View Filing Data

Less: Television & film distribution returns and allowances

17,046,088

6,604,084

31,783,115

15,845,422

(255,394)

(107,300)

(828,785)

(553,294)

Net revenue

16,790,694

6,496,784

30,954,330

15,292,128

Cost of revenue

13,614,648

2,471,136

23,568,743

7,398,107

Gross profit

3,176,046

4,025,648

7,385,587

7,894,021

Operating expenses:

Selling, general and administrative

6,371,870

2,324,632

13,894,351

7,467,654

Amortization

4,695,522

149,596

5,631,136

197,751

Management and license fees

1,676,303

647,603

3,091,093

1,512,687

Total operating expenses

12,743,695

3,121,831

22,616,580

9,178,092

Operating (loss) income

(9,567,649)

903,817

(15,230,993)

(1,284,071)

Interest income

8,997

16,883

34,546

20,530

Interest expense

(195,881)

(133,121)

(483,363)

(251,939)

Loss on extinguishment of debt

(350,691)

Acquisition-related costs

(1,078,637)

(182,832)

(3,735,373)

(228,132)

(Loss) income before income taxes and preferred dividends

(11,183,861)

604,747

(19,765,874)

(1,743,612)

Provision for income taxes

1,248,000

375,000

557,000

579,000

Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total

(12,431,861)

229,747

(20,322,874)

(2,322,612)

Net (loss) attributable to noncontrolling interests

(37,473)

(36,960)

Net Income (Loss) Attributable to Parent, Total

(12,394,388)

229,747

(20,285,914)

(2,322,612)

Less: Preferred dividends

929,387

422,779

2,330,675

422,779

Net (loss) available to common stockholders

$ (13,323,775)

$ (193,032)

$ (22,616,589)

$ (2,745,391)

Net (loss) per common share:

Basic and diluted

$ (1.11)

$ (0.02)

$ (1.89)

$ (0.23)

[1]

* In accordance with ASC Subtopic 80550 "Transactions between entities under common control", results of operations for the 2018 period have been retrospectively adjusted for the acquisition of A Plus on December 28, 2018 to furnish comparative information as required. The effects of intra-entity transactions have been eliminated as a part of the consolidation, where applicable.

Consolidated Statements of Stockholders' Equity - USD ($)

Common Class A

Common Stock

Common Class A

Common Class B

Common Stock

Common Class B

Preferred Stock

Additional Paid-in Capital

Retained (Deficit) Earnings

Treasury Stock

Subsidiary convertible Preferred Stock

Noncontrolling Interests

Total

Balance at Dec. 31, 2017

$ 409

$ 786

$ 36,584,575

$ 9,421,619

$ 46,007,389

Balance (in shares) at Dec. 31, 2017

4,096,353

7,863,938

254,195

A Plus Tax adjustment

(29,284)

Balance (in shares) at Mar. 31, 2018

(884,902)

Balance at Mar. 31, 2018

$ 409

$ 786

36,838,770

8,507,433

45,347,398

4,096,353

7,863,938

Balance at Dec. 31, 2017

$ 409

$ 786

36,584,575

9,421,619

46,007,389

Balance (in shares) at Dec. 31, 2017

4,096,353

7,863,938

Balance (in shares) at Sep. 30, 2018

^[1]

(2,322,612)

Balance at Sep. 30, 2018

$ 421

$ 782

$ 78

50,456,578

7,003,627

$ (632,729)

56,828,757

4,222,988

7,817,238

780,497

Balance at Mar. 31, 2018

$ 409

$ 786

36,838,770

8,507,433

45,347,398

Balance (in shares) at Mar. 31, 2018

4,096,353

7,863,938

Shares issued to directors

$ 1

Shares issued to directors (in shares)

5,700

Conversion of Class B shares to Class A shares upon sale by minority stockholder

$ 4

$ (4)

Conversion of Class B shares to Class A shares upon sale by minority stockholder (in shares)

42,200

(46,700)

239,005

$ 60

14,999,940

15,000,000

600,000

Purchase of treasury stock

(1,346,561)

(632,729)

A Plus Tax adjustment

(66,096)

Balance (in shares) at Jun. 30, 2018

(1,667,457)

Balance at Jun. 30, 2018

$ 414

$ 782

$ 60

50,731,154

6,773,880

(632,729)

56,873,561

4,148,753

7,817,238

600,000

Class A shares : Pivotshare business combination

$ 7

731,950

731,957

Class A shares : Pivotshare business combination (in shares)

74,235

Class A shares issued to directors

(146,875)

218,596

$ 18

4,596,647

4,596,665

180,497

(69,566)

(5,605,328)

Balance (in shares) at Sep. 30, 2018

229,747

^[1]

Balance at Sep. 30, 2018

$ 421

$ 782

$ 78

50,456,578

7,003,627

(632,729)

56,828,757

4,222,988

7,817,238

780,497

Balance at Dec. 31, 2018

$ 421

$ 782

$ 92

59,360,583

2,281,187

(632,729)

$ 0

61,010,336

Balance (in shares) at Dec. 31, 2018

4,227,740

7,817,238

918,497

Share based compensation - common stock

190,847

25,000

$ 14

3,499,986

3,500,000

140,000

(288,160)

(603,307)

Balance (in shares) at Mar. 31, 2019

(2,773,430)

Balance at Mar. 31, 2019

421

782

$ 106

62,788,256

(1,095,550)

(632,729)

61,061,286

4,227,740

7,817,238

1,058,497

Balance at Dec. 31, 2018

421

782

$ 92

59,360,583

2,281,187

(632,729)

61,010,336

Balance (in shares) at Dec. 31, 2018

4,227,740

7,817,238

918,497

Balance (in shares) at Sep. 30, 2019

(20,285,914)

Balance at Sep. 30, 2019

$ 425

$ 782

$ 160

88,077,143

(20,335,402)

(632,729)

36,350,000

484,985

103,945,364

4,259,920

7,813,938

1,599,002

Balance at Mar. 31, 2019

$ 421

$ 782

$ 106

62,788,256

(1,095,550)

(632,729)

61,061,286

Balance (in shares) at Mar. 31, 2019

4,227,740

7,817,238

1,058,497

Conversion of Class B shares to Class A shares upon sale by minority stockholder (in shares)

3,300

(3,300)

Share based compensation - common stock

250,097

25,000

$ 28

6,987,597

6,987,625

279,505

Stock options exercised (in shares)

(538,295)

Stock options exercised

160,159

160,161

16,666

Crackle business combination

(797,981)

15,322,531

36,350,000

521,945

52,194,476

Net (loss) attributable to noncontrolling interests

513

Balance (in shares) at Jun. 30, 2019

(5,118,096)

Balance at Jun. 30, 2019

$ 423

782

$ 134

84,995,345

(7,011,627)

(632,729)

36,350,000

522,458

114,224,786

4,247,706

7,813,938

1,338,002

Shares issued to directors

$ 1

25,000

25,001

Shares issued to directors (in shares)

6,956

Employee stock grant (in shares)

5,258

Employee stock grant

$ 1

41,854

41,855

236,351

$ 26

6,524,974

6,525,000

261,000

(663,251)

Crackle business combination

(929,387)

(3,083,130)

Net (loss) attributable to noncontrolling interests

(37,473)

Balance (in shares) at Sep. 30, 2019

(12,394,388)

Balance at Sep. 30, 2019

$ 425

$ 782

$ 160

$ 88,077,143

$ (20,335,402)

$ (632,729)

$ 36,350,000

$ 484,985

$ 103,945,364

4,259,920

7,813,938

1,599,002

[1]

Consolidated Statements of Cash Flows - USD ($)

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Cash flows from Operating Activities:

Net loss

$ (20,322,874)

$ (2,322,612)

Adjustments to reconcile net loss to net cash used in operating activities:

Share-based compensation

794,149

736,792

Amortization of programming costs and rights

451,050

1,509,217

Amortization of deferred financing costs

72,063

35,725

Amortization of fixed assets and acquired intangibles

5,631,136

197,684

3,475,471

3,656,515

Loss on debt extinguishment

1,241,243

714,506

350,691

Deferred income taxes

452,000

507,000

Changes in operating assets and liabilities:

Trade accounts receivable

(16,132,075)

(1,424,768)

Prepaid expenses and other current assets

(903,361)

(372,137)

Inventory

(29,849)

77,297

Programming costs and rights

(1,622,067)

(4,001,407)

Film library

(10,134,353)

(6,121,335)

Accounts payable, accrued expenses and other payables

17,797,811

584,087

Film library acquisition obligations

3,019,500

1,837,700

Accrued participation costs

(230,564)

(659,033)

Other liabilities

(272,401)

304,917

Deferred revenue

(6,469)

119,800

Net cash used in operating activities

(16,368,899)

(4,620,052)

Cash flows from Investing Activities:

Business Acquisition, net of cash acquired

40,310

(Increase) decrease in due from affiliated companies

(5,796,629)

791,277

Net cash (used in) provided by investing activities

(5,796,629)

831,587

Cash flows from Financing Activities:

Proceeds from revolving credit facility from related party

200,000

Repayments of revolving credit from related party

(1,700,000)

Proceeds from commercial loan

8,665,000

7,500,000

Repayments of commercial loan

(666,667)

(333,334)

Payment of preferred stock issuance costs

(1,489,706)

(1,261,648)

Proceeds from issuance of common stock under equity plans

160,161

Payment of deferred financing costs

(192,004)

(383,049)

Proceeds from issuance of Series A preferred stock

17,012,625

16,092,680

Common stock repurchases held in treasury

(632,729)

Dividends paid to common stockholders

(5,182,549)

Dividends paid to preferred stockholders

(2,330,675)

(422,779)

Net cash provided by financing activities

21,158,734

13,876,592

Net (decrease) increase in cash and cash equivalents

(1,006,794)

10,088,127

Cash and cash equivalents at beginning of period

7,201,758

2,172,985

Cash and cash equivalents at end of the period

6,194,964

12,261,112

Supplemental data:

Interest paid

376,881

111,410

Noncash investing activities (Crackle Plus business combination)

$ 51,672,531

$ 0

[1]

Consolidated Statements of Cash Flows (Parenthetical) - USD ($)

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

^[1]

Dec. 31, 2017

^[1]

Reconciliation of cash and cash equivalents and restricted cash per consolidated balance sheets to statements of cash flows

Cash and cash equivalents

$ 6,194,964

$ 6,451,758

$ 11,511,112

Restricted cash

750,000

Total cash, cash equivalents and restricted cash per statements of cash flows

$ 6,194,964

$ 7,201,758

$ 12,261,112

$ 2,172,985

[1]

Description of the Business	9 Months Ended
Description of the Business	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1 – Description of the Business Chicken Soup for the Soul Entertainment, Inc. (the “Company”) is a Delaware corporation formed on May 4, 2016. Chicken Soup for the Soul Productions, LLC, the Company’s predecessor and immediate parent company, was formed in December 2014 by Chicken Soup for the Soul, LLC (“CSS”), a publishing and consumer products company, and initiated operations in January 2015. The Company was formed to create a discrete entity focused on video content opportunities using the Chicken Soup for the Soul brand (the “Brand”). The Brand is owned and licensed to the Company by CSS. Chicken Soup for the Soul Holdings, LLC (“CSS Holdings”), is the parent company of CSS and the Company’s ultimate parent company. The Company creates and distributes video content under the Brand. The Company has an exclusive, perpetual and worldwide license from CSS to create and distribute video content under the Brand. On May 14, 2019, the company consummated a new streaming video joint venture known as Crackle Plus. Crackle Plus is an advertiser-supported video-on-demand (“AVOD”) platform. The platform allows its users to view premium content, such as films and TV shows. The platform is accessible through various internet connected digital devices such as mobile, tablet, smart TV and console. The platform primarily earns revenue from advertisements placed on its platform through direct and reseller channels, and on the behalf of its advertisement representation partners. The Company operates and is managed by the chief operating decision maker, Company 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 internationally and derives its revenue primarily in the United States. The Company has a presence in over 56 markets worldwide. The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has irrevocably elected to avail itself of this exemption from new or revised accounting standards, and, therefore, will not be subject to the same new or revised accounting standards as public companies that are not emerging growth companies.

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	Note 2 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10‑Q should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s report on Form 10‑K for the year ended December 31, 2018. The condensed consolidated balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. The unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position of the Company at September 30, 2019 and the results of its operations for the three and nine months ended September 30, 2019 and 2018. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 3 – Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s significant estimates include those related to revenue recognition, allowance for doubtful accounts, intangible assets, share-based compensation expense, valuation of income taxes, ad representation fees payable and amortization of programming and film library costs. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less and consist primarily of money market funds. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting our own assumptions. These valuations require significant judgment and estimates. At September 30, 2019 and December 31, 2018, the fair value of the Company’s financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued programming costs, film library acquisition costs and accrued participation costs, approximated their carrying value due primarily to the short-term nature of these instruments. Accounts Receivable Accounts receivable are stated at the amount management expects to collect which is net of an allowance for doubtful accounts and video returns. An allowance for doubtful accounts is recorded based on a combination of historical experience, aging analysis and information on specific accounts. Account balances are written off against the allowance after all means of collections have been exhausted and the potential for recovery is considered remote. Accounts are considered past due or delinquent based on contractual terms and how recently payments have been received. Estimated losses resulting from doubtful accounts are reported as bad debt expense in the consolidated statements of operations. At September 30, 2019, and December 31, 2018, accounts receivable is presented net of allowance for doubtful accounts and video returns of $761,690, and $601,500, respectively. Bad debt expense of $467,335 and $21,061 was recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, respectively, and $412,458 and $161,212 for the nine months ended September 30, 2019 and 2018, respectively. Provision for returns and allowances of $255,394 and $107,300 was recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, respectively, and $828,785 and $553,294 for the nine months ended September 30, 2019 and 2018, respectively. Inventory Inventory consists of DVD films held for resale to wholesale and retail customers. Inventory is stated at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) method. Market value is based on net realizable value. When the net realizable value falls below its cost, a provision for write-downs is recorded. Programming Costs Programming costs include the unamortized costs of completed, in-process, or in-development long-form and short-form video content. For video content, the Company’s capitalized costs include all direct production and financing costs, capitalized interest when applicable, and production overhead. The costs of producing video content are amortized using the individual-film-forecast method. These costs are amortized in the proportion that the current period’s revenue bears to management’s estimate of ultimate revenue expected to be recognized from each production. For an episodic television series, the period over which ultimate revenue is estimated cannot exceed ten years following the date of delivery of the first episode, or, if the series is still in production, five years from the date of delivery of the most recent episode, if later. Programming costs are stated at the lower of amortized cost or estimated fair value. The valuation of programming costs is reviewed on a title-by-title basis, when an event or change in circumstances indicates that the fair value may be less than its unamortized cost and the valuation is based on a discounted cash flows (“DCF”) methodology with assumptions for cash flows. Key inputs employed in the DCF methodology include estimates of a program’s ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular program. The Company performs an annual impairment analysis for unamortized programming costs. An impairment charge is recorded in the amount by which the unamortized costs exceed the estimated fair value. Estimates of future revenue involve measurement uncertainties and it is therefore possible that reductions in the carrying value of programming costs may be required as a consequence of changes in management’s future revenue estimates. Included in cost of revenue in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018 is amortization of programming costs related to our original productions totaling $25,815 and $658,716, respectively, and $122,253 and $1,509,217 for the nine months ended September 30, 2019 and 2018, respectively. There was no impairment charge recorded in the three and nine months ended September 30, 2019 and 2018. Film Library The film library represents the cost of acquiring film distribution rights and related acquisition and accrued participation costs. The film library is amortized using the individual-film-forecast method. The film library is stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of ultimate revenue. Amortization is adjusted when necessary to reflect increases or decreases in forecasted ultimate revenue. Ultimate revenue time frame is determined based on the term of the related acquisition agreement. The Company generally acquires distribution rights covering periods of ten or more years. Included in cost of revenue in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, is amortization of film library totaling $1,214,610 and $1,033,983, respectively, and $3,475,471 and $3,656,515 for the nine months ended September 30, 2019 and 2018, respectively. For the three and nine months ended September 30, 2019 and 2018, there was no impairment charge recorded. Programming rights and obligations Programming rights acquired under license agreements are recorded as an asset and a corresponding liability upon commencement of the license period. The programming rights are presented at the lower of unamortized cost or estimated net realizable value on a program by program basis and amortized over the license period using a straight line method beginning with the first month of availability. Programming obligations represent the gross commitment amounts to be paid to program suppliers over the life of the contracts. Included in the cost of revenue in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 is program rights amortization totaling $155,263 and $328,796, respectively. Acquisitions, Goodwill & Acquired Intangible Assets We have made and expect to continue to make selective acquisitions. The valuation of potential acquisitions is based on various factors, including specialized know-how, reputation, competitive position and service offerings of the target businesses, as well as our experience and judgment. The Company accounts for business combinations using the acquisition accounting method, which requires the determination of the fair value of the net assets acquired including tangible assets, identified intangible assets, liabilities assumed and any noncontrolling interest in the acquired business are recorded at their acquisition date fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. The Company continually evaluates its estimates, including the assumptions, risks, and uncertainties inherent in estimates; however, the Company cannot ensure that these estimates will be accurate. If the Company subsequently determines that the estimates are not accurate, it will be required to record an impairment charge. Considering the characteristics of AVOD and film distribution companies, the Company’s acquisitions to date did not have significant amounts of tangible assets, as the principal asset typically acquired is talent and customer relationships. As a result, a substantial portion of the purchase price is allocated to other intangible assets including goodwill where appropriate. Changes to the original estimates may be required during the life of an asset. The Company reviews goodwill and other intangible assets with indefinite lives not subject to amortization at least annually and whenever events or significant changes in circumstances indicate that the carrying value may not be recoverable, an impairment charge is recorded. As of September 30, 2019 no indicators of impairment have been identified and thus no impairment charge has been recorded. Goodwill and Acquired Intangible Assets consist of the following, Video Content License The Company has been granted a perpetual, exclusive, sublicensable license from CSS to exploit the Brand and related intellectual property, for the production and distribution of television programming, motion pictures, and online visual content on a worldwide basis (“Perpetual License”). The Company paid a purchase price of $5,000,000 for the Perpetual License in 2016, which approximated the cost of the licensed content to CSS. The Company has recorded the initial purchase price of the Perpetual License at the estimated cost to CSS. Popcornflix Film Rights and Other Assets Popcornflix film rights and other assets represent the direct-to-consumer online video service and application platform comprised of five ad-supported networks with rights to over 3,000 films and approximately 60 television series. Popcornflix is an indefinite-lived intangible asset and is not subject to amortization but annual impairment analysis. Pivotshare Acquired intangible assets of Pivotshare represent the fair value of its installed customer base, the non-compete obligation of the former chief executive officer and goodwill. The installed customer base and the non-compete obligation are stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of useful lives, which is five years for the installed customer base and three years for the non-compete, which is the period it is in effect. A Plus The Company recorded goodwill from the acquisition of A Plus which resulted from the portion of the purchase price in excess of the net assets purchased as of the initial acquisition date. Crackle Plus Intangible assets acquired as a result of the Crackle Plus Joint Venture represent the fair value of the Crackle brand value, customer user base, content rights, partner agreements and goodwill. The Crackle Plus intangibles are stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of useful lives, which is 2-7 years for the customer user base, content rights, partner agreements and brand value. Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertain tax positions in accordance with the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740: Income Taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return, should be recorded in the financial statements. Pursuant to the authoritative guidance, the Company may recognize the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained on examination by the taxing authority, based on the technical merits of the position or expiration of statutes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. In addition, the authoritative guidance addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods, and also requires increased disclosures. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense within its condensed consolidated statements of operations. At September 30, 2019 and 2018, the Company did not have any unrecognized tax benefits or liabilities. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. Film Library Acquisition Obligations Film library acquisition obligations represent amounts due in connection with the Company acquiring film distribution rights. Pursuant to the film distribution rights agreements, the Company’s right to distribute films may revert to the licensor in the event that the Company is unable to satisfy its financial obligations with respect to the acquisition of the related distribution rights. Ad Representation Fees Payable Included in cost of revenue are advertisement representation fees earned by the Ad Rep Partners and license fees payable to third parties and amortization associated with programming rights. Accrued Participation Costs The Company accrues for participation costs payable to production companies and producers based on the respective agreements. Amounts payable to production companies and producers are calculated based on gross revenue for each film after exceeding certain minimum targets. In addition, the Company must recoup its original investment in each film before such payments are due. Accrued participation costs are capitalized and amortized as part of the film library. Revenue Recognition Online Networks Revenue from AVOD and online digital distribution platforms are recorded and invoiced when monthly activity is reported by advertisers or third party agencies. The Company earns revenues on a cost per thousand, also called on a cost-per-mille basis (“CPM basis”) as ad impressions are run on the inventory sold to ad agencies and as ad impressions are run on the ad inventory made available to resellers. The Company considers ad agencies and resellers as customers in these transactions and therefore revenue is presented as gross receipts from the agencies and resellers. In addition, advertising representation revenues are commission fees that the Company earns for selling ad inventory on behalf of third party over-the-top platforms. The Company earns revenues as placed advertisements are run on the available ad inventory of its Ad Rep Partners. Advertising representation revenues are presented as the gross receipts from advertisers and the amount remitted to the Ad Rep Partners are recorded as cost of sales. Revenue earned on the distribution of third parties’ streaming content by Pivotshare is reported on a net basis as the Company’s performance obligation is to facilitate a transaction between third party content producers and customers, for which we earn a commission based on revenue share (see Note 6). Revenue from digital online media distribution is included in online networks in the accompanying condensed consolidated statements of operations. The Company generally invoices customers in arrears on a monthly basis in accordance with the number of advertisements placed or impressions delivered during the month. The Company generally invoices customers when the right to consideration becomes unconditional, and as such, the only contract balances the Company recognizes are accounts receivable. Television and film distribution The Company licenses and distributes multi-film packages to its customers. Revenue from multi-film sales is allocated on a per title basis and recognized upon initial availability for exploitation by customers. In addition, the Company distributes DVDs and similar media to its customers. The Company recognizes revenue upon shipment of DVD units or similar media units to its customers. Provision for future returns and other allowances are established based upon historical experience. For theatrical releases, revenue is recorded after the theatrical release date and when box office proceeds reports are received. Revenue from the distribution of multi-film packages and DVDs and similar media is included in television and film distribution in the accompanying condensed consolidated statements of operations. Television and short-form video production The Company recognizes revenue from the production and distribution of television programs and short-form video content in accordance with Accounting Standards Codification Topics, ASC 606: Revenue from contracts with customers and ASC 926: Entertainment – Films as amended. For episodic television programs, revenue is recognized as each episode becomes available for delivery or becomes available for broadcast, and for short-form online videos, revenue is recognized when the videos are posted to a website for viewing. Revenue from the distribution of short-form online media content is included in television and short-form video production revenue in the accompanying condensed consolidated statements of operations. Cash advances received by the Company are recorded as deferred revenue until all the conditions of revenue recognition have been met. Share-Based Payments The Company accounts for share-based payments in accordance with ASC 718: Share-based Compensation, which establishes the accounting for transactions in which an entity exchanges its equity instruments for goods or services. Under the provisions of the authoritative guidance, share-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period, net of estimated forfeitures. Shares issued for services are based upon current selling prices of the Company’s Class A common stock or independent third party valuations. The Company estimates the fair value of share-based instruments using the Black-Scholes option-pricing model. All share-based awards will be fulfilled with new shares of Class A common stock. For the three and nine months ended September 30, 2019 and 2018, share-based awards were issued to non-employee directors and employees for services rendered and were recorded at fair value. Advertising Costs Generally, advertising costs are expensed as incurred except for the advertising costs associated with the Company’s theatrically released titles which the Company is obligated to reimburse. Total advertising costs related to theatrically released titles for the three months ended September 30, 2019 and 2018 was $519,042 and $395,895, respectively, and $1,867,764 and $671,036 for the nine months ended September 30, 2019 and 2018, respectively. These costs are capitalized as part of the film library acquisition costs and are amortized as such. Earnings (Loss) Per Share Basic net income (loss) per common share is computed based on the weighted average number of shares of all classes of common stock outstanding. Diluted net loss per common share is computed based on the weighted average number of common shares outstanding increased, when applicable, by dilutive common stock equivalents, comprised of Class W warrants, Class Z warrants, Class I warrants, Class II warrants, Class III-A warrants, Class III-B warrants and stock options outstanding. When the Company has a net loss, dilutive common stock equivalents are not included as they would be anti-dilutive.

