A reconciliation of the Company’s cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statements of cash flows as of December 31, 2023, and 2022 is as follows:


	December 31,
(in thousands)	2023		2022

Cash and cash equivalents	$	37,715	$	40,007
Restricted cash	500		500
Cash, cash equivalents and restricted cash	$	38,215	$	40,507

As of December 31, 2023, and 2022, restricted cash included cash deposits of $0.5 million required by a bank as collateral related to corporate credit card agreements.

On March 4, 2022, the Company paid the Learn25 holdback of $0.2 million to the previous owners of Learn25 from escrow funds previously classified as restricted cash. On April 16, 2022, the Paycheck Protection Program (PPP) loan was forgiven, and $1.2 million of funds were released from escrow to the Company and reclassified from restricted cash to cash and cash equivalents. On May 11, 2022, the Company paid the ODU holdback of $0.5 million to the previous owners of ODU from escrow funds previously classified as restricted cash.

To determine the fair value of its investments in money market funds and corporate debt securities, the Company uses unadjusted quoted market prices (Level 1 inputs), and quoted prices for comparable assets (Level 2 inputs), respectively. As of December 31, 2023, and December 31, 2022, the fair value of the Company’s securities investments was as follows:


	December 31, 2023				December 31, 2022
(in thousands)	Cash and Cash Equivalents		Short-term Investments		Total		Cash and Cash Equivalents		Short-term Investments		Total

Level 1 Securities
Money market funds	$	36,072	$	—	$	36,072	$	17,724	$	—	$	17,724

Total Level 1 Securities	36,072		—		36,072		17,724		—		17,724
Level 2 Securities
Corporate debt securities	—		—		—		—		14,986		14,986

Total Level 2 Securities	—		—		—		—		14,986		14,986
Total	$	36,072	$	—	$	36,072	$	17,724	$	14,986	$	32,710


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Debt Securities:
Corporate	$	15,026	$	—	$	(40)	$	14,986
Total	$	15,026	$	—	$	(40)	$	14,986

Realized losses were less than $0.1 million reported in interest and other income in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022.

The fair value of the Company’s investments in corporate, U.S. government, and municipal debt securities as of December 31, 2022, by contractual maturity is as follows:


	December 31, 2022
(in thousands)		Amortized Cost		Estimated Fair Value

Due in one year or less		$	15,026	$	14,986
Due after one year through five years		—		—
Due after five years		—		—
Total		$	15,026	$	14,986


	December 31,
(in thousands)	2023		2022

Licensed content, net
Released, less amortization and impairment1	$	8,271	$	11,154
Prepaid and unreleased	8,357		4,014
Total licensed content, net	16,628		15,168

Produced content, net
Released, less amortization and impairment2	22,880		33,094
In production	5,435		20,240
Total produced content, net	28,315		53,334
Total content assets	$	44,943	$	68,502

1 The December 31, 2023, amount reflects a $4.4 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below.
2 The December 31, 2023, amount reflects a $14.6 million impairment charge recorded for the three months ended September 30, 2023. See Impairment Assessment below.

Of the $8.3 million unamortized cost of licensed content that had been released as of December 31, 2023, the Company expects that $3.8 million, $2.3 million, and $1.5 million will be amortized in each of the next three years. Of the $22.9 million unamortized cost of produced content that had been released as of December 31, 2023, the Company expects that $8.7 million, $6.0 million, and $4.9 million will be amortized in each of the next three years.

The Company’s primary business model is subscription-based as opposed to a model based on generating revenues at a specific title level. Content assets are predominantly monetized as a group and therefore are reviewed in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. If such changes are identified, the aggregated content library will be stated at the lower of unamortized cost or fair value. In addition, unamortized costs are written off for content assets that have been, or are expected to be abandoned.

During the three months ended September 30, 2023, due to the continued adverse macro and microeconomic conditions, including the competitive environment and its impact on the Company’s subscriber growth, the Company revised its forecasted subscriber growth and forecasted cash flow assumptions. Additionally, companies in the streaming industry experienced a decline in market valuations, and reflecting this market trend and the factors above, the market price of the Company’s common shares had declined significantly through September 30, 2023.

Given these factors, as well as the Company’s declining market capitalization and operating losses during the quarter, the Company identified an indicator of impairment related to its content asset group and performed an analysis of content assets to assess if the fair value was less than unamortized cost. To determine if an impairment existed, the Company utilized a traditional discounted cash flow approach based on expectations for the monetization of its content assets in the aggregate, including estimates for future cash inflows and outflows. As a result of this impairment analysis of content assets, the Company determined that the unamortized cost exceeded the fair value, and as such, the Company recorded a $19.0 million impairment for the three months ended September 30, 2023.

The discounted cash flow analysis includes cash flow estimates of revenue and costs, as well as a discount rate (a Level 3 fair value measurement). Estimates of future revenue and costs involve measurement uncertainty, and it is therefore possible that further reductions in the carrying value of content assets may be required as a consequence of changes in management’s future revenue estimates.

Within the discounted cash flow analysis used in the content impairment assessment, the Company used EBITDA margin rates ranging from 50.0% to 68.0%. These rates are generally dependent on overall market growth rates, the competitive environment, inflation and relative currency exchange rates and could be adversely impacted by a sustained decrease in any of these measures, all of which the Company considered in determining the assumptions used in the analysis.

The Company used a discount rate of 14.0% in the discounted cash flow analysis. This rate was based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with the Company’s content assets. The discount rate may be impacted by adverse changes in the macroeconomic environment and volatility in the debt and equity markets.

In accordance with its accounting policy for content assets, the Company amortizes licensed content costs and produced content costs, which is included within cost of revenues in the Company’s consolidated statements of operations. For the years ended December 31, 2023, and 2022, content amortization was as follows:


	Estimated Useful Life (in Years)	December 31,
(in thousands)		2023		2022

Furniture and fixtures	10 to 15	$	101	$	108
Equipment	5	1,040		1,252
Computer and software	3 to 5	570		857
Website and application development	3	37		37
Leasehold improvements	Lesser of lease term or lives	703		703
Work-in-progress	—	5		5
Property and equipment, gross		2,456		2,962
Less accumulated depreciation and amortization		1,729		1,868
Property and equipment, net		$	727	$	1,094

Depreciation and amortization expense related to property and equipment, including the amortization of leasehold improvements, was $0.4 million and $0.4 million for the years ended December 31, 2023, and 2022, respectively.


	(in thousands)

Balance, December 31, 2021	$	2,793
Impairment of Goodwill*	2,793
Balance, December 31, 2022	$	—

* See Note 2 - Summary of Significant Accounting Policies for a more detailed explanation of goodwill impairment.

As described in Note 7 - Stockholders' Equity, the Private Placement Warrants are classified as a non-current liability and reported at fair value at each reporting period. The fair value of the Private Placement Warrants as of December 31, 2023, and 2022, was as follows: