A reconciliation of the Company’s cash and cash equivalents in the Unaudited Condensed Consolidated Balance Sheets to cash, cash equivalents and restricted cash in the Unaudited Condensed Consolidated Statements of Cash Flows is as follows:


(in thousands)	March 31, 2026		December 31, 2025


Cash and cash equivalents	$	16,900	$	18,318
Restricted cash1	60		60
Cash and cash equivalents and restricted cash	$	16,960	$	18,378

1 Restricted cash included cash deposits required by a bank as collateral related to corporate credit card agreements.

The Company’s investments in debt securities at fair value based on unadjusted quoted market prices (Level 1) and quoted prices for comparable assets (Level 2) were as follows as of March 31, 2026, and December 31, 2025:


	As of March 31, 2026
(in thousands)	Cash and Cash Equivalents		Short-Term Investments		Investments (Non-Current)		Total

Level 1 securities:
Money market funds	$	11,356	$	—	$	—	$	11,356
Mutual funds	—		1		162		163

Total Level 1 securities	$	11,356	$	1	$	162	$	11,519
Level 2 securities:
Corporate debt securities	498		3,492		2,959		6,949
Total Level 2 securities	498		3,492		2,959		6,949
Total	$	11,854	$	3,493	$	3,121	$	18,468


	As of December 31, 2025
(in thousands)	Cash and Cash Equivalents		Short-Term Investments		Investments (Non-Current)		Total

Level 1 securities:
Money market funds	$	10,842	$	—	$	—	$	10,842
Mutual funds	—		—		76		76
U.S. government securities	250		—		—		250
Total Level 1 securities	$	11,092	$	—	$	76	$	11,168
Level 2 securities:
Corporate debt securities	4,234		8,964		—		13,198
Total Level 2 securities	4,234		8,964		—		13,198
Total	$	15,326	$	8,964	$	76	$	24,366

For the three months ended March 31, 2026, the Company recorded a nominal amount of net investment income and an unrealized loss related to the mutual funds held in the Rabbi Trust related to the NQDC plan, which is included in Interest and other income, net in the Unaudited Condensed Consolidated Statements of Operations.

Accrued interest on held-to-maturity securities is excluded from the amortized cost basis. As of March 31, 2026, the total accrued interest receivable excluded from the disclosed amortized cost basis was immaterial, net of any allowance for credit losses.

The Company’s held-to-maturity investments as of March 31, 2026, consist of short term, investment-grade debt securities, primarily corporate bonds and U.S. Treasury securities. Based on external credit ratings and economic forecasts, the Company determined that the expected credit losses over the lifetime of these securities are immaterial. Therefore, no allowance for credit losses has been recorded for these securities as of March 31, 2026.


	As of March 31, 2026
(in thousands)	Amortized Cost		Estimated Fair Value

Due in one year or less	$	3,991	$	3,990
Due after one year through five years	2,959		2,959

Total	$	6,950	$	6,949

Our investment in the private AI technology company is an equity security without a readily determinable fair value and is measured using the measurement alternative under ASC 321; accordingly, it is not categorized within the fair value hierarchy.



(in thousands)	March 31, 2026		December 31, 2025


Licensed content, net:
Released, less amortization and impairment	$	9,390	$	9,307
Prepaid and unreleased	13,009		11,209

Total Licensed content, net	22,399		20,516

Produced content, net:
Released, less amortization and impairment	8,720		10,292
In production	192		192

Total produced content, net	8,912		10,484
Total content assets	$	31,311	$	31,000

Of the $9.4 million unamortized cost of licensed content that had been released as of March 31, 2026, the Company expects that $6.2 million, $1.8 million and $0.4 million will be amortized in each of the next three years. Of the $8.7 million unamortized cost of produced content that had been released as of March 31, 2026, the Company expects that $4.2 million, $3.0 million and $1.1 million will be amortized in each of the next three years.

As of March 31, 2026, the Company has licensed content that is contractually completed but not yet released. The timing of the release for this content is uncertain, and therefore, the Company cannot reasonably estimate the portion of costs that will be amortized in the next 12 months. The Company will recognize amortization once the content is published and available for monetization.

Content assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. No impairment charges were recognized during the three months ended March 31, 2026, and 2025.

In accordance with its accounting policy for content assets, the Company amortizes licensed content costs and produced content costs, which are included within cost of revenues in the Company’s Unaudited Condensed Consolidated Statements of Operations. For the three months ended March 31, 2026, and 2025, content amortization was as follows:


(in thousands)	March 31, 2026		December 31, 2025

Accrued payroll and benefits	$	6,548	$	4,964
Accrued revenue share	4,043		3,846
Sales and income tax liabilities	885		935
Dividends payable	493		408
Operating lease liabilities	436		428
Accrued royalties	62		452
Other	988		1,061
Total	$	13,455	$	12,094

On March 12, 2026, the Company entered into a Credit Agreement with Citibank, N.A., providing for a $10.0 million Senior Secured Revolving Credit Facility (the "Credit Facility"). The Credit Facility has a three-year term maturing on March 12, 2029, and is secured by a first-priority lien on substantially all assets of the Company and its domestic subsidiaries. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the Company's option, either (i) a floating rate plus 3.00% or (ii) Adjusted Term SOFR plus 3.00%. The Company is required to pay an unused fee of 0.35% per annum on the average daily unused portion of the facility. For the three months ended March 31, 2026, the Company recorded immaterial unused fees, which are included within general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations.

The Credit Facility includes a $2.0 million sublimit for the issuance of letters of credit and an accordion feature allowing the Company to request increases in the revolving commitment an aggregate principal amount of $20.0 million, subject to lender consent. The Credit Facility contains customary financial covenants, including a Consolidated Leverage Ratio not to exceed 3.00:1.00 and a Unaudited Condensed Consolidated Interest Coverage Ratio of not less than 3.00:1.00. Additionally, the agreement restricts the payment of cash dividends or the repurchase of equity interests unless the Company maintains liquidity (defined as unrestricted cash plus facility availability) of at least $10.0 million, after giving effect to such payment. As of March 31, 2026, the Company was in compliance with all covenants under the Credit Facility.

As of March 31, 2026, there were no outstanding borrowings under the 2026 Credit Facility. In connection with entering into the facility, the Company incurred $0.1 million in debt issuance costs, that are included within Other assets in the Unaudited Condensed Consolidated Balance Sheets. These costs are being amortized to general and administrative expense over the 36-month term of the facility. For the three months ended March 31, 2026, the Company recorded an immaterial amount of amortization expense related to these costs.