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Content Assets

6 Months Ended

Jun. 30, 2022

Note 8 – Content Assets

Content assets consists of the following:


	June 30,		December 31,
	2022		2021
Original productions:
Programming costs released	$	25,972,632	$	25,669,921
In production		2,522,136		562,808
In development		7,435,383		6,662,591
Accumulated amortization ^(a)		(24,331,829)		(23,268,306)
Programming costs, net		11,598,322		9,627,014

Film library:
Film library acquisition costs		177,516,509		134,463,191
Accumulated amortization ^(b)		(93,018,230)		(80,847,748)
Film library costs, net		84,498,279		53,615,443

Licensed program rights:
Programming rights		21,502,362		1,209,362
Accumulated amortization		(2,718,055)		(806,423)
Programming rights, net		18,784,307		402,939

Content assets, net	$	114,880,908	$	63,645,396

^(a) ^{As of June 30, 2022 and December 31, 2021, accumulated amortization includes impairment expense of}^$8,262,663^{, respectively.}

^(b) ^{As of June 30, 2022, and December 31, 2021, accumulated amortization includes impairment expense}^of^$5,506,069^{, respectively.}

Original productions programming costs consists primarily of episodic television programs which are available for distribution through a variety of platforms, including Crackle. Amounts capitalized include development costs, production costs and direct production overhead costs.

Film library consists primarily of the cost of acquiring film distribution rights and related acquisition costs.

Costs related to original productions and film library are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenues expected to be recognized from various forms of exploitation.

Programming rights consists of licenses to various titles which the company makes available for streaming on Crackle for an agreed upon license period.

Amortization of content assets is as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Original productions	$	760,109	$	712,043	$	1,063,523	$	2,917,904
Film library		7,807,244		6,840,009		12,170,482		13,743,925
Licensed program rights		1,700,052		1,340		1,911,632		26,091
Total content asset amortization	$	10,267,405	$	7,553,392	$	15,145,637	$	16,687,920

During the six months ended June 30, 2022 and 2021, the Company did not record any impairments related to content assets.