Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies

Commitments and Contingencies

Note 13:    Commitments and Contingencies

The Company leases office facilities and certain equipment necessary to maintain its information technology infrastructure. Rent expense, net of sublease income, under its operating lease agreements was $0.9 million and $1.1 million for the three months ended June 30, 2022 and 2021, respectively. Rent expense, net of sublease income, under its operating lease agreements was $1.9 million and $2.2 million for the six months ended June 30, 2022 and 2021, respectively.

The Company also leases automobiles under finance leases expiring at various dates through September, 2025. Management assesses these leases as they come due as to whether it should purchase, enter into new finance leases, or enter into operating leases.

Assets held under finance leases are included in Property and equipment, net on the unaudited Condensed Consolidated Balance Sheets and include the following:

Dollars in thousands	June 30, 2022		December 31, 2021
Gross property and equipment	$	11,051	$	11,380
Accumulated depreciation		(8,273)		(7,285)
Net property and equipment	$	2,778	$	4,095

Content License Agreements

The Company licenses minimum quantities of theatrical and direct-to-video titles under licensing agreements with certain movie content providers.

Total estimated movie content commitments under the terms of the Company’s content license agreements in effect as of June 30, 2022 is presented in the following table:

Dollars in thousands	Total		2022		2023
Minimum estimated movie content commitments	$	34,833	$	24,754	$	10,079

Legal Matters

The Company is involved from time to time in legal proceedings incidental to the conduct of its business. The Company does not believe that any liability that may result from these proceedings will have a material adverse effect on its consolidated financial statements.

Other Matters

On July 13, 2022, the Company issued 500,000 unregistered shares of the Company’s Class A common stock to BTIG, LLC (“BTIG”) in connection with the settlement of financial advisory services provided by BTIG to the Company. During the three months ended June 30, 2022, the Company recognized $2.5 million of expense in General and administrative expense in the Company’s Condensed Consolidated Statements of Operations.