Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 5 – Revenue Recognition

The following table disaggregates our revenue by source:

	Three Months Ended September 30,
			% of				% of
	2022		revenue		2021		revenue
Revenue:
VOD and streaming	$	31,417,733	44	%	$	16,907,012	58	%
Retail		24,830,730	34	%		—	0	%
Licensing and other		16,143,800	22	%		12,189,843	42	%
Net revenue	$	72,392,263	100	%	$	29,096,855	100	%

	Nine Months Ended September 30,
			% of				% of
	2022		revenue		2021		revenue
Revenue:
VOD and streaming	$	82,275,461	59	%	$	45,884,136	62	%
Retail		24,830,730	18	%		—	0	%
Licensing and other		32,129,216	23	%		28,544,495	38	%
Net revenue	$	139,235,407	100	%	$	74,428,631	100	%

VOD and streaming

VOD and streaming revenue included in this revenue source is generated as the Company exhibits content through the Crackle Plus and Redbox streaming services including AVOD, FAST and TVOD platforms available via connected TV’s,

smartphones, tablets, gaming consoles and the web through our owned and operated platforms, as well as third-party platforms. The Company generates streaming revenues for our networks in three primary ways, selling advertisers video ad inventory on our AVOD and FAST streaming services, selling advertisers the ability to present content to our viewers, often with fewer commercials, and selling advertisers product and content integrations and sponsorships related to our original productions, as well as revenues from our direct-to-consumer TVOD platform. In addition, this revenue source includes third-party streaming platform license revenues, including TVOD, AVOD, FAST and SVOD related revenues.

Retail

Revenue from Redbox movie rentals is recognized for the period that the movie is rented and is recorded net of promotional discounts offered to the Company’s consumers, uncollected amounts and refunds that it grants to its customers. The sale of previously rented movies out of our kiosks is recognized at the time of sale. On rental transactions for which the related movie has not yet been returned to the kiosk at month-end, revenue is recognized with a corresponding receivable recorded in the balance sheet, net of a reserve for potentially uncollectable amounts that is considered a reduction from gross revenue as collectability is not reasonably assured.

Licensing and other

Licensing and other revenue included in this revenue source is generated as the Company licenses movies and television series worldwide, through Screen Media Ventures and 1091 Pictures, through license agreements across channels, including theatrical and home video. Additionally, Licensing and other also includes the sale of content and content services revenue, including development, non-writing executive producer fees and production services.

For the three and nine months ended September 30, 2022, total licensing revenues, including VOD and streaming, were $30,229,285 and $69,653,316, respectively.

For the three and nine months ended September 30, 2021, total licensing revenues, including VOD and streaming, were $16,288,229 and $41,282,120, respectively.

Contract balances include the following:

	September 30,		December 31,
	2022		2021
Accounts receivable, net	$	42,508,259	$	25,818,447
Contract assets (included in accounts receivable)		53,580,938		34,395,360
Total accounts receivable, net	$	96,089,197	$	60,213,807
Deferred revenue (included in accrued expenses)	$	11,680,118	$	1,536,687