Commitments and Contingencies

9 Months Ended

12 Months Ended

Sep. 30, 2023

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

13. Commitments and Contingencies

Lease Obligations

The following represents the Company’s minimum annual rental payments under operating leases for each of the next five years and thereafter:


Fiscal Year Ending December 31,	Future Minimum Payments
	(in thousands)
2023 (remaining)		20
2024		78
2025		78
2026		78
2027		78
Thereafter		33

Total	$	365

In 2017, the Company entered into a royalty agreement with Fuseproject and agreed to pay 3% of cumulative net sales up to $5.0 million and 1% of cumulative net sales above $5.0 million, up to a maximum total royalty of $1.0 million. Regardless of the level of cumulative net sales, a guaranteed minimum payment of $0.2 million shall be paid in the first 12 months after the products initial retail release as an advance towards the royalty payments which was accrued as of September 30, 2023.

Legal Proceedings

The Company is involved in legal proceedings in the normal course of business. The Company currently believes that any ultimate liability arising out of such proceedings will not have a material adverse effect on the Company’s financial position, results of operations or cash flows.

15. Commitments and Contingencies

Lease Obligations

The following represents the Company’s minimum annual rental payments under operating leases for each of the next five years and thereafter:


Year Ending December 31,	Future Minimum Payments
	(in thousands)
2023	$	160
2024		9
2025		—
2026		—
2027		—
Thereafter		—

Total	$	169

Commitments

The Company is subject to minimum payments on a content licensing agreement.

The following represents the Company’s minimum annual guarantee payments under license agreements for each of the next five years and thereafter:


Year Ending December 31,	Future Minimum Payments
	(in thousands)
2023	$	2,025
2024		1,950
2025		2,250
2026		1,200
2027		—
Thereafter		—

Total	$	7,425

Legal Proceedings