20-F/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 20-F/A

Amendment No. 1

☐	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☐	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☑	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from September 30, 2019 to March 31, 2020
OR
☐	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-36176

EROS STX GLOBAL CORPORATION

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant’s name into English)

Isle of Man

(Jurisdiction of incorporation or organization)

3900 West Alameda Avenue, 32nd Floor

Burbank, California 91505

Tel: (818) 524-7000

(Address of principal executive offices)

Noah Fogelson
3900 West Alameda Avenue, 32nd Floor

Burbank, California 91505

Tel: (818) 524-7000
Email: noah@erosstx.com

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
A ordinary share, par value GBP 0.30 per share	ESGC	The New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the transition report.

At March 31, 2020, 127,116,702 ‘A’ ordinary shares and 19,899,085 ‘B’ ordinary shares, each at par value GBP 0.30 per share, were issued and outstanding.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.☐ Yes ☑ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.☐ Yes ☑ No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer ☑	Non-accelerated filer ☐
Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☑ International Financial Reporting Standards as issued
by the International Accounting Standards Board ☐ Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: ☐ Item 17 ☐ Item 18

If this report is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).☐ Yes ☐ No

EXPLANATORY NOTE

Eros STX Global Corporation is filing this Amendment No. 1 (this “Amendment”) to its transition report on Form 20-F for the transition period from September 30, 2019 to March 31, 2020, which was filed with the Securities and Exchange Commission on October 30, 2020 (the “Original Filing”), solely to correct certain errors in the XBRL tags contained in Exhibit 101 of the Original Filing.

Other than as expressly set forth above, this Amendment does not, and does not purport to, revise, update, amend or restate the information presented in, or any exhibits to, the Original Filing or reflect any events that have occurred subsequent to the Original Filing.

ITEM 19. EXHIBITS

Exhibit Number	Title
12.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)	(a)
12.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)	(a)
101.INS	XBRL Instance Document	(a)
101.SCH	XBRL Taxonomy Extension Schema Document	(a)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	(a)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	(a)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	(a)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	(a)

___________________

(a) Filed herewith

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Amendment No. 1 to transition report on its behalf.

Date: November 3, 2020	EROS STX GLOBAL CORPORATION
	By:	/s/ Andrew Warren
	Name:	Andrew Warren
	Title:	Chief Financial Officer
	By:	/s/ Robert B. Simonds, Jr.
	Name: Title:	Robert B. Simonds, Jr. Chief Executive Officer

EX-12.1

Exhibit 12.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

I, Robert B. Simonds, Jr., certify that:

1. I have reviewed this Amendment No. 1 to transition report on Form 20-F of Eros STX Global Corporation; and

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

Date: November 3, 2020

__/s/ Robert B. Simonds, Jr.__

Name: Robert B. Simonds, Jr

Title: Chief Executive Officer

EX-12.2

Exhibit 12.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

I, Andrew Warren, certify that:

1. I have reviewed this Amendment No. 1 to transition report on Form 20-F of Eros STX Global Corporation; and

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

Date: November 3, 2020

_/s/ Andrew Warren__________

Name: Andrew Warren

Title: Chief Executive Officer

XML

Cover	6 Months Ended
	Mar. 31, 2020 shares
Document Type	20-F/A
Amendment Flag	true
Amendment Description	XBRL being amended to incorporate changes that were made to the EDGAR filing, but not to the XBRL fileset.
Document Annual Report	false
Document Transition Report	true
Document Shell Company Report	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--03-31
Entity File Number	001-36176
Entity Registrant Name	Eros STX Global Corp
Entity Central Index Key	0001532981
Entity Incorporation, State or Country Code	Y8
Title of 12(b) Security	A ordinary share, par value GBP 0.30 per share
Trading Symbol	ESGC
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
"A" Ordinary Shares
Entity Common Stock, Shares Outstanding	127,116,702
"B" Ordinary Shares
Entity Common Stock, Shares Outstanding	19,899,085

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Assets
Cash and cash equivalents	$ 25,705	$ 17,874	$ 167,869
Accounts receivable, net	102,430	153,625	72,129
Other current assets	24,215	15,824	30,210
Total Current Assets	152,350	187,323	270,208
Film and TV costs, net	97,308	141,952	157,805
Property and equipment, net	3,496	4,043	5,909
Restricted cash			975
Other assets	39,608	23,135	16,488
Total assets	292,762	356,453	451,385
Liabilities
Accounts payable and accrued expenses	109,921	114,020	178,324
Accrued participations and residuals	28,314	38,214	52,649
Deferred revenue	29,142	39,363	43,795
Term loan - short term, net			3,184
Total Current Liabilities	167,377	191,597	277,952
Revolving credit facilities, net	225,989	226,402	266,935
Term loan due to related party, net	42,092	41,546	40,471
Accrued participations and residuals	70,916	67,660	29,992
Deferred revenue	12,986	9,013	19,522
Other liabilities	45,847	51,382	3,361
Total liabilities	565,207	587,600	638,233
Commitments and contingencies
Stockholders' deficit:
Common stock	116	116	116
Additional paid-in capital
Other comprehensive income/(loss)	(400)	(474)	51
Accumulated deficit	(792,162)	(732,766)	(542,864)
Total stockholders' deficit	(792,446)	(733,124)	(542,697)
Total liabilities, convertible redeemable preferred stock and stockholders' deficit	292,762	356,453	451,385
Class A Convertible Preferred Stock
Stockholders' deficit:
Convertible redeemable preferred stock	20,031	18,876	16,585
Class B Convertible Preferred Stock
Stockholders' deficit:
Convertible redeemable preferred stock	169,442	160,238	143,069
Class C Convertible Preferred Stock
Stockholders' deficit:
Convertible redeemable preferred stock	219,095	221,237	$ 196,195
Class D Convertible Preferred Stock
Stockholders' deficit:
Convertible redeemable preferred stock	$ 111,433	$ 101,626

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	11,572,291	11,572,291	11,572,291
Common stock, shares outstanding	11,572,291	11,572,291	11,572,291
Property and equipment, accumulated depreciation	$ 6,744	$ 5,730	$ 3,748
Class A Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,207	10,207	10,207
Preferred stock, shares issued	10,207	10,207	10,207
Preferred stock, shares outstanding	10,207	10,207	10,207
Class B Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	85,000	85,000	85,000
Preferred stock, shares issued	85,000	85,000	85,000
Preferred stock, shares outstanding	85,000	85,000	85,000
Class C Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	214,588	214,588	214,588
Preferred stock, shares issued	166,088	166,088	166,088
Preferred stock, shares outstanding	166,088	166,088	166,088
Class D Convertible Preferred Stock
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	132,618	132,618	132,618
Preferred stock, shares issued	125,104	125,000
Preferred stock, shares outstanding	125,104	125,000

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue	$ 188,453	$ 224,068	$ 434,261	$ 448,846	$ 201,441
Expenses
Direct operating	92,752	123,566	260,673	298,246	139,769
Distribution and marketing	95,047	87,865	200,900	230,336	72,554
General and administrative	26,844	36,433	60,840	91,999	57,961
Depreciation and amortization	1,022	1,096	2,220	1,814	1,304
Restructuring expense	1,832
Total operating expenses	217,497	248,960	524,633	622,395	271,588
Loss from operations	(29,044)	(24,892)	(90,372)	(173,549)	(70,147)
Other income (expense):
Interest income	43	51	213	99	116
Interest expense	(10,718)	(11,629)	(22,134)	(18,934)	(15,943)
Shareholder exit (expense)/income	13,767	(5,777)	(25,000)
Loss before income taxes	(25,952)	(42,247)	(137,293)	(192,384)	(85,974)
Income tax provision	161	359	708	811	387
Net loss	$ (26,113)	$ (42,606)	$ (138,001)	$ (193,195)	$ (86,361)

XML

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (26,113)	$ (42,606)	$ (138,001)	$ (193,195)	$ (86,361)
Foreign currency translation (loss)/gain, net of tax	74	155	(525)	(96)	145
Comprehensive loss	$ (26,039)	$ (42,451)	$ (138,526)	$ (193,291)	$ (86,216)

XML

Consolidated Statements of Convertible Redeemable Preferred Stock and Stockholders' Deficit - USD ($) $ in Thousands	Convertible Redeemable Preferred Stock Class A	Convertible Redeemable Preferred Stock Class B	Convertible Redeemable Preferred Stock Class C	Convertible Redeemable Preferred Stock Class D	Common Stock	Additional Paid-In Capital	Other Comprehensive Income	Accumulated Deficit	Total
Beginning balance, value at Sep. 30, 2016	$ 12,427	$ 114,054	$ 75,027		$ 109		$ 2	$ (203,909)	$ (203,798)
Beginning balance, shares at Sep. 30, 2016	10,207	85,000	77,088		10,853,279
Class C stock issuance, value			$ 40,600
Class C stock issuance, shares			40,000
Class C issuance costs			$ (76)
Accretion of preferred stock	$ 1,929	$ 13,686	11,669			$ (680)		(26,605)	(27,285)
Stock compensation expense						536			536
Stock options exercised, value					$ 1	44			$ 45
Stock options exercised, shares					59,596				59,596
Shares issued in connection with debt amendment, value					$ 0	100			$ 100
Shares issued in connection with debt amendment, shares					26,525
Foreign currency translation							145		145
Net loss								(86,361)	(86,361)
Ending balance, value at Sep. 30, 2017	$ 14,356	$ 127,740	$ 127,220		$ 110		147	(316,875)	(316,618)
Ending balance, shares at Sep. 30, 2017	10,207	85,000	117,088		10,939,400
Class C stock issuance, value			$ 49,000
Class C stock issuance, shares			49,000
Class C issuance costs			$ (967)
Common stock issuance, value					$ 1	4,165			4,166
Common stock issuance, shares					100,000
Accretion of preferred stock	$ 2,229	$ 15,329	20,942			(5,705)		(32,794)	(38,499)
Stock compensation expense						447			447
Stock options exercised, value					$ 5	1,093			$ 1,098
Stock options exercised, shares					532,891				532,891
Foreign currency translation							(96)		$ (96)
Net loss								(193,195)	(193,195)
Ending balance, value at Sep. 30, 2018	$ 16,585	$ 143,069	$ 196,195		$ 116		51	(542,864)	(542,697)
Ending balance, shares at Sep. 30, 2018	10,207	85,000	166,088		11,572,291
Cumulative effect of accounting change								2,870	2,870
Class D stock issuance, value				$ 110,211
Class D stock issuance, shares				110,211
Class D issuance costs/discounts				$ (24,029)
Accretion of preferred stock	$ 1,160	$ 8,153	$ 12,258	2,352		(99)		(23,825)	(23,924)
Stock compensation expense						99			99
Foreign currency translation							155		155
Net loss								(42,606)	(42,606)
Ending balance, value at Mar. 31, 2019	$ 17,745	$ 151,222	$ 208,453	$ 88,534	$ 116		206	(606,425)	(606,103)
Ending balance, shares at Mar. 31, 2019	10,207	85,000	166,088	110,211	11,572,291
Beginning balance, value at Sep. 30, 2018	$ 16,585	$ 143,069	$ 196,195		$ 116		51	(542,864)	(542,697)
Beginning balance, shares at Sep. 30, 2018	10,207	85,000	166,088		11,572,291
Cumulative effect of accounting change								2,870	2,870
Class D stock issuance, value				$ 125,000
Class D stock issuance, shares				125,000
Class D issuance costs/discounts				$ (33,840)
Accretion of preferred stock	$ 2,291	$ 17,169	$ 25,042	10,466		(195)		(54,771)	(54,966)
Stock compensation expense						195			195
Foreign currency translation							(525)		(525)
Net loss								(138,001)	(138,001)
Ending balance, value at Sep. 30, 2019	$ 18,876	$ 160,238	$ 221,237	$ 101,626	$ 116		(474)	(732,766)	(733,124)
Ending balance, shares at Sep. 30, 2019	10,207	85,000	166,088	125,000	11,572,291
Class D stock issuance, value				$ 104
Class D stock issuance, shares				104
Class D issuance costs/discounts				$ (69)
Accretion of preferred stock	$ 1,155	$ 9,204	$ 13,230	9,772		(81)		(33,283)	(33,364)
Non-consenting holder reclassification, value			(15,372)
Stock compensation expense						$ 81			81
Foreign currency translation							74		74
Net loss								(26,113)	(26,113)
Ending balance, value at Mar. 31, 2020	$ 20,031	$ 169,442	$ 219,095	$ 111,433	$ 116		$ (400)	$ (792,162)	$ (792,446)
Ending balance, shares at Mar. 31, 2020	10,207	85,000	166,088	125,104	11,572,291

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating activities
Net loss	$ (26,113)	$ (42,606)	$ (138,001)	$ (193,195)	$ (86,361)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization expense	1,114	1,190	2,348	1,915	1,218
Stock compensation expense	81	99	195	4,613	536
Amortization and impairment of film and television costs	52,410	54,522	120,076	140,241	54,681
Amortization of debt discount and issuance costs	1,788	1,644	3,333	3,160	3,104
Disposal of fixed assets	6		60
Accrual of paid in kind interest	423	415	832	815	799
Loss on extinguishment of liability		5,000	5,000
Shareholder exit expense/(income)	(13,767)	5,777	25,000
Other		48	48	192	201
Changes in operating assets and liabilities:
Accounts receivable	51,195	(17,471)	(76,685)	(47,954)	4,767
Prepaid expenses and other assets	(25,684)	2,278	7,503	1,862	(37,812)
Lease asset and liability	(98)
Increase in film and television costs	(7,699)	(86,246)	(105,759)	(193,094)	(87,324)
Accounts payable and accrued expenses	(18,649)	(85,614)	(64,305)	145,607	3,169
Accrued participations and residuals	(6,644)	23,035	22,497	44,133	8,956
Deferred revenue	(6,248)	4,332	(14,941)	30,068	10,465
Other liabilities	8,227	(281)	(479)	147	172
Net cash provided by/(used in) operating activities	10,342	(133,878)	(213,278)	(61,490)	(123,429)
Investing activities
Purchase of property and equipment	(475)	(428)	(354)	(2,757)	(1,713)
Net cash used in investing activities	(475)	(428)	(354)	(2,757)	(1,713)
Financing activities
Proceeds from exercise of stock options				1,099
Term loan draw				3,322
Revolving credit facilities draw	158,351	201,496	286,419	465,012	286,807
Revolving credit facilities repayment	(160,429)	(209,595)	(332,853)	(362,177)	(205,099)
Debt issuance costs		(343)	(372)	(193)	(7,478)
Issuance of Class C convertible preferred stock				49,000	40,600
Costs from issuance of Class C convertible preferred stock				(967)	(76)
Issuance of Class D convertible preferred stock	35	105,211	110,211
Costs from issuance of Class D convertible preferred stock		(528)	(550)
Net cash provided by/(used in) financing activities	(2,043)	96,241	62,855	155,096	114,754
Net (decrease) increase in cash, cash equivalents and restricted cash	7,824	(38,065)	(150,777)	90,849	(10,388)
Foreign exchange effects on cash	7	(1)	(193)	(230)	164
Cash, cash equivalents and restricted cash at the beginning of year	17,874	168,844	168,844	78,225	88,449
Cash, cash equivalents and restricted cash at the end of year	25,705	130,778	17,874	168,844	78,225
Supplemental disclosures of cash flow information
Cash paid for interest	11,041	10,537	21,088	18,122	12,096
Cash paid for income tax

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Description of Business, Basis of Presentation and Significant Accounting Policies

6 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business, Basis of Presentation and Significant Accounting Policies

1. Description of Business, Basis of Presentation and Significant Accounting Policies

Description of Business

STX Filmworks, Inc. (the “Company”) was formed as a limited liability company on August 4, 2011, under the name Lunatic Fringe Entertainment, LLC. Its name was later changed to STX Filmworks, LLC and it converted to a Delaware corporation in February 2014. The primary purpose and business of the Company is to develop, produce, finance, distribute, invest in and otherwise exploit feature length motion pictures, television programming, and digital media content. The Company specializes in the development, production, marketing and distribution of talent driven films, television, and digital content across multi-platform distribution channels on a worldwide basis.

Basis of Presentation

These accompanying consolidated financial statements are presented on the accrual basis of accounting and are in accordance with accounting principles generally accepted in the United States (“GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). These financial statements present the consolidated financial position and results of operations of the Company and its wholly owned subsidiaries. All intercompany transactions are eliminated in consolidation.

As discussed in Note 3, the Company's revolving credit facility matures on October 7, 2021. The maturity of the Company’s revolving credit facility now falls within the twelve-month period following the issuance of these financial statements for which the Company is required to evaluate as part of its assessment of its ability to continue as a going concern. Management of the Company believes that the Company has adequate liquidity to fund its operations up until the maturity of the revolving credit facility. However, absent a refinancing with cash from operations, assets sales or a combination thereof, the Company does not currently expect to have sufficient liquidity to repay the full amount of the revolving credit facility at maturity. Based on continuing discussions with existing and potential lenders, management is optimistic that it will be able to successfully implement its ongoing plan to address its debt maturities as they become due. However, management recognizes that its plan depends on the actions of these third parties and, therefore, the Company is unable at this time to conclude that such plan is probable of being achieved. Accordingly, given the uncertainty with respect to the Company’s ability to pay its revolving credit facility in full at maturity, the Company acknowledges that substantial doubt exists regarding its ability to continue as a going concern pursuant to ASC 205-40 Presentation of Financial Statements—Going Concern. There can be no assurance that the Company will succeed in reaching agreements with the lenders under its revolving credit facility or accessing new capital to pay the revolving credit facility in full at maturity.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of asset and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities as of the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the revenue recognition of sales or usage-based royalties; income taxes including the assessment of valuation allowances for deferred tax assets; accruals for contingent liabilities; and impairment assessments for investment in films and television programs and property and equipment. Actual results could differ from such estimates.

Period Ended March 31, 2019

Amounts included in the consolidated financial statements and accompanying footnotes as of March 31, 2019 and for the six-months then ended are unaudited.

Summary of Significant Accounting Policies

Revenue Recognition

The Company generates revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and physical sales), television, and international market places.

Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax.

Licensing Arrangements

The Company's content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage-based royalties.

Fixed Fee or Minimum Guarantees: The Company's fixed fee or minimum guarantee licensing arrangements may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content.

Sales or Usage Based Royalties: Sales or usage based royalties represent amounts due to the Company based on the “sale” or “usage” of the Company's content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated and has been satisfied (or partially satisfied). Generally, when the Company licenses completed content (with standalone functionality, such as a movie, or television show) its performance obligation will be satisfied prior to the sale or usage. When the Company licenses intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), its performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to the Company under these arrangements are generally not reported to the Company until after the close of the reporting period. The Company records revenue under these arrangements for the amounts due and not yet reported to the Company based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from the Company's customers, historical experience with similar titles in that market or territory, the performance of the title in other markets, and/or data available in the industry.

Revenues by Market or Product Line

The following describes the revenues generated by market or product line.

Theatrical - Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by the Company directly in the United States). Revenue from the theatrical release of feature films are treated as sales or usage- based royalties, are recognized as revenue starting at the exhibition date and are based on the Company's participation in box office receipts of the theatrical exhibitor.

Home Entertainment - Home entertainment consists of Digital Media and Physical Sales.

Digital Media - Digital media includes digital transaction revenue sharing arrangements (pay-per-view and video-on-demand platforms, electronic sell through ("EST"), and digital rental) and licenses of content to digital platforms for a fixed fee.

Digital Transaction Revenue Sharing Arrangements: Primarily represents revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title basis. These digital media platforms generate revenue from rental and EST arrangements, such as download-to-own, download-to-rent, and video-on-demand. These revenue sharing arrangements are recognized as sales or usage-based royalties based on the performance of these platforms and pursuant to the terms of the contract, as discussed above.

Licenses of Content to Digital Platforms: Primarily represents the licensing of content to subscription-video-on-demand ("SVOD") or other digital platforms for a fixed fee. As discussed above, revenues are recognized when the content has been delivered and the window for the exploitation right in that territory has begun.

Physical Sales - Physical Sales represent the sale of motion pictures and television shows (produced or acquired) on physical discs (DVD’s, Blu-ray, and 4K Ultra HD) in the retail market. Revenues are recognized, net of an allowance for estimated returns and other allowances, on the later of receipt by the customer or “street date” (when it is available for sale by the customer).

Television - Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television markets, syndication) of motion pictures (including theatrical productions and acquired films). Television also includes revenue from licenses to SVOD platforms in which the initial license of a television series is to an SVOD platform. Revenues associated with a title, right, or window from television licensing arrangements are recognized when the feature film is delivered and the window for the exploitation right has begun.

International - International revenues are derived from (1) licensing of the Company's productions, acquired films, and catalog product to international distributors, on a territory-by-territory basis; (2) the direct distribution of our productions, acquired films, and our catalog product in the United Kingdom; and (3) licensing to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming. License fees and minimum guarantee amounts associated with title, window, media or territory, are recognized when access to the feature film or television program has been granted or delivery has occurred, as required under the contract, and the right to exploit the feature film or television program in that window, media or territory has commenced. Revenues are also generated from sales or usage based royalties received from international distributors based on their distribution performance pursuant to the terms of the contracts after the recoupment of certain costs in some cases, and the initial minimum guarantee, if any, and are recognized when the sale by our customer generating a royalty due to us has occurred.

Other - Other revenues are derived from the licensing of the Company's film intellectual property for merchandising (i.e., licenses of motion picture characters or logos) and scripted and unscripted content to linear pay, basic cable, free television markets, and other ancillary markets.

Revenues from other content are recognized when the license period has begun. Revenues from the licensing of television are recognized when the content has been delivered.

Deferred Revenue

Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation.

Payment terms vary by location and type of customer and the nature of the licensing arrangement: however, other than certain multi-year license arrangements, payments are generally due within 60 days after revenue is recognized. For certain multi-year licensing arrangements, primarily in the television, digital media, and international markets, payments may be due over a longer period. When we expect the period between fulfillment of our performance obligation and the receipt of payment to be greater than a year, a significant financing component is present. In these cases, such payments are discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Company, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. The Company does not assess contracts with deferred payments for significant financing components if, at contract inception, we expect the period between fulfillment of the performance obligation and subsequent payment to be one year or less.

In other cases, customer payments are made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company's risk of customer non-performance and incentivize the customer to exploit the Company's content.

Film and Television Costs

Film costs represent the costs of films produced by the Company, or for which the Company has acquired distribution rights. For films produced by the Company, capitalized costs include all direct production costs, production overhead, and capitalized interest. Production overhead includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of films and excludes selling and marketing costs. The amount of interest capitalized is an allocation of interest cost incurred during the period required to complete the production, but not while the project is in development. During the years ended September 30, 2017, 2018 and 2019, interest of $860, $4,033 and $2,573, respectively, was capitalized to films in production. During the six months ended March 31, 2019 and 2020, interest of $1,348 and $368, respectively, was capitalized to films in production. During the years ended September 30, 2017, 2018 and 2019, overhead of $1,935, $4,418 and $5,495, respectively, was capitalized to films in production. During the six months ended March 31, 2019 and 2020, overhead of $3,275 and $394, was capitalized to films in production.

Film costs consist of four categories: (1) films in development, (2) films in production, (3) films completed and not released and (4) released films. Films in development primarily include the costs of acquiring film rights to books or original screenplays and costs to adapt such projects, as well as the costs of scripted development for original ideas. Such costs are capitalized and, upon commencement of production, will be transferred to films in production. Films in development are written off at the earlier of the date they are determined not to be recoverable or when abandoned, or three years from the date of initial investment if the production has not been greenlit. Films in production include the inventory cost associated with projects that have been selected for release and for which principal photography has commenced. Films will be held as an asset in production until release, including completed but not released films, at which time the asset balance is transferred to released films. Capitalized film costs are subject to impairment testing when certain triggering events are identified. If the fair value of a film were to fall below its unamortized costs, an impairment is recorded for the amount by which the unamortized capitalized costs exceeds the production’s fair value. The Company recorded film impairments of $3,596 for the year ended September 30, 2017. There were no film impairments for the years ended September 30, 2018 and 2019 and for the six months ended March 31, 2019 and 2020. In determining the fair value of its films, the Company employs a discounted cash flows ("DCF") methodology that includes cash flow estimates of a film's ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. An impairment is recorded in the amount by which the unamortized costs exceed the estimated fair value of the film program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of film costs may be required because of changes in management’s future revenue estimates.

Film costs and the related participations and residuals are amortized using the individual film forecast method based on the proportion that the current year’s revenue bears to the estimate of ultimate revenue that management regularly reviews and revises when necessary. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the film.

Television costs primarily represent the costs the Company has incurred to produce scripted and unscripted television programs for third parties. The capitalized costs will be expensed to the statement of operations when the program is delivered to the third party.

As of September 30, 2018 and 2019 and March 31, 2020, the Company’s film and television costs consist of the following:

	September 30				March 31
	2018		2019		2020
Film costs:
In development	$	6,584	$	12,475	$	12,560
In production		59,532		41,809		3,330
Completed but not released		—		25,555		—
Released		86,881		56,156		75,779
Total film costs		152,997		135,995		91,669
Television costs:
In development		726		1,514		1,865
In production		4,082		4,443		3,774
Total television costs		4,808		5,957		5,639
Total film and television costs	$	157,805	$	141,952	$	97,308

The Company anticipates that approximately 68% of the costs of its completed films and 91% of the costs of its films in release as of March 31, 2020 will be amortized over the next 12 months and 3 years, respectively.

Co-Film Production Financing and Distribution

The Company enters into agreements with third parties to co-produce certain of its theatrical and television productions. These arrangements, which are referred to as co-financing arrangements, take various forms. The parties to these arrangements, primarily for theatrical productions, include studio and non-studio entities, both domestic and international. In several of these agreements, other parties control certain distribution rights. The Company records the amount received for the sale of an economic interest as a reduction of the cost of the film, as the investor assumes full risk for that portion of the film asset acquired in these transactions. The substance of these arrangements is that the third-party investors own an interest in the film and, therefore, receive a participation based on the third-party investors’ contractual interest in the profits or losses of the film. Typically, in these arrangements, the Company and the third party will split the profits, based on ownership interest, earned in each of the markets after distribution fees and costs are recouped from the proceeds received from the exploitation of the film. The Company projects the ultimate profit that will be recorded in connection with these arrangements and will amortize the net ultimate amount due to or from the investors to Direct operating expense using the individual film forecast method.

Government Assistance

The Company has access to government programs (tax credits) that are designed to promote film and television production and distribution in certain states within the United States and foreign countries.

Tax credits earned with respect to expenditures on qualifying film and television productions are included as an offset to investment in films and television programs when the qualifying expenditures have been incurred provided that there is reasonable assurance that the credits will be realized.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include cash held on deposit and amounts invested in money market funds. Restricted cash represented collateral for letters of credit pursuant to the Company’s Burbank office lease.

Accounts Receivable

Accounts receivable consist primarily of receivables from theatrical exhibitors, home entertainment, television partners and international distributors. Accounts receivable are reviewed monthly to assess collectability, and at September 30, 2018 and 2019 and March 31, 2020 respectively, the allowance for doubtful accounts was immaterial.

Concentrations of Credit Risk and Financial Instruments

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash in financial institutions it believes have high-credit quality. At times, these balances exceed the Federal Deposit Insurance Corporation limits.

The carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses, and accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Other Current Assets

Other current assets on the consolidated balance sheets includes amounts receivable from co-finance partners, tax credits or incentives from local government jurisdictions, physical inventory, right of use assets, prepaid expenses and other current assets. Inventory represents home entertainment product inventory which consists of DVDs and Blu-ray discs and is stated at the lower of cost or net realizable value (first-in, first-out) method. When sold, costs of DVDs and Blu-ray discs sales, including shipping and handling costs, are included in direct operating expense in the accompanying statements of operations.

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the following useful lives:

Furniture and fixtures	7 years
Computer equipment and software	3 years
Website	3 years
Leasehold improvements	Lease term or useful life, whichever is shorter

The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded.

Debt Issuance Costs and Debt Discount

The Company’s unamortized debt issuance costs at September 30, 2018 and 2019 and March 31, 2020 were $9,095, $6,290 and $4,580 respectively. Unamortized debt issuance costs are reflected in Revolving Credit Facilities and Term Loan Due to Related Party in the accompanying consolidated balance sheets. Debt issuance costs are amortized using the straight-line method, which approximates the effective interest method, over the related term of the Company’s borrowings. At September 30, 2018 and 2019 and March 31, 2020, gross debt issuance costs were $15,049, $15,422 and $15,422, respectively. Amortization of debt issuance costs for the years ended September 30, 2017, 2018 and 2019 was $2,949, $3,005 and $3,178 respectively. Amortization of debt issuance costs for the six months ended March 31, 2019 and 2020 was $1,566 and $1,710, respectively. Amortization of debt discount costs for the years ended September 30, 2017, 2018 and 2019 was $155 for all three fiscal years. Amortization of the debt discount costs for the six months ended March 31, 2019 and 2020 was $78 for both periods. The amortization of the debt issuance and discount was reflected as interest expense in the consolidated statements of operations. Any amounts that were paid to the debt issuer were treated as a reduction in the proceeds received by the issuer and are considered a discount on the issuance and not an issuance cost. As of September 30, 2018 and 2019 and March 31, 2020, the total debt was reduced by $582, $427 and $349, respectively. The discount is being amortized using the straight-line method, which approximates the effective interest method, over the term of the related debt.

Leases

Effective October 1, 2019, the Company accounts for its leases under ASC 842, Leases. Under this guidance, lessees classify arrangements meeting the definition of a lease as operating or financing leases, and leases are recorded on the consolidated balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term. Variable lease payments that are based on an index or rate are included in the measurement of right-of-use assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of right-of-use assets and lease liabilities.

In calculating the right-of-use asset and lease liability, the Company used the lease components. The non-lease components; common area maintenance expenses, insurance, taxes, utilities, etc. charged by the landlord are recorded as variable lease expenses. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and instead recognizes rent expense on a straight-line basis over the lease term.

Operating lease right-of-use assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets" line item in the Company's March 31, 2020 consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities” line items in the Company's March 31, 2020 consolidated balance sheet. 

There are currently no finance leases as of March 31, 2020.

Upon adoption of the new guidance, The Company recognized lease liabilities on the Company’s consolidated balance sheet for its operating leases of approximately $11.7 million, with a corresponding right-of-use assets balance of $8.5 million, net of existing lease incentives of $3.2 million previously classified in accounts payable and accrued expenses. The adoption had no material impact on the Company’s consolidated statement of operations.The Company adopted the standard utilizing the modified retrospective approach, and therefore, results for reporting period beginning after October 1, 2019 are presented under the new guidance, while prior periods have not been adjusted (see further description in the Recent Accounting Pronouncements section below).

Distribution and Marketing Expenses

Distribution and marketing expenses are expensed as incurred. Distribution and marketing expenses for the years ended September 30, 2017, 2018 and 2019 were $72,554, $230,336 and $200,900. Distribution and marketing expenses for the six months ended March 31, 2019 and 2020 was $87,865 and $95,047.

Equity-Based Compensation

The Company accounts for share-based payments in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the consolidated financial statements. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all companies to apply a fair-value based measurement method in accounting for generally all share-based payment transactions with employees.

Income Taxes

The Company is treated as a corporation for income tax purposes. The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. The carrying amounts of deferred tax assets are reduced by a valuation allowance, if based on available evidence, if it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency, and severity of current and cumulative losses, the duration of statutory carryforward periods, and tax planning alternatives. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Management has determined that there were no uncertain tax positions for which recognition of a liability for any of the periods presented.

Foreign Currency Translation

The functional currency of foreign subsidiaries is the local currency. Monetary assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet dates. Foreign revenues and expense items are translated at the exchange rate on the transaction date. Adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive income (loss) in stockholders’ deficit. Foreign currency transaction gains and losses are included in the consolidated statements of operations in general and administrative expense.

Derivative Investments and Hedging Activities

Derivative financial instruments are used by the Company in the management of its foreign currency exposures. The Company’s policy is not to use derivative financial instruments for trading or speculative purposes.

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposure of a foreign subsidiary and on future production expenses denominated in various foreign currencies. The Company evaluates whether the foreign exchange contracts qualify for hedge accounting at the inception of the contract. The fair value of the forward exchange contracts are recorded on the consolidated balance sheets. Changes in the fair value of the foreign exchange contracts are reflected in the consolidated statements of operations. Gains and losses realized upon settlement of the foreign exchange contracts related to productions are amortized to the consolidated statements of operations on the same basis as the production costs being hedged.

Contingencies and Litigation

In the ordinary course of business, the Company is subject to various routine litigation matters. The Company establishes loss provisions for claims when the loss is both probable and can be reasonably estimated. If either or both of the criteria are not met, the Company assesses whether there is at least a reasonable possibility that a loss, or additional losses, may have been incurred. If there is a reasonable possibility that a loss or additional loss may have been incurred for such proceedings, the Company discloses the estimate of the amount of loss or possible range of loss, or discloses that an estimate of loss cannot be made, as applicable.

Impact of Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize a lease asset representing its right to use the underlying asset for the lease term, and a lease liability for the payments to be made to lessor, on its balance sheet for all operating leases greater than 12 months. The Company adopted ASU 2016-02 as of October 1, 2019, using the modified retrospective approach by recording a right-of-use asset after an offset for existing deferred rent and a lease liability for operating leases of $8,494 and $11,745, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption. Adoption of the ASU did not have an effect on retained earnings.  The Company availed itself of the practical expedients provided under ASU 2016-02 and its subsequent amendments regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components.  The Company continues to account for leases in the prior period financials statements under ASC Topic 840. See Note 4 Leases for additional information on leases.

In March 2019 the FASB issued ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (“ASU 2019-02”). ASU 2019-02 aligns the cost capitalization requirements for episodic television series with the guidance for films in ASC 926-20 and adds new disclosure requirements. Entities that predominantly monetize films or license agreements together with other films and/or license agreements will be required to test the “film group” for impairment rather than test each individual title. Entities that monetize content in a film group must reassess their estimate of the use of a film in the film group and account for any changes prospectively. The standard is effective for fiscal periods beginning after December 15, 2019 and can be early adopted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements.

On October 1, 2018, the Company adopted, on a modified retrospective basis, ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the new revenue framework is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The Company determines revenue recognition through the following five step model:

· Identification of a contract with a customer

· Identification of the performance obligation in the contract

· Determination of the transaction price

· Allocation of the transaction price to the performance obligation in the contract

· Recognition of revenue when or as the performance obligations are satisfied

The adoption of the new accounting guidance did not result in significant changes to the Company's reported operating results. The Company recorded a transition adjustment for all open contracts existing as of October 1, 2018, of $2.9 million as an increase to the opening balance of accumulated deficit related principally to the items noted below:

Sales or Usage Based Royalties:  The Company receives royalties from certain domestic and international distributors and other transactional digital distribution partners based on the sales made by these distributors after recoupment of a minimum guarantee, if applicable. Under prior guidance, the Company recorded these sales or usage-based royalties after receiving statements from the licensee and/or film distributor. Under the new guidance, revenues are recorded based on best estimates available of the amounts due to the Company in the period of the customer's sales or usage. Accordingly, the timing of the revenue recognition is accelerated; however, the Company continues to have a consistent number of periods of sales or usage based royalties in each reporting period, and therefore the impact of the new guidance depends on the timing and performance of the titles released in those reporting periods.

Renewals of Licenses of Intellectual Property:  Under the prior guidance, when the term of an existing license agreement was extended, without any other changes to the provisions of the license, revenue for the renewal period was recognized when the agreement was renewed or extended. Under the new guidance, revenue associated with renewals or extensions of existing license agreements is recognized as revenue when the licensed content becomes available for the customer to use and benefit from under the renewal or extension. This change impacts the timing of revenue recognition (i.e., revenue is recorded at a later time) as compared with prior revenue recognition guidance. While revenues from renewal do occur, they are not a significant portion of our revenue and thus do not have a material impact on our revenue recognition.

The cumulative effect of adoption at September 30, 2019 and the impact had we not applied the new revenue guidance on the Balance Sheet is as follows:

	At September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Assets
Accounts receivable - current	$	153,625		$	9,852		$	143,773
Film and television costs, net		141,952			(124	)		142,076
Liabilities
Accounts payable and accrued expenses		114,020			8,096			105,924
Accrued participations and residuals - non-current		67,660			63			67,597
Equity
Accumulated deficit		(732,766	)		1,569			(734,335	)

The impact on the Statement of Operations for fiscal year 2019 due to the adoption of the new revenue guidance is as follows:

	Year Ended September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Statement of Operations
Revenue	$	434,261		$	1,757		$	432,504
Direct operating		260,673			188			260,485
Loss from operations		(90,372	)		(1,569	)		(91,941	)

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements. (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in this Update require that credit losses be presented as an allowance rather than as a write-down. The standard is effective for fiscal periods beginning after April 1, 2020 and allows for a modified-retrospective adoption approach. The Company is currently evaluating the impact of the adoption of this standard on its financial statements. The Company does not expect a material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove, add, and modify certain disclosures. The ASU removes the following disclosure requirements from Topic 820: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation process for Level 3 fair value measurements; and (4) certain other requirements for nonpublic entities. The ASU adds the following disclosure requirements: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, disclosure of other quantitative information may be more appropriate if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The ASU modifies disclosure requirements in Topic 820 relating to timing of liquidation of an investee’s assets, the disclosure of the date when restrictions from redemption might lapse, the intention of the measurement uncertainty disclosure, and certain other requirements for nonpublic entities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the effect of this ASU on its financial statements and related disclosures.

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Property and Equipment, net

6 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment, net

2. Property and Equipment, net

Property and equipment, net, consisted of the following:

	September 30						March 31
	2018			2019			2020
Furniture and fixtures	$	1,132		$	1,087		$	1,089
Computers, equipment and software		3,829			4,035			4,038
Leasehold improvements		4,392			4,295			4,756
Website		304			356			357
		9,657			9,773			10,240
Less: accumulated depreciation		(3,748	)		(5,730	)		(6,744	)
Total	$	5,909		$	4,043		$	3,496

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Debt

6 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

3. Debt

JPMorgan Credit Facility

On October 7, 2016, the Company and JPMorgan Chase Bank, N.A. entered into a $400 million five-year senior secured revolving credit facility. This new revolving credit facility, which replaced prior existing production and corporate facilities, can be increased by up to $200 million. All advances are subject to a borrowing base determined and secured by a variety of Company assets. Repayments of all outstanding balances and interest will be due on October 7, 2021. For LIBOR loans, the interest is equal to 3.00% plus LIBOR. The Company is required to pay a commitment fee at an annual rate of 0.75%, if credit exposure is less than 50% of total commitments, and 0.50% if credit exposure is more than 50% of the undrawn amounts. The effective interest rate is 5.56% as of September 30, 2019 and 5.03% as of March 31, 2020.

P&A Facility

On March 3, 2014, the Company entered into a five-and-a-half-year $30 million senior secured revolving credit facility, with Seer Capital Master Fund, LP as the administrative agent (the “P&A Facility”). The P&A Facility, as amended and restated as of May 2, 2014, was used to finance prints and advertising expenses of films. Amounts outstanding under the P&A Facility bore interest at 12.0%. The Company was required to pay an annual maintenance fee of 1.0% of the average principal balance of loans outstanding with a minimum yield protection on the loan advance for each picture to be the greater of the interest on the advance or 2.0% for loans made less than or equal to 14 days prior to release or 3.0% for loans made more than 14 days in advance of release. For each film that utilizes this facility, the Company was also required to pay a 2.5% participation in the respective film. The P&A facility was amended several times until on January 9, 2020, the Company repaid the remaining amounts owed under this facility.

The summary of the revolving credit facilities described above and related debt issuance costs are as follows:

	September 30						March 31
	2018			2019			2020
JPMorgan credit facility	$	257,560		$	222,448		$	230,369
P&A facility		18,000			10,000			—
Debt issuance costs		(8,625	)		(6,046	)		(4,380	)
Revolving credit facilities	$	266,935		$	226,402		$	225,989

Term Loans

On March 3, 2014, the Company entered into a six-year term loan agreement, as amended and restated as of May 2, 2014, for $35.2 million with Red Fish Blue Fish, LLC, who is also a stockholder and an affiliate of a stockholder. The term loan was drawn on October 20, 2014 and was used to finance production and acquisition of feature-length motion pictures and for general corporate purposes. The term loan is currently recorded at a discount, which includes a 1% agent fee deducted from the total debt and the fair value of the 940,524 common shares issued to the lender as part of the agreement. The term loan was initially set to mature on March 3, 2020.

On October 7, 2016, the Company amended the existing term loan agreement with Red Fish Blue Fish, LLC to extend the maturity to July 7, 2022 to comply with the extension of the credit facilities. Red Fish Blue Fish, LLC received 26,525 shares of common stock in connection with this agreement. The Company is required to pay interest at an annual rate of 11.0% (9.0% in cash and 2.0% in kind). On April 20, 2018 the Company entered into a one-and-a-half year term loan agreement for a total commitment of approximately $4,700 with Aperture Media Partners, LLC to fund the production of a film. As of September 30, 2018, $3,200 had been drawn on the loan, net of debt issuance costs. Repayment of the principal, and interest on the loan was made on May 10, 2019.

The following tables sets forth future annual contractual principal payment commitments of debt as of March 31, 2020.

		At March 31
Debt Type	Maturity Date	2021		2022		2023		Total
JPMorgan credit facility	October 2021		—		230,369		—	$	230,369
Red Fish Blue Fish term	July 2022		—		—		42,640		42,640
			—		230,369		42,640		273,009
Less: aggregate unamortized discount and debt issuance costs									(4,928	)
Total								$	268,081

As of March 31, 2020, the Company is in compliance with all debt covenants.

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Leases

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

4. Leases

The Company has operating leases for its offices. Its leases have remaining lease terms of up to six years, some of which include options to extend leases up to 5 years. Certain leases contain provisions for property related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services. These costs are calculated based on a variety of factors including property values, tax and utility rates, property service fees, and other factors. The Company records rent expense for operating leases, some of which have escalating rent payments, on a straight-line basis over the lease term. The Company does not have any finance leases.

The tables below present information regarding the Company’s lease assets and liabilities:

	At March 31, 2020
Assets:
Operating lease right of use assets	$	9,772
Liabilities:
Current operating		1,830
Long-term operating		11,095
Total	$	12,925
Weighted-average remaining lease term – operating leases (in years)		5.5
Weighted-average discount rate – operating leases		7.8%

The components of lease expense were as follow:

	Six months ended March 31, 2020
Operating leases:
Operating lease costs	$	1,226
Variable lease costs		7
Operating lease expense		1,233
Short-term lease rent expense		40
Net rent expense	$	1,273

The following tables sets forth our future annual repayment of contractual commitments of future minimum rental payments due under office leases as of March 31, 2020:

At March 31:	Operating Leases
2021	$	2,776
2022		2,897
2023		2,889
2024		2,996
2025		2,476
Thereafter		2,003
Total		16,037
Less: Present value discount		(3,112	)
Operating lease liabilities	$	12,925

Supplemental cash flow information related to leases was as follows:

	Six months ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease costs	$	1,312
Right-of-use assets obtained in exchange for new lease obligations:
Operating lease costs	$	2,000

Rent expense was $2,415, $2,456 and $3,092 for the years ended September 30, 2017, 2018 and 2019, respectively. Rent expense was $1,520 and $1,273 for the six months ended March 31, 2019 and 2020. As of September 30, 2018, the Company had restricted cash that collateralizes letters of credit pursuant to the Company’s Burbank office lease and is included in restricted cash in the accompanying balance sheets. During the year ended September 30, 2019 the restricted cash was converted to a security deposit with the lessor.

Right-of-use assets are recorded in non-current Other assets in the accompanying consolidated balance sheet as of March 31, 2020. Lease liabilities are recorded in Accounts payable and accrued expenses, and Other liabilities in the accompanying consolidated balance sheet as of March 31, 2020.

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Convertible Redeemable Preferred Stock

6 Months Ended

Mar. 31, 2020

Equity [Abstract]

Convertible Redeemable Preferred Stock

5. Convertible Redeemable Preferred Stock

Convertible Redeemable Preferred Stock

	September 30, 2018
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	17,196
Class B		85,000		85,000	$	143,069
Class C		214,588		166,088	$	198,158

	September 30, 2019
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	19,271
Class B		85,000		85,000	$	160,238
Class C		214,588		166,088	$	222,430
Class D		132,168		125,000	$	132,328

	March 31, 2020
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	20,377
Class B		85,000		85,000	$	169,442
Class C		214,588		166,088	$	235,491
Class D		132,168		125,104	$	138,769

The rights and preferences of the holders of preferred stock are as follows:

Dividend and liquidation preferences – No dividends shall be paid on any shares of any class of capital stock of the Company, unless a dividend is paid with respect to all outstanding shares of Class D, Class C and Class B, followed by Class A. The Company has not declared any dividends on any class of capital stock as of March 31, 2020. Unpaid dividends accumulate for each share of Class A, Class B, and Class C on a daily basis at the rate of 12% per annum and for Class D on a daily basis at the rate of 10% per annum on the sum of the Class liquidation value thereof from and including the date of issuance to and including the first occurrence of liquidation, conversion, or acquisition. In the event of any voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of preferred stock shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders, before any payment shall be made to the holders of common stock, an amount per share equal to the greater of the aggregate Class liquidation value, plus unpaid accrued and accumulated dividends, and the amount that would be received upon liquidation if all shares of the Class were converted into common stock immediately prior to liquidation.

The Class D are entitled to receive a cash payment (“Exit Payment”) of $33,000, pro rata to each holder of Class D, upon the consummation of certain transactions, including a liquidation of the Company or a Qualified IPO or Deemed Liquidation, each as defined in the Amended Charter. The aggregate Exit Payment will increase by approximately $8,375 as of May 11, 2020 (the fifteen-month anniversary of the Class D Issuance Date) and each three-month anniversary thereof until the total Exit Payment reaches a maximum of $100,000. If the Exit Payment has not been paid on or prior to July 8, 2022, each holder of Class D will be entitled to receive a pro rata share of the Exit Payment in connection with any redemption of Class D. The Class D Exit Payment is liability-classified and marked to market at each reporting period. The fair value attributed to the liability as of February 2019 (issuance) was $23,500 which was recorded as an offset to the proceeds of Class D. As of September 30, 2019 and March 30, 2020, the fair value attributed to the Exit Payment liability was $48,500 and $34,733, respectively, which is recorded in Other liabilities on the accompanying consolidated balance sheets. The fair value of the Exit Payment liability was determined using Level 3 of the fair value hierarchy under ASC 820 Fair Value Measurements and Disclosures. The fair value was determined using a valuation model which considers the probability of a voluntary conversion, the timing of the conversion and the Company’s cost of capital. The expense (benefit) for year ended September 30, 2019 was $25,000 and for the six months ended March 31, 2020 was ($13,767) which is recorded to Shareholder exit (expense)/income in the accompanying consolidated statements of operations.

Conversion rights – Preferred stock shall be convertible at the option of the holder, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of common stock as is determined by multiplying the number of preferred shares to be converted by $1,000 and dividing the result by the Class conversion price for each class of stock. The conversion price for Class A, Class B, Class C and Class D is $1.1838, $7.4378, $42.7282 and $42.7282, respectively.

Voting rights – The holders of the preferred stock shall be entitled to the number of votes equal to the number of whole shares of common stock into which the shares of preferred stock held by such holders are convertible as of the record date for determining stockholders entitled to vote on such matters.

Redemption rights – Preferred stock shall be redeemed by the Company at a price equal to the Class liquidation value, plus all declared but unpaid dividends there on request, in annual installments commencing not more than 90 days after receipt by the Company at any time on or after July 8, 2022, from the holders of at least a majority of the then-outstanding shares of the Class, with written notice requesting redemption of all shares. Since redemption of the preferred stock is outside of the control of the Company, the shares have been reflected outside of stockholders deficit. All classes of preferred stock are being accreted to their redemption value through redemption date by periodic charges to paid-in-capital (or retained deficit if paid-in-capital is reduced to zero) each reporting period, using the interest method. An aggregate of $27,285, $38,499, $54,966 and $23,924, $33,364 was accreted to preferred stock during the years ended September 30, 2017, 2018 and 2019 and six months ended March 31, 2019 and 2020, respectively.

On February 8, 2019, certain terms of the existing classes of preferred stock were amended, including extending the initial exercise date for certain redemption rights of the holders of the Company’s Class A, Class B and Class C from December 3, 2019 to July 8, 2022, except for the rights of certain Class C preferred stockholders who did not consent to the Amended Charter (Non-Consenting Class C Holders). The initial exercise date for the redemption rights of Non-Consenting Class C Holders, who collectively hold 13,000 shares of Class C as of the Class D Issuance Date, was not amended and such rights remain exercisable during the six-month period beginning December 3, 2019. The Non-Consenting Class C Holders were entitled to elect, up until September 30, 2019, that the initial exercise date of their redemption rights be extended to commence as of July 8, 2022. Class D shall rank senior to Class C, which shall rank senior to Class B, which shall rank senior to Class A, the common stock, and any other junior securities with respect to the payment of dividends and the redemption or repurchase of any shares of the Company.

In December 2019, the Company received Notices of Redemption from Non-Consenting Class C Holders to exercise their redemption rights for 12,000 shares of Class C stock. The Company has not received notices from Non-Consenting Class C Holders holding 1,000 shares. Redemption of the Class C shares of Non-Consenting Class C Holders will not be required under the Company’s certificate of incorporation if not permitted under the Company’s existing debt agreements. The Company has not yet determined whether or when such redemption will be required. None of the Non-Consenting Class C Holders have elected to extend the exercise date to July 8, 2022. As of the date of the redemption notices received in December 2019, the Company reclassified $15,372 from Class C convertible preferred stock to Accounts payable and accrued expenses to reflect this obligation.

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Stock Based Compensation

6 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

6. Stock Based Compensation

Equity Awards

In prior years, stock options were granted under the Company’s 2014 Incentive Stock Plan (“2014 Plan”). In April 2017, the Company and the Board of Directors approved the 2017 Equity Incentive Plan (“2017 Plan”). Under the 2017 Plan, stock options, stock appreciation rights, restricted stock awards and other stock-based awards may be granted to eligible employees. There are 1,750,000 common stock shares are available for grant under the 2017 Plan, of which 558,412 and 519,048 were awarded and outstanding as of September 30, 2019 and March 30, 2020 as restricted stock units and stock options. Stock options under the plan are granted with exercise prices equal to fair market value on the date of the grant. All option grants expire ten years after the date of the grant.

Equity awards to officers, employees, and consultants become exercisable on a vesting schedule established by management and approved by the Board of Directors at the time of grant, generally straight line over a four-year period. The Company treats equity awards with multiple vesting tranches as a single award for expense attribution purposes and recognizes compensation cost based on the vesting schedule over the requisite service period of the entire award.

The following table summarizes stock option activity for the years ended September 30, 2017, 2018 and 2019 and for the six months ended March 31, 2019 and 2020:

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2016		3,495,504		$	1.36
Granted		255,000			3.77
Forfeited		(214,960	)		1.25
Exercised		(59,596	)		0.74
Outstanding at September 30, 2017		3,475,948			1.55
Forfeited		(29,688	)		1.28
Exercised		(532,891	)		2.06
Outstanding at September 30, 2018		2,913,369			1.43
Forfeited		(154,700	)		1.79
Outstanding at September 30, 2019, vested or expected to vest in future		2,758,669			1.41
Exercisable at September 30, 2019		2,659,006			1.33

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2018		2,913,369		$	1.43
Forfeited		(43,868	)		1.73
Outstanding at March 31, 2019, vested or expected to vest in future (unaudited)		2,869,501			1.43
Exercisable at March 31, 2019 (unaudited)		2,705,218			1.29

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2019		2,758,669		$	1.41
Forfeited		(23,762	)		2.98
Outstanding at March 31, 2020, vested or expected to vest in future		2,734,907			1.40
Exercisable at March 31, 2020		2,670,869			1.34

There were 59,596, 532,891 and nil stock options exercised with intrinsic values of $23, $574 and nil during the years ended September 30, 2017, 2018 and 2019, respectively.

There were no stock options exercised for the six months ended March 31, 2019 and 2020. The weighted-average remaining contractual term and the aggregate fair value of outstanding options as of September 30, 2019 was 5.1 years and $114,926.

The weighted-average remaining contractual term and the aggregate fair value of outstanding options as of September 30, 2018 was 6.3 years and $117,192.

The weighted-average remaining contractual term and the aggregate fair value of outstanding options as of September 30, 2017 was 7.4 years and $7,788.

The weighted-average remaining contractual term and the aggregate fair value of outstanding options as of March 31, 2020 was 4.6 years and $113,936.

The weighted-average remaining contractual term and the aggregate fair value of outstanding options as of March 31, 2019 was 5.4 years and $119,543.

The Company granted 357,986, 801,690 and nil restricted stock units during the years ended September 30, 2017, 2018 and 2019 respectively. The Company did not grant restricted stock awards for the six months ended March 31, 2019 and 2020. The awards contain service-based and performance-based conditions to vest in the underlying common stock. Most restricted stock units contain performance conditions that are satisfied only on consummation of an initial public offering.

The performance measures are not considered probable at September 30, 2017, 2018 or 2019 and March 31, 2019 and 2020. Accordingly, no compensation expense has been recorded for such awards for the years ended September 30, 2017, 2018 and 2019 and for the six months ended March 31, 2019 and 2020.

The following table summarizes restricted stock unit activity for the years ended September 30, 2017, 2018 and 2019 and for the six months ended March 31, 2019 and 2020:

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2016		—			—
Granted		357,986		$	4.18
Forfeited		(11,317	)		4.18
Outstanding at September 30, 2017		346,669			4.18
Granted		801,690			41.66
Forfeited		(33,744	)		4.18
Outstanding at September 30, 2018		1,114,615			32.44
Forfeited		(556,203	)		38.23
Outstanding at September 30, 2019		558,412			24.04

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2018		1,114,615		$	32.44
Forfeited		(482,243	)		38.91
Outstanding at March 31, 2019 (unaudited)		632,372			25.18

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2019		558,412		$	24.04
Forfeited		(39,364	)		33.28
Outstanding at March 31, 2020		519,048			23.34

The fair values of restricted stock units are determined based on the market value of the shares on the date of grant.

As of September 30, 2017, 2018 and 2019, there was $885, $6,140 and $192 respectively, of total unrecognized stock-based compensation cost related to non-vested stock options and restricted stock unit awards. That cost is expected to be recognized over a weighted-average remaining vesting period of 2.9, 7.2 and 1.4 years, respectively.

As of March 31, 2019 and 2020, there was $307 and $123 respectively, of total unrecognized stock-based compensation cost related to non-vested stock options and restricted stock unit awards. That cost is expected to be recognized over a weighted-average remaining vesting period of 1.7, and 0.9 years, respectively.

The Company recognized noncash stock-based compensation expense of $536, $447 and $195 during the years ended September 30, 2017, 2018 and 2019, respectively. The Company recognized noncash stock-based compensation expense of $97 and $81 during the six months ended March 31, 2019 and 2020. As of September 30, 2017, 2018 and 2019, there were 114,701, 44,389 and 199,089 awards, respectively, in the 2014 Plan and 1,403,131, 204,436 and 1,191,588 awards, respectively, in the 2017 Plan that were available for grant. As of March 31, 2019 and 2020, there were 88,257 and 222,851 awards, respectively, in the 2014 Plan and 1,117,628 and 1,230,952 awards, respectively, in the 2017 Plan that were available for grant.

The Company issued 100,000 fully vested common shares during the year ended September 30, 2018 and recorded stock compensation expense of $4,166.

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Warrants

6 Months Ended

Mar. 31, 2020

Equity [Abstract]

Warrants

7. Warrants

In connection with theatrical exhibition agreements entered into in July 2013, the Company issued warrants exercisable for 1,342,298 common shares on March 3, 2014, at an exercise price of $7.29 per share. To prevent dilution, the exercise price and number of common shares issuable are subject to adjustment. The warrants have an exercise life of ten years. No warrants were exercised as of March 31, 2020. The warrants were valued at $0.427 per share for an aggregate value of approximately $573 on the date of grant. Since the warrants were issued in connection with obtaining domestic theatrical distribution rights, the value was capitalized in other assets and was being amortized to film operating expenses over the five-year term of the exhibition agreements.

The fair value of the warrants at the grant date was determined using the Black-Scholes option pricing model using an expected life of 10 years, expected volatility of 65%, risk-free interest rate of 0.5%, and no dividend yield as the assumptions.

In connection with the issuance of Class D shares, the Company issued 9,858 warrants to certain investors with an exercise price of $0.01 per share. The warrants were fully vested and exercised on the date of issuance by the investors. The difference between the value of the warrants and the issue price of the Class D shares is being accreted to redemption value consistent with the other shares of Class D.

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Revenue

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

8. Revenue

The table below presents revenues by market and product line for the fiscal years ended September 30, 2017, 2018 and 2019 and the six months ended March 2019 and 2020, respectively. The fiscal years 2017 and 2018 information in the table below has not been adjusted under the modified retrospective method of adoption of the new revenue guidance adopted in fiscal year 2019.

	Year Ended September 30						Six Months Ended March 31
	2017		2018		2019		2019		2020
							(unaudited)
Film:
Theatrical	$	20,339	$	136,474	$	109,716	$	58,619	$	49,162
Home entertainment		94,457		102,971		118,716		71,382		53,405
TV/Streaming		40,368		32,026		71,575		42,123		35,168
Other post theatrical		2,772		1,245		4,988		1,506		2,649
International		37,836		154,915		88,633		46,876		38,198
Total film		195,772		427,631		393,628		220,506		178,582
Television and other		5,669		21,215		40,633		3,562		9,871
Total revenue	$	201,441	$	448,846	$	434,261	$	224,068	$	188,453

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Income Taxes

6 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

9. Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law, making significant changes to the taxation of the U.S. business entities. The Tax Act reduced the U.S. corporate income tax rate from 35% to 21%, imposed a one-time transition tax in connection with the move from a worldwide tax system to a territorial tax system, provided for accelerated deductions for certain U.S film production costs, imposed limitations on certain tax deductions such as executive compensation in future periods, and included numerous other provisions. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 24.3% for the fiscal year ending September 30, 2018 and 21% for subsequent fiscal years. Since we are not in a current U.S. federal tax paying position, our U.S. tax provision consists primarily of deferred tax benefits calculated at the 21% tax rate.

In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (2017 Tax Act). Corporate taxpayers may carryback net operating losses (NOLs) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation.

With the enactment of the CARES Act, the Company does not expect a financial statement impact. The Company has not recorded any financial statement expense or benefit relate to the Act for the six months ended March 30, 2020.

The Company’s income tax provision (benefit) differs from the federal statutory rate multiplied by pre-tax income (loss) primarily due to valuation allowance recognized against federal, state and foreign deferred tax assets. The Company’s total income tax provision primarily consists of foreign withholding taxes.

The Company’s income tax provision (benefit) can be affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, and changes in valuation allowances on its deferred tax assets.

The components of pre-tax net loss, are as follows:

	Year Ended									Six Months Ended
	September 30									March 31
	2017			2018			2019			2019			2020
										(unaudited)
Domestic	$	(77,453	)	$	(173,261	)	$	(131,189	)	$	(41,568	)	$	(21,694	)
Foreign		(8,521	)		(19,123	)		(6,104	)		(679	)		(4,258	)
Total	$	(85,974	)	$	(192,384	)	$	(137,293	)	$	(42,247	)	$	(25,952	)

The Company’s current and deferred income tax provision (benefit) consists of the following:

	Year Ended						Six Months Ended
	September 30						March 31
	2017		2018		2019		2019		2020
							(unaudited)
Current provision:
Federal	$	—	$	—	$	—	$	—	$	—
State		—		5		—		—		—
Foreign		387		806		708		359		161
Total current provision		387		811		708		359		161
Deferred provision:
Federal		—		—		—		—		—
State		—		—		—		—		—
Foreign		—		—		—		—		—
Total deferred provision		—		—		—		—		—
Total	$	387	$	811	$	708	$	359	$	161

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to pretax loss as a result of the following differences: 

	Year Ended September 30									Six Months Ended March 31
	2017			2018			2019			2019			2020
											(unaudited)
Income taxes computed at Federal statutory rate	$	(29,229	)	$	(46,705	)	$	(28,831	)	$	(8,872	)	$	(5,450	)
Increase (decrease) in rates resulting from:
State tax, net of federal tax benefit		(3,480	)		(8,990	)		(685	)		1,449			(2,869	)
Shareholder exit								5,250			1,213			(2,891	)
Deferred tax rate adjustment		(257	)		(295	)		2,314			2,314			(1,722	)
Permanent and other		974			386			1,565			1,437			(399	)
Meals and entertainment		45			84			334			159			172
Foreign withholding taxes		387			806			708			359			161
Tax law change		—			35,297			—			—			—
Increase (decrease) in valuation allowance		31,947			20,228			20,053			2,300			13,159
Income tax provision	$	387		$	811		$	708		$	359		$	161

The income tax provision consists primarily of foreign withholding taxes.

The income tax effects of temporary differences between the book value and tax basis of assets and liabilities are as follows:

	Year Ended September 30									Six Months Ended March 31
	2017			2018			2019			2019			2020
										(unaudited)
Deferred tax assets:
Net operating loss	$	69,774		$	84,216		$	100,166		$	82,775		$	114,863
Accrued participants and residuals		14,563			21,453			25,088			25,426			24,729
Production costs		3,741			4,056			3,390			3,592			4,403
Accrued expenses and other		3,710			3,095			1,916			1,294			2,335
Lease liabilities		—			—			—			—			2,771
Deferred revenue		963			825			1,877			4,622			2,107
Stock compensation		771			544			556			534			605
Intangibles and fixed assets		210			163			210			184			11
Total deferred tax assets		93,731			114,352			133,203			118,427			151,824
Less: valuation allowance		(93,731	)		(114,352	)		(133,203	)		(116,605	)		(146,392	)
Total net deferred tax assets	$	—		$	—		$	—		$	1,822		$	5,432
Deferred tax liabilities:
Right of use assets											—			(2,039	)
Other											(1,822	)		(3,393	)
Total net deferred tax liabilities	$	—		$	—		$	—		$	(1,822	)	$	(5,432	)
Total net deferred tax assets and liabilities	$	—		$	—		$	—		$	—		$	—

At March 31, 2020 the Company had federal, state and foreign net operating loss carryforwards (NOL) of approximately $426.5, $269.1 and $35.8. The federal and state NOL carryforwards will begin to expire in 2034, however, $121.1 of federal NOL will not expire. The foreign NOL carryforwards do not expire.

As of March 31, 2019 and 2020, the Company had valuation allowances against certain deferred tax assets totalling $116.6 and $146.4, respectively. As of September 30, 2019, 2018 and 2017, the Company had valuation allowances against certain deferred tax assets totalling $133.2, $114.4 and $93.7, respectively. These valuation allowances relate to tax assets where it is management’s best estimate that there is not a greater than 50 percent probability that the benefit of the assets will be realized in the future.

Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the Code), as well as similar state provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders.

The Company has completed a study through December 31, 2019 and has determined an ownership change did not occur. Should the Company experience future ownership changes, utilization of the net operating loss carryforwards may be subject to an annual limitation under Section 382 of the Code. Any limitation may result in expiration of a portion of the net operating loss carryforwards before utilization. Any carryforwards that will expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance.

As of September 30, 2019, 2018 and 2017 and March 31, 2020 and 2019, the Company had no unrecognized tax benefits and does not anticipate this position to change within the next twelve months. The Company will recognize any interest and penalties associated with uncertain tax positions within the income tax provision.

The Company files income tax returns in the United States, various state jurisdictions and in the United Kingdom. The Company is not under examination in any jurisdiction; however, Company is subject to income tax examination by federal and state tax authorities beginning in 2015.

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Financial Instruments

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Financial Instruments

10. Financial Instruments

Credit Risk:

Concentration of credit risk with the Company’s customer is limited due to the Company’s customer base and the diversity of its sales throughout the world. The Company performs ongoing credit evaluations and maintains a provision for potential credit losses when deemed necessary. The Company generally does not require collateral for its trade accounts receivable.

Forward Contracts:

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposure on future production expenses denominated in various foreign currencies (i.e. cash flow hedges). The Company monitors its positions and the credit quality of, the financial institutions that are party to its financial transactions.

As of September 30, 2018 and 2019 and March 31, 2020, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than four months from March 31, 2020):

September 30, 2018
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	17,463	in exchange for	$ 13,525	$1.28

September 30, 2019
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	9,376	in exchange for	$ 7,018	$1.33

March 31, 2020
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	9.376	in exchange for	$ 7,113	$1.33

The loss capitalized to productions and loss/gain recognized in the accompanying consolidated statements of operations for the years ended September 30, 2018 and 2019 and six months ended March 31, 2020 related to foreign currency derivatives was immaterial.

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Fair Value

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value

11. Fair Value

Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair Value Hierarchy

Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value:

• Level 1 — Quoted prices in active markets for identical assets or liabilities.

• Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities

• Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

The Company has assessed that the fair values of trade receivables, financial assets included in prepaid and other assets, restricted cash and cash and cash equivalents, trade payables, and financial liabilities included in other payables and accruals approximate to their carrying amounts largely due to the short-term maturities of these instruments.

The following table sets forth the carrying values and fair values of the Company’s outstanding debt at September 30, 2018 and 2019 and March 31, 2020.

	September 30, 2018				September 30, 2019
Liabilities	Carrying Value		Fair Value		Carrying Value		Fair Value
Red Fish Blue Fish Term Loan	$	40,471	$	42,677	$	41,546	$	44,160
Aperture Term Loan		3,184		3,482		—		—
JPMorgan Credit Facility		249,223		257,560		216,608		222,448
P&A Facility		17,712		18,000		9,794		10,000

	March 31, 2020
Liabilities		Carrying Value		Fair Value
Red Fish Blue Fish Term Loan	$	42,092	$	44,817
JPMorgan Credit Facility		225,989		230,369

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Additional Financial Information

6 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Additional Financial Information

12. Additional Financial Information

The composition of the Company’s Other current assets, non-current other assets, and accounts payable and accrued expenses are as follows as of September 30, 2018 and 2019 and March 31, 2020:

	September 30				March
	2018		2019		2020
Other current assets:
Co-finance receivables	$	—	$	1,799	$	3,052
Prepaid expenses		1,750		7,812		1,648
Tax credits receivable		27,422		4,816		17,416
Other		1,038		1,397		2,099
Total	$	30,210	$	15,824	$	24,215
Non-current other assets:
Co-finance receivables	$	5,173	$	—	$	—
Tax credits receivable				9,890		10,370
Accounts receivable		2,182		7,614		15,450
Lease asset		—		—		9,772
Other		9,133		5,631		4,016
Total	$	16,488	$	23,135	$	39,608
Accounts payable and accrued expenses:
Print and advertising payable	$	112,662	$	41,469	$	43,532
Lease liability		—		—		1,830
Accounts payable		48,002		52,389		33,250
Returns reserve				8,096		8,096
Non-consenting shareholders		—		—		15,372
Accrued payroll and related		12,124		6,592		4,855
Accrued interest		3,637		3,813		2,594
Accrued other		1,899		1,661		392
Total	$	178,324	$	114,020	$	109,921

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Valuation and Qualifying Accounts

6 Months Ended

Mar. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

13. Valuation and Qualifying Accounts

Description	Balance at Beginning of Period		Charged to Costs and Expenses		Charged to Other Accounts		Deductions			Balance at End of Period
Year Ended September 30, 2018
Reserves:
Returns and allowances	$	3,869	$	20,971		—	$	(14,120	)	$	10,720
Deferred tax allowance	$	93,731	$	20,621		—		—		$	114,352
Year Ended September 30, 2019
Reserves:
Returns and allowances	$	10,720	$	17,206		—	$	(19,830	)	$	8,096
Deferred tax allowance	$	114,352	$	18,851		—		—		$	133,203
Six Months Ended March 31, 2020
Reserves:
Returns and allowances	$	8,096	$	6,811		—	$	(6,811	)	$	8,096
Deferred tax allowance	$	133,203	$	13,289		—		—		$	146,392

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Subsequent Events

6 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

The Company evaluated subsequent events through October 30, 2020, which is the date these consolidated financial statements were issued.

COVID-19 Pandemic.

The COVID-19 outbreak has caused significant disruptions, the outbreak has spread globally to the United States and many countries where we distribute films. On March 11, 2020, the World Health Organization designated the outbreak a pandemic. Governments and businesses around the world have taken unprecedented actions to mitigate the spread of COVID-19, including imposing restrictions on movement and travel such as quarantines and shelter-in-place requirements, or nationwide lockdowns, as well as restricting or prohibiting outright some or all commercial and business activity, including the closure of some or all theaters and disrupting the production of film and TV content. These measures, though currently temporary in nature, may become more severe and continue indefinitely depending on the evolution of the pandemic. To date, no fully effective vaccines or treatments have been developed and effective vaccines or treatments may not be discovered soon enough to protect against a further worsening of the pandemic.

The pandemic has affected how the film content is distributed to various distribution channels due to the closure of theaters in the United States and in international territories. There however has been an increase in streaming and digital revenue due to the closure of movie theaters. The pandemic has also affected the production of new content for both film and TV due to the closure of productions. The extent of the adverse impact on our financial and operational results will be dictated by the length of time that such disruptions continue, which will, in turn, depend on the currently unknowable duration of COVID-19 and among other things, the impact of governmental actions imposed in response to the pandemic and individuals’ and companies’ risk tolerance regarding health matters going forward. Our business also could be significantly affected even after reopening of certain operations, should the disruptions caused by the COVID-19 lead to changes in consumer behavior (such as social distancing becoming the norm independent of any pandemic conditions) and the delay in having film and TV content to distribute.

We are monitoring the rapidly evolving situation and its potential impacts on our financial position, results of operations, liquidity, and cash flows.

Merger with Eros International Plc

On July 30, 2020, the Company merged with Eros International Plc. (“Eros”), a public company based in Mumbai, India, in accordance with the terms of an Agreement and Plan of Merger, dated as of April 17, 2020 (as amended, restated or otherwise modified from time to time).

Although Eros legally acquired the Company, the merger is intended to be accounted for as a reverse acquisition, whereby the Company will be deemed the accounting acquiror and the assets and liabilities of Eros will be recorded at their fair values on the date of acquisition. In connection with the merger, all outstanding stock options and restricted share units of the Company were canceled.

Paycheck Protection Program

On April 4, 2020, The Company was granted a loan from JPMorgan Chase Bank, N.A. in the aggregate amount of $2.9 million at an interest rate of 0.98% per annum, pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses. The Company intends to use the entire loan amount for purposes consistent with the PPP.

JPMorgan Credit Facility

The Corporate Credit Facility was amended on April 17, 2020, which resulted in the decrease of the facility from $400 million to $350 million and an increase from $200 million to $250 million the Company’s ability to increase the borrowings, subject to certain conditions, as set forth in the credit agreement. The incremental amounts will be issued on the same terms as the existing Corporate Credit Facility.

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Accounting Policies (Policies)

6 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

These accompanying consolidated financial statements are presented on the accrual basis of accounting and are in accordance with accounting principles generally accepted in the United States (“GAAP”) as contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). These financial statements present the consolidated financial position and results of operations of the Company and its wholly owned subsidiaries. All intercompany transactions are eliminated in consolidation.

As discussed in Note 3, the Company's revolving credit facility matures on October 7, 2021. The maturity of the Company’s revolving credit facility now falls within the twelve-month period following the issuance of these financial statements for which the Company is required to evaluate as part of its assessment of its ability to continue as a going concern. Management of the Company believes that the Company has adequate liquidity to fund its operations up until the maturity of the revolving credit facility. However, absent a refinancing with cash from operations, assets sales or a combination thereof, the Company does not currently expect to have sufficient liquidity to repay the full amount of the revolving credit facility at maturity. Based on continuing discussions with existing and potential lenders, management is optimistic that it will be able to successfully implement its ongoing plan to address its debt maturities as they become due. However, management recognizes that its plan depends on the actions of these third parties and, therefore, the Company is unable at this time to conclude that such plan is probable of being achieved. Accordingly, given the uncertainty with respect to the Company’s ability to pay its revolving credit facility in full at maturity, the Company acknowledges that substantial doubt exists regarding its ability to continue as a going concern pursuant to ASC 205-40 Presentation of Financial Statements—Going Concern. There can be no assurance that the Company will succeed in reaching agreements with the lenders under its revolving credit facility or accessing new capital to pay the revolving credit facility in full at maturity.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of asset and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities as of the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the revenue recognition of sales or usage-based royalties; income taxes including the assessment of valuation allowances for deferred tax assets; accruals for contingent liabilities; and impairment assessments for investment in films and television programs and property and equipment. Actual results could differ from such estimates.

Amounts included in the consolidated financial statements and accompanying footnotes as of March 31, 2019 and for the six-months then ended are unaudited.

Revenue Recognition

Revenue Recognition

The Company generates revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and physical sales), television, and international market places.

Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax.

Licensing Arrangements

The Company's content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage-based royalties.

Fixed Fee or Minimum Guarantees: The Company's fixed fee or minimum guarantee licensing arrangements may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content.

Sales or Usage Based Royalties: Sales or usage based royalties represent amounts due to the Company based on the “sale” or “usage” of the Company's content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated and has been satisfied (or partially satisfied). Generally, when the Company licenses completed content (with standalone functionality, such as a movie, or television show) its performance obligation will be satisfied prior to the sale or usage. When the Company licenses intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), its performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to the Company under these arrangements are generally not reported to the Company until after the close of the reporting period. The Company records revenue under these arrangements for the amounts due and not yet reported to the Company based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from the Company's customers, historical experience with similar titles in that market or territory, the performance of the title in other markets, and/or data available in the industry.

Revenues by Market or Product Line

The following describes the revenues generated by market or product line.

Theatrical - Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by the Company directly in the United States). Revenue from the theatrical release of feature films are treated as sales or usage- based royalties, are recognized as revenue starting at the exhibition date and are based on the Company's participation in box office receipts of the theatrical exhibitor.

Home Entertainment - Home entertainment consists of Digital Media and Physical Sales.

Digital Media - Digital media includes digital transaction revenue sharing arrangements (pay-per-view and video-on-demand platforms, electronic sell through ("EST"), and digital rental) and licenses of content to digital platforms for a fixed fee.

Digital Transaction Revenue Sharing Arrangements: Primarily represents revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title basis. These digital media platforms generate revenue from rental and EST arrangements, such as download-to-own, download-to-rent, and video-on-demand. These revenue sharing arrangements are recognized as sales or usage-based royalties based on the performance of these platforms and pursuant to the terms of the contract, as discussed above.

Licenses of Content to Digital Platforms: Primarily represents the licensing of content to subscription-video-on-demand ("SVOD") or other digital platforms for a fixed fee. As discussed above, revenues are recognized when the content has been delivered and the window for the exploitation right in that territory has begun.

Physical Sales - Physical Sales represent the sale of motion pictures and television shows (produced or acquired) on physical discs (DVD’s, Blu-ray, and 4K Ultra HD) in the retail market. Revenues are recognized, net of an allowance for estimated returns and other allowances, on the later of receipt by the customer or “street date” (when it is available for sale by the customer).

Television - Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television markets, syndication) of motion pictures (including theatrical productions and acquired films). Television also includes revenue from licenses to SVOD platforms in which the initial license of a television series is to an SVOD platform. Revenues associated with a title, right, or window from television licensing arrangements are recognized when the feature film is delivered and the window for the exploitation right has begun.

International - International revenues are derived from (1) licensing of the Company's productions, acquired films, and catalog product to international distributors, on a territory-by-territory basis; (2) the direct distribution of our productions, acquired films, and our catalog product in the United Kingdom; and (3) licensing to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming. License fees and minimum guarantee amounts associated with title, window, media or territory, are recognized when access to the feature film or television program has been granted or delivery has occurred, as required under the contract, and the right to exploit the feature film or television program in that window, media or territory has commenced. Revenues are also generated from sales or usage based royalties received from international distributors based on their distribution performance pursuant to the terms of the contracts after the recoupment of certain costs in some cases, and the initial minimum guarantee, if any, and are recognized when the sale by our customer generating a royalty due to us has occurred.

Other - Other revenues are derived from the licensing of the Company's film intellectual property for merchandising (i.e., licenses of motion picture characters or logos) and scripted and unscripted content to linear pay, basic cable, free television markets, and other ancillary markets.

Revenues from other content are recognized when the license period has begun. Revenues from the licensing of television are recognized when the content has been delivered.

Deferred Revenue

Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation.

Payment terms vary by location and type of customer and the nature of the licensing arrangement: however, other than certain multi-year license arrangements, payments are generally due within 60 days after revenue is recognized. For certain multi-year licensing arrangements, primarily in the television, digital media, and international markets, payments may be due over a longer period. When we expect the period between fulfillment of our performance obligation and the receipt of payment to be greater than a year, a significant financing component is present. In these cases, such payments are discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Company, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. The Company does not assess contracts with deferred payments for significant financing components if, at contract inception, we expect the period between fulfillment of the performance obligation and subsequent payment to be one year or less.

In other cases, customer payments are made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company's risk of customer non-performance and incentivize the customer to exploit the Company's content.

Film and Television Costs

Film and Television Costs

Film costs represent the costs of films produced by the Company, or for which the Company has acquired distribution rights. For films produced by the Company, capitalized costs include all direct production costs, production overhead, and capitalized interest. Production overhead includes allocable costs of individuals or departments with exclusive or significant responsibility for the production of films and excludes selling and marketing costs. The amount of interest capitalized is an allocation of interest cost incurred during the period required to complete the production, but not while the project is in development. During the years ended September 30, 2017, 2018 and 2019, interest of $860, $4,033 and $2,573, respectively, was capitalized to films in production. During the six months ended March 31, 2019 and 2020, interest of $1,348 and $368, respectively, was capitalized to films in production. During the years ended September 30, 2017, 2018 and 2019, overhead of $1,935, $4,418 and $5,495, respectively, was capitalized to films in production. During the six months ended March 31, 2019 and 2020, overhead of $3,275 and $394, was capitalized to films in production.

Film costs consist of four categories: (1) films in development, (2) films in production, (3) films completed and not released and (4) released films. Films in development primarily include the costs of acquiring film rights to books or original screenplays and costs to adapt such projects, as well as the costs of scripted development for original ideas. Such costs are capitalized and, upon commencement of production, will be transferred to films in production. Films in development are written off at the earlier of the date they are determined not to be recoverable or when abandoned, or three years from the date of initial investment if the production has not been greenlit. Films in production include the inventory cost associated with projects that have been selected for release and for which principal photography has commenced. Films will be held as an asset in production until release, including completed but not released films, at which time the asset balance is transferred to released films. Capitalized film costs are subject to impairment testing when certain triggering events are identified. If the fair value of a film were to fall below its unamortized costs, an impairment is recorded for the amount by which the unamortized capitalized costs exceeds the production’s fair value. The Company recorded film impairments of $3,596 for the year ended September 30, 2017. There were no film impairments for the years ended September 30, 2018 and 2019 and for the six months ended March 31, 2019 and 2020. In determining the fair value of its films, the Company employs a discounted cash flows ("DCF") methodology that includes cash flow estimates of a film's ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. An impairment is recorded in the amount by which the unamortized costs exceed the estimated fair value of the film program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of film costs may be required because of changes in management’s future revenue estimates.

Film costs and the related participations and residuals are amortized using the individual film forecast method based on the proportion that the current year’s revenue bears to the estimate of ultimate revenue that management regularly reviews and revises when necessary. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the film.

Television costs primarily represent the costs the Company has incurred to produce scripted and unscripted television programs for third parties. The capitalized costs will be expensed to the statement of operations when the program is delivered to the third party.

As of September 30, 2018 and 2019 and March 31, 2020, the Company’s film and television costs consist of the following:

	September 30				March 31
	2018		2019		2020
Film costs:
In development	$	6,584	$	12,475	$	12,560
In production		59,532		41,809		3,330
Completed but not released		—		25,555		—
Released		86,881		56,156		75,779
Total film costs		152,997		135,995		91,669
Television costs:
In development		726		1,514		1,865
In production		4,082		4,443		3,774
Total television costs		4,808		5,957		5,639
Total film and television costs	$	157,805	$	141,952	$	97,308

The Company anticipates that approximately 68% of the costs of its completed films and 91% of the costs of its films in release as of March 31, 2020 will be amortized over the next 12 months and 3 years, respectively.

Co-Film Production Financing and Distribution

Co-Film Production Financing and Distribution

The Company enters into agreements with third parties to co-produce certain of its theatrical and television productions. These arrangements, which are referred to as co-financing arrangements, take various forms. The parties to these arrangements, primarily for theatrical productions, include studio and non-studio entities, both domestic and international. In several of these agreements, other parties control certain distribution rights. The Company records the amount received for the sale of an economic interest as a reduction of the cost of the film, as the investor assumes full risk for that portion of the film asset acquired in these transactions. The substance of these arrangements is that the third-party investors own an interest in the film and, therefore, receive a participation based on the third-party investors’ contractual interest in the profits or losses of the film. Typically, in these arrangements, the Company and the third party will split the profits, based on ownership interest, earned in each of the markets after distribution fees and costs are recouped from the proceeds received from the exploitation of the film. The Company projects the ultimate profit that will be recorded in connection with these arrangements and will amortize the net ultimate amount due to or from the investors to Direct operating expense using the individual film forecast method.

Government Assistance

Government Assistance

The Company has access to government programs (tax credits) that are designed to promote film and television production and distribution in certain states within the United States and foreign countries.

Tax credits earned with respect to expenditures on qualifying film and television productions are included as an offset to investment in films and television programs when the qualifying expenditures have been incurred provided that there is reasonable assurance that the credits will be realized.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include cash held on deposit and amounts invested in money market funds. Restricted cash represented collateral for letters of credit pursuant to the Company’s Burbank office lease.

Accounts Receivable

Accounts Receivable

Accounts receivable consist primarily of receivables from theatrical exhibitors, home entertainment, television partners and international distributors. Accounts receivable are reviewed monthly to assess collectability, and at September 30, 2018 and 2019 and March 31, 2020 respectively, the allowance for doubtful accounts was immaterial.

Concentration of Credit Risk and Financial Instruments

Concentrations of Credit Risk and Financial Instruments

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash in financial institutions it believes have high-credit quality. At times, these balances exceed the Federal Deposit Insurance Corporation limits.

The carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses, and accounts payable and accrued expenses approximate fair value due to their short-term maturities.

Other Current Assets

Other Current Assets

Other current assets on the consolidated balance sheets includes amounts receivable from co-finance partners, tax credits or incentives from local government jurisdictions, physical inventory, right of use assets, prepaid expenses and other current assets. Inventory represents home entertainment product inventory which consists of DVDs and Blu-ray discs and is stated at the lower of cost or net realizable value (first-in, first-out) method. When sold, costs of DVDs and Blu-ray discs sales, including shipping and handling costs, are included in direct operating expense in the accompanying statements of operations.

Property and Equipment

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the following useful lives:

Furniture and fixtures	7 years
Computer equipment and software	3 years
Website	3 years
Leasehold improvements	Lease term or useful life, whichever is shorter

The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded.

Debt Issuance Cost and Debt Discount

Debt Issuance Costs and Debt Discount

The Company’s unamortized debt issuance costs at September 30, 2018 and 2019 and March 31, 2020 were $9,095, $6,290 and $4,580 respectively. Unamortized debt issuance costs are reflected in Revolving Credit Facilities and Term Loan Due to Related Party in the accompanying consolidated balance sheets. Debt issuance costs are amortized using the straight-line method, which approximates the effective interest method, over the related term of the Company’s borrowings. At September 30, 2018 and 2019 and March 31, 2020, gross debt issuance costs were $15,049, $15,422 and $15,422, respectively. Amortization of debt issuance costs for the years ended September 30, 2017, 2018 and 2019 was $2,949, $3,005 and $3,178 respectively. Amortization of debt issuance costs for the six months ended March 31, 2019 and 2020 was $1,566 and $1,710, respectively. Amortization of debt discount costs for the years ended September 30, 2017, 2018 and 2019 was $155 for all three fiscal years. Amortization of the debt discount costs for the six months ended March 31, 2019 and 2020 was $78 for both periods. The amortization of the debt issuance and discount was reflected as interest expense in the consolidated statements of operations. Any amounts that were paid to the debt issuer were treated as a reduction in the proceeds received by the issuer and are considered a discount on the issuance and not an issuance cost. As of September 30, 2018 and 2019 and March 31, 2020, the total debt was reduced by $582, $427 and $349, respectively. The discount is being amortized using the straight-line method, which approximates the effective interest method, over the term of the related debt.

Leases

Leases

Effective October 1, 2019, the Company accounts for its leases under ASC 842, Leases. Under this guidance, lessees classify arrangements meeting the definition of a lease as operating or financing leases, and leases are recorded on the consolidated balance sheet as both a right-of-use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term. Variable lease payments that are based on an index or rate are included in the measurement of right-of-use assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of right-of-use assets and lease liabilities.

In calculating the right-of-use asset and lease liability, the Company used the lease components. The non-lease components; common area maintenance expenses, insurance, taxes, utilities, etc. charged by the landlord are recorded as variable lease expenses. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and instead recognizes rent expense on a straight-line basis over the lease term.

Operating lease right-of-use assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets" line item in the Company's March 31, 2020 consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities” line items in the Company's March 31, 2020 consolidated balance sheet. 

There are currently no finance leases as of March 31, 2020.

Upon adoption of the new guidance, The Company recognized lease liabilities on the Company’s consolidated balance sheet for its operating leases of approximately $11.7 million, with a corresponding right-of-use assets balance of $8.5 million, net of existing lease incentives of $3.2 million previously classified in accounts payable and accrued expenses. The adoption had no material impact on the Company’s consolidated statement of operations.The Company adopted the standard utilizing the modified retrospective approach, and therefore, results for reporting period beginning after October 1, 2019 are presented under the new guidance, while prior periods have not been adjusted (see further description in the Recent Accounting Pronouncements section below).

Distribution and Marketing

Distribution and Marketing Expenses

Distribution and marketing expenses are expensed as incurred. Distribution and marketing expenses for the years ended September 30, 2017, 2018 and 2019 were $72,554, $230,336 and $200,900. Distribution and marketing expenses for the six months ended March 31, 2019 and 2020 was $87,865 and $95,047.

Equity-Based Compensation

Equity-Based Compensation

The Company accounts for share-based payments in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the consolidated financial statements. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires all companies to apply a fair-value based measurement method in accounting for generally all share-based payment transactions with employees.

Income Taxes

Income Taxes

The Company is treated as a corporation for income tax purposes. The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and attributable to operating loss and tax credit carryforwards. The carrying amounts of deferred tax assets are reduced by a valuation allowance, if based on available evidence, if it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically based on the more-likely-than-not realization threshold. This assessment considers, among other matters, the nature, frequency, and severity of current and cumulative losses, the duration of statutory carryforward periods, and tax planning alternatives. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Management has determined that there were no uncertain tax positions for which recognition of a liability for any of the periods presented.

Foreign Currency Translation

Foreign Currency Translation

The functional currency of foreign subsidiaries is the local currency. Monetary assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet dates. Foreign revenues and expense items are translated at the exchange rate on the transaction date. Adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive income (loss) in stockholders’ deficit. Foreign currency transaction gains and losses are included in the consolidated statements of operations in general and administrative expense.

Derivative Investments and Hedging Activities

Derivative Investments and Hedging Activities

Derivative financial instruments are used by the Company in the management of its foreign currency exposures. The Company’s policy is not to use derivative financial instruments for trading or speculative purposes.

The Company enters into forward foreign exchange contracts to hedge its foreign currency exposure of a foreign subsidiary and on future production expenses denominated in various foreign currencies. The Company evaluates whether the foreign exchange contracts qualify for hedge accounting at the inception of the contract. The fair value of the forward exchange contracts are recorded on the consolidated balance sheets. Changes in the fair value of the foreign exchange contracts are reflected in the consolidated statements of operations. Gains and losses realized upon settlement of the foreign exchange contracts related to productions are amortized to the consolidated statements of operations on the same basis as the production costs being hedged.

Contingencies and Litigation

Contingencies and Litigation

In the ordinary course of business, the Company is subject to various routine litigation matters. The Company establishes loss provisions for claims when the loss is both probable and can be reasonably estimated. If either or both of the criteria are not met, the Company assesses whether there is at least a reasonable possibility that a loss, or additional losses, may have been incurred. If there is a reasonable possibility that a loss or additional loss may have been incurred for such proceedings, the Company discloses the estimate of the amount of loss or possible range of loss, or discloses that an estimate of loss cannot be made, as applicable.

Impact of Recently Issued Accounting Standards

Impact of Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize a lease asset representing its right to use the underlying asset for the lease term, and a lease liability for the payments to be made to lessor, on its balance sheet for all operating leases greater than 12 months. The Company adopted ASU 2016-02 as of October 1, 2019, using the modified retrospective approach by recording a right-of-use asset after an offset for existing deferred rent and a lease liability for operating leases of $8,494 and $11,745, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption. Adoption of the ASU did not have an effect on retained earnings.  The Company availed itself of the practical expedients provided under ASU 2016-02 and its subsequent amendments regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components.  The Company continues to account for leases in the prior period financials statements under ASC Topic 840. See Note 4 Leases for additional information on leases.

In March 2019 the FASB issued ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (“ASU 2019-02”). ASU 2019-02 aligns the cost capitalization requirements for episodic television series with the guidance for films in ASC 926-20 and adds new disclosure requirements. Entities that predominantly monetize films or license agreements together with other films and/or license agreements will be required to test the “film group” for impairment rather than test each individual title. Entities that monetize content in a film group must reassess their estimate of the use of a film in the film group and account for any changes prospectively. The standard is effective for fiscal periods beginning after December 15, 2019 and can be early adopted. The Company is currently evaluating the impact of the adoption of this standard on its financial statements.

On October 1, 2018, the Company adopted, on a modified retrospective basis, ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the new revenue framework is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The Company determines revenue recognition through the following five step model:

· Identification of a contract with a customer

· Identification of the performance obligation in the contract

· Determination of the transaction price

· Allocation of the transaction price to the performance obligation in the contract

· Recognition of revenue when or as the performance obligations are satisfied

The adoption of the new accounting guidance did not result in significant changes to the Company's reported operating results. The Company recorded a transition adjustment for all open contracts existing as of October 1, 2018, of $2.9 million as an increase to the opening balance of retained accumulated deficit related principally to the items noted below:

Sales or Usage Based Royalties:  The Company receives royalties from certain domestic and international distributors and other transactional digital distribution partners based on the sales made by these distributors after recoupment of a minimum guarantee, if applicable. Under prior guidance, the Company recorded these sales or usage-based royalties after receiving statements from the licensee and/or film distributor. Under the new guidance, revenues are recorded based on best estimates available of the amounts due to the Company in the period of the customer's sales or usage. Accordingly, the timing of the revenue recognition is accelerated; however, the Company continues to have a consistent number of periods of sales or usage based royalties in each reporting period, and therefore the impact of the new guidance depends on the timing and performance of the titles released in those reporting periods.

Renewals of Licenses of Intellectual Property:  Under the prior guidance, when the term of an existing license agreement was extended, without any other changes to the provisions of the license, revenue for the renewal period was recognized when the agreement was renewed or extended. Under the new guidance, revenue associated with renewals or extensions of existing license agreements is recognized as revenue when the licensed content becomes available for the customer to use and benefit from under the renewal or extension. This change impacts the timing of revenue recognition (i.e., revenue is recorded at a later time) as compared with prior revenue recognition guidance. While revenues from renewal do occur, they are not a significant portion of our revenue and thus do not have a material impact on our revenue recognition.

The cumulative effect of adoption at September 30, 2019 and the impact had we not applied the new revenue guidance on the Balance Sheet is as follows:

	At September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Assets
Accounts receivable - current	$	153,625		$	9,852		$	143,773
Film and television costs, net		141,952			(124	)		142,076
Liabilities
Accounts payable and accrued expenses		114,020			8,096			105,924
Accrued participations and residuals - non-current		67,660			63			67,597
Equity
Accumulated deficit		(732,766	)		1,569			(734,335	)

The impact on the Statement of Operations for fiscal year 2019 due to the adoption of the new revenue guidance is as follows:

	Year Ended September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Statement of Operations
Revenue	$	434,261		$	1,757		$	432,504
Direct operating		260,673			188			260,485
Loss from operations		(90,372	)		(1,569	)		(91,941	)

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements. (“ASU 2016-13”). The amendments in ASU 2016-13 require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in this Update require that credit losses be presented as an allowance rather than as a write-down. The standard is effective for fiscal periods beginning after April 1, 2020 and allows for a modified-retrospective adoption approach. The Company is currently evaluating the impact of the adoption of this standard on its financial statements. The Company does not expect a material impact to the financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove, add, and modify certain disclosures. The ASU removes the following disclosure requirements from Topic 820: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; (3) the valuation process for Level 3 fair value measurements; and (4) certain other requirements for nonpublic entities. The ASU adds the following disclosure requirements: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, disclosure of other quantitative information may be more appropriate if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The ASU modifies disclosure requirements in Topic 820 relating to timing of liquidation of an investee’s assets, the disclosure of the date when restrictions from redemption might lapse, the intention of the measurement uncertainty disclosure, and certain other requirements for nonpublic entities. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the effect of this ASU on its financial statements and related disclosures.

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Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Film and Television Costs

	September 30				March 31
	2018		2019		2020
Film costs:
In development	$	6,584	$	12,475	$	12,560
In production		59,532		41,809		3,330
Completed but not released		—		25,555		—
Released		86,881		56,156		75,779
Total film costs		152,997		135,995		91,669
Television costs:
In development		726		1,514		1,865
In production		4,082		4,443		3,774
Total television costs		4,808		5,957		5,639
Total film and television costs	$	157,805	$	141,952	$	97,308

Depreciation of Property and Equipment

Furniture and fixtures	7 years
Computer equipment and software	3 years
Website	3 years
Leasehold improvements	Lease term or useful life, whichever is shorter

Cumulative Effect of Adoption

The cumulative effect of adoption at September 30, 2019 and the impact had we not applied the new revenue guidance on the Balance Sheet is as follows:

	At September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Assets
Accounts receivable - current	$	153,625		$	9,852		$	143,773
Film and television costs, net		141,952			(124	)		142,076
Liabilities
Accounts payable and accrued expenses		114,020			8,096			105,924
Accrued participations and residuals - non-current		67,660			63			67,597
Equity
Accumulated deficit		(732,766	)		1,569			(734,335	)

The impact on the Statement of Operations for fiscal 2019 due to the adoption of the new revenue guidance is as follows:

	Year Ended September 30, 2019
	As Reported			Increase/ (Decrease)			Without Adoption of New Revenue Guidance
Statement of Operations
Revenue	$	434,261		$	1,757		$	432,504
Direct operating		260,673			188			260,485
Loss from operations		(90,372	)		(1,569	)		(91,941	)

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Property and Equipment, net (Tables)

6 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

	September 30						March 31
	2018			2019			2020
Furniture and fixtures	$	1,132		$	1,087		$	1,089
Computers, equipment and software		3,829			4,035			4,038
Leasehold improvements		4,392			4,295			4,756
Website		304			356			357
		9,657			9,773			10,240
Less: accumulated depreciation		(3,748	)		(5,730	)		(6,744	)
Total	$	5,909		$	4,043		$	3,496

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Debt (Tables)

6 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Revolving Credit Facilities

	September 30						March 31
	2018			2019			2020
JPMorgan credit facility	$	257,560		$	222,448		$	230,369
P&A facility		18,000			10,000			—
Debt issuance costs		(8,625	)		(6,046	)		(4,380	)
Revolving credit facilities	$	266,935		$	226,402		$	225,989

Schedule of Debt

		At March 31
Debt Type	Maturity Date	2021		2022		2023		Total
JPMorgan credit facility	October 2021		—		230,369		—	$	230,369
Red Fish Blue Fish term	July 2022		—		—		42,640		42,640
			—		230,369		42,640		273,009
Less: aggregate unamortized discount and debt issuance costs									(4,928	)
Total								$	268,081

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Leases (Tables)

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Operating Lease Assets and Liabilities

	At March 31, 2020
Assets:
Operating lease right of use assets	$	9,772
Liabilities:
Current operating		1,830
Long-term operating		11,095
Total	$	12,925
Weighted-average remaining lease term – operating leases (in years)		5.5
Weighted-average discount rate – operating leases		7.8%

Schedule of Rent Expense

	Six months ended March 31, 2020
Operating leases:
Operating lease costs	$	1,226
Variable lease costs		7
Operating lease expense		1,233
Short-term lease rent expense		40
Net rent expense	$	1,273

Schedule of Future Minimum Lease Payments

At March 31:	Operating Leases
2021	$	2,776
2022		2,897
2023		2,889
2024		2,996
2025		2,476
Thereafter		2,003
Total		16,037
Less: Present value discount		(3,112	)
Operating lease liabilities	$	12,925

Schedule of Supplemental Cash Flow Information Related to Leases

	Six months ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease costs	$	1,312
Right-of-use assets obtained in exchange for new lease obligations:
Operating lease costs	$	2,000

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Convertible Redeemable Preferred Stock (Tables)

6 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Convertible Redeemable Preferred Stock

	September 30, 2018
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	17,196
Class B		85,000		85,000	$	143,069
Class C		214,588		166,088	$	198,158

	September 30, 2019
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	19,271
Class B		85,000		85,000	$	160,238
Class C		214,588		166,088	$	222,430
Class D		132,168		125,000	$	132,328

	March 31, 2020
			Shares
	Shares Authorized		Issued and outstanding		Liquidation Preference ($000)
Class A		10,207		10,207	$	20,377
Class B		85,000		85,000	$	169,442
Class C		214,588		166,088	$	235,491
Class D		132,168		125,104	$	138,769

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Stock Based Compensation (Tables)

6 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2016		3,495,504		$	1.36
Granted		255,000			3.77
Forfeited		(214,960	)		1.25
Exercised		(59,596	)		0.74
Outstanding at September 30, 2017		3,475,948			1.55
Forfeited		(29,688	)		1.28
Exercised		(532,891	)		2.06
Outstanding at September 30, 2018		2,913,369			1.43
Forfeited		(154,700	)		1.79
Outstanding at September 30, 2019, vested or expected to vest in future		2,758,669			1.41
Exercisable at September 30, 2019		2,659,006			1.33

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2018		2,913,369		$	1.43
Forfeited		(43,868	)		1.73
Outstanding at March 31, 2019, vested or expected to vest in future (unaudited)		2,869,501			1.43
Exercisable at March 31, 2019 (unaudited)		2,705,218			1.29

	Number of Options			Weighted- Average Exercise Price
Outstanding at September 30, 2019		2,758,669		$	1.41
Forfeited		(23,762	)		2.98
Outstanding at March 31, 2020, vested or expected to vest in future		2,734,907			1.40
Exercisable at March 31, 2020		2,670,869			1.34

Schedule of Restricted Stock Unit Activity

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2016		—			—
Granted		357,986		$	4.18
Forfeited		(11,317	)		4.18
Outstanding at September 30, 2017		346,669			4.18
Granted		801,690			41.66
Forfeited		(33,744	)		4.18
Outstanding at September 30, 2018		1,114,615			32.44
Forfeited		(556,203	)		38.23
Outstanding at September 30, 2019		558,412			24.04

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2018		1,114,615		$	32.44
Forfeited		(482,243	)		38.91
Outstanding at March 31, 2019 (unaudited)		632,372			25.18

	Number of RSU’s			Weighted- Average Grant-Date Fair Value
Outstanding at September 30, 2019		558,412		$	24.04
Forfeited		(39,364	)		33.28
Outstanding at March 31, 2020		519,048			23.34

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Revenue (Tables)

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Revenue From Customers

	Year Ended September 30						Six Months Ended March 31
	2017		2018		2019		2019		2020
							(unaudited)
Film:
Theatrical	$	20,339	$	136,474	$	109,716	$	58,619	$	49,162
Home entertainment		94,457		102,971		118,716		71,382		53,405
TV/Streaming		40,368		32,026		71,575		42,123		35,168
Other post theatrical		2,772		1,245		4,988		1,506		2,649
International		37,836		154,915		88,633		46,876		38,198
Total film		195,772		427,631		393,628		220,506		178,582
Television and other		5,669		21,215		40,633		3,562		9,871
Total revenue	$	201,441	$	448,846	$	434,261	$	224,068	$	188,453

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Income Taxes (Tables)

6 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Pre-Tax Net Loss

	Year Ended									Six Months Ended
	September 30									March 31
	2017			2018			2019			2019			2020
										(unaudited)
Domestic	$	(77,453	)	$	(173,261	)	$	(131,189	)	$	(41,568	)	$	(21,694	)
Foreign		(8,521	)		(19,123	)		(6,104	)		(679	)		(4,258	)
Total	$	(85,974	)	$	(192,384	)	$	(137,293	)	$	(42,247	)	$	(25,952	)

Schedule of Current and Deferred Income Tax Provision (Benefit)

	Year Ended						Six Months Ended
	September 30						March 31
	2017		2018		2019		2019		2020
							(unaudited)
Current provision:
Federal	$	—	$	—	$	—	$	—	$	—
State		—		5		—		—		—
Foreign		387		806		708		359		161
Total current provision		387		811		708		359		161
Deferred provision:
Federal		—		—		—		—		—
State		—		—		—		—		—
Foreign		—		—		—		—		—
Total deferred provision		—		—		—		—		—
Total	$	387	$	811	$	708	$	359	$	161

Schedule of Reconciliation Between Actual Tax Expense Benefit and Income Taxes Computed

	Year Ended September 30									Six Months Ended March 31
	2017			2018			2019			2019			2020
											(unaudited)
Income taxes computed at Federal statutory rate	$	(29,229	)	$	(46,705	)	$	(28,831	)	$	(8,872	)	$	(5,450	)
Increase (decrease) in rates resulting from:
State tax, net of federal tax benefit		(3,480	)		(8,990	)		(685	)		1,449			(2,869	)
Shareholder exit								5,250			1,213			(2,891	)
Deferred tax rate adjustment		(257	)		(295	)		2,314			2,314			(1,722	)
Permanent and other		974			386			1,565			1,437			(399	)
Meals and entertainment		45			84			334			159			172
Foreign withholding taxes		387			806			708			359			161
Tax law change		—			35,297			—			—			—
Increase (decrease) in valuation allowance		31,947			20,228			20,053			2,300			13,159
Income tax provision	$	387		$	811		$	708		$	359		$	161

Schedule of Deferred Tax Assets and Liabilities

	Year Ended September 30									Six Months Ended March 31
	2017			2018			2019			2019			2020
										(unaudited)
Deferred tax assets:
Net operating loss	$	69,774		$	84,216		$	100,166		$	82,775		$	114,863
Accrued participants and residuals		14,563			21,453			25,088			25,426			24,729
Production costs		3,741			4,056			3,390			3,592			4,403
Accrued expenses and other		3,710			3,095			1,916			1,294			2,335
Lease liabilities		—			—			—			—			2,771
Deferred revenue		963			825			1,877			4,622			2,107
Stock compensation		771			544			556			534			605
Intangibles and fixed assets		210			163			210			184			11
Total deferred tax assets		93,731			114,352			133,203			118,427			151,824
Less: valuation allowance		(93,731	)		(114,352	)		(133,203	)		(116,605	)		(146,392	)
Total net deferred tax assets	$	—		$	—		$	—		$	1,822		$	5,432
Deferred tax liabilities:
Right of use assets											—			(2,039	)
Other											(1,822	)		(3,393	)
Total net deferred tax liabilities	$	—		$	—		$	—		$	(1,822	)	$	(5,432	)
Total net deferred tax assets and liabilities	$	—		$	—		$	—		$	—		$	—

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Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Concentration of Risk

September 30, 2018
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	17,463	in exchange for	$ 13,525	$1.28

September 30, 2019
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	9,376	in exchange for	$ 7,018	$1.33

March 31, 2020
Foreign Currency	Foreign Currency Amount		US Dollar Amount	Weighted Average Exchange Rate Per USD
Canadian dollar	9.376	in exchange for	$ 7,113	$1.33

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Fair Value (Tables)

6 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Fair Value Liabilities

	September 30, 2018				September 30, 2019
Liabilities	Carrying Value		Fair Value		Carrying Value		Fair Value
Red Fish Blue Fish Term Loan	$	40,471	$	42,677	$	41,546	$	44,160
Aperture Term Loan		3,184		3,482		—		—
JPMorgan Credit Facility		249,223		257,560		216,608		222,448
P&A Facility		17,712		18,000		9,794		10,000

	March 31, 2020
Liabilities		Carrying Value		Fair Value
Red Fish Blue Fish Term Loan	$	42,092	$	44,817
JPMorgan Credit Facility		225,989		230,369

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Additional Financial Information (Tables)

6 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets and Other Liabilities

	September 30				March
	2018		2019		2020
Other current assets:
Co-finance receivables	$	—	$	1,799	$	3,052
Prepaid expenses		1,750		7,812		1,648
Tax credits receivable		27,422		4,816		17,416
Other		1,038		1,397		2,099
Total	$	30,210	$	15,824	$	24,215
Non-current other assets:
Co-finance receivables	$	5,173	$	—	$	—
Tax credits receivable				9,890		10,370
Accounts receivable		2,182		7,614		15,450
Lease asset		—		—		9,772
Other		9,133		5,631		4,016
Total	$	16,488	$	23,135	$	39,608
Accounts payable and accrued expenses:
Print and advertising payable	$	112,662	$	41,469	$	43,532
Lease liability		—		—		1,830
Accounts payable		48,002		52,389		33,250
Returns reserve				8,096		8,096
Non-consenting shareholders		—		—		15,372
Accrued payroll and related		12,124		6,592		4,855
Accrued interest		3,637		3,813		2,594
Accrued other		1,899		1,661		392
Total	$	178,324	$	114,020	$	109,921

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Valuation and Qualifying Accounts (Tables)

6 Months Ended

Mar. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Movement in Valuation and Qualifying Accounts

Description	Balance at Beginning of Period		Charged to Costs and Expenses		Charged to Other Accounts		Deductions			Balance at End of Period
Year Ended September 30, 2018
Reserves:
Returns and allowances	$	3,869	$	20,971		—	$	(14,120	)	$	10,720
Deferred tax allowance	$	93,731	$	20,621		—		—		$	114,352
Year Ended September 30, 2019
Reserves:
Returns and allowances	$	10,720	$	17,206		—	$	(19,830	)	$	8,096
Deferred tax allowance	$	114,352	$	18,851		—		—		$	133,203
Six Months Ended March 31, 2020
Reserves:
Returns and allowances	$	8,096	$	6,811		—	$	(6,811	)	$	8,096
Deferred tax allowance	$	133,203	$	13,289		—		—		$	146,392

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Description of Business, Basis of Presentation and Accounting Policies - Schedule of Film and Television Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Film Costs:
In development	$ 12,560	$ 12,475	$ 6,584
In production	3,330	41,809	59,532
Completed but not released		25,555
Released	75,779	56,156	86,881
Total film costs	91,669	135,995	152,997
Television costs:
In development	1,865	1,514	726
In production	3,774	4,443	4,082
Total television costs	5,639	5,957	4,808
Total film and television costs	$ 97,308	$ 141,952	$ 157,805

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Description of Business, Basis of Presentation and Accounting Policies - Depreciation of Property and Equipment (Details)	6 Months Ended
	Mar. 31, 2020
Furniture and Fixtures
Property and equipment, estimated useful lives	7 years
Computer Equipment and Software
Property and equipment, estimated useful lives	3 years
Website
Property and equipment, estimated useful lives	3 years
Leasehold Improvements
Property and equipment, estimated useful lives	Lease term of useful life, whichever is shorter

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Description of Business, Basis of Presentation and Accounting Policies - Cumulative Effect of Adoption (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Assets
Accounts receivable, current	$ 102,430		$ 153,625	$ 72,129
Film and television costs, net	97,308		141,952	157,805
Liabilities
Accounts payable and accrued expenses	109,921		114,020	178,324
Accrued participations and residuals, non-current	70,916		67,660	29,992
Equity
Accumulated deficit	(792,162)		(732,766)	(542,864)
Statement of Operations
Revenue	188,453	$ 224,068	434,261	448,846	$ 201,441
Direct operating	92,752	123,566	260,673	298,246	139,769
Loss from operations	$ (29,044)	$ (24,892)	(90,372)	$ (173,549)	$ (70,147)
As Reported
Assets
Accounts receivable, current			153,625
Film and television costs, net			141,952
Liabilities
Accounts payable and accrued expenses			114,020
Accrued participations and residuals, non-current			67,660
Equity
Accumulated deficit			(732,766)
Statement of Operations
Revenue			434,261
Direct operating			260,673
Loss from operations			(90,372)
Increase/(Decrease)
Assets
Accounts receivable, current			9,852
Film and television costs, net			(124)
Liabilities
Accounts payable and accrued expenses			8,096
Accrued participations and residuals, non-current			63
Equity
Accumulated deficit			1,569
Statement of Operations
Revenue			1,757
Direct operating			188
Loss from operations			(1,569)
Without Adoption of New Revenue Guidance
Assets
Accounts receivable, current			143,773
Film and television costs, net			142,076
Liabilities
Accounts payable and accrued expenses			105,924
Accrued participations and residuals, non-current			67,597
Equity
Accumulated deficit			(734,335)
Statement of Operations
Revenue			432,504
Direct operating			260,485
Loss from operations			$ (91,941)

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Description of Business, Basis of Presentation and Accounting Policies (Details Narrative) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Film and Television Costs
Interest capitalized	$ 1,348	$ 368	$ 2,573	$ 4,033	$ 860
Overhead capitalized	3,275	394	5,495	4,418	1,935
Film impairment					3,596
Debt Issuance Costs and Debt Discount
Unamortized debt issuance costs	4,580		6,290	9,095
Gross debt issuance costs	15,422		15,422	15,049
Amortization of debt issuance costs	1,710	1,566	3,178	3,005	2,949
Amortization of debt discount	78	78	155	155	155
Reduction of debt	(349)		(427)	(582)
Leases
Operating lease liabilities	12,925
Right of use asset	9,772
Distribution and Marketing Expenses
Distribution and marketing	95,047	$ 87,865	$ 200,900	$ 230,336	$ 72,554
Impact of Recently Issued Accounting Standards
Operating lease liability	11,095
Increase in retained earnings	$ 2,900
Completed Films
Film and Television Costs
Percent of costs to be amortized	68.00%
Period for amortization	12 months
Films in Release
Film and Television Costs
Percent of costs to be amortized	91.00%
Period for amortization	3 years
Assets and Liabilities
Leases
Operating lease liabilities	$ 11,700
Right of use asset	8,500
Existing lease incentives	3,200
Impact of Recently Issued Accounting Standards
Deferred rent	8,494
Operating lease liability	$ 11,745

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Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Property and equipment, gross	$ 10,240	$ 9,773	$ 9,657
Less: accumulated depreciation	(6,744)	(5,730)	(3,748)
Total	3,496	4,043	5,909
Furniture and Fixtures
Property and equipment, gross	1,089	1,087	1,132
Computer Equipment and Software
Property and equipment, gross	4,038	4,035	3,829
Leasehold Improvements
Property and equipment, gross	4,756	4,295	4,392
Website
Property and equipment, gross	$ 357	$ 356	$ 304

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Debt - Schedule of Revolving Credit Facilities (Details) - Revolving Credit Facility - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Revolving credit facility	$ 225,989	$ 226,402	$ 266,935
Debt issuance costs	(4,380)	(6,046)	(8,625)
JP Morgan Credit Facility
Revolving credit facility	230,369	222,448	257,560
P&A Facility
Revolving credit facility		$ 10,000	$ 18,000

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Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Oct. 31, 2016	Mar. 31, 2014	Mar. 31, 2020	Mar. 03, 2014
2022			$ 230,369
2023			42,640
Less: aggregate unamortized discount and debt issuance costs			(4,928)
Total			$ 268,081
Red Fish Blue Fish, LLC
Term loan, maturity date	Jul. 31, 2022	Mar. 03, 2020	Jul. 31, 2022
2021
2022
2023			42,640
Total				$ 35,200
Revolving Credit Facility | JP Morgan Credit Facility
Credit facility, maturity date	Oct. 31, 2021
2021
2022			230,369
2023

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Debt (Details Narrative) - USD ($) $ in Thousands		1 Months Ended			6 Months Ended		12 Months Ended
		Apr. 30, 2018	Oct. 31, 2016	Mar. 31, 2014	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Apr. 20, 2018	Oct. 07, 2016	Mar. 03, 2014
Repayment of revolving credit facility					$ 160,429	$ 209,595	$ 332,853	$ 362,177	$ 205,099
Term loan					$ 268,081
Red Fish Blue Fish, LLC
Term loan												$ 35,200
Term loan, maturity				6 years
Term loan, maturity date			Jul. 31, 2022	Mar. 03, 2020	Jul. 31, 2022
Common shares issued			26,525	940,524
Term loan, interest rate	[1]										11.00%
Aperture Media Partners, LLC
Term loan								$ 3,200		$ 4,700
Term loan, maturity		1 year 6 months
Revolving Credit Facility | JP Morgan Credit Facility
Senior secured revolving credit facility	[2]										$ 400,000
Credit facility, term			5 years
Credit facility, maturity			Oct. 31, 2021
Credit facility, interest description			Interest is equal to 3.00% plus LIBOR
Commitment fee, percent	[3]		0.75%
Effective interest rate					5.03%		5.56%
Revolving Credit Facility | P&A Facility
Senior secured revolving credit facility												$ 30,000
Repayment of revolving credit facility					$ 30,000
Credit facility, term				5 years 6 months

[1] 9.0% in cash and 2.0% in kind

[2] Can be increased by up to 200 million.

[3] If credit exposure is less than 50% of total commitments, and 0.50% if credit exposure is more than 50% of the undrawn amounts.

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Leases - Schedule of Operating Lease Assets and Liabilities (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Assets
Operating lease right of use assets	$ 9,772
Liabilities
Long-term operating	11,095
Total	12,925
Operating Leases
Assets
Operating lease right of use assets	9,772
Liabilities
Current operating	1,830
Long-term operating	11,095
Total	$ 12,925
Weighted-average remaining lease term - operating leases (in years)	5 years 6 months
Weighted-average discount rate - operating leases	7.80%

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Leases - Schedule of Rent Expense (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Operating leases:
Operating lease costs	$ 1,226
Variable lease costs	7
Operating lease expense	1,233
Short-term lease rent expense	40
Net rent expense	$ 1,273	$ 1,520	$ 3,092	$ 2,456	$ 2,415

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Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases [Abstract]
2021	$ 2,776
2022	2,897
2023	2,889
2024	2,996
2025	2,476
Thereafter	2,003
Total	16,037
Less: Present value discount	(3,112)
Operating lease liabilities	$ 12,925

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Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020 USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities, operating lease costs	$ 1,312
Right-of-use assets obtained in exchange for new lease obligations, operating lease costs	$ 2,000

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Leases (Details Narrative) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Leases [Abstract]
Rent expense	$ 1,273	$ 1,520	$ 3,092	$ 2,456	$ 2,415

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Convertible Redeemable Preferred Stock - Schedule of Convertible Redeemable Preferred Stock (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Class A Convertible Preferred Stock
Shares authorized	10,207	10,207	10,207
Shares issued	10,207	10,207	10,207
Shares outstanding	10,207	10,207	10,207
Liquidation preference	$ 20,377	$ 19,271	$ 17,196
Class B Convertible Preferred Stock
Shares authorized	85,000	85,000	85,000
Shares issued	85,000	85,000	85,000
Shares outstanding	85,000	85,000	85,000
Liquidation preference	$ 169,442	$ 160,238	$ 143,069
Class C Convertible Preferred Stock
Shares authorized	214,588	214,588	214,588
Shares issued	166,088	166,088	166,088
Shares outstanding	166,088	166,088	166,088
Liquidation preference	$ 235,491	$ 222,430	$ 198,158
Class D Convertible Preferred Stock
Shares authorized	132,618	132,618	132,618
Shares issued	125,104	125,000
Shares outstanding	125,104	125,000
Liquidation preference	$ 138,769	$ 132,328

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Convertible Redeemable Preferred Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Fair value of other liabilities	$ 34,733		$ 48,500
Shareholder exit expense/(income)	13,767	$ (5,777)	(25,000)
Preferred stock, accretion of redemption	$ 33,364	$ 23,924	$ 54,966	$ 38,499	$ 27,285
Redemption rights exercised	12,000
Class A Convertible Preferred Stock
Conversion price	$ 1.1838
Class B Convertible Preferred Stock
Conversion price	7.4378
Class C Convertible Preferred Stock
Conversion price	$ 42.7282
Stock reclassified to accounts payable and accrued expenses	$ 15,372
Class D Convertible Preferred Stock
Class D exit payment terms	The Class D are entitled to receive a cash payment (“Exit Payment”) of $33,000, pro rata to each holder of Class D, upon the consummation of certain transactions, including a liquidation of the Company or a Qualified IPO or Deemed Liquidation, each as defined in the Amended Charter. The aggregate Exit Payment will increase by approximately $8,375 as of May 11, 2020 (the fifteen-month anniversary of the Class D Issuance Date) and each three-month anniversary thereof until the total Exit Payment reaches a maximum of $100,000. If the Exit Payment has not been paid on or prior to July 8, 2022, each holder of Class D will be entitled to receive a pro rata share of the Exit Payment in connection with any redemption of Class D. The Class D Exit Payment is liability-classified and marked to market at each reporting period.
Terms of conversion	Preferred stock shall be convertible at the option of the holder, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of common stock as is determined by multiplying the number of preferred shares to be converted by $1,000 and dividing the result by the Class conversion price for each class of stock.
Reduction of proceeds	$ 23,500
Conversion price	$ 42.7282

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Stock Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Stock Option Activity
Options outstanding at beginning of period	2,758,669	2,913,369	2,913,369	3,475,948	3,495,504
Granted					255,000
Forfeited	(23,762)	(43,868)	(154,700)	(29,688)	(214,960)
Exercised				(532,891)	(59,596)
Options outstanding at end of period	2,734,907	2,869,501	2,758,669	2,913,369	3,475,948
Exercisable at end of period	2,670,869	2,705,218	2,659,006
Weighted-Average Exercise Price
Weighted-average exercise price at beginning of period	$ 1.41	$ 1.43	$ 1.43	$ 1.55	$ 1.36
Granted					3.77
Forfeited	2.98	1.73	1.79	1.28	1.25
Exercised				2.06	0.74
Weighted-average exercise price at end of period	1.40	1.43	1.41	$ 1.43	$ 1.55
Exercisable at end of period	$ 1.34	$ 1.29	$ 1.33

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Stock Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - $ / shares	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Restricted Stock Unit Activity
Restricted stock outstanding at beginning of period	558,412	1,114,615	1,114,615	346,669	0
Granted				801,690	357,986
Forfeited	(39,364)	(482,243)	(556,203)	(33,744)	(11,317)
Restricted stock outstanding at end of period	519,048	632,372	558,412	1,114,615	346,669
Weighted-Average Grant-Date Fair Value
Weighted-average grant-date fair value at beginning of period	$ 24.04	$ 32.44	$ 32.44	$ 4.18	$ 0
Granted				41.66	4.18
Forfeited	33.28	38.91	38.23	4.18	4.18
Weighted-average grant-date fair value at end of period	$ 23.34	$ 25.18	$ 24.04	$ 32.44	$ 4.18

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Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Apr. 30, 2017	Sep. 30, 2016
Restricted stock units outstanding	519,048	632,372	558,412	1,114,615	346,669		0
Options exercised				(532,891)	(59,596)
Options, intrinsic value				$ 574	$ 23
Weighted average remaining contractual term	4 years 6 months	5 years 4 months	5 years 1 month	6 years 3 months	7 years 4 months
Aggregate fair value	$ 113,936	$ 119,543	$ 114,926	$ 117,192	$ 7,788
Restricted stock units granted				801,690	357,986
Unrecognized stock-based compensation expense	$ 123	$ 307	$ 192	$ 6,140	$ 885
Cost to be recognized, vesting period	9 months	1 year 7 months	1 year 4 months	7 years 2 months	2 years 9 months
Compensation expense	$ 81	$ 97	$ 195	$ 447	$ 536
2017 Equity Incentive Plan
Available for grant	1,230,952	1,117,628	1,191,588	204,436	1,403,131	1,750,000
Restricted stock units outstanding	519,048		558,412
Compensation expense				$ 4,166
Fully vested common stock issued				100,000
2014 Plan
Available for grant	222,851	88,257	199,089	44,389	114,701

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Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Jul. 31, 2013	Mar. 31, 2020
Warrants issued	1,342,298
Warrant exercise price	$ 7.29
Warrant term	10 years
Value of warrants, per share	$ 0.427
Fair value at date of grant	$ 573
Expected life	10 years
Expected volatility	65.00%
Risk-free interest rate	0.50%
Class D Convertible Preferred Stock
Warrants issued		9,858
Warrant exercise price		$ 0.01

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Revenue - Schedule of Revenue From Customers (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 188,453	$ 224,068	$ 434,261	$ 448,846	$ 201,441
Theatrical
Disaggregation of Revenue [Line Items]
Revenue	49,162	58,619	109,716	136,474	20,339
Home Entertainment
Disaggregation of Revenue [Line Items]
Revenue	53,405	71,382	118,716	102,971	94,457
TV/Streaming
Disaggregation of Revenue [Line Items]
Revenue	35,168	42,123	71,575	32,026	40,368
Other Post Theatrical
Disaggregation of Revenue [Line Items]
Revenue	2,649	1,506	4,988	1,245	2,772
International
Disaggregation of Revenue [Line Items]
Revenue	38,198	46,876	88,633	154,915	37,836
Total Film
Disaggregation of Revenue [Line Items]
Revenue	178,582	220,506	393,628	427,631	195,772
Television and Other
Disaggregation of Revenue [Line Items]
Revenue	$ 9,871	$ 3,562	$ 40,633	$ 21,215	$ 5,669

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Income Taxes - Schedule of Components of Pre-Tax Net Loss (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Loss before income taxes	$ (25,952)	$ (42,247)	$ (137,293)	$ (192,384)	$ (85,974)
Domestic
Loss before income taxes	(21,694)	(41,568)	(131,189)	(173,261)	(77,453)
Foreign
Loss before income taxes	$ (4,258)	$ (679)	$ (6,104)	$ (19,123)	$ (8,521)

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Income Taxes - Schedule of Current and Deferred Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Current provision:
Federal
State				5
Foreign	161	359	708	806	387
Total current provision	161	359	708	811	387
Deferred provision:
Federal
State
Foreign
Total deferred provision
Total	$ 161	$ 359	$ 708	$ 811	$ 387

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Income Taxes - Schedule of Reconciliation Between Actual Tax Expense Benefit and Income Taxes Computed (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Inome taxes computed at Federal statutory rate	$ (5,450)	$ (8,872)	$ (28,831)	$ (46,705)	$ (29,229)
Increase (decrease) in rates resulting from:
State tax, net of federal tax benefit	(2,869)	1,449	(685)	(8,990)	(3,480)
Shareholder exit	(2,891)	1,213	5,250
Deferred tax rate adjustment	1,722	2,314	2,314	(295)	(257)
Permanent and other	(399)	1,437	1,565	386	974
Meals and entertainment	172	159	334	84	45
Foreign withholding taxes	161	359	708	806	387
Tax law change				35,297
Increase (decrease) in valuation allowance	13,159	2,300	20,053	20,228	31,947
Total benefit for Income taxes	$ 161	$ 359	$ 708	$ 811	$ 387

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Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets:
Net operating loss	$ 114,863	$ 100,166	$ 82,775	$ 84,216	$ 69,774
Accrued participants and residuals	24,729	25,088	25,426	21,453	14,563
Production costs	4,403	3,390	3,592	4,056	3,741
Accrued expenses and other	2,335	1,916	1,294	3,095	3,710
Lease liabilities	2,771
Deferred revenue	2,107	1,877	4,622	825	963
Stock compensation	605	556	534	544	771
Intangibles and fixed assets	11	210	184	163	210
Total deferred tax assets	151,824	133,203	118,427	114,352	93,731
Less: valuation allowance	(146,392)	(133,203)	(116,605)	(114,352)	(93,731)
Total net deferred tax assets	5,432		1,822
Deferred tax liabilities
Right of use assets	(2,039)
Other	(3,393)		(1,822)
Total net deferred tax liabilities	(5,432)		(1,822)
Total net deferred tax assets and liabilities

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Income Taxes (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Sep. 30, 2018	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2017
Income tax rate description		Tax Cuts and Jobs Act (the “Tax Act”) was signed into law, making significant changes to the taxation of the U.S. business entities. The Tax Act reduced the U.S. corporate income tax rate from 35% to 21%, imposed a one-time transition tax in connection with the move form a worldwide tax system to a territorial tax system, provided for accelerated deductions for certain U.S film production costs, imposed limitations on certain tax deductions such as executive compensation in future periods, and included numerous other provisions. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 24.3% for the fiscal year ending September 30, 2018 and 21% for subsequent fiscal years. Since we are not in a current U.S. federal tax paying position, our U.S. tax provision consists primarily of deferred tax benefits calculated at the 21% tax rate.
NOL carryforward expiration	Mar. 31, 2034
Valuation allowance	$ (146,392)	$ (114,352)	$ (133,203)	$ (116,605)	$ (93,731)
Federal
Operating loss carryforwards, approximate	426,500
Federal NOL carryforward will not expire	121,100
State
Operating loss carryforwards, approximate	269,100
United Kingdom
Operating loss carryforwards, approximate	$ 35,800

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Financial Instruments - Schedule of Fair Value, Concentration of Risk (Details) $ in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2020 CAD ($)	Sep. 30, 2019 CAD ($)	Sep. 30, 2018 CAD ($)
Foreign currency contracts	$ 7,113	$ 7,018	$ 13,525
Weighted average exchange rate	1.33	1.33	1.28
Foreign Exchange Forward
Foreign currency contracts				$ 9,376	$ 9,376	$ 17,463

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Fair Value - Schedule of Carrying Value and Fair Value Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Fair Value | JP Morgan Credit Facility
Debt, fair value	$ 230,369	$ 222,448	$ 257,560
Fair Value | P&A Facility
Debt, fair value		10,000	18,000
Fair Value | Red Fish Blue Fish, LLC
Debt, fair value	44,817	44,160	42,677
Fair Value | Aperture Media Partners, LLC
Debt, fair value			3,482
Carrying Value | JP Morgan Credit Facility
Debt, carrying value	225,989	216,608	249,223
Carrying Value | P&A Facility
Debt, carrying value		9,794	17,712
Carrying Value | Red Fish Blue Fish, LLC
Debt, carrying value	$ 42,092	41,546	40,471
Carrying Value | Aperture Media Partners, LLC
Debt, carrying value			$ 3,184

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Additional Financial Information - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Other current assets:
Co-finance receivables	$ 3,052	$ 1,799
Prepaid expenses	1,648	7,812	$ 1,750
Tax credit receivable	17,416	4,816	27,422
Other	2,099	1,397	1,038
Total	24,215	15,824	30,210
Non-current other assets
Co-finance receivables			5,173
Tax credit receivable	10,370	9,890
Accounts receivable	15,450	7,614	2,182
Lease asset	9,772
Other	4,016	5,631	9,133
Total	39,608	23,135	16,488
Accounts payable and accrued expenses:
Print and advertising payable	43,532	41,469	112,662
Lease liability	1,830
Accounts payable	33,250	52,389	48,002
Returns reserve	8,096	8,096
Non-consenting shareholders	15,372
Accrued payroll and related	4,855	6,592	12,124
Accrued interest	2,594	3,813	3,637
Accrued other	392	1,661	1,899
Total	$ 109,921	$ 114,020	$ 178,324

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Valuation and Qualifying Accounts - Movement in Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2018
Reserves for Returns and Allowances
Movements in Valuation Allowances and Reserves
Balance at beginning of period	$ 8,096	$ 10,720	$ 3,869
Charged to costs and expenses	6,811	17,206	20,971
Charged to other accounts
Deductions	(6,811)	(19,830)	(14,120)
Balance at end of period	8,096	8,096	10,720
Reserves for Deferred Tax Allowance
Movements in Valuation Allowances and Reserves
Balance at beginning of period	133,203	114,352	93,731
Charged to costs and expenses	13,289	18,851	20,621
Charged to other accounts
Deductions
Balance at end of period	$ 146,392	$ 133,203	$ 114,352

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Subsequent Events (Details Narrative) - Subsequent Event - USD ($) $ in Thousands		Apr. 04, 2020	Apr. 17, 2020
Revolving Credit Facility | JP Morgan Credit Facility
Subsequent Event [Line Items]
Decrease in credit facility, current borrowing capacity	[1]		$ 350,000
JP Morgan Chase Bank, N.A.
Subsequent Event [Line Items]
Proceeds from bank loan, payroll protection program		$ 2,900,000
Interest rate		0.98%

[1] Decrease of the facility from $400 million and an increase from $200 million to $250 million for an additional increase in borrowings.