,919,525		—
Total	$	18,911,027	$	25,995,028	$	—


	December 31, 2021
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	1,236,760	$	1,300,319
Acquisitions		—		19,838,743		—
Accumulated impairment losses		—		—		(1,300,319)
Total	$	18,911,027	$	21,075,503	$	—

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Accounts Receivable	$ 785,497	$ 786,830
Deferred Costs	$ 1,303,991	$ 1,402,880
Interest rate	9.50%	9.50%
Series A Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Liquidation Preference Per Share	$ 25.00	$ 25.00
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	3,830,378	3,698,318
Preferred Stock, Shares Outstanding	3,830,378	3,698,318
Preferred Stock, Redemption Amount	$ 95,759,450	$ 92,457,950
Common Class A
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	70,000,000	70,000,000
Common Stock, Shares, Issued	9,423,330	8,964,330
Common Stock, Shares, Outstanding	7,701,722	8,019,828
Treasury Stock, Common, Shares	1,721,608	944,502
Common Class B
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares, Issued	7,654,506	7,654,506
Common Stock, Shares, Outstanding	7,654,506	7,654,506

Debt - Future principal payments (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Remainder of 2021	$ 7,684,998
2022	3,020,446
2023	24,301,048
2024	32,895,900
Total debt	$ 67,902,392	$ 56,678,508

Revenue Recognition - Contract assets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Accounts receivable, net	$ 27,370,872	$ 25,818,447
Contract assets (included in accounts receivable)	38,853,694	34,395,360
Total accounts receivable, net	66,224,566	60,213,807
Deferred revenue (included in other liabilities)	$ 3,652,200	$ 1,536,687

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Class A Common Stock 1091 Media, LLC	Common Class A Common Stock	Common Class B Common Stock	Preferred Stock 1091 Media, LLC	Preferred Stock	Additional Paid-in Capital 1091 Media, LLC	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Gain Income	Treasury Stock	Subsidiary convertible Preferred Stock	Noncontrolling Interests Locomotive Global Inc.	Noncontrolling Interests	Locomotive Global Inc.	1091 Media, LLC	Total
Balance at Dec. 31, 2020		$ 516	$ 766		$ 210		$ 106,425,548	$ (77,247,982)		$ (632,729)	$ 36,350,000		$ 205,462			$ 65,101,791
Balance (in shares) at Dec. 31, 2020		5,157,053	7,654,506		2,098,318
Share based compensation - stock options							200,594									200,594
Share based compensation - common stock							31,250									31,250
Issuance of common stock		$ 112					23,858,435									23,858,547
Issuance of common stock (in shares)		1,122,727
Issuance of Preferred stock, net					$ (160)		(36,349,840)				36,350,000
Issuance of Preferred stock, net (in shares)					1,600,000
Stock options exercised		$ 8					(8)
Stock options exercised (in shares)		77,415
Warrant exercises - Class W and Z		$ 4					(4)
Warrant exercises - Class W and Z (in shares)		43,571
Dividends on preferred stock								(2,253,385)								(2,253,385)
Elimination of noncontrolling interests								205,462					(205,462)
Net loss								(6,939,996)								(6,939,996)
Balance at Mar. 31, 2021		$ 640	$ 766		$ 370		166,865,655	(86,235,901)		(632,729)						79,998,801
Balance (in shares) at Mar. 31, 2021		6,400,766	7,654,506		3,698,318
Balance at Dec. 31, 2021		$ 899	$ 766		$ 370		240,609,345	(136,462,244)		(13,202,407)	571		651,853			91,599,153
Balance (in shares) at Dec. 31, 2021		8,964,330	7,654,506		3,698,318
Share based compensation - stock options							933,047									933,047
Share based compensation - common stock							63,750									63,750
Issuance of Preferred stock, net					$ 5		1,288,734									1,288,739
Issuance of Preferred stock, net (in shares)					52,060
Purchase of treasury stock										(8,584,102)						(8,584,102)
Acquisition of subsidiary noncontrolling interest		$ 8
Acquisition of subsidiary noncontrolling interest							(2,200,008)									(2,200,000)
Acquisition of subsidiary noncontrolling interest (in shares)		84,000
Shares issued as part purchase consideration in business acquisition	$ 38			$ 8		$ 5,283,705									$ 5,283,751
Shares issued as part purchase consideration in business acquisition (in shares)	375,000			80,000
Business combination												$ 144,118		$ 144,118
Dividends on preferred stock								(2,282,069)								(2,282,069)
Net income (loss) attributable to noncontrolling interest													(38,385)			(38,385)
Other comprehensive gain, net									$ (1,604)							(1,604)
Comprehensive loss attributable to noncontrolling interests									$ 1,015				(1,015)			1,015
Net loss								(11,844,891)								(11,844,891)
Balance at Mar. 31, 2022		$ 945	$ 766		$ 383		$ 245,978,573	$ (150,589,204)		$ (21,786,509)	$ (18)		$ 756,571			$ 74,361,507
Balance (in shares) at Mar. 31, 2022		9,423,330	7,654,506		3,830,378

Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 18 – Subsequent Events

9.50% Notes Due 2025

On April 22, 2022, the Company completed its underwritten public offering of 9.50% Notes Due 2025 for $10,400,000, with an over allotment option of $1,560,000. The sale of the Notes, including the exercise of the over allotment option, generated net proceeds of $11,094,946.

Execution of Merger Agreement with Redbox Entertainment Inc.

On May 10, 2022, the Company entered into a Merger Agreement (the “Merger Agreement”) with Redbox Entertainment Inc., a Delaware corporation (“Redbox”), RB First Merger Sub Inc., a Delaware corporation and direct wholly owned subsidiary of the Company (“Merger Sub Inc.”), RB Second Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Merger Sub LLC”), Redwood Opco Merger Sub LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Opco Merger Sub LLC”) and Redwood Intermediate LLC, a Delaware limited liability company (“Opco LLC”).

The Merger Agreement provides that, among other things, upon the terms and subject to the conditions set forth in the Merger Agreement, (i) at the time the First Company Merger (as defined below) becomes effective (“Effective Time”), (A) Merger Sub Inc. (the “First Company Merger”) will merge with and into Redbox, with Redbox continuing as the surviving entity (the “Surviving Corporation”); and (B) simultaneously with the First Company Merger, Opco Merger Sub LLC (the “Opco Merger”) will merge with and into Opco LLC, with Opco LLC continuing as the surviving entity; and (ii) immediately following the First Company Merger and Opco Merger, the Surviving Corporation will merge with and

into Merger Sub LLC (the “Second Company Merger” and, together with the First Company Merger, the “Integrated Mergers,” and the Integrated Mergers together with the Opco Merger, the “Mergers”), with Merger Sub LLC continuing as the surviving entity.

Pursuant to the Merger Agreement, at the Effective Time, (i) each share of Class A common stock of Redbox, par value $0.0001 per share (the “Redbox Class A Common Stock”), will be cancelled and automatically deemed for all purposes to represent the right to receive, 0.087 shares (the “Exchange Ratio”) of Class A common stock, par value $0.0001 per share, of the Company (the “Company Class A Common Stock”), (ii) each unit of Opco LLC will be converted into the right to receive a number of Company Class A Common Stock equal to the Exchange Ratio and (iii) each share of Class B common stock of Redbox, par value $0.0001 per share (the “Redbox Class B Common Stock”), will be automatically cancelled for no additional consideration.

At the Effective Time, the vested or unvested restricted stock units of Redbox (a “Redbox RSU Award”) that are outstanding as of immediately prior to the Effective Time held by each holder will automatically be converted into the right to receive a number of shares of Company Class A Common Stock equal to the Exchange Ratio multiplied by the number of vested or unvested Redbox RSU Awards held by such holder immediately prior to the Effective Time.

The parties’ obligation to consummate the Mergers (the “Closing”) is subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement, including the Company’s receipt of certain financing from Redbox’s current lender and: (i) the approval of the Merger Agreement and the transactions contemplated by the Merger Agreement by the affirmative vote of the holders of at least a majority of the Redbox Class A Common Stock and Redbox Class B Common Stock, voting as a single class (the “Requisite Redbox Vote”), (ii) the listing of the Company Class A Common Stock issuable as merger consideration on Nasdaq, (iii) the approval of the issuance of the Company Class A Common Stock issuable as Merger Consideration (the “Parent Stock Issuance”) by the affirmative vote, or consent of the holders, of a majority of the common stock of the Company cast on the proposal, with Company Class A Common Stock and the Company’s class B common stock voting as a single class, which approval was satisfied by delivery of an irrevocable written consent from the controlling shareholder of the Company (the “Written Consent”), (iv) the effectiveness of a registration statement on Form S-4 with respect to the Company Class A Common Stock issuable as Merger Consideration,(the “Registration Statement”), (v) the expiration or termination of applicable waiting periods under the HSR Act and no restraints or other injunctions prohibiting the Closing, (vi) no Material Adverse Effect on Redbox or the Company, (vii) HPS having executed and delivered to the Company definitive financing agreements and (viii) certain other customary conditions relating to the parties’ representations and warranties in the Merger Agreement and the performance of their respective obligations.

Additionally information will be included in Current Reports on Form 8-K to be filed by the Company.

Business Combination (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of proforma financial information


	Three Months Ended March 31,
	2022		2021
Net revenue	$	29,206,197	$	28,196,550
Net loss	$	(14,126,960)	$	(11,181,104)
Basic and diluted net loss per share	$	(0.92)	$	(0.82)

1091 Media, LLC

Schedule of preliminary allocation of the purchase price



Accounts receivable, net	$	4,677,133
Content assets		3,142,661
Other assets		49,347
Intangibles		4,919,525
Total identifiable assets acquired		12,788,666
Accounts payable and accrued expenses		129,244
Revenue share payable		1,623,177
Accrued third party share		3,999,544
Total liabilities assumed		5,751,965
Net identifiable assets acquired		7,036,701
Goodwill		4,919,525
Net assets acquired	$	11,956,226



Cash consideration	$	8,000,000
Equity consideration - Class A common stock		3,303,750
Equity consideration - Series A Preferred Stock		1,980,000
Purchase price consideration		13,283,750
Less: cash acquired		(1,327,524)
Total Estimated Purchase Price	$	11,956,226

Sonar Entertainment Inc.

Schedule of preliminary allocation of the purchase price


	May 21, 2021
Accounts receivable, net	$	17,373,257
Film library		13,000,000
Intangible asset		3,600,000
Total identifiable assets acquired		33,973,257
Goodwill		19,838,743
Net assets acquired	$	53,812,000

Schedule of fair values of assets acquired


Cash	$	18,902,000
Fair Value of Additional Purchase Price – Library Account Receivable		1,580,000
Fair Value of Additional Purchase Price – Contracted TV Cash Flow		13,700,000
Fair Value of Additional Purchase Price – % of Film Cash Flow		630,000
Fair Value of Additional Purchase Price – % of Non-TV Business Cash Flow		2,300,000
Fair Value of Additional Purchase Price – Development Slate Cash Flow		5,200,000
Fair Value of Additional Purchase Price – CSS AVOD Equity Put		11,500,000
Total Estimated Purchase Price	$	53,812,000

Schedule of sonar's stand-alone financial performance


	Three Months Ended
	March 31,
	2022
Net revenue	$	7,207,243
Net income	$	3,294,072

Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 6 – Share-Based Compensation

Effective January 1, 2017, the Company adopted the 2017 Long Term Incentive Plan (the “Plan”) to attract and retain certain employees. The Plan provides for the issuance of up to 2,500,000 common stock equivalents subject to the terms and conditions of the Plan. The Plan generally provides for quarterly and bi-annual vesting over terms ranging from two to three years. The Company accounts for the Plan as an equity plan.

The Company recognizes stock options granted under the Plan at fair value determined by applying the Black Scholes options pricing model to the grant date market value of the underlying common shares of the Company.

The compensation expense associated with these stock options is amortized on a straight-line basis over their respective vesting periods. For the three months ended March 31, 2022 and 2021, the Company recognized $933,047 and $200,594, respectively, of non-cash share-based compensation expense in selling, general and administrative expenses in the condensed consolidated statements of operations.

Stock options activity as of March 31, 2022 is as follows:


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contract	Intrinsic
	Stock Options	Price		Term (Yrs.)	Value
Outstanding at December 31, 2021	1,377,339	$	16.13	3.37	$	2,579,201
Granted	65,000		11.80
Forfeited	(12,457)		21.37
Exercised	—		—
Expired	—		—
Outstanding at March 31, 2022	1,429,882	$	15.89	3.48	$	21,950

Vested and exercisable at December 31, 2021	648,119	$	11.64	2.77	$	2,407,521
Vested and exercisable at March 31, 2022	738,640	$	12.50	2.72	$	21,950

As of March 31, 2022, the Company had unrecognized pre-tax compensation expense of $7,368,809 related to non-vested stock options under the Plan of which $2,624,220, $3,190,888, $1,547,555 and $6,146 will be recognized in 2022, 2023, 2024 and 2025, respectively.

We used the following weighted average assumptions to estimate the fair value of stock options granted for the periods presented as follows:


	Three Months Ended March 31,
Weighted Average Assumptions:	2022			2021^(a)
Expected dividend yield		0.0	%		—	%
Expected equity volatility		65.6	%		—	%
Expected term (years)		5			—
Risk-free interest rate		1.58	%		—	%
Exercise price per stock option	$	11.80		$	—
Market price per share	$	11.80		$	—
Weighted average fair value per stock option	$	6.55		$	—

^{(a) There were}^no^{stock options granted during the three months ended March 31, 2021.}

The risk-free rates are based on the implied yield available on U.S. Treasury constant maturities with remaining terms equivalent to the respective expected terms of the options.

The Company estimates expected terms for stock options awarded to employees using the simplified method in accordance with ASC 718, Stock Compensation, because the Company does not have sufficient relevant information to develop reasonable expectations about future exercise patterns. The Company estimates the expected term for stock options using the contractual term. Expected volatility is calculated based on the Company’s peer group because the Company does not have sufficient historical data and will continue to use peer group volatility information until historical volatility of the Company is available to measure expected volatility for future grants.

The Company also awards common stock under the Plan to directors, employees and third-party consultants that provide services to the Company. The value is based on the market price of the stock on the date granted and amortized over the vesting period. For the three months ended March 31, 2022 and 2021, the Company recognized in selling, general and administrative expense, non-cash share-based compensation expense relating to common stock grants of $63,750 and $31,250, respectively.

Business Combination - Additional Information (Details)			3 Months Ended
Business Combination - Additional Information (Details)	Mar. 04, 2022 USD ($) country item shares	May 21, 2021 USD ($)	Mar. 31, 2022 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Number of countries full service distribution provided \| country	100
Number of licensed films \| item	4,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares			$ 10.06
Cash consideration			$ 6,672,474
Contingent consideration			6,639,061		$ 9,764,256
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			29,206,197	$ 28,196,550
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			(14,126,960)	$ (11,181,104)
1091 Media, LLC
Purchase price consideration	$ 13,283,750
Cash consideration	8,000,000
Cash Acquired from Acquisition	$ 1,327,524
1091 Media, LLC \| Common Class A \| Common Stock
Number of shares issued \| shares	375,000
1091 Media, LLC \| Series A Preferred Stock \| Preferred Stock
Number of shares issued \| shares	80,000
Sonar Entertainment Inc.
Purchase price consideration		$ 53,812,000
Cash consideration		$ 18,902,000
Contingent consideration			6,639,061
Estimated useful lives		36 months
CSS AVOD Inc.
Cash consideration		$ 11,500,000	$ 11,500,000
Percentage of shares of common stock		5.00%	5.00%
CSS AVOD Inc. \| Put Option
Cash consideration		$ 11,500,000
Percentage of shares of common stock		5.00%
CSS AVOD Inc. \| Measurement Input Strike Price [Member] \| Put Option
Initial price and strike price		11,500,000
CSS AVOD Inc. \| Measurement Input, Option Volatility [Member] \| Put Option
Initial price and strike price		100.0
CSS AVOD Inc. \| Measurement Input, Expected Term [Member] \| Put Option
Initial price and strike price		1.5
CSS AVOD Inc. \| Measurement Input Initial Price Assumption [Member] \| Put Option
Initial price and strike price		125,000

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash, cash equivalents and restricted cash	$ 21,499,311	$ 44,286,105
Accounts receivable, net of allowance for doubtful accounts of $785,497, and $786,830, respectively	66,224,566	60,213,807
Prepaid expenses and other current assets	3,043,049	1,904,273
Due from affiliated companies	684,946
Operating lease right-of-use assets	8,385,948
Content assets, net	86,816,164	63,645,396
Intangible assets, net	21,649,516	18,035,091
Indefinite lived intangible assets	12,163,943	12,163,943
Goodwill	44,906,055	39,986,530
Other assets, net	5,570,677	5,190,954
Total assets	270,944,175	245,426,099
LIABILITIES AND EQUITY
Accounts payable and accrued other expenses	43,836,814	34,984,226
Due to affiliated companies		489,959
Programming obligations	15,570,000	1,641,250
Film library acquisition obligations	19,139,499	24,673,866
Accrued participation costs	18,118,463	12,323,329
Film acquisition advances	12,970,779	6,196,909
Revolving loan	22,035,713	17,585,699
9.50% Notes due 2025, net of deferred issuance costs of $1,303,991 and $1,402,880, respectively	31,591,909	31,493,020
Contingent consideration	6,639,061	9,764,256
Put option obligation	11,400,000	11,400,000
Operating lease liabilities	9,799,043
Other liabilities	5,481,387	3,274,432
Total liabilities	196,582,668	153,826,946
Commitments and contingencies (Note 15)
Stockholders' Equity:
Series A cumulative redeemable perpetual preferred stock, $.0001 par value, liquidation preference of $25.00 per share, 10,000,000 shares authorized; 3,830,378 and 3,698,318 shares issued and outstanding, respectively; redemption value of $95,759,450 and $92,457,950, respectively	383	370
Additional paid-in capital	245,978,573	240,609,345
Deficit	(150,589,204)	(136,462,244)
Accumulated other comprehensive loss	(18)	571
Class A common stock held in treasury, at cost (1,721,608 and 944,502 shares, respectively)	(21,786,509)	(13,202,407)
Total stockholders' equity	73,604,936	90,947,300
Noncontrolling interests	756,571	651,853
Total equity	74,361,507	91,599,153
Total liabilities and equity	270,944,175	245,426,099
Common Class A
Stockholders' Equity:
Common stock value	945	899
Common Class B
Stockholders' Equity:
Common stock value	$ 766	$ 766

Debt - Schedule (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Total debt	$ 67,902,392	$ 56,678,508
Less: debt issuance costs	1,303,991	1,402,880
Less: current portion	8,440,108	6,196,909
Total long-term debt	58,158,293	49,078,719
Revolving Loan.
Total debt	22,035,713	17,585,699
9.50% Notes Due 2025 [Member]
Total debt	32,895,900	32,895,900
Film Acquisition Advance [Member]
Total debt	$ 12,970,779	$ 6,196,909

Content Assets (Tables)

3 Months Ended

Mar. 31, 2022

Entertainment [Abstract]

Schedule of content assets


	March 31,		December 31,
	2022		2021
Original productions:
Programming costs released	$	25,965,912	$	25,669,921
In production		—		562,808
In development		7,943,139		6,662,591
Accumulated amortization ^(a)		(23,571,721)		(23,268,306)
Programming costs, net		10,337,330		9,627,014

Film library:
Film library acquisition costs		146,878,460		134,463,191
Accumulated amortization ^(b)		(85,210,986)		(80,847,748)
Film library costs, net		61,667,474		53,615,443

Licensed program rights:
Programming rights		15,829,362		1,209,362
Accumulated amortization		(1,018,002)		(806,423)
Programming rights, net		14,811,360		402,939

Content assets, net	$	86,816,164	$	63,645,396

^(a) ^{As of March 31, 2022 and December 31, 2021, accumulated amortization includes impairment expense of}^$8,262,663^{, respectively.}

^(b) ^{As of March 31, 2022, and December 31, 2021, accumulated amortization includes impairment expense}^of^$5,506,069^{, respectively.}

Schedule of programming costs amortization



	Three Months Ended
	March 31,
	2022		2021
Original productions	$	303,414	$	2,205,861
Film library		4,363,238		6,903,916
Licensed program rights		211,580		24,751
Total content asset amortization	$	4,878,232	$	9,134,528

Earnings Per Share (Details) - USD ($)	3 Months Ended
Earnings Per Share (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Net loss available to common stockholders	$ (14,126,960)	$ (9,193,381)
Basic weighted-average shares outstanding	15,331,743	13,635,759
Weighted-average diluted common shares outstanding	15,331,743	13,635,759
Basic loss per share	$ (0.92)	$ (0.67)
Diluted loss per share	$ (0.92)	$ (0.67)
Stock Options And Warrants [Member]
Dilutive effect of options and warrants	502,339	3,571,946

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

+ Details

Commitments and Contingencies - Narrative (Details) - USD ($)		3 Months Ended
	May 21, 2021	Mar. 31, 2022	Dec. 31, 2021
Programming obligations		$ 15,570,000	$ 1,641,250
Contingent consideration		6,639,061	9,764,256
Cash consideration		6,672,474
Content Acquisition, Licensing And Production [Member]
content obligation		52,827,962	38,638,445
Library acquisition		19,139,499	24,673,866
Programming obligations		15,570,000	1,641,250
Other Commitment		18,118,463	$ 12,323,329
Sonar Entertainment Inc.
Contingent consideration		6,639,061
Cash consideration	$ 18,902,000
CSS AVOD Inc.
Cash consideration	$ 11,500,000	$ 11,500,000
Percentage of shares of common stock	5.00%	5.00%

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 13 – Income Taxes

The Company’s current and deferred income tax provision are as follows:


	Three Months Ended March 31,
	2022		2021
Current provision:
States	$	20,000	$	14,000
Total current provision	$	20,000	$	14,000

Deferred income taxes reflect the temporary differences between the financial statement carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, adjusted by the relevant tax rate. The components of deferred tax assets and liabilities are as follows:


	March 31,		December 31,
	2022		2021
Deferred tax assets:
Net operating loss carry-forwards	$	18,020,000	$	14,503,000
Acquisition-related costs		528,000		539,000
Film library and other intangibles		16,161,000		16,883,000
Other		545,000		337,000
Less: valuation allowance		(34,419,000)		(31,412,000)
Total deferred tax assets		835,000		850,000
Deferred tax liabilities:
Programming costs		302,000		299,000
Other assets		533,000		551,000
Total deferred tax liabilities		835,000		850,000
Net deferred tax asset	$	—	$	—

The Company and its subsidiaries have combined net operating losses of approximately $67,042,000, 10,843,000, of which were incurred before 2018 and expire between 2031 and 2037 with the balance of $56,199,000 having no expiration under changes made by the Tax Cuts and Jobs Act but may only be utilized generally to offset only 80 percent of taxable income. The ultimate realization of the tax benefit from net operating losses is dependent upon future taxable income, if any, of the Company.

Internal Revenue Code Section 382 imposes limitations on the use of net operating loss carryovers when the stock ownership of one or more 5% stockholders (stockholders owning 5% or more of the Company’s outstanding capital stock) has increased by more than 50 percentage points. Additionally the separate-return-limitation-year (SRLY) rules that apply to consolidated returns may limit the utilization of losses in a given year when consolidated tax returns are filed. Management has determined that because of a recent history of recurring losses, the ultimate realization of the net operating loss carryovers is not assured and has recorded a full valuation allowance. Public trading of company stock poses a risk of an ownership change beyond the control of the Company that could trigger a limitation of the use of the loss carryover.

The deferred tax asset valuation allowance increased by $3,007,000 and $1,296,000 during the three months ended March 31, 2022 and 2021, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Note 3 – Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 was effective for public companies’ fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach. Because the Company is an emerging growth company, the Company adopted the new lease accounting standard by applying the new lease guidance at the adoption date on January 1, 2022, and as allowed under the standard, elected not to restate comparative periods. As of January 1, 2022, in connection with the adoption of the new lease accounting standard, the Company recorded an operating lease right-of-use asset totaling $8,612,596 with a corresponding lease liability totaling $9,991,977. Refer to Note 10, Leases, for further details on our adoption of the new standard.

In March 2020, FASB issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The Company adopted ASU-2020-04 in the second quarter of 2021 on a prospective basis and will apply this guidance as contracts are modified through December 2022. The adoption did not have an immediate direct impact on our financial statements. We do not expect there to be a material impact on our financial statements.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2022 (fiscal year 2023 for the Company). Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the condensed consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Restricted Cash	$ 1,923,216	$ 1,552,052

Revenue Recognition

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 5 – Revenue Recognition

The following table disaggregates our revenue by source:


	Three Months Ended March 31,
							% of
	2022		% of revenue		2021		revenue
Revenue:
VOD and streaming	$	21,347,363	73	%	$	13,890,948	60	%
Licensing and other		7,858,834	27	%		9,305,894	40	%
Net revenue	$	29,206,197	100	%	$	23,196,842	100	%

VOD and streaming

VOD and streaming revenue included in this revenue source is generated as the Company distributes and exhibits VOD content through the Crackle Plus network directly to consumers across all digital platforms, such as connected TV’s, smartphones, tablets, gaming consoles and the web through our owned and operated AVOD or FAST channel networks. In addition, this revenue source includes third party streaming platform license revenues, including transactional video on demand (TVOD) revenues, AVOD or FAST channel revenue share or performance based revenue, SVOD, cable tv and barter syndication generated revenues. The Company generates VOD and streaming revenues for our VOD networks in three primary ways, selling advertisers product and content integrations and sponsorships related to our productions, selling advertisers the ability to present content to our viewers, often with fewer commercials, and selling advertisers video ad inventory on our VOD networks.

Licensing and other

Licensing and other revenue included in this revenue source is generated as the Company licenses movies and television series worldwide, through Screen Media Ventures and 1091 Pictures, through license agreements across channels, including theatrical and home video. Additionally, Licensing and other also includes the sale of content and content services revenue, including development, non-writing executive producer fees and production services.

For the three months ended March 31, 2022 and 2021, total licensing revenues, including VOD and streaming, were $16,233,557 and $14,620,974, respectively.

Contract balances include the following:


	March 31,		December 31,
	2022		2021
Accounts receivable, net	$	27,370,872	$	25,818,447
Contract assets (included in accounts receivable)		38,853,694		34,395,360
Total accounts receivable, net	$	66,224,566	$	60,213,807

Deferred revenue (included in other liabilities)	$	3,652,200	$	1,536,687

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Leases - Balance sheet (Details)	Mar. 31, 2022 USD ($)
Right-of-Use Assets
Operating lease right-of-use assets	$ 8,385,948
Lease Liabilities:
Operating lease liabilities	$ 9,799,043
Weighted average remaining lease term (in years)	9 years
Weighted average discount rate (as percentage)	6.00%

Revenue Recognition - Disaggregates our revenue by major operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 29,206,197	$ 23,196,842
Revenue
Disaggregation of Revenue [Line Items]
Net revenue	$ 29,206,197	$ 23,196,842
Revenue \| Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Concentration risk percentage	100.00%	100.00%
VOD and streaming
Disaggregation of Revenue [Line Items]
Net revenue	$ 21,347,363	$ 13,890,948
VOD and streaming \| Customer Concentration Risk [Member] \| Revenue \| Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Concentration risk percentage	73.00%	60.00%
Licensing and other
Disaggregation of Revenue [Line Items]
Net revenue	$ 7,858,834	$ 9,305,894
Licensing and other \| Customer Concentration Risk [Member] \| Revenue \| Customer Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Concentration risk percentage	27.00%	40.00%

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

Note 16 – Stockholders’ Equity

Treasury Stock

On February 28, 2022, the Board of Directors increased the total authorization under the Company’s stock repurchase program by $10,000,000 to $30,000,000. At March 31, 2022, the Company had $8,846,220 of authorization remaining under the stock repurchase program. During the three months ended March 31, 2022, the Company repurchased 777,106 shares of Class A Common Stock at an average price of $11.05.

At the Market Offering

During the period ended March 31, 2022, the Company completed the sale of an aggregate of 52,060 shares of Class A preferred stock, generating net proceeds of $1,288,739.

Common Stock Private Placement

On January 20, 2021, the Company completed a private placement of 1,022,727 shares of common stock at a price of $22.00 per common share, generating net proceeds of $21,374,994.

Subsidiary Convertible Preferred Stock

The subsidiary convertible preferred stock represented the equity attributable to the noncontrolling interest holder as a part of the Crackle Plus business combination. Given the terms of the transaction, the noncontrolling interest holder had the right to convert their Preferred Units in Crackle Plus into Common Units representing common ownership of 49% in Crackle Plus or into Series A Preferred Stock of the Company.

On January 13, 2021, the Company issued 1,600,000 shares of its Series A Preferred Stock to CPEH pursuant to the Put Option granted to CPEH under the JV Operating Agreement, as amended. The Put Option was exercised on December 14, 2020. The Company had the option to elect to pay cash in lieu of issuing Series A Preferred Stock. The Company elected to satisfy the Put Option entirely through the issuance of Series A Preferred Stock. As a result of CPEH’s exercise of the Put Option, the Company now owns 100% of Crackle Plus.

Noncontrolling Interests

Noncontrolling interests represent an equity interest in consolidated subsidiaries, including CSS AVOD, Locomotive Global and Landmark Studio Group. On March 3, 2022, the Company purchased the remaining equity interest in Landmark Studio Group in exchange for 84,000 shares of Class A common stock and $2,200,000, of which $1,450,000 is payable two years from the acquisition date. The purchase increased the Company’s ownership in Landmark Studio Group from 78.5% to 100%.

Warrants

Warrant activity for the three months ended March 31, 2022 is as follows:


						Weighted
				Weighted		Average
				Average		Remaining
	Outstanding		Outstanding	Exercise		Contract
Warrants	at December 31, 2021	Exercised	at March 31, 2022	Price		Term (Yrs.)
Class W	526,362	—	526,362	$	7.50	1.25
Class Z	123,109	—	123,109		12.00	2.25
CSSE Class I	800,000	—	800,000		8.13	2.12
CSSE Class II	1,200,000	—	1,200,000		9.67	2.12
CSSE Class III-A	380,000	—	380,000		11.61	2.12
CSSE Class III-B	1,620,000	—	1,620,000		11.61	2.12
Total	4,649,471	—	4,649,471	$	10.06	2.03

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 13
-Subparagraph (h)
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 18
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from Operating Activities:
Net loss	$ (11,883,276)	$ (6,939,996)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	996,797	231,844
Content asset amortization	4,878,232	9,134,528
Amortization of deferred financing costs	149,069	98,889
Amortization and depreciation of intangibles, property and equipment	2,004,073	1,621,360
Bad debt and video return expense	581,834	694,212
Changes in operating assets and liabilities:
Trade accounts receivable	(1,915,460)	(1,552,003)
Prepaid expenses and other assets	(950,440)	(229,653)
Content assets	(24,906,339)	(10,665,762)
Accounts payable, accrued expenses and other payables	1,638,507	(1,087,368)
Film library acquisition and programming obligations	8,394,383	4,345,165
Accrued participation costs	5,795,134	(5,006,136)
Other liabilities	2,170,050	1,089,986
Net cash used in operating activities	(13,047,436)	(8,264,934)
Cash flows from Investing Activities:
Expenditures for property and equipment	(612,813)	(123,351)
Business combination, net of cash acquired	(6,672,474)
(Increase) decrease in due from affiliated companies	(684,946)	1,259,274
Net cash (used in) provided by investing activities	(7,970,233)	1,135,923
Cash flows from Financing Activities:
Principal payments on debt	(22,130)	(4,963,962)
Repurchase of common stock	(8,584,102)
Payment of contingent consideration	(2,100,195)
Acquisition of subsidiary noncontrolling interest	(750,000)
Proceeds from revolving loan, net	4,350,014
Proceeds from film acquisition advance	6,796,000
Proceeds from issuance of Series A preferred stock, net	1,288,739
Decrease in due to affiliated companies	(489,959)
Dividends paid to preferred stockholders	(2,255,888)	(1,928,425)
Net cash (used in) provided by financing activities	(1,767,521)	16,966,160
Effect of foreign exchanges on cash, cash equivalents and restricted cash	(1,604)
Net (decrease) increase in cash, cash equivalents and restricted cash	(22,786,794)	9,837,149
Cash, cash equivalents and restricted cash at beginning of period	44,286,105	14,732,726
Cash, cash equivalents and restricted cash at end of the period	21,499,311	24,569,875
Supplemental data:
Cash paid for interest	1,151,636	1,470,015
Non-cash investing activities:
Property and equipment in accounts payable and accrued expenses	410,935	$ 251,914
Non-cash financing activities:
Class A common stock and additional consideration for acquisition of noncontrolling interest	$ 2,228,680
Preferred stock issued for Crackle Plus acquisition		40,000,000
Common Class A
Cash flows from Financing Activities:
Proceeds from issuance of common stock		$ 23,858,547

Earnings Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Note 7 - Earnings Per Share

Basic earnings (loss) per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) available to common stockholders by the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include stock options and warrants outstanding during the period, using the treasury stock method. Potentially dilutive common shares are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive. A net loss available to common stockholders causes all potentially dilutive securities to be anti-dilutive and are not included.

Basic and diluted loss per share are computed as follows:


	Three Months Ended March 31,
	2022		2021
Net loss available to common stockholders	$	(14,126,960)	$	(9,193,381)

Basic weighted-average common shares outstanding		15,331,743		13,635,759
Dilutive effect of options and warrants		—		—
Weighted-average diluted common shares outstanding		15,331,743		13,635,759

Basic and diluted loss per share	$	(0.92)	$	(0.67)

Anti-dilutive stock options and warrants		502,339		3,571,946

Share-Based Compensation (Details) - USD ($)	3 Months Ended		12 Months Ended
Share-Based Compensation (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Options, Options granted		0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock Options, Total outstanding at the beginning of the period	1,377,339
Number of Stock Options, Options granted	65,000
Number of Stock Options, Options forfeited	(12,457)
Number of Stock Options, Total outstanding at the end of the period	1,429,882		1,377,339
Number of Stock Options, Total vested and exercisable	738,640		648,119
Weighted Average Exercise Price, Beginning of period	$ 16.13
Weighted Average Exercise Price, Granted	11.80
Weighted Average Exercise Price, Forfeited	21.37
Weighted Average Exercise Price, End of period	15.89		$ 16.13
Weighted Average Exercise Price, Vested and Exercisable	$ 12.50		$ 11.64
Weighted Average Remaining Contract Term, Total outstanding	3 years 5 months 23 days		3 years 4 months 13 days
Weighted Average Remaining Contract Term Exercise Price, Vested and Exercisable	2 years 8 months 19 days		2 years 9 months 7 days
Aggregate Intrinsic Value, Total outstanding Balance, Beginning of the period	$ 2,579,201
Aggregate Intrinsic Value, Total outstanding Balance, End of the period	21,950		$ 2,579,201
Aggregate Intrinsic Value, Vested and Exercisable	$ 21,950		$ 2,407,521

Content Assets (Details) - USD ($)	3 Months Ended		12 Months Ended
Content Assets (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Entertainment [Abstract]
Programming costs released	$ 25,965,912		$ 25,669,921
In production			562,808
In development	7,943,139		6,662,591
Accumulated amortization	(23,571,721)		(23,268,306)
Programming costs, net	10,337,330		9,627,014
Film library acquisition costs	146,878,460		134,463,191
Accumulated amortization	(85,210,986)		(80,847,748)
Net film library costs	61,667,474		53,615,443
Programming rights	15,829,362		1,209,362
Accumulated amortization	(1,018,002)		(806,423)
Programming rights, net	14,811,360		402,939
Content assets, net	86,816,164		63,645,396
Programming costs impairment	0	$ 0	8,262,663
Television Programming Costs Impairment, Original Productions	8,262,663		8,262,663
Television Programming Costs Impairment, Acquired Film Library	$ 5,506,069		$ 5,506,069

Income Taxes - Additional information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net operating losses	$ 67,042,000
Operating loss carryforwards with no expiration	$ 56,199,000
Percentage of operating loss carryforwards offset on taxable income	80.00%
Deferred tax asset valuation allowance	$ 3,007,000	$ 1,296,000
Tax Year 2031 to 2037
Net operating losses	$ 10,843,000

Stockholders' Equity - Warrants (Details)	3 Months Ended
Stockholders' Equity - Warrants (Details)	Mar. 31, 2022 $ / shares shares
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	4,649,471
Class of Warrant or Right, Outstanding	4,649,471
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 10.06
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 10 days
Class W [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	526,362
Class of Warrant or Right, Outstanding	526,362
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 7.50
Class of Warrant or Right, Weighted Average Remaining Contact Term	1 year 3 months
Class Z [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	123,109
Class of Warrant or Right, Outstanding	123,109
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 12.00
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 3 months
CSSE Class I [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	800,000
Class of Warrant or Right, Outstanding	800,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 8.13
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 1 month 13 days
CSSE Class II [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	1,200,000
Class of Warrant or Right, Outstanding	1,200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 9.67
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 1 month 13 days
CSSE Class III A [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	380,000
Class of Warrant or Right, Outstanding	380,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 11.61
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 1 month 13 days
CSSE Class III B [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Outstanding	1,620,000
Class of Warrant or Right, Outstanding	1,620,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / shares	$ 11.61
Class of Warrant or Right, Weighted Average Remaining Contact Term	2 years 1 month 13 days

Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 9 - Intangible Assets

Intangible assets, net, consists of the following:


		Gross				Net
		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount
March 31, 2022:
Crackle Plus content rights	$	1,708,270	$	1,637,092	$	71,178
Crackle Plus brand value		18,807,004		7,724,305		11,082,699
Crackle Plus partner agreements		4,005,714		2,303,286		1,702,428
Distribution network		3,600,000		1,000,000		2,600,000
Locomotive contractual rights		1,500,986		227,300		1,273,686
1091 intangible asset		4,919,525		—		4,919,525
Total	$	34,541,499	$	12,891,983	$	21,649,516

December 31, 2021:
Crackle Plus content rights	$	1,708,270	$	1,494,736	$	213,534.00
Crackle Plus brand value		18,807,004		7,052,626		11,754,378.00
Crackle Plus partner agreements		4,005,714		2,103,000		1,902,714.00
Distribution network		3,600,000		700,000		2,900,000.00
Locomotive contractual rights		1,356,868		92,403		1,264,465.00
Total	$	29,477,856	$	11,442,765	$	18,035,091

Amortization expense was $1,449,218 and $1,205,452 for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022 amortization expense for the next 5 years is expected be:


Remainder of 2022	$	5,192,199
2023		6,828,028
2024		5,525,096
2025		3,096,675
2026		1,007,518
Total	$	21,649,516

Total goodwill on our Condensed Consolidated Balance Sheets was $44,906,055 and $39,986,530 as of March 31, 2022 and December 31, 2021, respectively, and is comprised of the following:


	March 31, 2022
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	21,075,503	$	—
Acquisitions		—		4,919,525		—
Total	$	18,911,027	$	25,995,028	$	—


	December 31, 2021
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	1,236,760	$	1,300,319
Acquisitions		—		19,838,743		—
Accumulated impairment losses		—		—		(1,300,319)
Total	$	18,911,027	$	21,075,503	$	—

There was no impairment recorded related to goodwill and intangible assets in the three months ended March 31, 2022 and 2021, respectively.

Income Taxes - Provision (Details) - USD ($)	3 Months Ended
Income Taxes - Provision (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Current provision (benefit):
States	$ 20,000	$ 14,000
Total current provision	$ 20,000	$ 14,000

Business Combination

3 Months Ended

Mar. 31, 2022

Business Combinations [Abstract]

Business Combination

Note 4 – Business Combinations

1091 Pictures Acquisition

On March 4, 2022, the Company consummated its acquisition of certain of the assets of 1091 Media, LLC, including all of the outstanding equity of its operating subsidiary, TOFG LLC, which does business under the name 1091 Pictures (“1091 Pictures”). 1091 Pictures provides full-service distribution services to film and series owners, including access to platforms that reach more than 100 countries, and related marketing support, and has a library of approximately 4,000 licensed films and television shows. The Company paid consideration of $13,283,750 through the payment of $8,000,000 in cash, the issuance of 375,000 shares of the Company’s Class A common stock and the issuance of 80,000 shares of the Company’s Series A preferred stock.

The Company has allocated the purchase price to the identifiable net assets acquired, including intangible assets and liabilities assumed, based on the estimated fair values at the date of acquisition. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities was recorded as goodwill.

The purchase price allocation is preliminary and subject to change up to one year after the date of acquisition and could result in changes to the amounts recorded below. The preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed at the date of the acquisition was as follows:



Accounts receivable, net	$	4,677,133
Content assets		3,142,661
Other assets		49,347
Intangibles		4,919,525
Total identifiable assets acquired		12,788,666
Accounts payable and accrued expenses		129,244
Revenue share payable		1,623,177
Accrued third party share		3,999,544
Total liabilities assumed		5,751,965
Net identifiable assets acquired		7,036,701
Goodwill		4,919,525
Net assets acquired	$	11,956,226



Cash consideration	$	8,000,000
Equity consideration - Class A common stock		3,303,750
Equity consideration - Series A Preferred Stock		1,980,000
Purchase price consideration		13,283,750
Less: cash acquired		(1,327,524)
Total Estimated Purchase Price	$	11,956,226

Sonar Acquisition

On May 21, 2021, the Company consummated its acquisition of the principal assets of Sonar Entertainment, Inc. (“SEI”) and certain of the direct and indirect subsidiaries of SEI (collectively, “Sonar”). Sonar is an award-winning independent television studio that owns, develops, produces, finances and distributes content for global audiences. In consideration for the assets purchased from Sonar (“Purchased Assets”), the Company paid to Sonar an initial cash purchase price of $18,902,000 and from time to time will be required to pay additional purchase price based on the performance of the acquired assets.

During the 18-month period following the closing, the Company has the right (the “Buyout Option”), exercisable upon written notice to Sonar during such period, to buy out all future entitlements (i.e., additional purchase price and other entitlements not yet due and payable to Sonar as of the date of such notice) in exchange for a one-time payment to Sonar. In connection with the transaction, the Company formed a new subsidiary, CSS AVOD Inc., and issued shares of common stock, representing 5% of the after-issued equity of CSS AVOD, to MidCap Financial Trust, as Agent. At any time during the three-year period immediately following the 18-month anniversary of the asset purchase agreement closing, MidCap, as Agent, shall have the right upon 60 days’ prior written notice to CSSE to require CSSE to purchase such CSS AVOD Shares for $11,500,000 (“Put Election”).

The Sonar acquisition was accounted for as a purchase of a business in accordance with ASC 805 and the aggregate purchase price consideration of $53,812,000 has been allocated to the assets acquired and liabilities assumed, based on the estimated fair values at the date of acquisition. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities was recorded as goodwill.

The purchase price allocation is preliminary and subject to change up to one year after the date of acquisition and could result in changes to the amounts recorded below. The preliminary allocation of the purchase price to the fair values of the assets acquired assumed at the date of the acquisition was as follows:


	May 21, 2021
Accounts receivable, net	$	17,373,257
Film library		13,000,000
Intangible asset		3,600,000
Total identifiable assets acquired		33,973,257
Goodwill		19,838,743
Net assets acquired	$	53,812,000

In estimating the fair value of the acquired assets, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected growth rates and estimated discount rates.

The amount related to the acquired intangible asset represent the estimated fair value of the distribution network. This definite lived intangible asset is being amortized on a straight-line basis over its estimated useful life of 36 months.

Goodwill was calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and liabilities assumed, and represents the future economic benefits expected to arise from the intangible assets acquired that do not qualify for separate recognition.

The fair values of assets acquired were based upon valuations performed by independent third party valuation experts.


Cash	$	18,902,000
Fair Value of Additional Purchase Price – Library Account Receivable		1,580,000
Fair Value of Additional Purchase Price – Contracted TV Cash Flow		13,700,000
Fair Value of Additional Purchase Price – % of Film Cash Flow		630,000
Fair Value of Additional Purchase Price – % of Non-TV Business Cash Flow		2,300,000
Fair Value of Additional Purchase Price – Development Slate Cash Flow		5,200,000
Fair Value of Additional Purchase Price – CSS AVOD Equity Put		11,500,000
Total Estimated Purchase Price	$	53,812,000

Based on the terms of the asset purchase agreement, theCompany estimated the fair value of the Additional Purchase Price components based on, but not limited to, expected future collection of receivables, expected future revenue and cash flows, expected growth rates, and estimated discount rates.

The Additional Purchase Price included a 5% interest in CSS AVOD and a Put Option that requires the Company to purchase the shares of CSS AVOD, Inc. (5.0% of the entity) from the investor for $11,500,000. The fair value of the 5.0% interest in CSS AVOD, Inc. was estimated based on expected future cash flows. The Put Option was valued by the Company via a Black-Sholes valuation model assuming an initial price of $125,000, a strike price of $11,500,000, volatility of 100.0% and term of 1.5 years.

The following table illustrates Sonar’s stand-alone financial performance included in the Company’s condensed consolidated statement of operations:


	Three Months Ended
	March 31,
	2022
Net revenue	$	7,207,243
Net income	$	3,294,072

The unaudited financial information in the table below summarizes the combined results of operations of the Company and Sonar on a pro forma basis, as though the companies had been combined as of January 1, 2020. These pro forma results were based on estimates and assumptions, which we believe are reasonable. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at January 1, 2020. The pro forma financial information assumes our revolving loan was entered into as of January 1, 2020 and includes adjustments to amortization for acquired intangible assets and interest expense.


	Three Months Ended March 31,
	2022		2021
Net revenue	$	29,206,197	$	28,196,550
Net loss	$	(14,126,960)	$	(11,181,104)
Basic and diluted net loss per share	$	(0.92)	$	(0.82)

Segment Reporting and Geographic Information (Details) - segment	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Number of reportable segments	1
Sales Revenue, Net [Member] \| UNITED STATES \| Customer Concentration Risk [Member]
Concentration risk percentage	80.00%	99.00%

Revenue Recognition - Additional information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net revenue	$ 29,206,197	$ 23,196,842
Revenue
Disaggregation of Revenue [Line Items]
Net revenue	29,206,197	23,196,842
Licensing revenues
Disaggregation of Revenue [Line Items]
Net revenue	$ 16,233,557	$ 14,620,974

- Definition

+ References

+ Details

Stockholders' Equity - Narrative (Details) - USD ($)				3 Months Ended
Stockholders' Equity - Narrative (Details) - USD ($)	Mar. 03, 2022	Jan. 20, 2021	Jan. 13, 2021	Mar. 31, 2022	Mar. 31, 2021	Mar. 02, 2022	Feb. 28, 2022	Feb. 27, 2022
Stock Repurchase Program, Authorized Amount							$ 30,000,000	$ 10,000,000
Remaining stock repurchase plan authorized				$ 8,846,220
Market price per share				$ 11.80
Elimination of noncontrolling interests				$ 2,200,000
Landmark Studios Group
Elimination of noncontrolling interests	$ 2,200,000
Sale of stock consideration payable	$ 1,450,000
Term of sale of stock consideration payable	2 years
Crackle Plus Entity
Common ownership percent			100.00%	49.00%
Private Placement [Member]
Shares issued		1,022,727
Common stock at a price		$ 22.00
Proceeds from Issuance of Common Stock		$ 21,374,994
At The Market Offering [Member]
Proceeds from sale of stock				$ 1,288,739
Common Class A
Proceeds from Issuance of Common Stock					$ 23,858,547
Common Class A \| Landmark Studios Group
Acquisition of subsidiary noncontrolling interest (in shares)	84,000
Common Class A \| At The Market Offering [Member]
Shares issued				52,060
Series A Preferred Stock
Shares issued			1,600,000
Landmark Studios Group
Noncontrolling interests percent	100.00%					78.50%
Stock Repurchase Program \| Common Class A
Stock Repurchased During Period, Shares				777,106
Market price per share				$ 11.05

Business Combination - Sonar's Standalone financial performance (Details) - Sonar Entertainment Inc.	3 Months Ended
	Mar. 31, 2022 USD ($)
Net revenue	$ 7,207,243
Net income	$ 3,294,072

Segment Reporting and Geographic Information

3 Months Ended

Mar. 31, 2022

Segment and Geographic Information [Abstract]

Segment Reporting and Geographic Information

Note 17 – Segment Reporting and Geographic Information

The Company’s reportable segments have been determined based on the distinct nature of its operations, the Company’s internal management structure, and the financial information that is evaluated regularly by the Company’s chief operating decision maker. The Company operates in one reportable segment, the production and distribution of video content, and currently operates in the United States and internationally.

Net revenue generated in the United States accounted for approximately 80% and 99% of total net revenue for the three months ended March 31, 2022 and 2021, respectively. All of the Company’s long-lived assets are based in the United States.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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+ Details

Intangible Assets and Goodwill - Finite-lived (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Gross Carrying Amount		$ 29,477,856
Accumulated Amortization	$ 12,891,983	11,442,765
Net Carrying Amount	21,649,516	18,035,091
Indefinite lived intangible assets	12,163,943	12,163,943
Finite and indefinite intangible assets, Gross Carrying Amount	34,541,499
Finite and indefinite intangible assets, Net Carrying Amount	21,649,516
Crackle Plus content rights
Gross Carrying Amount	1,708,270	1,708,270
Accumulated Amortization	1,637,092	1,494,736
Net Carrying Amount	71,178	213,534.00
Crackle Plus brand value
Gross Carrying Amount	18,807,004	18,807,004
Accumulated Amortization	7,724,305	7,052,626
Net Carrying Amount	11,082,699	11,754,378.00
Crackle Plus partner agreements
Gross Carrying Amount	4,005,714	4,005,714
Accumulated Amortization	2,303,286	2,103,000
Net Carrying Amount	1,702,428	1,902,714.00
Distribution network
Gross Carrying Amount	3,600,000	3,600,000
Accumulated Amortization	1,000,000	700,000
Net Carrying Amount	2,600,000	2,900,000.00
Locomotive contractual rights
Gross Carrying Amount	1,500,986	1,356,868
Accumulated Amortization	227,300	92,403
Net Carrying Amount	1,273,686	$ 1,264,465.00
1091 intangible asset
Accumulated Amortization	0
Indefinite lived intangible assets	$ 4,919,525

Income Taxes - Deferred taxes (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Deferred Tax Assets:
Net operating loss carry-forwards	$ 18,020,000	$ 14,503,000
Acquisition-related costs	528,000	539,000
Film library and other intangibles	16,161,000	16,883,000
Other	545,000	337,000
Less: valuation allowance	(34,419,000)	(31,412,000)
Total Deferred Tax Assets	835,000	850,000
Deferred Tax Liabilities:
Programming costs	302,000	299,000
Other assets	533,000	551,000
Total deferred tax liabilities	835,000	850,000
Net deferred tax asset	$ 0	$ 0

Put Option Obligation

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Put Option Obligation

Note 12 – Put Option Obligation

As part of the additional purchase price for the Sonar Entertainment, Inc business acquisition, the Company issued a 5% interest in CSS AVOD, Inc and a Put Option that, if exercised, requires the Company to purchase the issued investor shares of CSS AVOD, Inc. from the investor for $11,500,000 in cash. The Put Option is exercisable, with 60 day’s written notice, by the investor at any time during a three year period commencing on October 8, 2022 and expiring on October 7, 2025 (“Put Election Period”).

As of March 31, 2022, the 5% interest in CSS AVOD, Inc consists of the following,


	March 31,
	2022
Put Option Obligation	$	11,400,000
Noncontrolling Interests		95,592
Total	$	11,495,592

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of components of basic and diluted loss per share


	Three Months Ended March 31,
	2022		2021
Net loss available to common stockholders	$	(14,126,960)	$	(9,193,381)

Basic weighted-average common shares outstanding		15,331,743		13,635,759
Dilutive effect of options and warrants		—		—
Weighted-average diluted common shares outstanding		15,331,743		13,635,759

Basic and diluted loss per share	$	(0.92)	$	(0.67)

Anti-dilutive stock options and warrants		502,339		3,571,946

Recent Accounting Pronouncements (Details) - USD ($)	Mar. 31, 2022	Jan. 01, 2022
Operating lease right-of-use assets	$ 8,385,948
Operating lease liabilities	$ 9,799,043
ASU 2016-02
Operating lease right-of-use assets		$ 8,612,596
Operating lease liabilities		$ 9,991,977

Share-Based Compensation - Weighted average assumptions (Details)	3 Months Ended
	Mar. 31, 2022 $ / shares
Valuation assumptions:
Expected dividend yield	0.00%
Expected equity volatility	65.60%
Expected term (years)	5 years
Risk-free interest rate	1.58%
Exercise price per stock option	$ 11.80
Market price per share	11.80
Weighted average fair value per stock option	$ 6.55

Leases - Additional Information (Details) - USD ($)	3 Months Ended
Leases - Additional Information (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Rent expenses	$ 548,669	$ 499,711
Cash paid for operating lease	$ 305,153

Content Assets - Amortization - (Details) - USD ($)	3 Months Ended
Content Assets - Amortization - (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Entertainment [Abstract]
Original productions	$ 303,414	$ 2,205,861
Film library	4,363,238	6,903,916
Licensed program rights	211,580	24,751
Total programming amortization expense	$ 4,878,232	$ 9,134,528

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Note 2 – Basis of Presentation and Summary of Significant Accounting Policies

The accompanying interim condensed consolidated financial statements of Chicken Soup for the Soul Entertainment, Inc. have been prepared in conformity with accounting principles generally accepted in the United States and are consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022. These condensed consolidated financial statements are unaudited and have been prepared by the Company following the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted as permitted by such rules and regulations; however, the Company believes the disclosures are adequate to make the information presented not misleading.

The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Interim results are not necessarily

indicative of the results for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include revenue recognition, estimated film ultimate revenues, allowance for doubtful accounts, intangible assets, share-based compensation expense, valuation allowance for deferred income taxes and amortization of programming and film library costs. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments and estimates. Actual results may differ from these estimates.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, except for the adoption of ASU 2016-02, Leases (Topic 842) as further described in Note 3.

Cash and Cash Equivalents

Cash and cash equivalents includes restricted cash of $1,923,216 at March 31, 2022 and $1,552,052 at December 31, 2021.

Condensed Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Net revenue	$ 29,206,197	$ 23,196,842
Cost of revenue	22,575,408	16,242,934
Gross profit	6,630,789	6,953,908
Operating expenses:
Selling, general and administrative	12,816,520	9,234,819
Amortization and depreciation	1,648,258	1,238,027
Management and license fees	2,920,620	2,319,684
Total operating expenses	17,385,398	12,792,530
Operating loss	(10,754,609)	(5,838,622)
Interest expense	1,310,459	1,087,944
Other non-operating income, net	(201,792)	(570)
Loss before income taxes and preferred dividends	(11,863,276)	(6,925,996)
Provision for income taxes	20,000	14,000
Net loss before noncontrolling interests and preferred dividends	(11,883,276)	(6,939,996)
Net loss attributable to noncontrolling interests	(38,385)
Net loss attributable to Chicken Soup for the Soul Entertainment, Inc.	(11,844,891)	(6,939,996)
Less: preferred dividends	2,282,069	2,253,385
Net loss available to common stockholders	$ (14,126,960)	$ (9,193,381)
Net loss per common share:
Basic	$ (0.92)	$ (0.67)
Diluted	$ (0.92)	$ (0.67)
Weighted-average common shares outstanding:
Basic	15,331,743	13,635,759
Diluted	15,331,743	13,635,759

Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions

Note 14 – Related Party Transactions

Chicken Soup For The Soul Productions, LLC

Chicken Soup For The Soul Productions LLC (“CSS”) is the parent and controlling stockholder of the Company. At March 31, 2022, CSS directly owns approximately 100% of the Company Class B common stock. CSS ownership of Class B common stock represents an ownership interest of 49.8% of the total outstanding common stock and 91% control of the voting power of the Company. CSS is controlled by Mr. William J. Rouhana, Jr., the Company’s CEO. The Company has agreements with CSS and its affiliated companies that provide the Company with access to important assets and resources including key personnel. The assets and resources provided are included as a part of a management services agreement and a license agreement, where combined, the Company pays 10% of its net revenue earned to CSS. For the three months ended March 31, 2022 and 2021, the Company recorded management and license fees of $2,920,620 and $2,319,684, respectively.

Due To/From Affiliated Companies

The Company is part of CSS’s central cash management system whereby payroll and benefits are administered by CSS and the related expenses are charged to its subsidiaries and funds are transferred between affiliates to fulfill joint liquidity needs and business initiatives. Settlements fluctuate period over period due to timing of liquidity needs. As of March 31, 2022 and December 31, 2021, the Company had an intercompany receivable and payable, respectively, with affiliated companies.


	March 31,		December 31,
	2022		2021
Due to affiliated companies	$	—	$	489,959
Due from affiliated companies		684,946		—
Total due to/due from affiliated companies	$	684,946	$	489,959

Other Related Parties

In the ordinary course of business, the Company is involved in transactions with certain minority shareholders of a consolidated subsidiary related to licensing of television and film programming properties. For the three months ended

March 31, 2022 and 2021, revenue recognized was $0 and $5,000,000, respectively. At March 31, 2022 and December 31, 2021, the Company had accounts receivable of $6,160,585 and $6,363,951, respectively.

Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of amounts recorded in condensed consolidated balance sheet


		March 31,
		2022
Right-of-Use Assets
Operating lease right-of-use assets	$	8,385,948

Lease Liabilities:
Operating lease liabilities	$	9,799,043

		March 31,
		2022
Weighted average remaining lease term		9 years
Weighted average discount rate		6%

Schedule of expected future payments relating to our operating lease liabilities


Remainder of 2022	$	930,803
2023		1,260,675
2024		1,285,888
2025		1,311,606
2026		1,400,731
2027 and thereafter		6,732,415
Total minimum payments		12,922,118
Less amounts representing interest		3,123,075
Present value of minimum payments	$	9,799,043

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of intercompany receivable and payable


	March 31,		December 31,
	2022		2021
Due to affiliated companies	$	—	$	489,959
Due from affiliated companies		684,946		—
Total due to/due from affiliated companies	$	684,946	$	489,959

Business Combination - Purchase price to fair value of net assets acquired (Details) - USD ($)	Mar. 31, 2022	Mar. 04, 2022	Dec. 31, 2021	May 21, 2021
Purchase price consideration allocated to fair value of net assets acquired:
Goodwill	$ 44,906,055		$ 39,986,530
1091 Media, LLC
Purchase price consideration allocated to fair value of net assets acquired:
Accounts receivable, net		$ 4,677,133
Content assets		3,142,661
Other assets		49,347
Intangible asset		4,919,525
Total identifiable assets acquired		12,788,666
Accounts payable and accrued expenses		129,244
Revenue share payable		1,623,177
Accrued third party share		3,999,544
Total liabilities assumed		5,751,965
Net identifiable assets acquired		7,036,701
Goodwill		4,919,525
Net assets acquired		$ 11,956,226
Sonar Entertainment Inc.
Purchase price consideration allocated to fair value of net assets acquired:
Accounts receivable, net				$ 17,373,257
Film library				13,000,000
Intangible asset				3,600,000
Total identifiable assets acquired				33,973,257
Goodwill				19,838,743
Net assets acquired				$ 53,812,000

Related Party Transactions - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Management And License Fees	$ 2,920,620	$ 2,319,684
CSS
Related Party Transaction [Line Items]
Percentage of voting interest by parent	91.00%
CSS
Related Party Transaction [Line Items]
Percentage of revenue earned paid to related party	10.00%
CSS \| Management and license fees
Related Party Transaction [Line Items]
Management And License Fees	$ 2,920,620	2,319,684
Minority Shareholders Of Subsidiary
Related Party Transaction [Line Items]
Revenue from related parties	0	$ 5,000,000
Accounts receivable outstanding	$ 6,160,585		$ 6,363,951
Common Class B \| CSS
Related Party Transaction [Line Items]
Noncontrolling interests percent	100.00%
Common Stock \| CSS
Related Party Transaction [Line Items]
Noncontrolling interests percent	49.80%

