SEGMENT INFORMATION

We operate in four reportable segments: Phase I Deployment, Phase II Deployment, Services and 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 operating income (loss) before depreciation and amortization.



Operations of:	Products and services provided:
Phase I Deployment	Financing vehicles and administrators for 3,717 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 March 31, 2018, we are no longer earning a significant portion of VPF revenues from certain major studios on all such systems.
Phase II Deployment	Financing vehicles and administrators for our 7,903 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.

One (1) customer represented more than 10% of our consolidated revenues for fiscal year ended March 31, 2018.

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



	As of March 31, 2018
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	115	$	—	$	11,144	$	37,570	$	—	$	—
Phase II Deployment	—		—		41,001		512		—		—
Services	—		—		1,282		—		—		—
Content & Entertainment	14,529		8,701		58,313		—		—		—
Corporate	9				9,442		—		30,210
Total	$	14,653	$	8,701	$	121,182	$	38,082	$	30,210	$	—



	As of March 31, 2017
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	160	$	—	$	15,118	$	51,955	$	—	$	—
Phase II Deployment	—		—		48,461		9,149		—		—
Services	—		—		1,052		—		—		—
Content & Entertainment	20,057		8,701		79,911		—		—		8
Corporate	10		—		6,792		—		78,995		58
Total	$	20,227	$	8,701	$	151,334	$	61,104	$	78,995	$	66



	Statements of Operations
	For the Fiscal Year Ended March 31, 2018
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	16,782	$	11,863	$	8,932	$	30,106		$	—		$	67,683
Direct operating (exclusive of depreciation and amortization shown below)	1,098		390		38		17,997			—			19,523
Selling, general and administrative	378		369		1,008		16,715			9,984			28,454
Allocation of corporate overhead	—		—		1,604		3,409			(5,013		)	—
Provision for doubtful accounts	480		511		—		—			—			991
Depreciation and amortization of property and equipment	4,167		7,523		—		443			279			12,412
Amortization of intangible assets	46		—		—		5,528			6			5,580
Total operating expenses	6,169		8,793		2,650		44,092			5,256			66,960
Income (loss) from operations	$	10,613	$	3,070	$	6,282	$	(13,986	)	$	(5,256	)	$	723

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	36	$	24	$	—	$	60
Selling, general and administrative	—		—		14		817		1,388		2,219
Total stock-based compensation	$	—	$	—	$	50	$	841	$	1,388	$	2,279



	Statements of Operations
	For the Fiscal Year Ended March 31, 2017
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	32,068	$	12,538	$	11,611	$	34,177		$	—		$	90,394
Direct operating (exclusive of depreciation and amortization shown below)	1,052		388		10		23,671			—			25,121
Selling, general and administrative	544		228		798		15,812			6,394			23,776
Allocation of corporate overhead	—		—		1,581		3,583			(5,164		)	—
(Benefit) provision for doubtful accounts	737		209		—		267			—			1,213
Restructuring expenses	—		—		—		509			(422		)	87
Depreciation and amortization of property and equipment	19,263		7,523		—		273			663			27,722
Amortization of intangible assets	46		—		—		5,663			9			5,718
Total operating expenses	21,642		8,348		2,389		49,778			1,480			83,637
Income (loss) from operations	$	10,426	$	4,190	$	9,222	$	(15,601	)	$	(1,480	)	$	6,757

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	10	$	—	$	—	$	10
Selling, general and administrative	—		—		4		289		1,423		1,716
Total stock-based compensation	$	—	$	—	$	14	$	289	$	1,423	$	1,726

The following table presents the results of our operating segments for the three months ended March 31, 2018:



	Statements of Operations
	For the Three Months Ended March 31, 2018
	(Unaudited)
	Phase I			Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	3,903		$	3,018	$	2,382	$	8,370		$	—		$	17,673
Direct operating (exclusive of depreciation and amortization shown below)	210			106		—		4,737			—			5,053
Selling, general and administrative	(142		)	104		240		4,197			2,231			6,630
Allocation of corporate overhead	—			—		394		837			(1,231		)	—
Provision for doubtful accounts	(880		)	288		—		3			—			(589		)
Restructuring expenses	—			—		—		—			—			—
Goodwill impairment	—			—		—		—			—			—
Depreciation and amortization of property and equipment	66			1,881		—		201			49			2,197
Amortization of intangible assets	12			—		—		1,381			2			1,395
Total operating expenses	(734		)	2,379		634		11,356			1,051			14,686
Income (loss) from operations	$	4,637		$	639	$	1,748	$	(2,986	)	$	(1,051	)	$	2,987

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



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	—	$	—	$	—	$	—
Selling, general and administrative	—		—		—		—		65		65
Total stock-based compensation	$	—	$	—	$	—	$	—	$	65	$	65