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Subsequent Events
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events

Note 19 – Subsequent Events

Landmark Studio Group Launch

On October 11, 2019, Chicken Soup for the Soul Entertainment Inc. (the “Company”) consummated (the “Closing”) the creation of a joint venture entity to be branded “Landmark Studio Group” (“Landmark”) for the development and production of original scripted content. Landmark is governed by the terms of an operating agreement (the “Operating Agreement”) entered into by Landmark and the Company, David Ozer, Legend Capital Management, LLC (“Legend”), Kevin Duncan, and Cole Investments VII, LLC (“Cole”), an affiliate of Cole Strategic Partners, each as members of Landmark.

In connection with the creation of Landmark, (a) Mr. Ozer has contributed certain original television series and feature films to Landmark in exchange for 21,000 units of common equity (“Common Units”) of Landmark, (b) Legend has contributed an original television series to Landmark in exchange for 2,000 Common Units, (c) the Company and its affiliates agreed to provide promotion and distribution support to Landmark pursuant to a distribution agreement which provides for a revolving $5 million minimum guarantee facility (“Distribution Agreement”), in exchange for 51,000 Common Units, (d) Cole has made available to Landmark a $5 million revolving credit facility (the “Credit Facility”) in exchange for 25,000 Common Units, and (e) Mr. Duncan received 1,000 Common Units in consideration for introducing the parties and assisting in the negotiation of the transaction.

The Company will provide management services to Landmark, including the services of the officers of the Company, office space, back office support, accounting, and financial services support, and technology resources and support for a quarterly fee equal to 5% of the fees that Landmark receives during the production of any series, film, or special, including all executive producer fees, producer fees, overhead, and similar fees retained by Landmark. The Company will also arrange sponsorship for Landmark’s content, and will be entitled to commissions equal to 20% of certain specified revenue generated by such sponsorship.

The Company, as majority owner of the Common Units of Landmark, will manage the day to day operations of Landmark through its officers that are also serving as officers of Landmark. Landmark will maintain a board of managers, with three managers designated by the Company, one manager designated by Cole, and, so long as Mr. Ozer is employed by Landmark, Mr. Ozer shall be the fifth manager.

Foresight Unlimited, LLC Film Library Acquisition

On October 28, 2019, Screen Media Ventures, LLC (“SMV”) purchased certain assets from Foresight Unlimited LLC and each of its subsidiaries, and certain other entities affiliated with Mark Damon (collectively, “Foresight”) including 14 completed motion pictures and 2 motion pictures that are or will be in production, and SMV created a new Foresight Division to be led by Mr. Damon.

SMV paid an aggregate purchase price of $2,000,000 in cash for the assets, a portion of which was paid at the closing of the transaction and the remainder of which is payable upon certain milestones. In addition to the cash consideration, during each of the two years following closing, Mr. Damon will be entitled to receive a number of shares of Class A common stock of the Company having an aggregate value of $900,000 per year, calculated based on the average trading price of the Company’s Class A common stock according to a formula set forth in the asset purchase agreement entered into between SMV and Foresight (the “Stock Bonus”) if (i) Mr. Damon is actively involved in SMV’s operations and (ii) SMV generates gross revenue of at least $1,000,000 in agency and/or distribution fees from any new film, television, or online properties sourced by Mr. Damon and accepted by SMV in its sole discretion during such 12-month period. If the Stock Bonus is earned in each of the 12-month periods, then, upon the mutual election of Mr. Damon and SMV, a second stock bonus plan for the subsequent two consecutive 12-month periods shall be established on substantially the same terms.

PS Vue Announcement

On October 30th, 2019 Sony Interactive Entertainment (SIE) announced that it would be shutting down their vMVPD platform PlayStation Vue (PS Vue) as of January 30th 2020.  SIE has partially subcontracted to Crackle Plus for the sale of some of its advertising inventory.  With the expected loss of the PS Vue advertising inventory from its offering, Crackle Plus is actively seeking replacement ad representation partners. 

Series A Preferred Stock Dividends

The Company has declared and paid monthly dividends of $0.2031 per share on its 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) to holders of record as of September 30, 2019 and October 31, 2019. The monthly dividend for September was paid on October 15, 2019 and the monthly dividend for October is expected to be paid on November 15, 2019. The total dividends declared and paid in October and November was approximately $325,000, respectively.