Impact Of COVID-19 Pandemic And Liquidity	9 Months Ended
Sep. 30, 2022
Impact Of COVID-19 Pandemic And Liquidity [Abstract]
Impact Of COVID-19 Pandemic On Liquidity	Note 3 – Impact of COVID-19 Pandemic and Liquidity Continuing Operational Impact The novel coronavirus, COVID-19, has progressed through several variants since its emergence in 2019. The current variant affecting the jurisdictions in which we do business is the Omicron variant, and as at the date of this report, a new subvariant of Omicron is emerging. Due to the Omicron variant appearing to be less severe than prior variants, and with vaccination programs substantially advanced, federal, state and local governments throughout the United States, Australia, New Zealand have largely lifted restrictions and returned to pre-COVID activities. There can be no assurances, however, that there will be no further variants of COVID-19 which could reverse the current trend. Liquidity Impact We believe that reticence to engage in outside the home activities, caused by the risk of contracting COVID-19, is abating. Top Gun: Maverick’s performance in the second quarter of 2022 demonstrated that patrons are willing to return to the movie theaters, if there is quality film product on offer. A lack of consistent, good quality film product is now the key cause of our Company’s revenues and earnings for the quarter ended September 30, 2022 being lower than those of pre-COVID-19. In addition to movie product, further pressures, including higher film rents and competition from streaming simply may be part of the competitive landscape going forward and will become, for us and our competitors, simply a cost of doing business. For these reasons, we cannot provide any assurances as to the nature or pace of a return of our cinema operations to prior operating levels. Going Concern We continue to evaluate the going concern assertion required by ASC 205-40 Going Concern as it relates to our Company. Management’s evaluation is informed by current liquidity positions, cashflow estimates, known capital and other expenditure requirements and commitments and management’s current business plan and strategies. Our forecasts and cash flow estimates are based on the current expectation that the global cinema industry will continue to recover in 2022 and 2023. Forecasts are by their nature inherently uncertain, and the effects of COVID-19 and its aftermath continue to cause greater forecasting difficulties than would otherwise exist in more stable economic times. While we are seeing substantial evidence of recovery, our forecasts regarding the cinema portion of our business rely upon the ability and desire of moviegoers to return to the movie theatres. Many factors influencing this are outside of management’s control, but are, nevertheless, material, individually and in the aggregate, to the realization of management’s forecasts and expectations. Regardless, we believe that our current financial position, forecasts and cash flow estimates based on our current expectations of industry performance and recovery, mean that our Company has sufficient resources to meet its obligations as they become due within one year after the issuance of this Report. Impairment Considerations Our Company considers that the events and factors described above constitute impairment indicators under ASC 360 Property, Plant and Equipment. At December 31, 2021, our Company performed a quantitative recoverability test of the carrying values of all its asset groups. Our Company estimated the undiscounted future cash flows expected to result from the use of these asset groups. No impairment charges were recorded for the year ending December 31, 2021. For the quarter and six months ended June 30, 2022, while our financial performance improved, certain sites had not improved commensurate with the wider group performance, and as such were no longer expected to be able to recover their asset group values. As a result, we reassessed these sites under our impairment testing methodology and determined that a $1.5 million impairment charge against these sites was necessary. No further impairment charges were deemed necessary for the quarter September 30, 2022. Actual performance against our forecasts is dependent on several variables and conditions, many of which are subject to the uncertainties associated with COVID-19 and as a result, actual results may materially differ from management’s estimates. Our Company also considers that the events and factors described above constitute impairment indicators under ASC 350 Intangibles – Goodwill and Other. Our Company performed a quantitative goodwill impairment test and determined that its goodwill was not impaired as of December 31, 2021. The test was performed at a reporting unit level by comparing each reporting unit’s carrying value, including goodwill, to its fair value. The fair value of each reporting unit was assessed using a discounted cash flow model based on the budgetary revisions performed by management in response to COVID-19 and the developing market conditions. Given the improvements in trading conditions during 2021 and through the nine months of 2022, no impairment of goodwill has been recognized for the quarter ended September 30, 2022. The causes of the impairment of certain cinema assets do not materially impact our goodwill assessment. Actual performance against our forecasts is dependent on several variables and conditions, many of which are subject to the uncertainties associated with COVID-19 and as a result, actual results may materially differ from management’s estimates.