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 4 – Recent Accounting Pronouncements Recently Issued Accounting Standards In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “Improvements to Accounting for Costs of Films and License Agreements for Program Materials.” The amendments in this ASU align the accounting for production costs of an episodic television series with the accounting for production costs of films. In addition, the ASU modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements under the current film and broadcaster entertainment industry guidance. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020, with early adoption permitted. The new guidance will be applied on a prospective basis. The Company is currently in the process of evaluating the impact, if any, of this new guidance on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606.” The amendments in this ASU clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied retrospectively to the date of initial application of the new revenue guidance in Topic 606 (January 1, 2018 for the Company). The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 is effective for public companies’ fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. Because the Company is an emerging growth company, adoption is not required until fiscal years beginning after December 15, 2019. The Company is currently assessing the potential impact ASU 2016-02 will have on its consolidated financial statements. The impact of implementation is not expected to be material. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial statements. Recently Adopted Accounting Standards In June 2018, the FASB issued ("ASU") 2018-07, Compensation - Stock Compensation Topic 718: Improvements to Nonemployee Share-Based Payment Accounting, which is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. Under the new guidance, equity-classified nonemployee awards are to be measured on the grant date, rather than on the earlier of (1) the performance commitment date or (2) the date at which the nonemployee's performance is complete. ASU 2018-07 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2018 for public entities and after December 15, 2019 for all other entities. Early adoption is permitted but not before an entity adopts ASC 606. The Company has adopted ASC 606 on January 1, 2019 and the impact of implementation was not material. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014‑09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company has adopted ASU 2014‑09 in the first quarter of 2019 and has applied the modified retrospective method. No adjustment was recorded to opening retained earnings given the lack of change to the company’s accounting for revenue with contracts with customers. Refer to “Note 6 Revenue Recognition” for details of the impact and required disclosures.

Business Combination

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combination

Note 5 – Business Combination

As discussed in Note 1, the Company consummated the creation of its Crackle Plus joint venture on May 14, 2019. In consideration for assets contributed to Crackle Plus by CPE Holdings, Inc. (“CPEH”), a Delaware corporation and affiliate of Sony Pictures Television Inc. (“Sony”), and Crackle, Inc., a Delaware corporation and wholly owned subsidiary of CPEH (“Crackle”), Crackle Plus issued to Crackle 37,000 units of preferred equity (“Preferred Units”) and 1,000 units of common equity (“Common Units”), which are now held by CPEH. In consideration for assets contributed to Crackle Plus by the Company, Crackle Plus issued to the Company 99,000 Common Units. From May 2020 to October 2020 (“Exercise Period”), CPEH will have the right to either convert its Preferred Units into Common Units of Crackle Plus or require us to purchase all, but not less than all, of its interest in Crackle Plus (“Put Option”). We may elect to pay for such interest in cash or through the issuance of Series A Preferred Stock using a price per share of $25. Subject to certain limitations, in the event that CPEH hasn’t converted its Preferred Units into Common Units of Crackle Plus or exercised its Put Option, Crackle shall be deemed to have automatically exercised the Put Option on the last day of the Exercise Period.

As additional consideration to CPEH, the Company issued to CPEH warrants to purchase (a) Eight Hundred Thousand (800,000) shares of the Class A common stock of the Company at an exercise price of $8.13 per share (the “CSSE Class I Warrants”), (b) warrants to purchase One Million Two Hundred Thousand (1,200,000) shares of the Class A common stock of the Company at an exercise price of $9.67 per share, (the “CSSE Class II Warrants”); (c) warrants to purchase Three Hundred Eighty Thousand (380,000) shares of the Class A common stock of the Company at an exercise price of $11.61 per share, (the “CSSE Class III-A Warrants”); and (d) warrants to purchase One Million Six Hundred Twenty Thousand (1,620,000) shares of the Class A common stock of the Company at an exercise price of $11.61 per share, (the “CSSE Class III-B Warrants”). All of the CSSE Warrants have a five-year term commencing on the closing and are exercisable at any time and from time to time during such term.

The acquisition is accounted for as a purchase of a business under ASC 805, and the aggregate purchase price consideration of $51.7 million has been allocated to assets acquired and liabilities assumed, based on management’s analysis and information received from an independent third-party appraisal. The preliminary results are as follows:

Purchase price consideration allocated to fair value of net assets acquired:


Accounts receivable, net	$	5,360,667
Prepaid expenses		892,200
Programming Rights		1,155,363
Goodwill		14,929,601
Brand Value		26,493,805
Customer User Base		15,364,395
Content Rights		2,524,373
Partner Agreements		5,314,481
Assets acquired		72,034,885
Accounts payable and accrued expenses		(13,061,492)
Programming Obligations		(7,300,862)
Liabilities assumed		(20,362,354)
Total purchase consideration	$	51,672,531

In estimating the fair value of the acquired assets and assumed liabilities, 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 other intangible assets represents the estimated fair values of the brand (trademark), customer user base, content rights, and partner agreements. These long lived assets are being amortized on a straight-line basis over their estimated useful lives of 2-7 years.

Goodwill is 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 Company has preliminarily estimated $14.9 million of Goodwill in connection with the Crackle Plus transaction.

The fair values of assets acquired, and liabilities assumed were based upon preliminary valuations performed for the preparation of the pro forma financial information and are subject to the final valuations. These estimates and assumptions are subject to change within the measurement period as additional information is obtained. A decrease in the fair value of the assets acquired or liabilities assumed in the Crackle Plus transaction from the preliminary valuations presented would result in dollar for dollar corresponding increase or decrease, as applicable, in the amount of goodwill resulting from the transaction. In addition, if the value of the other intangible assets is higher than the amount included in these unaudited condensed consolidated financial statements, it may result in higher amortization expense than is presented herein. Any such increases could be material and could result in the Company’s actual future financial condition or results of operations differing materially from that presented herein. As permitted, the final determination of these estimated fair values will be completed as soon as possible but no later than one year from the acquisition date when the Company has completed the detailed valuations and calculations.

Purchase Price Consideration Allocation:


Fair Value of Preferred Units	$	36,350,000
Fair Value of Warrants in CSSE		10,899,204
Fair Value of Put Option		4,423,327
Total Estimated Purchase Price	$	51,672,531

The purchase price paid by the Company reflects the total consideration given in return for the ownership share available to CPEH in the entity. Consideration given has been calculated at the fair market value of the Crackle Plus Preferred Units; the four CSSE tranches of warrants and the Put Option. The Company valued the securities based on the terms of the Contribution Agreement and the use of the Black Scholes model valuation technique on each of the respective components as follows,

The Preferred Units have a stated value at the time of the acquisition of $36.35 million, as set forth in the Crackle Plus Operating Agreement;

The four (4) tranches of CSSE warrants were individually valued based on the Black Sholes valuation model using their respective terms and strike prices (ranging from a 5% to 50% premium over the initial market price of $7.74). Each tranche used a volatility of 58% and a 5-year risk free rate of 2.2%;

The Put Option was valued via the Black-Sholes valuation model assuming an initial price of $36.35 million, strike price of $40M, volatility of 17% and term of 1.5 years reflecting the latest time the Put Option could be exercised or triggered.

All consideration transferred has been determined to represent equity-classified contingent consideration and has been measured at fair value as of the acquisition date. Equity-classified contingent consideration is not remeasured following the acquisition date, and its subsequent settlement is accounted for within equity. The equity classification has been determined based on the terms of the transaction.

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 6 – Revenue Recognition

Revenue from contracts with customers is recognized as an unsatisfied performance obligation until the terms of a customer contract are satisfied; generally, this occurs with the transfer of control as we satisfy contractual performance obligations at a point in time or over time. Our contractual performance obligations include licensing of content and delivery of online advertisements on our owned and operated VOD platforms, the distribution of film content and production of episodic television series,. Revenue is measured at contract inception as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Our contracts are valued at a fixed price at inception and do not include any variable consideration or financing components in our normal course of business. Sales tax, value added tax, and other taxes that are collected concurrently with revenue producing activities are excluded from revenue.

The following tables disaggregates our revenue by major category:


	Three Months Ended September 30,
							% of
	2019		% of revenue		2018		revenue
Revenue:
Online networks	$	14,383,659	86	%	$	1,809,689	28	%
Television and film distribution		2,613,872	16	%		2,510,462	39	%
Television and short-form video production		48,557	0	%		2,283,933	35	%
Total revenue		17,046,088	102	%		6,604,084	102	%
Less: returns and allowances		(255,394)	(2)	%		(107,300)	(2)	%
Net revenue	$	16,790,694	100	%	$	6,496,784	100	%


	Nine Months Ended September 30,
							% of
	2019		% of revenue		2018		revenue
Revenue:
Online networks	$	25,128,001	81	%	$	3,339,901	22	%
Television and film distribution		6,058,862	20	%		7,785,427	51	%
Television and short-form video production		596,252	2	%		4,720,094	31	%
Total revenue		31,783,115	103	%		15,845,422	104	%
Less: returns and allowances		(828,785)	(3)	%		(553,294)	(4)	%
Net revenue	$	30,954,330	100	%	$	15,292,128	100	%

Online Networks

In this business area, we distribute and exhibit VOD content directly to consumers across all digital platforms, such as smartphones, tablets, smart TVs, gaming consoles and the web through our subsidiaries and operated AVOD networks including Crackle, Popcornflix® and Truli. We generate advertising revenues primarily by delivering video advertisements to our streaming viewers. We also distribute our own and third-party owned content to end users on our SVOD network Pivotshare.

Revenue from online digital distribution and VOD platforms in our Online Networks business area are recorded over time as advertisements are delivered and when monthly activity is reported by advertisers.

Television and Film Distribution

In this business area, we distribute movies and television series worldwide to consumers through license agreements across all media, including theatrical, home video, pay-per-view, free, cable, pay television, VOD, mobile and new digital media platforms worldwide.

The Company licenses and distributes multi-film packages to its customers. Revenue from multi-film sales is allocated on a per title basis and recognized upon initial availability for exploitation by customers. In addition, the Company distributes DVDs and similar media to its customers. The Company recognizes revenue upon shipment of DVD units or similar media units to its customers. Provision for future returns and other allowances are established based upon historical experience. Revenue from the distribution of multi-film packages and DVDs and similar media is included in television and film distribution in the accompanying consolidated statements of operations.

Television and Short-Form Video Production

In this business area, we work with sponsors and use highly regarded independent producers to develop and produce our television and short-form video content, including Brand-related content. We also derive revenue from our subsidiary A Plus, which develops and distributes high-quality, empathetic short-form videos to millions of people worldwide. A Plus enhances our ability to distribute short form versions of our video productions and video library and provides us with content developed and distributed by A Plus that is complementary to the Brand.

The Company recognizes revenue from the production and distribution of television programs and short-form video content as each episode becomes available for delivery or becomes available for broadcast, and for short-form online videos, revenue is recognized when the videos are posted to a website for viewing. Revenue from the distribution of short-form online media content is included in television and short-form video production revenue in the accompanying consolidated statements of operations. Cash advances received by the Company are recorded as deferred revenue until all performance obligations have been satisfied.

For all customer contracts, we evaluate whether we are the principal (i.e., report revenue on a gross basis) or the agent (i.e., report revenue on a net basis). Generally, we report revenue for show productions, films distributed, and advertising placed on CSSE properties on a gross basis (the amount billed to our customers is recorded as revenue, and the amount paid to our publishers is recorded as a cost of revenue). We are the principal because we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory, being primarily responsible to our customers, having discretion in establishing pricing, or a combination of these factors. We also generate revenue through agency relationships in which revenue is reported net of agency commissions and publisher payments in arrangements where we do not own the content or the ad inventory.

No impairment losses have arisen from any CSSE contracts with customers during the three and nine months ended September 30, 2019.

Performance obligations

The unit of measure under ASC 606 is a performance obligation, which is a promise in a contract to transfer a distinct or series of distinct goods or services to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our contracts have either a single performance obligation as the promise to transfer services is not separately identifiable from other promises in the contracts and is, therefore, not distinct, or have multiple performance obligations, most commonly due to the contract covering multiple service offerings. For contracts with multiple performance obligations, the contract’s transaction price can generally be readily allocated to each performance obligation based upon the selling price of each distinct service in the contract. In cases where estimates are needed to allocate the transaction price, we use historical experience and projections based on currently available information.

Contract Assets and Contract Liabilities (Deferred Revenues)

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers:


	September 30,		December 31,
	2019		2018
Contract Assets	$	27,731,931	$	12,841,099
Contract Liabilities	$	—	$	6,469

Contract assets are primarily comprised of contract obligations that are generally satisfied annually under the terms of our contracts and are transferred to accounts receivable when the right to payment becomes unconditional. Contract liabilities relate to advance consideration received from customers under the terms of our contracts primarily related to cash payments received in advance of satisfaction of the contractual performance obligation.

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract receivables are recognized in the period the Company provides services when the Company’s right to consideration is unconditional. Payment terms vary by the type and location of our customer and the products or services offered. Payment terms for amounts invoiced are typically net 30‑60 days. The term between invoicing and when payment is due is not significant.

A contract asset results when goods or services have been transferred to the customer, but payment is contingent upon a future event, other than the passage of time (i.e. type of unbilled receivable). Given the nature of our business from time to time we engage with customers for terms that include minimum guarantees which are contractual obligations for payment over a period of time that may extend past one year at a variable rate of payment – based on sales. These minimum guarantees are generally collectible via royalty payments at an agreed rate which are collected on a monthly basis. Contractual arrangements containing minimum guarantees are evaluated on a contract by contract basis for the need for present value treatment. As of the financial statement no material arrangements requiring financing treatment have been identified.

We record deferred revenues (also referred to as contract liabilities under Topic 606) when cash payments are received or due in advance of our satisfying our performance obligations. Our deferred revenue balance primarily relates to advance payments received related to our content distribution rights agreements and our production sponsorship arrangements. The Company’s deferred revenue (i.e. contract liabilities) as of September 30, 2019 and December 31, 2018, was $0 and $6,469, respectively. These contract liabilities are recognized as revenue as the related performance obligations are satisfied. No significant changes in the timeframe of the satisfaction of contract liabilities have occurred during the nine months ended September 30, 2019.

Arrangements with multiple performance obligations

In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract at contract inception. When multiple performance obligations are identified, we identify how control transfers to the customer for each distinct contract obligation and determine the period when the obligations are satisfied. If obligations are satisfied in the same period, no allocation of revenue is deemed to be necessary. In the event performance obligations within a bundled contract do not run concurrently, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or by using expected cost-plus margins. Performance obligations that are not distinct at contract inception are combined.

Practical expedients

The Company has elected to use the practical expedient under the relevant accounting guidance to omit disclosure of remaining (or partially unsatisfied) performance obligations as the related contracts have an original expected duration of one year or less.

The Company has elected to use the practical expedient under the relevant accounting guidance to expense sales commissions as incurred because the amortization period is generally one year or less. These commission costs are recorded within Selling, general and administrative expenses.

Episodic Television Programs	9 Months Ended
Episodic Television Programs	Sep. 30, 2019
Episodic Television Programming [Abstract]
Episodic Television Programs	Note 7 - Episodic Television Programs (a) In September 2014, CSS and a charitable foundation (the “Foundation”), entered into an agreement under which the Foundation agreed to sponsor a Saturday morning family television show, Chicken Soup for the Soul’s Hidden Heroes (“Hidden Heroes”), a half-hour hidden-camera family friendly show that premiered on the CBS Television Network (“CBS”). The Foundation has funded four seasons of Hidden Heroes. Hidden Heroes was nominated for an Emmy award for "Outstanding Children's or Family Viewing Series" in March 2019. (b) In September 2015, CSS Productions received corporate sponsorship funding from a company (the “Sponsor”), to develop the Company’s second episodic television series entitled Project Dad, a Chicken Soup for the Soul Original (“Project Dad”). Project Dad presents three busy celebrity dads as they put their careers on the “sidelines” and get to know their children like never before. The Project Dad slate is comprised of eight, one-hour episodes that aired weekly on Discovery Communications, LLC’s Discovery Life network in November and December 2016. In addition, in January 2017, Project Dad began airing on Discovery Communications, LLC’s TLC network. In 2017, the Sponsor funded a new parenting series called Being Dad, our third episodic television show. In August 2018, the series began streaming on Netflix. (c) On June 20, 2017, the Company entered into an agreement with HomeAway.com and received corporate sponsorship funding for our fourth episodic television series entitled Vacation Rental Potential. This series, comprised of eight, one-hour episodes began airing on the A&E Network in November and December 2017. The show gives viewers the information needed to obtain their dream vacation. The show premiered on A&E Network in December 2017. Its second season aired on A&E Network. (d) In July and August 2018, the Company signed agreements with Acorns Grow, Inc., Handy Technologies, Inc., Adobe Systems Inc., State Farm, and Chegg Inc. to sponsor the Company’s fifth episodic television series entitled Going From Broke. Ashton Kutcher is the executive producer of Going From Broke. Going From Broke is expected to air on the Crackle Plus network in the fall of 2019. The series is comprised of ten, half-hour episodes and thirty-two, one-minute short form videos. The essence of the show is to pair a financial expert with a twenty-something college graduate trying to make their way out of student and other debt and execute a plan that will lead to financial stability. (e) In December 2018, the company signed agreements with Chicken Soup for the Pet Lovers Soul, LLC ("Chicken Soup for the Soul Pet Food”), a related party, and American Humane, the country’s first national humane organization, to sponsor Chicken Soup for the Soul’s Animal Tales. The series began airing on The CW in January 2019. Chicken Soup for the Soul’s Animal Tales consists of 15 half-hour episodes. Chicken Soup for the Soul Pet Food makes a complete line of super premium dog and cat food, made from the finest natural ingredients for every stage of pet life. American Humane has sponsored content with CSS Entertainment in the past, telling the heroic and inspiring stories of the safety, welfare, and well-being of animals. The series was renewed for a second season on May 13, 2019.

Share-Based Compensation

9 Months Ended

Sep. 30, 2019

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

Share-Based Compensation

Note 8 – 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 initially provided for the issuance of up to one million (1,000,000) common stock equivalents subject to the terms and conditions of the Plan. The Plan was amended on June 13, 2018 to increase the number of shares available under the Plan to 1,250,000 shares. 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 recognized these stock options 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 September 30, 2019 and 2018, the Company recognized $236,351 and $218,599, respectively, and for the nine months ended September 30, 2019 and 2018, the Company recognized $677,295 and $661,799, respectively, of non-cash share-based compensation expense relating to stock options in selling, general and administrative expenses in the condensed consolidated statements of operations.

Stock options activity as of September 30, 2019 is as follows:


	As of September 30, 2019			Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contract	Intrinsic
	Stock Options	Price		Term (Yrs.)	Value
Total outstanding at December 31, 2018	662,500	$	7.52	3.34	$	332,100
Granted	490,000		8.30	4.40		—
Forfeited	(103,334)		9.66	3.72		—
Exercised	(16,666)		9.61	3.24		—
Expired	—		—	—		—

Outstanding at September 30, 2019	1,032,500	$	7.73	3.60	$	1,987,425

Vested and exercisable at September 30, 2019	629,170	$	7.29	2.77	$	1,484,753

As of September 30, 2019 the Company had unrecognized pre-tax compensation expense of $1,660,378 related to non-vested stock options under the Plan of which $230,277, $788,468, $582,347 and $59,286 will be recognized in 2019, 2020, 2021 and 2022, respectively.

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


	Nine Months Ended September 30,
Weighted Average Assumptions:	2019			2018
Expected dividend yield		0.0	%		0.0	%
Expected equity volatility		56.1	%		57.1	%
Expected term (years)		5			5
Risk-free interest rate		2.22	%		2.10	%
Exercise price per stock option	$	7.73		$	7.52
Market price per share	$	7.27		$	6.46
Weighted average fair value per stock option	$	3.51		$	3.10

The risk-free rates are based on the implied yield available on US 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 grants to directors, employees and non-employee executive producers that provide services to the Company. For the three months ended September 30, 2019 and 2018, the Company recognized non-cash share-based compensation expense relating to director stock grants of $25,000, respectively, and for the nine months ended September 30, 2019 and 2018, the Company recognized $75,000, respectively. For the three and nine months ended September 30, 2019, the Company recognized non-cash share-based compensation expense relating to employee stock grants of $41,854, respectively.

Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 - Earnings Per Share

A reconciliation of shares used in calculating basic and diluted per share data is as follows:


	Three Months Ended September 30,
	2019		2018
Net loss available to common stockholders	$	(13,323,775)	$	(193,032)
Basic weighted-average shares outstanding		11,994,112		11,924,387
Effect of dilutive securities:
Assumed issuance of shares from exercise of stock options*		—		—
Assumed issuance of shares from exercise of warrants*		—		—

Diluted weighted-average shares outstanding*		11,994,112		11,924,387

Loss per share:
Basic and diluted	$	(1.11)	$	(0.02)


	Nine Months Ended September 30,
	2019		2018
Net loss available to common stockholders	$	(22,616,589)	$	(2,745,391)
Basic weighted-average shares outstanding		11,983,136		11,936,511
Effect of dilutive securities:
Assumed issuance of shares from exercise of stock options*		—		—
Assumed issuance of shares from exercise of warrants*		—		—

Diluted weighted-average shares outstanding*		11,983,136		11,936,511

Loss per share:
Basic and diluted	$	(1.89)	$	(0.23)

* For the three and nine months ending September 30, 2019 common stock equivalents totaling 325,790 and 248,857, respectively, were excluded from the calculation of diluted loss per share because their effect is anti-dilutive.

Programming Costs

9 Months Ended

Sep. 30, 2019

Entertainment [Abstract]

Programming Costs

Note 10 – Programming Costs

Programming costs, net of amortization, consists of the following:


	September 30,		December 31,
	2019		2018
Released, net of accumulated amortization of $9,595,561 and $9,473,308, respectively	$	11,616,423	$	11,418,244
In production		666,675		17,099
In development		1,678,408		1,355,146
	$	13,961,506	$	12,790,489

Film Library

9 Months Ended

Sep. 30, 2019

Film Costs [Abstract]

Film Library

Note 11 – Film Library

Film library costs, net of amortization, consists of the following:


	September 30,		December 31,
	2019		2018
Acquisition costs	$	43,311,155	$	33,176,802
Accumulated amortization		(11,313,771)		(7,838,300)
Net film library costs	$	31,997,384	$	25,338,502

Film library amortization recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018 was $1,214,610 and $1,033,983, respectively and $3,475,471 and $3,656,515 for the nine months ended September 30, 2019 and 2018, amortization expense respectively.

Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 12 - Intangible Assets

Indefinite lived intangible assets, consists of the following:


	September 30,		December 31,
	2019		2018
Intangible asset - video content license	$	5,000,000	$	5,000,000
Popcornflix film rights and other assets		7,163,943		7,163,943
	$	12,163,943	$	12,163,943

Intangible assets, consists of the following:


	September 30,		December 31,
	2019		2018
Acquired customer base, net	$	1,774,937	$	2,118,473
Non-compete agreement, net		331,356		463,898
Website development, net		291,949		389,266
Crackle Plus Customer User Base		12,483,571		—
Crackle Plus Content Rights		2,208,827		—
Crackle Brand Value		25,074,494		—
Crackle Plus Partner Agreements		4,915,894		—
	$	47,081,028	$	2,971,637

Amortization expense was $4,681,030 and $5,587,663 for the three and nine months ended September 30, 2019, respectively and $125,452 for the three and nine months ended September 30, 2018.

Goodwill consists of the following:


	September 30,		December 31,
	2019		2018
Goodwill: Pivotshare	$	1,300,319	$	1,300,319
Goodwill: A Plus		1,236,760		1,236,760
Goodwill: Crackle Plus		14,929,602		—
	$	17,466,681	$	2,537,079

There were no impairments identified or recorded related to goodwill and intangible assets for any period presented.

Long-term Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-term Debt

Note 13 – Long-term Debt

On August 22, 2019, the Company and its wholly-owned subsidiary, Screen Media Ventures, LLC, as co-borrowers (“Borrowers”), entered into an amended and restated loan and security agreement (“Amended and Restated Loan Agreement”) with Patriot Bank, N.A. Under the Amended and Restated Loan Agreement, the Borrowers’ outstanding $5,000,000 term loan and $3,500,000 line of credit were consolidated and combined into a term loan in the original principal amount of $16,000,000 (the “Loan”). As a result, the Company recognized a loss on extinguishment of $350,691 during the three and nine months ended September 30, 2019, which consists of fees paid and write-offs of unamortized debt issuance costs.

The Loan is evidenced by a consolidated, amended and restated term promissory note (the “Note”). Subject to the terms of the Note, the Loan bears interest, payable monthly in arrears, at a fixed rate of 5.75% per annum. The outstanding principal amount of the Loan is repayable in consecutive monthly installments in equal amounts of $266,667, commencing on October 1, 2019 and continuing on the same date of each subsequent month thereafter during the term of the Loan. The Loan matures on September 1, 2024.

Pursuant to the Amended and Restated Loan Agreement, at closing the Company paid to Lender an aggregate of approximately $179,000, representing a commitment fee of $85,000, a payment of $25,556 of interest due on the Loan for the 9 days of the month of August 2019 and $68,090 in fees paid to the Lender’s counsel.

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


	September 30,		December 31,
	2019		2018
Commercial Loan	$	16,000,000	$	4,416,667
Revolving Line of Credit		—		3,500,000
Total Debt		16,000,000		7,916,667
Less: debt issuance costs		188,803		334,554
Less: current portion		3,200,000		1,000,000
Total long-term debt	$	12,611,197	$	6,582,113

The Amended and Restated Loan Agreement includes customary financial covenants, restrictions and interest rate governors including delivery of financial statements, maintaining an account at Patriot Bank, N.A. with an average balance of $2,500,000 in any trailing 90-day period or the interest rate will increase by 0.50% and maintain a minimum debt service coverage ratio of 1.25 to 1.0. The Company was in compliance with all such covenants as of September 30, 2019 and December 31, 2018, respectively.

As of September 30, 2019, the expected aggregate maturities of long-term debt for each of the next five years are as follows:

Future Principal Payments


Year Ended December 31,	Amount
Remainder of 2019	$	800,000
2020		3,200,000
2021		3,200,000
2022		3,200,000
2023		3,200,000
2024		2,400,000
	$	16,000,000

Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 14 – Income Taxes

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Current provision (benefit):
Federal	$	—	$	—	$	—	$	—
States		(5,000)		25,000		105,000		72,000
Total current provision	$	(5,000)	$	25,000	$	105,000	$	72,000
Deferred provision:
Federal	$	923,000	$	256,000	$	333,000	$	364,000
States		330,000		94,000		119,000		143,000
Total deferred provision		1,253,000		350,000		452,000		507,000
Total provision for income taxes	$	1,248,000	$	375,000	$	557,000	$	579,000

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:


	September 30,		December 31,
	2019		2018
Deferred Tax Assets:
Net operating loss carry-forwards	$	6,092,000	$	3,022,000
Acquisition-related costs		723,000		663,000
Film library and other intangibles		2,501,000		427,000
Deferred state taxes		34,000		157,000
Less: valuation allowance		(6,113,000)		(719,000)
Total Deferred Tax Assets	$	3,237,000	$	3,550,000
Deferred Tax Liabilities:
Programming costs		2,832,000		2,779,000
Other assets		405,000		319,000
Total Deferred Tax Liabilities	$	3,237,000	$	3,098,000
Net deferred tax asset	$	—	$	452,000

The Company and its subsidiaries have combined net operating losses of approximately $23,760,000, $10,845,000 of which were incurred before 2018 and expire between 2031 and 2037 with the balance of $12,915,000 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 $5,290,000 for the three months ended September 30, 2019 and $5,394,000 for the nine months ended September 30, 2019.

Related Party Transactions

9 Months Ended

Sep. 30, 2019

Related Party Transactions

Note 15 – Related Party Transactions

(a)

Affiliate Resources and Obligations

Management Services Agreement

In May 2016, we entered into a management services agreement, that has an initial term of five years and automatically renews for additional one-year terms at the discretion of the parties thereto, which we refer to as the “CSS Management Agreement.” Under the terms of the CSS Management Agreement, we are provided with the broad operational expertise of CSS and its subsidiaries and personnel, including the services of our chairman and chief executive officer, Mr. Rouhana, our vice chairman and chief strategy officer, Mr. Seaton, our senior brand advisor and director, Ms. Newmark, and our chief financial officer, Mr. Mitchell. The CSS Management Agreement also provides for services, such as accounting, legal, marketing, management, data access and back-office systems, and provides us with office space and equipment usage.

We pay CSS a management fee equal to 5% of our gross revenue for each calendar quarter, each payable on or prior to the 45th day after the end of the calendar quarter to which it relates, or the 10th day after the filing of the applicable Exchange Act report for such quarter. For the three months ended September 30, 2019 and 2018, the Company recorded management fee expense of $838,152 and $323,802, respectively, and $1,545,547 and $756,343 for the nine months ended September 30, 2019 and 2018, respectively, payable to CSS.

On August 1, 2019, we entered into an amendment (“Amendment”) to the CSS Management Agreement. The Amendment retroactively removed our obligation to pay sales commissions to CSS in connection with sponsorships for our video content or other revenue generating transactions arranged by CSS or its affiliates.

We believe that the terms and conditions of the CSS Management Agreement, as amended, are more favorable and cost effective to us than if we hired the full staff to operate the company.

License Agreement

In May 2016, we entered into a trademark and intellectual property license agreement with CSS, which we refer to as the “CSS License Agreement.” Under the terms of the CSS License Agreement, we have been granted a perpetual, exclusive, worldwide, sublicensable license to produce and distribute video content using the Chicken Soup for the Soul Brand and related content, such as stories published in the Chicken Soup for the Soul books.

We paid CSS a one-time license fee of $5 million. We also pay CSS an incremental recurring license fee equal to 4% of our gross revenue for each calendar quarter, and a marketing fee of 1% of our gross revenue for each calendar quarter, each fee payable on or prior to the 45th day after the end of the calendar quarter to which it relates, or the 10th day after the filing of the applicable Exchange Act report for such quarter. Provided that the CSS License Agreement remains in place, CSS has agreed that it will not engage, and will not cause or permit its subsidiaries (other than us) to engage, in the production or distribution of video content, including that which is unrelated to the Chicken Soup for the Soul Brand, except in connection with the marketing of their other products and services.

For the three months ended September 30, 2019 and 2018, the Company recorded total license fee expense (including for marketing support) of $838,151 and $323,801, respectively, and $1,545,546 and $756,344 for the nine months ended September 30, 2019 and 2018, respectively, payable to CSS. We believe that the terms and conditions of the CSS License Agreement, which provides us with the rights to use the trademark and intellectual property in connection with our video content, are more favorable to us than any similar agreement we could have negotiated with an independent third party.

Crackle Plus Management Services Agreement

We provide management services to Crackle Plus, including office space, back-office support, accounting and financial services support and technology resources and support for a quarterly fee equal to five percent (5%) of Crackle Plus’s gross revenues, subject to adjustment after the first year.

Due from Affiliated Companies

At September 30, 2019 and December 31, 2018, the Company is owed $7,010,065 and $1,213,436 , respectively, from affiliated companies - primarily CSS. 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 as needed.

As noted above, advances and repayments occur periodically. The Company and CSS do not charge interest on the net advances.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 16 - Commitments and Contingencies

In the normal course of business, from time-to-time, the Company may become subject to claims in legal proceedings. In addition to creating its own content and using its own technologies, the Company distributes third party content and utilizes third party technology, which could further expose the Company to claims arising from actions of such third parties (for which the Company would seek indemnification that may or may not be available under the terms governing the Company’s relationships with such third parties). Legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and in such event, could result in a material adverse impact on the Company’s business, financial position, results of operations, or cash flows.

Screen Media is contingently liable for a standby letter of credit in connection with an office lease agreement in the amount of $129,986 as of September 30, 2019 and December 31, 2018.

Screen Media leases its office facilities under the terms of a non-cancelable operating lease agreement that expires on February 28, 2020. Minimum annual rental commitments under the lease are as follows:

Operating Lease Commitment - Screen Media


Year Ended December 31,	Amount
Remainder of 2019		105,000
2020		70,000
	$	175,000

Rent expense recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018 was $107,303 and $102,987, respectively, and $340,421 and $310,375 for the nine months ended September 30, 2019 and 2018, respectively. The Company does not record rent expense for its Connecticut office as it is included under the Management Agreement with CSS.

Programming obligations

The Company enters into long-term contracts for programming content that cover various periods up to 5 years. Programming obligations are recognized when the license period begins and the content is available for showing. Programming obligations of $6,005,154 are included in the Consolidated Condensed Balance Sheet as of September 30, 2019. There are no other future contractual commitments in regard to the Company's programming obligations as of September 30, 2019.

Expense Reimbursement

As a part of the Crackle business combination, the company is required to reimburse CPE (“Crackle, Inc.”) upon written request during the exercise period (during the six month period following the first anniversary of the closing of the transaction) up to a maximum of $5,000,000 of reasonable, documented third-party expenses incurred in connection with the transaction payable in cash by the joint venture entity or CSSE’s Series A 9.75% perpetual preferred stock, valued at a price per share of $25. The reimbursement is due at the end of the exercise period when CPE exercises its put option or conversion rights.

Equity	9 Months Ended
Equity	Sep. 30, 2019
Equity [Abstract]
Stockholders' Equity	Note 17 – Equity Subsidiary convertible preferred stock The subsidiary convertible preferred stock represents 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 has the right to convert their Preferred Units in the Crackle Plus joint venture into Common Units representing common ownership of 49% in the Crackle Plus joint venture or into Series A Preferred Stock in the Company. Based on the terms of the transaction agreement, the noncontrolling interest in the Crackle Plus joint venture is convertible into equity. Noncontrolling interest Noncontrolling interests represents a 1% equity interest in the consolidated subsidiary Crackle Plus. The noncontrolling interests are presented as a component of equity and the proportionate share of net income (loss) attributed to the noncontrolling interests is recorded in results of operations. Changes in noncontrolling interests that do not result in a loss of control are accounted for in equity. Gains and losses from the changes in noncontrolling interests that result in a loss of control are recorded in results of operations.

Segment and Geographic Information	9 Months Ended
Segment and Geographic Information	Sep. 30, 2019
Segment Reporting [Abstract]
Segment and Geographic Information	Note 18 – Segment Reporting and Geographic Information The Company’s reportable segment has 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 99% of total net revenue for each of the three and nine months ended September 30, 2019 and 2018. Remaining net revenue was generated in the rest of the world. 100% of total consolidated long-lived assets are based in the United States.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 19 – Subsequent Events Landmark Studio Group Launch On October 11, 2019, Chicken Soup for the Soul Entertainment Inc. (the “Company”) consummated (the “Closing”) the creation of a joint venture entity to be branded “Landmark Studio Group” (“Landmark”) for the development and production of original scripted content. Landmark is governed by the terms of an operating agreement (the “Operating Agreement”) entered into by Landmark and the Company, David Ozer, Legend Capital Management, LLC (“Legend”), Kevin Duncan, and Cole Investments VII, LLC (“Cole”), an affiliate of Cole Strategic Partners, each as members of Landmark. In connection with the creation of Landmark, (a) Mr. Ozer has contributed certain original television series and feature films to Landmark in exchange for 21,000 units of common equity (“Common Units”) of Landmark, (b) Legend has contributed an original television series to Landmark in exchange for 2,000 Common Units, (c) the Company and its affiliates agreed to provide promotion and distribution support to Landmark pursuant to a distribution agreement which provides for a revolving $5 million minimum guarantee facility (“Distribution Agreement”), in exchange for 51,000 Common Units, (d) Cole has made available to Landmark a $5 million revolving credit facility (the “Credit Facility”) in exchange for 25,000 Common Units, and (e) Mr. Duncan received 1,000 Common Units in consideration for introducing the parties and assisting in the negotiation of the transaction. The Company will provide management services to Landmark, including the services of the officers of the Company, office space, back office support, accounting, and financial services support, and technology resources and support for a quarterly fee equal to 5% of the fees that Landmark receives during the production of any series, film, or special, including all executive producer fees, producer fees, overhead, and similar fees retained by Landmark. The Company will also arrange sponsorship for Landmark’s content, and will be entitled to commissions equal to 20% of certain specified revenue generated by such sponsorship. The Company, as majority owner of the Common Units of Landmark, will manage the day to day operations of Landmark through its officers that are also serving as officers of Landmark. Landmark will maintain a board of managers, with three managers designated by the Company, one manager designated by Cole, and, so long as Mr. Ozer is employed by Landmark, Mr. Ozer shall be the fifth manager. Foresight Unlimited, LLC Film Library Acquisition On October 28, 2019, Screen Media Ventures, LLC (“SMV”) purchased certain assets from Foresight Unlimited LLC and each of its subsidiaries, and certain other entities affiliated with Mark Damon (collectively, “Foresight”) including 14 completed motion pictures and 2 motion pictures that are or will be in production, and SMV created a new Foresight Division to be led by Mr. Damon. SMV paid an aggregate purchase price of $2,000,000 in cash for the assets, a portion of which was paid at the closing of the transaction and the remainder of which is payable upon certain milestones. In addition to the cash consideration, during each of the two years following closing, Mr. Damon will be entitled to receive a number of shares of Class A common stock of the Company having an aggregate value of $900,000 per year, calculated based on the average trading price of the Company’s Class A common stock according to a formula set forth in the asset purchase agreement entered into between SMV and Foresight (the “Stock Bonus”) if (i) Mr. Damon is actively involved in SMV’s operations and (ii) SMV generates gross revenue of at least $1,000,000 in agency and/or distribution fees from any new film, television, or online properties sourced by Mr. Damon and accepted by SMV in its sole discretion during such 12-month period. If the Stock Bonus is earned in each of the 12-month periods, then, upon the mutual election of Mr. Damon and SMV, a second stock bonus plan for the subsequent two consecutive 12-month periods shall be established on substantially the same terms. PS Vue Announcement On October 30th, 2019 Sony Interactive Entertainment (SIE) announced that it would be shutting down their vMVPD platform PlayStation Vue (PS Vue) as of January 30th 2020. SIE has partially subcontracted to Crackle Plus for the sale of some of its advertising inventory. With the expected loss of the PS Vue advertising inventory from its offering, Crackle Plus is actively seeking replacement ad representation partners. Series A Preferred Stock Dividends The Company has declared and paid monthly dividends of $0.2031 per share on its 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) to holders of record as of September 30, 2019 and October 31, 2019. The monthly dividend for September was paid on October 15, 2019 and the monthly dividend for October is expected to be paid on November 15, 2019. The total dividends declared and paid in October and November was approximately $325,000, respectively.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s significant estimates include those related to revenue recognition, allowance for doubtful accounts, intangible assets, share-based compensation expense, valuation of income taxes, ad representation fees payable and amortization of programming and film library costs. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with original maturities of three months or less and consist primarily of money market funds.
Fair Value	Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting our own assumptions. These valuations require significant judgment and estimates. At September 30, 2019 and December 31, 2018, the fair value of the Company’s financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, accrued programming costs, film library acquisition costs and accrued participation costs, approximated their carrying value due primarily to the short-term nature of these instruments.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at the amount management expects to collect which is net of an allowance for doubtful accounts and video returns. An allowance for doubtful accounts is recorded based on a combination of historical experience, aging analysis and information on specific accounts. Account balances are written off against the allowance after all means of collections have been exhausted and the potential for recovery is considered remote. Accounts are considered past due or delinquent based on contractual terms and how recently payments have been received. Estimated losses resulting from doubtful accounts are reported as bad debt expense in the consolidated statements of operations. At September 30, 2019, and December 31, 2018, accounts receivable is presented net of allowance for doubtful accounts and video returns of $761,690, and $601,500, respectively. Bad debt expense of $467,335 and $21,061 was recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, respectively, and $412,458 and $161,212 for the nine months ended September 30, 2019 and 2018, respectively. Provision for returns and allowances of $255,394 and $107,300 was recorded in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, respectively, and $828,785 and $553,294 for the nine months ended September 30, 2019 and 2018, respectively.
Inventory	Inventory Inventory consists of DVD films held for resale to wholesale and retail customers. Inventory is stated at the lower of cost or market. Cost is determined by the first-in, first-out (FIFO) method. Market value is based on net realizable value. When the net realizable value falls below its cost, a provision for write-downs is recorded.
Programming Costs	Programming Costs Programming costs include the unamortized costs of completed, in-process, or in-development long-form and short-form video content. For video content, the Company’s capitalized costs include all direct production and financing costs, capitalized interest when applicable, and production overhead. The costs of producing video content are amortized using the individual-film-forecast method. These costs are amortized in the proportion that the current period’s revenue bears to management’s estimate of ultimate revenue expected to be recognized from each production. For an episodic television series, the period over which ultimate revenue is estimated cannot exceed ten years following the date of delivery of the first episode, or, if the series is still in production, five years from the date of delivery of the most recent episode, if later. Programming costs are stated at the lower of amortized cost or estimated fair value. The valuation of programming costs is reviewed on a title-by-title basis, when an event or change in circumstances indicates that the fair value may be less than its unamortized cost and the valuation is based on a discounted cash flows (“DCF”) methodology with assumptions for cash flows. Key inputs employed in the DCF methodology include estimates of a program’s ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular program. The Company performs an annual impairment analysis for unamortized programming costs. An impairment charge is recorded in the amount by which the unamortized costs exceed the estimated fair value. Estimates of future revenue involve measurement uncertainties and it is therefore possible that reductions in the carrying value of programming costs may be required as a consequence of changes in management’s future revenue estimates. Included in cost of revenue in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018 is amortization of programming costs related to our original productions totaling $25,815 and $658,716, respectively, and $122,253 and $1,509,217 for the nine months ended September 30, 2019 and 2018, respectively. There was no impairment charge recorded in the three and nine months ended September 30, 2019 and 2018.
Film Library	Film Library The film library represents the cost of acquiring film distribution rights and related acquisition and accrued participation costs. The film library is amortized using the individual-film-forecast method. The film library is stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of ultimate revenue. Amortization is adjusted when necessary to reflect increases or decreases in forecasted ultimate revenue. Ultimate revenue time frame is determined based on the term of the related acquisition agreement. The Company generally acquires distribution rights covering periods of ten or more years. Included in cost of revenue in the condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, is amortization of film library totaling $1,214,610 and $1,033,983, respectively, and $3,475,471 and $3,656,515 for the nine months ended September 30, 2019 and 2018, respectively. For the three and nine months ended September 30, 2019 and 2018, there was no impairment charge recorded.
Programming rights and obligations	Programming rights and obligations Programming rights acquired under license agreements are recorded as an asset and a corresponding liability upon commencement of the license period. The programming rights are presented at the lower of unamortized cost or estimated net realizable value on a program by program basis and amortized over the license period using a straight line method beginning with the first month of availability. Programming obligations represent the gross commitment amounts to be paid to program suppliers over the life of the contracts. Included in the cost of revenue in the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 is program rights amortization totaling $155,263 and $328,796, respectively.
Acquisitions, Goodwill & Acquired Intangible Assets	Acquisitions, Goodwill & Acquired Intangible Assets We have made and expect to continue to make selective acquisitions. The valuation of potential acquisitions is based on various factors, including specialized know-how, reputation, competitive position and service offerings of the target businesses, as well as our experience and judgment. The Company accounts for business combinations using the acquisition accounting method, which requires the determination of the fair value of the net assets acquired including tangible assets, identified intangible assets, liabilities assumed and any noncontrolling interest in the acquired business are recorded at their acquisition date fair values. Determining the fair value of assets acquired and liabilities assumed requires management's judgment and involves the use of significant estimates, including projections of future cash inflows and outflows, discount rates, asset lives and market multiples. The Company continually evaluates its estimates, including the assumptions, risks, and uncertainties inherent in estimates; however, the Company cannot ensure that these estimates will be accurate. If the Company subsequently determines that the estimates are not accurate, it will be required to record an impairment charge. Considering the characteristics of AVOD and film distribution companies, the Company’s acquisitions to date did not have significant amounts of tangible assets, as the principal asset typically acquired is talent and customer relationships. As a result, a substantial portion of the purchase price is allocated to other intangible assets including goodwill where appropriate. Changes to the original estimates may be required during the life of an asset. The Company reviews goodwill and other intangible assets with indefinite lives not subject to amortization at least annually and whenever events or significant changes in circumstances indicate that the carrying value may not be recoverable, an impairment charge is recorded. As of September 30, 2019 no indicators of impairment have been identified and thus no impairment charge has been recorded. Goodwill and Acquired Intangible Assets consist of the following, Video Content License The Company has been granted a perpetual, exclusive, sublicensable license from CSS to exploit the Brand and related intellectual property, for the production and distribution of television programming, motion pictures, and online visual content on a worldwide basis (“Perpetual License”). The Company paid a purchase price of $5,000,000 for the Perpetual License in 2016, which approximated the cost of the licensed content to CSS. The Company has recorded the initial purchase price of the Perpetual License at the estimated cost to CSS. Popcornflix Film Rights and Other Assets Popcornflix film rights and other assets represent the direct-to-consumer online video service and application platform comprised of five ad-supported networks with rights to over 3,000 films and approximately 60 television series. Popcornflix is an indefinite-lived intangible asset and is not subject to amortization but annual impairment analysis. Pivotshare Acquired intangible assets of Pivotshare represent the fair value of its installed customer base, the non-compete obligation of the former chief executive officer and goodwill. The installed customer base and the non-compete obligation are stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of useful lives, which is five years for the installed customer base and three years for the non-compete, which is the period it is in effect. A Plus The Company recorded goodwill from the acquisition of A Plus which resulted from the portion of the purchase price in excess of the net assets purchased as of the initial acquisition date. Crackle Plus Intangible assets acquired as a result of the Crackle Plus Joint Venture represent the fair value of the Crackle brand value, customer user base, content rights, partner agreements and goodwill. The Crackle Plus intangibles are stated at the lower of unamortized cost or fair value. Amortization is based upon management’s best estimate of useful lives, which is 2-7 years for the customer user base, content rights, partner agreements and brand value.
Income Taxes	Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for uncertain tax positions in accordance with the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740: Income Taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return, should be recorded in the financial statements. Pursuant to the authoritative guidance, the Company may recognize the tax benefit from an uncertain tax position only if it meets the “more likely than not” threshold that the position will be sustained on examination by the taxing authority, based on the technical merits of the position or expiration of statutes. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. In addition, the authoritative guidance addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods, and also requires increased disclosures. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense within its condensed consolidated statements of operations. At September 30, 2019 and 2018, the Company did not have any unrecognized tax benefits or liabilities.
Long-Lived Assets	Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value.
Film Library Acquisition Obligations	Film Library Acquisition Obligations Film library acquisition obligations represent amounts due in connection with the Company acquiring film distribution rights. Pursuant to the film distribution rights agreements, the Company’s right to distribute films may revert to the licensor in the event that the Company is unable to satisfy its financial obligations with respect to the acquisition of the related distribution rights.
Ad Representation Fees Payable	Ad Representation Fees Payable Included in cost of revenue are advertisement representation fees earned by the Ad Rep Partners and license fees payable to third parties and amortization associated with programming rights.
Accrued Participation Costs	Accrued Participation Costs The Company accrues for participation costs payable to production companies and producers based on the respective agreements. Amounts payable to production companies and producers are calculated based on gross revenue for each film after exceeding certain minimum targets. In addition, the Company must recoup its original investment in each film before such payments are due. Accrued participation costs are capitalized and amortized as part of the film library.
Revenue Recognition	Revenue Recognition Online Networks Revenue from AVOD and online digital distribution platforms are recorded and invoiced when monthly activity is reported by advertisers or third party agencies. The Company earns revenues on a cost per thousand, also called on a cost-per-mille basis (“CPM basis”) as ad impressions are run on the inventory sold to ad agencies and as ad impressions are run on the ad inventory made available to resellers. The Company considers ad agencies and resellers as customers in these transactions and therefore revenue is presented as gross receipts from the agencies and resellers. In addition, advertising representation revenues are commission fees that the Company earns for selling ad inventory on behalf of third party over-the-top platforms. The Company earns revenues as placed advertisements are run on the available ad inventory of its Ad Rep Partners. Advertising representation revenues are presented as the gross receipts from advertisers and the amount remitted to the Ad Rep Partners are recorded as cost of sales. Revenue earned on the distribution of third parties’ streaming content by Pivotshare is reported on a net basis as the Company’s performance obligation is to facilitate a transaction between third party content producers and customers, for which we earn a commission based on revenue share (see Note 6). Revenue from digital online media distribution is included in online networks in the accompanying condensed consolidated statements of operations. The Company generally invoices customers in arrears on a monthly basis in accordance with the number of advertisements placed or impressions delivered during the month. The Company generally invoices customers when the right to consideration becomes unconditional, and as such, the only contract balances the Company recognizes are accounts receivable. Television and film distribution The Company licenses and distributes multi-film packages to its customers. Revenue from multi-film sales is allocated on a per title basis and recognized upon initial availability for exploitation by customers. In addition, the Company distributes DVDs and similar media to its customers. The Company recognizes revenue upon shipment of DVD units or similar media units to its customers. Provision for future returns and other allowances are established based upon historical experience. For theatrical releases, revenue is recorded after the theatrical release date and when box office proceeds reports are received. Revenue from the distribution of multi-film packages and DVDs and similar media is included in television and film distribution in the accompanying condensed consolidated statements of operations. Television and short-form video production The Company recognizes revenue from the production and distribution of television programs and short-form video content in accordance with Accounting Standards Codification Topics, ASC 606: Revenue from contracts with customers and ASC 926: Entertainment – Films as amended. For episodic television programs, revenue is recognized as each episode becomes available for delivery or becomes available for broadcast, and for short-form online videos, revenue is recognized when the videos are posted to a website for viewing. Revenue from the distribution of short-form online media content is included in television and short-form video production revenue in the accompanying condensed consolidated statements of operations. Cash advances received by the Company are recorded as deferred revenue until all the conditions of revenue recognition have been met.
Share-Based Payments	Share-Based Payments The Company accounts for share-based payments in accordance with ASC 718: Share-based Compensation, which establishes the accounting for transactions in which an entity exchanges its equity instruments for goods or services. Under the provisions of the authoritative guidance, share-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period, net of estimated forfeitures. Shares issued for services are based upon current selling prices of the Company’s Class A common stock or independent third party valuations. The Company estimates the fair value of share-based instruments using the Black-Scholes option-pricing model. All share-based awards will be fulfilled with new shares of Class A common stock. For the three and nine months ended September 30, 2019 and 2018, share-based awards were issued to non-employee directors and employees for services rendered and were recorded at fair value.
Advertising Costs	Advertising Costs Generally, advertising costs are expensed as incurred except for the advertising costs associated with the Company’s theatrically released titles which the Company is obligated to reimburse. Total advertising costs related to theatrically released titles for the three months ended September 30, 2019 and 2018 was $519,042 and $395,895, respectively, and $1,867,764 and $671,036 for the nine months ended September 30, 2019 and 2018, respectively. These costs are capitalized as part of the film library acquisition costs and are amortized as such.
Earnings (loss) Per Share	Earnings (Loss) Per Share Basic net income (loss) per common share is computed based on the weighted average number of shares of all classes of common stock outstanding. Diluted net loss per common share is computed based on the weighted average number of common shares outstanding increased, when applicable, by dilutive common stock equivalents, comprised of Class W warrants, Class Z warrants, Class I warrants, Class II warrants, Class III-A warrants, Class III-B warrants and stock options outstanding. When the Company has a net loss, dilutive common stock equivalents are not included as they would be anti-dilutive.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “Improvements to Accounting for Costs of Films and License Agreements for Program Materials.” The amendments in this ASU align the accounting for production costs of an episodic television series with the accounting for production costs of films. In addition, the ASU modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements under the current film and broadcaster entertainment industry guidance. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020, with early adoption permitted. The new guidance will be applied on a prospective basis. The Company is currently in the process of evaluating the impact, if any, of this new guidance on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606.” The amendments in this ASU clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied retrospectively to the date of initial application of the new revenue guidance in Topic 606 (January 1, 2018 for the Company). The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. 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 is effective for public companies’ fiscal years beginning after December 15, 2018 (including interim periods within those periods) using a modified retrospective approach and early adoption is permitted. Because the Company is an emerging growth company, adoption is not required until fiscal years beginning after December 15, 2019. The Company is currently assessing the potential impact ASU 2016-02 will have on its consolidated financial statements. The impact of implementation is not expected to be material. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial statements. Recently Adopted Accounting Standards In June 2018, the FASB issued ("ASU") 2018-07, Compensation - Stock Compensation Topic 718: Improvements to Nonemployee Share-Based Payment Accounting, which is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees. Under the new guidance, equity-classified nonemployee awards are to be measured on the grant date, rather than on the earlier of (1) the performance commitment date or (2) the date at which the nonemployee's performance is complete. ASU 2018-07 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2018 for public entities and after December 15, 2019 for all other entities. Early adoption is permitted but not before an entity adopts ASC 606. The Company has adopted ASC 606 on January 1, 2019 and the impact of implementation was not material. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014‑09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). For all other entities, this standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments may be applied retrospectively to each prior period (full retrospective) or retrospectively with the cumulative effect recognized as of the date of initial application (modified retrospective). The Company has adopted ASU 2014‑09 in the first quarter of 2019 and has applied the modified retrospective method. No adjustment was recorded to opening retained earnings given the lack of change to the company’s accounting for revenue with contracts with customers.

Business Combination (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]


Accounts receivable, net	$	5,360,667
Prepaid expenses		892,200
Programming Rights		1,155,363
Goodwill		14,929,601
Brand Value		26,493,805
Customer User Base		15,364,395
Content Rights		2,524,373
Partner Agreements		5,314,481
Assets acquired		72,034,885
Accounts payable and accrued expenses		(13,061,492)
Programming Obligations		(7,300,862)
Liabilities assumed		(20,362,354)
Total purchase consideration	$	51,672,531

Schedule of Business Acquisitions, by Acquisition [Table Text Block]


Fair Value of Preferred Units	$	36,350,000
Fair Value of Warrants in CSSE		10,899,204
Fair Value of Put Option		4,423,327
Total Estimated Purchase Price	$	51,672,531

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]


	Three Months Ended September 30,
							% of
	2019		% of revenue		2018		revenue
Revenue:
Online networks	$	14,383,659	86	%	$	1,809,689	28	%
Television and film distribution		2,613,872	16	%		2,510,462	39	%
Television and short-form video production		48,557	0	%		2,283,933	35	%
Total revenue		17,046,088	102	%		6,604,084	102	%
Less: returns and allowances		(255,394)	(2)	%		(107,300)	(2)	%
Net revenue	$	16,790,694	100	%	$	6,496,784	100	%


	Nine Months Ended September 30,
							% of
	2019		% of revenue		2018		revenue
Revenue:
Online networks	$	25,128,001	81	%	$	3,339,901	22	%
Television and film distribution		6,058,862	20	%		7,785,427	51	%
Television and short-form video production		596,252	2	%		4,720,094	31	%
Total revenue		31,783,115	103	%		15,845,422	104	%
Less: returns and allowances		(828,785)	(3)	%		(553,294)	(4)	%
Net revenue	$	30,954,330	100	%	$	15,292,128	100	%

Contract with Customer, Asset and Liability [Table Text Block]


	September 30,		December 31,
	2019		2018
Contract Assets	$	27,731,931	$	12,841,099
Contract Liabilities	$	—	$	6,469

Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

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

Share-based Compensation, Stock Options, Activity [Table Text Block]


	As of September 30, 2019			Weighted
		Weighted		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contract	Intrinsic
	Stock Options	Price		Term (Yrs.)	Value
Total outstanding at December 31, 2018	662,500	$	7.52	3.34	$	332,100
Granted	490,000		8.30	4.40		—
Forfeited	(103,334)		9.66	3.72		—
Exercised	(16,666)		9.61	3.24		—
Expired	—		—	—		—

Outstanding at September 30, 2019	1,032,500	$	7.73	3.60	$	1,987,425

Vested and exercisable at September 30, 2019	629,170	$	7.29	2.77	$	1,484,753

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]


	Nine Months Ended September 30,
Weighted Average Assumptions:	2019			2018
Expected dividend yield		0.0	%		0.0	%
Expected equity volatility		56.1	%		57.1	%
Expected term (years)		5			5
Risk-free interest rate		2.22	%		2.10	%
Exercise price per stock option	$	7.73		$	7.52
Market price per share	$	7.27		$	6.46
Weighted average fair value per stock option	$	3.51		$	3.10

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]


	Three Months Ended September 30,
	2019		2018
Net loss available to common stockholders	$	(13,323,775)	$	(193,032)
Basic weighted-average shares outstanding		11,994,112		11,924,387
Effect of dilutive securities:
Assumed issuance of shares from exercise of stock options*		—		—
Assumed issuance of shares from exercise of warrants*		—		—

Diluted weighted-average shares outstanding*		11,994,112		11,924,387

Loss per share:
Basic and diluted	$	(1.11)	$	(0.02)


	Nine Months Ended September 30,
	2019		2018
Net loss available to common stockholders	$	(22,616,589)	$	(2,745,391)
Basic weighted-average shares outstanding		11,983,136		11,936,511
Effect of dilutive securities:
Assumed issuance of shares from exercise of stock options*		—		—
Assumed issuance of shares from exercise of warrants*		—		—

Diluted weighted-average shares outstanding*		11,983,136		11,936,511

Loss per share:
Basic and diluted	$	(1.89)	$	(0.23)

Programming Costs (Tables)

9 Months Ended

Sep. 30, 2019

Entertainment [Abstract]

Schedule of programming costs, net of amortization


	September 30,		December 31,
	2019		2018
Released, net of accumulated amortization of $9,595,561 and $9,473,308, respectively	$	11,616,423	$	11,418,244
In production		666,675		17,099
In development		1,678,408		1,355,146
	$	13,961,506	$	12,790,489

Film Library (Tables)

9 Months Ended

Sep. 30, 2019

Film Costs [Abstract]

Schedule of film library costs


	September 30,		December 31,
	2019		2018
Acquisition costs	$	43,311,155	$	33,176,802
Accumulated amortization		(11,313,771)		(7,838,300)
Net film library costs	$	31,997,384	$	25,338,502

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]


	September 30,		December 31,
	2019		2018
Intangible asset - video content license	$	5,000,000	$	5,000,000
Popcornflix film rights and other assets		7,163,943		7,163,943
	$	12,163,943	$	12,163,943

Schedule of Finite-Lived Intangible Assets [Table Text Block]


	September 30,		December 31,
	2019		2018
Acquired customer base, net	$	1,774,937	$	2,118,473
Non-compete agreement, net		331,356		463,898
Website development, net		291,949		389,266
Crackle Plus Customer User Base		12,483,571		—
Crackle Plus Content Rights		2,208,827		—
Crackle Brand Value		25,074,494		—
Crackle Plus Partner Agreements		4,915,894		—
	$	47,081,028	$	2,971,637

Schedule of Goodwill [Table Text Block]


	September 30,		December 31,
	2019		2018
Goodwill: Pivotshare	$	1,300,319	$	1,300,319
Goodwill: A Plus		1,236,760		1,236,760
Goodwill: Crackle Plus		14,929,602		—
	$	17,466,681	$	2,537,079

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt


	September 30,		December 31,
	2019		2018
Commercial Loan	$	16,000,000	$	4,416,667
Revolving Line of Credit		—		3,500,000
Total Debt		16,000,000		7,916,667
Less: debt issuance costs		188,803		334,554
Less: current portion		3,200,000		1,000,000
Total long-term debt	$	12,611,197	$	6,582,113

Schedule of Maturities of Long-term Debt [Table Text Block]


Year Ended December 31,	Amount
Remainder of 2019	$	800,000
2020		3,200,000
2021		3,200,000
2022		3,200,000
2023		3,200,000
2024		2,400,000
	$	16,000,000

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Current provision (benefit):
Federal	$	—	$	—	$	—	$	—
States		(5,000)		25,000		105,000		72,000
Total current provision	$	(5,000)	$	25,000	$	105,000	$	72,000
Deferred provision:
Federal	$	923,000	$	256,000	$	333,000	$	364,000
States		330,000		94,000		119,000		143,000
Total deferred provision		1,253,000		350,000		452,000		507,000
Total provision for income taxes	$	1,248,000	$	375,000	$	557,000	$	579,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]


	September 30,		December 31,
	2019		2018
Deferred Tax Assets:
Net operating loss carry-forwards	$	6,092,000	$	3,022,000
Acquisition-related costs		723,000		663,000
Film library and other intangibles		2,501,000		427,000
Deferred state taxes		34,000		157,000
Less: valuation allowance		(6,113,000)		(719,000)
Total Deferred Tax Assets	$	3,237,000	$	3,550,000
Deferred Tax Liabilities:
Programming costs		2,832,000		2,779,000
Other assets		405,000		319,000
Total Deferred Tax Liabilities	$	3,237,000	$	3,098,000
Net deferred tax asset	$	—	$	452,000

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Operating Lease Commitment


Year Ended December 31,	Amount
Remainder of 2019		105,000
2020		70,000
	$	175,000

Description of the Business (Details)	9 Months Ended
Description of the Business (Details)	Sep. 30, 2019 segment country
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

Summary of Significant Accounting Policies (Details)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2019

USD ($)

item

Sep. 30, 2018

USD ($)

Dec. 31, 2018

USD ($)

Allowance for doubtful accounts and video returns

$ 761,690

$ 601,500

Provision for returns and allowances

1,241,243

$ 714,506

^[1]

255,394

$ 107,300

$ 828,785

553,294

Period following the date of delivery of the first episode over with the ultimate revenue may be estimated

10 years

Period from date of delivery of most recent episode if still in production the ultimate revenue may be estimated

5 years

Impairment of programming costs

$ 0

Impairment of film library

3,475,471

3,656,515

^[1]

Goodwill and intangible asset impairment

$ 0

Unrecognized tax benefits

$ 0

Ultimate revenue time frame for film library

102.00%

103.00%

104.00%

Minimum [Member]

10 years

Accounts Receivable [Member]

Amortization of programming costs

$ 25,815

$ 122,253

$ 1,509,217

Programming rights and obligations [Member]

(467,335)

$ (21,061)

(412,458)

(161,212)

Amortization of programming costs

155,263

328,796

Theatrically Released Titles [Member]

Advertising costs

519,042

395,895

$ 1,867,764

671,036

Popcornflix film rights and other assets

Number of ad-supported networks included in direct-to-consumer online video service and application | item

Number of films with rights included in direct-to-consumer online video service | item

3,000

Number of television series with rights included in direct-to-consumer online video service | item

Content Rights [Member] | Minimum [Member]

Content Rights [Member] | Maximum [Member]

2 years

Pivotshare Inc | Installed customer base

7 years

Pivotshare Inc | Non-compete obligation

5 years

3 years

Cost of revenue.

Cost of revenue. | Accounts Receivable [Member]

$ 1,214,610

1,033,983

$ 3,475,471

$ 3,656,515

Amortization of programming costs

$ 658,716

[1]

Business Combination - Purchase price to fair value of net assets acquired (Details) - USD ($)	Sep. 30, 2019	Mar. 27, 2019	Dec. 31, 2018
Purchase price consideration allocated to fair value of net assets acquired:
Accounts receivable, net		$ 5,360,667
Prepaid expenses		892,200
Program rights	$ 826,567	1,155,363	$ 0
Goodwill	$ 17,466,681	14,929,601	$ 2,537,079
Assets acquired		72,034,885
Accounts payable and accrued expenses		(13,061,492)
Programming Obligations		(7,300,862)
Liabilities assumed		(20,362,354)
Total purchase consideration, less cash acquired		51,672,531
Brand Value [Member]
Purchase price consideration allocated to fair value of net assets acquired:
Intangible assets other than goodwill		26,493,805
Customer User Base [Member]
Purchase price consideration allocated to fair value of net assets acquired:
Intangible assets other than goodwill		15,364,395
Content Rights [Member]
Purchase price consideration allocated to fair value of net assets acquired:
Intangible assets other than goodwill		2,524,373
Partner Agreement [Member]
Purchase price consideration allocated to fair value of net assets acquired:
Intangible assets other than goodwill		$ 5,314,481

Business Combination - Purchase Price Consideration Allocation (Details) - USD ($)		1 Months Ended
	Mar. 27, 2019	Mar. 27, 2019
Business Acquisition [Line Items]
Total Estimated Purchase Price	$ 51,700,000	$ 51,672,531
Fair Value Of Preferred Units [Member]
Business Acquisition [Line Items]
Total Estimated Purchase Price		36,350,000
Fair Value Of Warrants Csse [Member]
Business Acquisition [Line Items]
Total Estimated Purchase Price		10,899,204
Fair Value Of Put Option [Member]
Business Acquisition [Line Items]
Total Estimated Purchase Price		$ 4,423,327

Business Combination (Details)

1 Months Ended

3 Months Ended

9 Months Ended

Mar. 27, 2019

USD ($)

Mar. 27, 2019

USD ($)

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

^[1]

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

^[1]

Mar. 27, 2019

$ / shares

Mar. 27, 2019

USD ($)

Dec. 31, 2018

USD ($)

Purchase price consideration | $

$ 51,700,000

$ 51,672,531

Business Combination, Acquisition Related Costs | $

$ (1,078,637)

$ (182,832)

$ (3,735,373)

$ (228,132)

Amortization method

straight-line basis

Goodwill | $

17,466,681

$ 17,466,681

$ 14,929,601

$ 2,537,079

Measurement Input Strike Price [Member] | Put Option [Member]

Initial price and strike price

40,000,000

Measurement Input, Share Price [Member]

Strike prices and market price | $ / shares

7.74

Measurement Input, Option Volatility [Member]

Measurement Input, Expected Term [Member] | Put Option [Member]

Initial price and strike price | Y

1.5

Measurement Input, Risk Free Interest Rate [Member]

Measurement Input Intial Price Assumption [Member] | Put Option [Member]

2.2

Initial price and strike price | $

36,350,000

Measurement Input, Price Volatility [Member] | Put Option [Member]

Initial price and strike price

Minimum [Member]

Estimated useful lives

2 years

Minimum [Member] | Measurement Input Strike Price [Member]

Maximum [Member] | Measurement Input Strike Price [Member]

Maximum [Member]

Estimated useful lives

7 years

Crackle JV interest [Member]

Goodwill | $

$ 14,900,000

Warrant [Member]

Warrants term

5 years

Contribution Agreement [Member] | Crackle JV interest [Member]

Number of shares issued

99,000

March Twenty Seven Twenty Nineteen Contribution [Member]

Preferred units stated value | $ / shares

$ 36.35

Preferred Stock | Contribution Agreement [Member]

Number of shares issued

37,000

Common Stock | Contribution Agreement [Member]

Number of shares issued

1,000

Common Class A | CSSE Class I Warrant [Member]

800,000

Common Class A | CSSE Class II Warrant [Member]

8.13

1,200,000

Common Class A | CSSE Class III A Warrant [Member]

9.67

380,000

Common Class A | CSSE Class III B Warrant [Member]

11.61

1,620,000

Crackle Plus Entity [Member]

$ 11.61

Convertible preferred stock terms of conversion

From May 2020 to October 2020 ("Exercise Period"), CPEH will have the right to either convert its Preferred Units into Common Units of Crackle Plus or require us to purchase all, but not less than all, of its interest in Crackle Plus ("Put Option"). We may elect to pay for such interest in cash or through the issuance of Series A Preferred Stock using a price per share of $25. Subject to certain limitations, in the event that CPEH hasn't converted its Preferred Units into Common Units of Crackle Plus or exercised its Put Option, Crackle shall be deemed to have automatically exercised the Put Option on the last day of the Exercise Period.

[1]

Revenue Recognition - Disaggregates our revenue by major category (Details) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Less: returns and allowances

$ 17,046,088

$ 6,604,084

^[1]

$ 31,783,115

$ 15,845,422

^[1]

(255,394)

(107,300)

^[1]

(828,785)

(553,294)

^[1]

Net revenue

$ 16,790,694

$ 6,496,784

^[1]

$ 30,954,330

$ 15,292,128

^[1]

102.00%

103.00%

104.00%

Revenue

Net revenue

$ 16,790,694

$ 6,496,784

$ 30,954,330

$ 15,292,128

Sales Returns and Allowances [Member]

100.00%

Less: returns and allowances

$ (255,394)

$ (107,300)

$ (828,785)

$ (553,294)

(2.00%)

(3.00%)

(4.00%)

Online networks

$ 14,383,659

$ 1,809,689

$ 25,128,001

$ 3,339,901

Television and film distribution

86.00%

28.00%

81.00%

22.00%

$ 2,613,872

$ 2,510,462

$ 6,058,862

$ 7,785,427

Television and short-form video production

16.00%

39.00%

20.00%

51.00%

$ 48,557

$ 2,283,933

$ 596,252

$ 4,720,094

0.00%

35.00%

2.00%

31.00%

[1]

Revenue Recognition - Contract assets and contract liabilities (Details) - USD ($)	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Contract with Customer, Asset and Liability [Abstract]
Contract Assets	$ 27,731,931	$ 12,841,099
Contract Liabilities	$ 0	$ 6,469	$ 6,469

Revenue Recognition - Additional information (Details) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Jan. 01, 2019

Dec. 31, 2018

Impairment losses from CSSE contracts with customers

$ 0

1,241,243

$ 714,506

Contract Liabilities

$ 0

$ 6,469

Maximum [Member]

Payment term

60 days

Minimum [Member]

Net (loss) income available to common stockholders

Payment term

30 days

[1]

Episodic Television Programs (Details) - item	1 Months Ended	2 Months Ended			9 Months Ended
Episodic Television Programs (Details) - item	Dec. 31, 2018	Aug. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2019
Hidden Heroes
Episodic Television Programs [Line Items]
Number of seasons funded by charitable foundation					4
Project Dad
Episodic Television Programs [Line Items]
Number of one-hour episodes				8
Vacation Rental Potential
Episodic Television Programs [Line Items]
Number of one-hour episodes			8
Going From Broke
Episodic Television Programs [Line Items]
Number of half-hour episodes		10
Number of one-minute short form videos		32
Chicken Soup For The Soul's Animal Tales
Episodic Television Programs [Line Items]
Number of half-hour episodes	15

Share-Based Compensation (Details) - USD ($)	9 Months Ended	12 Months Ended
Share-Based Compensation (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Remaining Contract Term, Total outstanding	3 years 7 months 6 days
Weighted Average Remaining Contract Term Exercise Price, Vested and Exercisable	2 years 9 months 7 days
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	662,500
Number of Stock Options, Options granted	490,000
Number of Stock Options, Options forfeited	(103,334)
Number of Stock Options, Options exercised	16,666
Number of Stock Options, Total outstanding at the end of the period	1,032,500	662,500
Number of Stock Options, Total exercisable at September 30, 2018	629,170
Weighted Average Exercise Price, Beginning of period	$ 7.52
Weighted Average Exercise Price, Granted	8.30
Weighted Average Exercise Price, Forfeited	9.66
Weighted Average Exercise Price, Exercised	9.61
Weighted Average Exercise Price, End of period	7.73	$ 7.52
Weighted Average Exercise Price, Vested and Exercisable	$ 7.29
Weighted Average Remaining Contract Term, Total outstanding		3 years 4 months 2 days
Weighted Average Remaining Contract Term, Options granted	4 years 4 months 24 days
Weighted Average Remaining Contract Term, Options forfeited	3 years 8 months 19 days
Weighted Average Remaining Contract Term, Total exercisable at September 30, 2018	3 years 2 months 27 days
Aggregate Intrinsic Value, Total outstanding Balance	$ 1,987,425	$ 332,100
Aggregate Intrinsic Value, Vested and Exercisable at December 31, 2018	$ 1,484,753

Share-Based Compensation - Weighted average assumptions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Valuation assumptions:
Expected dividend yield	0.00%	0.00%
Expected equity volatility	56.10%	57.10%
Expected term (years)	5 years	5 years
Risk-free interest rate	2.22%	2.10%
Exercise price per stock option	$ 7.73	$ 7.52
Market price per share	7.27	6.46
Weighted average fair value per stock option	$ 3.51	$ 3.10

Share-Based Compensation - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 13, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock equivalents authorized under Plan	1,000,000									1,250,000
Number of shares authorized	1,000,000									1,250,000
Unrecognized pre-tax compensation expense		$ 1,660,378		$ 1,660,378
Non-Cash Share-Based Compensation Expense, Recognized, Employee Stock Grants		41,854		41,854
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for share-based plan	2 years
Maximum [Member]
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						$ 59,286	$ 582,347	$ 788,468	$ 230,277
Straight-line [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense recognized		236,351	$ 218,599	$ 677,295	$ 661,799
Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense recognized		$ 25,000			$ 75,000

Earnings Per Share (Details) - USD ($)

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Reconciliation Per share [Abstract]

$ (13,323,775)

$ (193,032)

^[1]

$ (22,616,589)

$ (2,745,391)

^[1]

Basic weighted-average shares outstanding

11,994,112

11,924,387

11,983,136

11,936,511

Diluted weighted-average shares outstanding

11,994,112

11,924,387

11,983,136

11,936,511

Net (loss) per common share:

Basic and diluted

$ (1.11)

$ (0.02)

^[1]

$ (1.89)

$ (0.23)

^[1]

[1]

Earnings Per Share - Antidilutive securities (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Common Stock
Antidilutive securities	325,790	248,857

Programming Costs (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Entertainment [Abstract]
Released, net of accumulated amortization of $9,473,308 and $6,725,362, respectively	$ 11,616,423	$ 11,418,244
In production	666,675	17,099
In development	1,678,408	1,355,146
Net programming costs	13,961,506	12,790,489
Released net of accumulated amortization	$ 9,595,561	$ 9,473,308

Film Library (Details) - USD ($)

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Dec. 31, 2018

Film Costs [Abstract]

Acquisition costs

$ 43,311,155

$ 33,176,802

Accumulated amortization

(11,313,771)

(7,838,300)

Net film library costs

31,997,384

$ 25,338,502