Share-Based Compensation - Narrative (Details) - USD ($)		3 Months Ended		12 Months Ended
	Jan. 01, 2017	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock equivalents authorized under Plan	2,500,000
Unrecognized pre-tax compensation expense		$ 7,368,809
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for share-based plan	2 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for share-based plan	3 years
Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense recognized				$ 6,146	$ 1,547,555	$ 3,190,888	$ 2,624,220
Straight-line [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense recognized		933,047	$ 200,594
Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense recognized		$ 63,750	$ 31,250

Debt - Narrative (Details) - USD ($)					1 Months Ended	3 Months Ended
Debt - Narrative (Details) - USD ($)	May 21, 2021	Jan. 20, 2021	Aug. 27, 2020	Jul. 17, 2020	Jan. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 29, 2020	Dec. 22, 2020	Aug. 05, 2020
Interest rate						9.50%		9.50%
Private Placement [Member]
Proceeds from issuance of common stock		$ 21,374,994
Revolving Loan.
Interest rate	0.75%
Revolving Loan. \| LIBOR
Interest rate	4.00%
Revolving Loan. \| Midcap Financial Trust, Credit Agreement
Original principal amount	$ 30,000,000
Amount withdrawn	$ 18,272,931
Percentage of loan available with respect to borrowing base	85.00%
Unused line fee percentage	0.50%
Collateral management fee percentage	0.504%
Minimum cash liquidity	$ 6,000,000
9.50% Notes Due 2025 [Member]
Original principal amount				$ 21,000,000							$ 1,100,000
Interest rate				9.50%
Proceeds from issuance of common stock				$ 20,995,000
Payment of preferred stock issuance costs				1,105,000
9.50% Notes Due 2025 December Notes [Member]
Original principal amount									$ 1,408,150	$ 9,387,750
Interest rate										9.50%
Stated principal per note									$ 25.00
Discounted percentage									2.00%
Offering price per note									$ 24.50
Film Acquisition Advance [Member] \| Great Point Media Limited
Original principal amount			$ 10,210,000
Interest rate			10.00%
Long-term debt term			2 years
Repayment of film acquisition advance						$ 22,130
Film Acquisition Advance [Member] \| Media Entertainment Partners
Original principal amount					$ 6,796,000
Interest rate					12.00%
Long-term debt term					30 months
Commercial Loan
Repayments of commercial loan				$ 13,333,333
Common Class A
Proceeds from issuance of common stock							$ 23,858,547

Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of warrant activity


						Weighted
				Weighted		Average
				Average		Remaining
	Outstanding		Outstanding	Exercise		Contract
Warrants	at December 31, 2021	Exercised	at March 31, 2022	Price		Term (Yrs.)
Class W	526,362	—	526,362	$	7.50	1.25
Class Z	123,109	—	123,109		12.00	2.25
CSSE Class I	800,000	—	800,000		8.13	2.12
CSSE Class II	1,200,000	—	1,200,000		9.67	2.12
CSSE Class III-A	380,000	—	380,000		11.61	2.12
CSSE Class III-B	1,620,000	—	1,620,000		11.61	2.12
Total	4,649,471	—	4,649,471	$	10.06	2.03

Description of the Business

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business

Note 1 – Description of the Business

Chicken Soup for the Soul Entertainment, Inc. is a Delaware corporation formed on May 4, 2016, and is a leading streaming video-on-demand (VOD) company. We operate Crackle Plus, a portfolio of ad-supported streaming services, as well as Screen Media, Halcyon Television, the newly formed Chicken Soup for the Soul Television Group, and a number of affiliates that collectively enable us to acquire, produce, co-produce and distribute content, including our original and exclusive content, all in support of our streaming services. References to “CSSE,” the “Company,” “we,” “us” and “our” refer to Chicken Soup for the Soul Entertainment, Inc. and its consolidated subsidiaries, unless the context otherwise requires.

The Company operates and is managed by the CEO Mr. William J. Rouhana, Jr, as one reportable segment, the production and distribution of video content. The Company currently operates in the United States and India and derives its revenue primarily in the United States. The Company distributes content in over 56 countries and territories worldwide.

Financial Condition and Liquidity

As of March 31, 2022, the Company has a deficit of $150,589,204 and for the three months ended March 31, 2022, the Company had a net loss attributable to common stockholders of $14,126,960. The Company does not expect to continue to incur net losses at this level for the foreseeable future. The Company has evaluated its current financial condition and has determined that the losses incurred in the current year are not indicative of the Company’s ongoing operations. However, it does expect to incur losses for the remainder of 2022 as it continues to invest in and scale its AVOD networks, distributed film library and original productions. 2021 was a transformative year for the Company led by acquisition of the assets of Sonar Entertainment Inc., positioning the Company to leverage its global film rights, its television production capabilities and to enable the launch of a new ad-supported streaming service Chicken Soup for the Soul AVOD in the first quarter of 2022, as well as the acquisition of 1091 Pictures. This strategic shift, in scale and capabilities, will support the Company’s future grow both domestically and internationally.

The Company believes that with the cash on hand, together with equity and debt offerings, and film financings, if necessary, should be adequate to meet the Company’s operational cash requirements, programming commitments, debt service requirements (i.e., principal and interest payments) and dividend payments of the preferred stock for the foreseeable future. The Company monitors cash flow liquidity, availability, capital base, operational spending and leverage ratios with the long-term goal of maintaining the Company’s credit worthiness.

Intangible Assets and Goodwill - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,449,218	$ 1,205,452
Intangible assets	44,906,055		$ 39,986,530
Goodwill and Intangible Asset Impairment	$ 0	$ 0

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Condensed Consolidated Statements of Comprehensive Loss
Net loss	$ (11,883,276)	$ (6,939,996)
Other comprehensive income (loss):
Foreign currency translation adjustments	(1,604)
Comprehensive loss attributable to noncontrolling interests	1,015
Comprehensive loss	$ (11,883,865)	$ (6,939,996)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124509347&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of company's current and deferred income tax provision


	Three Months Ended March 31,
	2022		2021
Current provision:
States	$	20,000	$	14,000
Total current provision	$	20,000	$	14,000

Schedule of components of deferred tax assets and liabilities


	March 31,		December 31,
	2022		2021
Deferred tax assets:
Net operating loss carry-forwards	$	18,020,000	$	14,503,000
Acquisition-related costs		528,000		539,000
Film library and other intangibles		16,161,000		16,883,000
Other		545,000		337,000
Less: valuation allowance		(34,419,000)		(31,412,000)
Total deferred tax assets		835,000		850,000
Deferred tax liabilities:
Programming costs		302,000		299,000
Other assets		533,000		551,000
Total deferred tax liabilities		835,000		850,000
Net deferred tax asset	$	—	$	—

Leases - Future payments of operating lease liabilities (Details)	Mar. 31, 2022 USD ($)
Leases [Abstract]
Remainder of 2022	$ 930,803
2023	1,260,675
2024	1,285,888
2025	1,311,606
2026	1,400,731
2027 and thereafter	6,732,415
Total minimum lease and content payments	12,922,118
Less amounts representing interest	3,123,075
Present value of minimum payments	$ 9,799,043

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock options activity


				Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contract	Intrinsic
	Stock Options	Price		Term (Yrs.)	Value
Outstanding at December 31, 2021	1,377,339	$	16.13	3.37	$	2,579,201
Granted	65,000		11.80
Forfeited	(12,457)		21.37
Exercised	—		—
Expired	—		—
Outstanding at March 31, 2022	1,429,882	$	15.89	3.48	$	21,950

Vested and exercisable at December 31, 2021	648,119	$	11.64	2.77	$	2,407,521
Vested and exercisable at March 31, 2022	738,640	$	12.50	2.72	$	21,950

Schedule of weighted average assumptions to estimate the fair value of stock options


	Three Months Ended March 31,
Weighted Average Assumptions:	2022			2021^(a)
Expected dividend yield		0.0	%		—	%
Expected equity volatility		65.6	%		—	%
Expected term (years)		5			—
Risk-free interest rate		1.58	%		—	%
Exercise price per stock option	$	11.80		$	—
Market price per share	$	11.80		$	—
Weighted average fair value per stock option	$	6.55		$	—

^{(a) There were}^no^{stock options granted during the three months ended March 31, 2021.}

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of disaggregate of revenue


	Three Months Ended March 31,
							% of
	2022		% of revenue		2021		revenue
Revenue:
VOD and streaming	$	21,347,363	73	%	$	13,890,948	60	%
Licensing and other		7,858,834	27	%		9,305,894	40	%
Net revenue	$	29,206,197	100	%	$	23,196,842	100	%

Schedule of contract balances


	March 31,		December 31,
	2022		2021
Accounts receivable, net	$	27,370,872	$	25,818,447
Contract assets (included in accounts receivable)		38,853,694		34,395,360
Total accounts receivable, net	$	66,224,566	$	60,213,807

Deferred revenue (included in other liabilities)	$	3,652,200	$	1,536,687