Impact Of COVID-19 Pandemic And Liquidity

9 Months Ended

Sep. 30, 2022

Impact Of COVID-19 Pandemic And Liquidity [Abstract]

Impact Of COVID-19 Pandemic On Liquidity

Note 3 – Impact of COVID-19 Pandemic and Liquidity

Continuing Operational Impact

The novel coronavirus, COVID-19, has progressed through several variants since its emergence in 2019. The current variant affecting the jurisdictions in which we do business is the Omicron variant, and as at the date of this report, a new subvariant of Omicron is emerging. Due to the Omicron variant appearing to be less severe than prior variants, and with vaccination programs substantially advanced, federal, state and local governments throughout the United States, Australia, New Zealand have largely lifted restrictions and returned to pre-COVID activities. There can be no assurances, however, that there will be no further variants of COVID-19 which could reverse the current trend.

Liquidity Impact

We believe that reticence to engage in outside the home activities, caused by the risk of contracting COVID-19, is abating. Top Gun: Maverick’s performance in the second quarter of 2022 demonstrated that patrons are willing to return to the movie theaters, if there is quality film product on offer. A lack of consistent, good quality film product is now the key cause of our Company’s revenues and earnings for the quarter ended September 30, 2022 being lower than those of pre-COVID-19. In addition to movie product, further pressures, including higher film rents and competition from streaming simply may be part of the competitive landscape going forward and will become, for us and our competitors, simply a cost of doing business. For these reasons, we cannot provide any assurances as to the nature or pace of a return of our cinema operations to prior operating levels.

Going Concern

We continue to evaluate the going concern assertion required by ASC 205-40 Going Concern as it relates to our Company. Management’s evaluation is informed by current liquidity positions, cashflow estimates, known capital and other expenditure requirements and commitments and management’s current business plan and strategies. Our forecasts and cash flow estimates are based on the current expectation that the global cinema industry will continue to recover in 2022 and 2023. Forecasts are by their nature inherently uncertain, and the effects of COVID-19 and its aftermath continue to cause greater forecasting difficulties than would otherwise exist in more stable economic times. While we are seeing substantial evidence of recovery, our forecasts regarding the cinema portion of our business rely upon the ability and desire of moviegoers to return to the movie theatres. Many factors influencing this are outside of management’s control, but are, nevertheless, material, individually and in the aggregate, to the realization of management’s forecasts and expectations. Regardless, we believe that our current financial position, forecasts and cash flow estimates based on our current expectations of industry performance and recovery, mean that our Company has sufficient resources to meet its obligations as they become due within one year after the issuance of this Report.

Impairment Considerations

Our Company considers that the events and factors described above constitute impairment indicators under ASC 360 Property, Plant and Equipment. At December 31, 2021, our Company performed a quantitative recoverability test of the carrying values of all its asset groups. Our Company estimated the undiscounted future cash flows expected to result from the use of these asset groups. No impairment charges were recorded for the year ending December 31, 2021. For the quarter and six months ended June 30, 2022, while our financial performance improved, certain sites had not improved commensurate with the wider group performance, and as such were no longer expected to be able to recover their asset group values. As a result, we reassessed these sites under our impairment testing methodology and determined that a $1.5 million impairment charge against these sites was necessary. No further impairment charges were deemed necessary for the quarter September 30, 2022. Actual performance against our forecasts is dependent on several variables and conditions, many of which are subject to the uncertainties associated with COVID-19 and as a result, actual results may materially differ from management’s estimates.

Our Company also considers that the events and factors described above constitute impairment indicators under ASC 350 Intangibles – Goodwill and Other. Our Company performed a quantitative goodwill impairment test and determined that its goodwill was not impaired as of December 31, 2021. The test was performed at a reporting unit level by comparing each reporting unit’s carrying value, including goodwill, to its fair value. The fair value of each reporting unit was assessed using a discounted cash flow model based on the budgetary revisions performed by management in response to COVID-19 and the developing market conditions. Given the improvements in trading conditions during 2021 and through the nine months of 2022, no impairment of goodwill has been recognized for the quarter ended September 30, 2022. The causes of the impairment of certain cinema assets do not materially impact our goodwill assessment. Actual performance against our forecasts is dependent on several variables and conditions, many of which are subject to the uncertainties associated with COVID-19 and as a result, actual results may materially differ from management’s estimates.