SEGMENT INFORMATION

We operate in four reportable segments: Phase I Deployment, Phase II Deployment, Services and Content & Entertainment or CEG. 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 Chief Operating Decision Maker to evaluate performance, which is generally the segment’s income (loss) from continuing operations before interest, taxes, depreciation and amortization. Certain Corporate assets, liabilities and operating expenses are not allocated to our reportable segments.



Operations of:	Products and services provided:
Phase I Deployment	Financing vehicles and administrators for 3,724 Systems installed nationwide in Phase 1 DC's deployment to theatrical exhibitors. We retain ownership of the Systems and the residual cash flows related to the Systems after the repayment of all non-recourse debt at the expiration of exhibitor, master license agreements. As of December 31, 2016, we are no longer earning a significant portion of VPF revenues from certain major studios on 1,892 of such systems.
Phase II Deployment	Financing vehicles and administrators for our 8,904 Systems installed domestically and internationally, for which we retain no ownership of the residual cash flows and digital cinema equipment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.
Services	Provides monitoring, collection, verification and other management services to our Phase I Deployment, Phase II Deployment, CDF2 Holdings, as well as to exhibitors who purchase their own equipment. Services also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors.
Content & Entertainment	Leading distributor of independent content, and collaborates with producers and other content owners to market, source, curate and distribute independent content to targeted and profitable 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 December 31, 2016
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	172	$	—	$	21,759	$	59,616	$	—	$	—
Phase II Deployment	—		—		51,151		12,293		—		—
Services	—		—		982		—		—		—
Content & Entertainment	21,440		8,701		96,290		—		—		13
Corporate	11		—		6,934		—		84,518		83
Total	$	21,623	$	8,701	$	177,116	$	71,909	$	84,518	$	96



	March 31, 2016
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	206	$	—	$	48,292	$	93,372	$	—	$	—
Phase II Deployment	—		—		53,727		18,940		—		—
Services	—		—		1,064		—		—		—
Content & Entertainment	25,721		8,701		87,344		—		—		30
Corporate	13		—		18,971		—		86,938		4,195
Total	$	25,940	$	8,701	$	209,398	$	112,312	$	86,938	$	4,225



	Statements of Operations
	For the Three Months Ended December 31, 2016
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	7,266	$	2,995	$	2,625	$	11,559		$	—		$	24,445
Direct operating (exclusive of depreciation and amortization shown below)	336		168		3		6,780			—			7,287
Selling, general and administrative	158		62		227		3,910			1,738			6,095
Allocation of Corporate overhead	—		—		399		906			(1,305		)	—
Provision for doubtful accounts	318		98		—		—			—			416
Restructuring, transition and acquisition expenses, net	—		—		—		—			22			22
Depreciation and amortization of property and equipment	4,136		1,881		—		69			185			6,271
Amortization of intangible assets	11		—		—		1,383			1			1,395
Total operating expenses	4,959		2,209		629		13,048			641			21,486
Income (loss) from operations	$	2,307	$	786	$	1,996	$	(1,489	)	$	(641	)	$	2,959

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	3	$	—	$	—	$	3
Selling, general and administrative	—		—		2		88		251		341
Total stock-based compensation	$	—	$	—	$	5	$	88	$	251	$	344



	Statements of Operations
	For the Three Months Ended December 31, 2015
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	9,993	$	3,184	$	3,096	$	14,435		$	—		$	30,708
Direct operating (exclusive of depreciation and amortization shown below)	341		57		1		8,113			—			8,512
Selling, general and administrative	118		20		213		3,405			3,854			7,610
Allocation of Corporate overhead	—		—		405		1,357			(1,762		)	—
Restructuring, transition and acquisition expenses, net	—		—		—		102			474			576
Litigation recovery, net of expenses	—		—		—		(225		)	—			(225		)
Depreciation and amortization of property and equipment	7,174		1,881		—		88			285			9,428
Amortization of intangible assets	12		—		—		1,450			1			1,463
Total operating expenses	7,645		1,958		619		14,290			2,852			27,364
Income (loss) from operations	$	2,348	$	1,226	$	2,477	$	145		$	(2,852	)	$	3,344

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	1	$	2	$	—	$	3
Selling, general and administrative	—		—		—		66		281		347
Total stock-based compensation	$	—	$	—	$	1	$	68	$	281	$	350



	Statements of Operations
	For the Nine Months Ended December 31, 2016
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	26,022	$	9,448	$	9,042	$	26,288		$	—		$	70,800
Direct operating (exclusive of depreciation and amortization shown below)	770		270		6		16,834			—			17,880
Selling, general and administrative	407		144		529		11,486			5,200			17,766
Allocation of Corporate overhead	—		—		1,194		2,706			(3,900		)	—
Provision for doubtful accounts	318		98		—		—			—			416
Restructuring, transition and acquisition expenses, net	—		—		—		87			45			132
Depreciation and amortization of property and equipment	16,156		5,642		—		204			556			22,558
Amortization of intangible assets	34		—		—		4,282			6			4,322
Total operating expenses	17,685		6,154		1,729		35,599			1,907			63,074
Income (loss) from operations	$	8,337	$	3,294	$	7,313	$	(9,311	)	$	(1,907	)	$	7,726

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	6	$	2	$	—	$	8
Selling, general and administrative	—		—		3		181		1,172		1,356
Total stock-based compensation	$	—	$	—	$	9	$	183	$	1,172	$	1,364



	Statements of Operations
	For the Nine Months Ended December 31, 2015
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	27,856	$	9,252	$	8,898	$	35,234		$	—		$	81,240
Direct operating (exclusive of depreciation and amortization shown below)	899		257		8		23,028			—			24,192
Selling, general and administrative	456		84		648		14,401			10,348			25,937
Allocation of Corporate overhead	—		—		1,212		4,058			(5,270		)	—
Provision for doubtful accounts	241		98		—		—			—			339
Restructuring, transition and acquisition expenses, net	—		—		—		102			670			772
Goodwill impairment	—		—		—		18,000			—			18,000
Litigation recovery, net of expenses	—		—		—		(635		)	—			(635		)
Depreciation and amortization of property and equipment	21,478		5,643		—		239			852			28,212
Amortization of intangible assets	31		—		—		4,349			5			4,385
Total operating expenses	23,105		6,082		1,868		63,542			6,605			101,202
Income (loss) from operations	$	4,751	$	3,170	$	7,030	$	(28,308	)	$	(6,605	)	$	(19,962	)

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	9	$	5	$	—	$	14
Selling, general and administrative	—		—		1		202		1,207		1,410
Total stock-based compensation	$	—	$	—	$	10	$	207	$	1,207	$	1,424