Segment Information

6 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

9. SEGMENT INFORMATION

We operate in two reportable segments: Cinema Equipment Business and Content & Entertainment Business. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our CODM to evaluate performance, which is generally the segment’s operating income (loss) before depreciation and amortization.

Operations of:	Products and services provided:
Cinema Equipment Business	Financing vehicles and administrators for 1,813 Systems installed nationwide in our first deployment phase (“Phase I Deployment”) to theatrical exhibitors and for 3,009 Systems installed domestically and internationally in our second deployment phase (“Phase II Deployment”). We retain ownership of the Systems and the residual cash flows related to the Systems in Phase I Deployment after the repayment of all non-recourse debt at the expiration of exhibitor master license agreements. For certain Phase II Deployment Systems, we do not retain ownership of the residual cash flows and digital cinema equipment in Phase II Deployment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements. The Cinema Equipment Business segment also provides monitoring, collection, verification and management services to this segment, as well as to exhibitors who purchase their own equipment, and also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors (collectively, “Services”).
Content & Entertainment Business	Leading independent streaming company of content and channels. We collaborate with producers and other content owners to market, source, curate and distribute independent content to targeted and under-served audiences in theatres and homes, and via mobile and emerging platforms.

The following tables present certain financial information related to our reportable segments and Corporate:

	As of September 30, 2021
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non- Recourse		Notes Payable		Operating lease liabilities
Cinema Equipment Business	$	—	$	—	$	17,367	$	—	$	—	$	—
Content & Entertainment Business		16,366		13,527		51,964		—		—		10
Corporate		1		—		14,570		—		—		21
Total	$	16,367	$	13,527	$	83,901	$	—	$	—	$	31

	As of March 31, 2021
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non- Recourse		Notes Payable		Operating lease liabilities
Cinema Equipment Business	$	—	$	—	$	13,169	$	7,786	$	—	$	1
Content & Entertainment Business		9,858		8,701		42,733		—		—		69
Corporate		2		—		19,544		—		4,108		30
Total	$	9,860	$	8,701	$	75,446	$	7,786	$	4,108	$	100

	Statements of Operations
	Three Months Ended September 30, 2021
	(in thousands)
	Cinema Equipment Business			Content & Entertainment Business			Corporate			Consolidated
Revenues	$	3,253		$	6,850		$	—		$	10,103
Direct operating (exclusive of depreciation and amortization shown below)		164			3,169			—			3,333
Selling, general and administrative		431			3,480			3,248			7,159
Allocation of corporate overhead		170			1,139			(1,309	)		—
Provision for (recovery of) doubtful accounts		(130	)		19			—			(111	)
Depreciation and amortization of property and equipment		300			140			—			440
Amortization  of intangible assets		—			696			—			696
Total operating expenses		935			8,643			1,939			11,517
Income (loss) from operations	$	2,318		$	(1,793	)	$	(1,939	)	$	(1,414	)

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

(In thousands)	Cinema Equipment Business		Content & Entertainment Business		Corporate		Consolidated
Direct operating	$	—	$	—	$	—	$	—
Selling, general and administrative		—		345		601		946
Total stock-based compensation	$	—	$	345	$	601	$	946

	Statements of Operations
	Three Months Ended September 30, 2020 (in thousands)
	Cinema Equipment Business			Content & Entertainment			Corporate			Consolidated
Revenues	$	643		$	6,539		$	—		$	7,182
Direct operating (exclusive of depreciation and amortization shown below)		172			4,158			—			4,330
Selling, general and administrative		631			2,528			3,009			6,168
Allocation of corporate overhead		171			1,135			(1,306	)		—
Recovery of doubtful accounts		(193	)		—			—			(193	)
Depreciation and amortization of property and equipment		1,239			101			5			1,345
Amortization of intangible assets		7			582			2			591
Total operating expenses		2,027			8,504			1,710			12,241
Loss from operations	$	(1,384	)	$	(1,965	)	$	(1,710	)	$	(5,059	)

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

	Cinema Equipment Business		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	—	$	—
Selling, general and administrative		—		26		1,009		1,035
Total stock-based compensation	$	—	$	26	$	1,009	$	1,035

	Statements of Operations
	Six Months Ended September 30, 2021
	(in thousands)
	Cinema Equipment Business			Content & Entertainment Business			Corporate			Consolidated
Revenues	$	9,484		$	15,634		$	—		$	25,118
Direct operating (exclusive of depreciation and amortization shown below)		421			7,543			—			7,964
Selling, general and administrative		860			6,298			6,044			13,202
Allocation of corporate overhead		269			1,799			(2,068	)		—
(Recovery of) provision for doubtful accounts		(103	)		63			—			(40	)
Depreciation and amortization of property and equipment		805			284			—			1,089
Amortization of intangible assets		—			1,543			—			1,543
Total operating expenses		2,252			17,530			3,976			23,758
Income (loss) from operations	$	7,232		$	(1,896	)	$	(3,976	)	$	1,360

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

(In thousands)	Cinema Equipment Business		Content & Entertainment Business		Corporate		Consolidated
Direct operating	$	—	$	—	$	—	$	—
Selling, general and administrative		—		511		1,418		1,929
Total stock-based compensation	$	—	$	511	$	1,418	$	1,929

	Statements of Operations
	Six Months Ended September 30, 2020 (in thousands)
	Cinema Equipment Business			Content & Entertainment			Corporate			Consolidated
Revenues	$	1,248		$	11,952		$	—		$	13,200
Direct operating (exclusive of depreciation and amortization shown below)		354			6,655			—			7,009
Selling, general and administrative		1,180			4,423			4,405			10,008
Allocation of corporate overhead		295			1,919			(2,214	)		—
Recovery for doubtful accounts		(193	)		—			—			(193	)
Depreciation and amortization of property and equipment		2,642			204			23			2,869
Amortization of intangible assets		15			1,164			2			1,181
Total operating expenses		4,293			14,365			2,216			20,874
Income (loss) from operations	$	(3,045	)	$	(2,413	)	$	(2,216	)	$	(7,674	)

The following employee and director stock-based compensation expense related to our stock-based awards is included in the above amounts as follows:

	Cinema Equipment Business		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	—	$	—
Selling, general and administrative		—		52		1,160		1,212
Total stock-based compensation	$	—	$	52	$	1,160	$	1,212