Content Assets

9 Months Ended

Sep. 30, 2022

Entertainment [Abstract]

Content Assets

Note 8 – Content Assets, net

Content assets, net consists of the following:

	September 30,		December 31,
	2022		2021
Original productions:
Programming costs released	$	27,646,669	$	25,669,921
In production		2,244,593		562,808
In development		8,461,662		6,662,591
Accumulated amortization (a)		(24,852,300)		(23,268,306)
Programming costs, net		13,500,624		9,627,014
Film library:
Film library acquisition costs		190,489,922		134,463,191
Accumulated amortization (b)		(100,026,970)		(80,847,748)
Film library costs, net		90,462,952		53,615,443
Licensed program rights:
Programming rights		49,412,905		1,209,362
Accumulated amortization		(10,837,847)		(806,423)
Programming rights, net		38,575,058		402,939
Content assets, net	$	142,538,634	$	63,645,396

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

^{(b) As of September 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 and Redbox’s kiosks and streaming services for an agreed upon license period.

Amortization of content assets is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Original productions	$	520,471	$	1,756,901	$	1,583,994	$	4,674,805
Film library		7,008,740		10,087,539		19,874,419		23,831,464
Licensed program rights		8,119,792		24,346		9,336,227		50,437
Total content asset amortization	$	15,649,003	$	11,868,786	$	30,794,640	$	28,556,706

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