Price | 6.79 | EPS | -1 | |
Shares | 18 | P/E | -5 | |
MCap | 125 | P/FCF | -21 | |
Net Debt | 7 | EBIT | -26 | |
TEV | 132 | TEV/EBIT | -5 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-09 |
10-Q | 2020-06-30 | Filed 2020-08-03 |
10-Q | 2020-03-31 | Filed 2020-04-27 |
10-K | 2019-12-31 | Filed 2020-02-24 |
10-Q | 2019-09-30 | Filed 2019-11-05 |
10-Q | 2019-06-30 | Filed 2019-08-06 |
10-Q | 2019-03-31 | Filed 2019-04-29 |
10-K | 2018-12-31 | Filed 2019-03-04 |
10-Q | 2018-09-30 | Filed 2018-11-06 |
10-Q | 2018-06-30 | Filed 2018-08-06 |
10-Q | 2018-03-31 | Filed 2018-05-07 |
10-K | 2017-12-31 | Filed 2018-02-27 |
10-Q | 2017-09-30 | Filed 2017-11-07 |
10-Q | 2017-06-30 | Filed 2017-08-07 |
10-Q | 2017-03-31 | Filed 2017-05-05 |
10-K | 2016-12-31 | Filed 2017-02-28 |
10-Q | 2016-09-30 | Filed 2016-11-04 |
10-Q | 2016-06-30 | Filed 2016-08-09 |
10-Q | 2016-03-31 | Filed 2016-05-10 |
10-K | 2015-12-31 | Filed 2016-03-15 |
10-Q | 2015-09-30 | Filed 2015-11-06 |
10-Q | 2015-06-30 | Filed 2015-08-07 |
10-Q | 2015-03-31 | Filed 2015-05-08 |
10-K | 2014-12-31 | Filed 2015-03-16 |
10-Q | 2014-09-30 | Filed 2014-11-10 |
10-Q | 2014-06-30 | Filed 2014-08-08 |
10-Q | 2014-03-31 | Filed 2014-05-09 |
10-K | 2013-12-31 | Filed 2014-03-31 |
10-Q | 2013-09-30 | Filed 2013-11-12 |
10-Q | 2013-06-30 | Filed 2013-08-09 |
10-Q | 2013-03-31 | