XML 27 R14.htm IDEA: XBRL DOCUMENT v3.22.4
Discontinued Operations
 12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Dissolution of Fubo Gaming
As discussed in Note 1, on October 17, 2022, the Company dissolved its wholly owned subsidiary Fubo Gaming. In connection with the dissolution of Fubo Gaming, the Company concurrently ceased operation of Fubo Sportsbook.
Net loss from Fubo Gaming's discontinued operations consists of the following for the years ended December 31, 2022 and 2021:
Years Ended December 31,
20222021
Revenues
Wagering$(759)$(20)
Total revenues(759)(20)
Operating expenses
Sales and marketing9,976 6,667 
Technology and development9,220 5,095 
General and administrative28,481 19,146 
Depreciation and amortization433 215 
Impairment of goodwill, intangible assets, and other long-lived assets, net87,365 — 
 Total operating expenses135,475 31,123 
Operating loss(136,234)(31,143)
Other income (expense)
Interest expense and financing costs(598)— 
Other income (expense) (42)(34)
Total other expense(640)(34)
Net loss(136,874)(31,177)
During the year ended December 31, 2022 the Company incurred non-cash impairment charges totaling $87.4 million primarily consisting of prepaid market access agreements, intangible assets and goodwill.
Included in the table above, during the years ended December 31, 2022 and 2021, the Company recorded $15.9 million and $10.6 million, respectively, of stock-based compensation expense.
The Company incurred certain immaterial charges in connection with the dissolution, primarily related to severance and other employee-related costs.
The carrying amounts of the major classes of assets and liabilities classified as discontinued operations as of December 31, 2022 and 2021 are as follows:
December 31,
2022		December 31,
2021
ASSETS
Current assets
Cash and cash equivalents$3,277 $3,326 
Cash reserved for users— 579
Accounts receivable, net— 11 
Prepaid and other current assets1,366 2,445 
 Total current assets 4,643 6,361 
 Property and equipment, net— 1,703 
 Intangible assets, net— 14,625 
 Goodwill— 10,682 
 Right-of-use assets— 3,101 
Other non-current assets— 40,117 
Total assets - discontinued operations$4,643 $76,589 
LIABILITIES
Current liabilities
Accounts payable$4,347 $693 
Accrued expenses and other current liabilities25,787 4,294 
Lease liabilities2,447 808 
Total current liabilities32,581 5,795 
Lease liabilities— 2,447 
Other long-term liabilities— 8,686 
Total liabilities - discontinued operations$32,581 $16,928 
As of December 31, 2022, the Company's accrued expenses and other current liabilities of its discontinued operations included $24.7 million, primarily related to contract termination costs.
FaceBank AG and Nexway – Disposition
Through its ownership in FaceBank AG, the Company had an equity investment of 62.3% in Nexway AG (“Nexway”), which it acquired beginning on August 15, 2019 and on September 16, 2019. The equity investment in Nexway was a controlling financial interest and the Company consolidated its investment in Nexway under ASC 810, Consolidation.
On March 31, 2020, the Company relinquished approximately 20% of the total Nexway shareholder votes associated with its investment, which reduced the Company’s voting interest in Nexway to 42.6% As a result of the Company’s loss of control in Nexway, the Company deconsolidated Nexway as of March 31, 2020 as it no longer had a controlling financial interest.
The deconsolidation of Nexway resulted in a loss of $11.9 million calculated as follows (in thousands):
Cash$5,776 
Accounts receivable9,831 
Inventory50 
Prepaid expenses164 
Goodwill51,168 
Property and equipment, net380 
Right-of-use assets3,594 
Total assets$70,963 
Less: 
Accounts payable34,262 
Accrued expenses15,788 
Lease liability3,594 
Deferred income taxes1,161 
Other liabilities40 
Total liabilities$54,845 
Non-controlling interest2,595 
Foreign currency translation adjustment(770)
Loss before fair value – investment in Nexway14,293 
Less: fair value of shares owned by the Company2,374 
Loss on deconsolidation of Nexway$11,919 
During the third quarter ended September 30, 2020, the Company sold 100% of its ownership interest in Facebank AG and its remaining investment in Nexway to the former owners and recognized a gain on sale of its investment of $7.6 million, which is included as a gain on the sale of assets, a component of other income (expense) on the accompanying consolidated statement of operations and comprehensive loss.
The following table represents the net carrying value of the Company’s investment in Facebank AG and Nexway and the related gain on sale of its investment (in thousands):
Investment in Nexway$4,989 
Financial assets at fair value1,965 
Goodwill28,541 
Total assets35,495 
Loan payable56,140 
Net carrying amount(20,645)
Issuance of common stock to original owners of Facebank AG12,395 
Cash paid to former owners of Facebank AG619 
Gain on sale of investment in Facebank AG$(7,631)