XML 84 R13.htm IDEA: XBRL DOCUMENT v3.23.1
CAPITALIZED PRODUCTION COSTS
12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
CAPITALIZED PRODUCTION COSTS

NOTE 7 — CAPITALIZED PRODUCTION COSTS

 

There were no revenues earned from the domestic distribution of motion pictures for the year ended December 31, 2022. Revenue earned from the domestic distribution of motion pictures was $21,894 for the year ended December 31, 2021. These revenues were attributable to Believe released December 25, 2013. The Company amortizes capitalized production costs (included as direct costs) in the consolidated statements of operations using the individual film forecast computation method. The Company had previously amortized all existing capitalized production costs, and as such, it did not record any amortization for the years ended December 31, 2022 and 2021. During the year ended December 31, 2022, the Company capitalized $1,548,000 of production costs, primarily related to the Blue Angels documentary film, as discussed in Note 26.

 

The Company purchases scripts and incurs other costs, such as preparation of budgets, casting, etc., for other motion picture or digital productions. During the years ended December 31, 2022 and 2021, the Company recorded impairments of $87,323 and $234,734 related to costs of projects it does not intend to produce. The Company intends to produce the remaining projects, but they were not yet in production as of December 31, 2022 or 2021. The Company has assessed events and changes in circumstances that would indicate whether the Company should assess if the fair value of the productions is less than the unamortized costs capitalized and, aside from the ones mentioned above, did not identify other indicators of impairment.

 

As of December 31, 2022 and 2021, the Company had total, net capitalized production costs of $1,598,412 and $137,235, respectively, on its consolidated balance sheets.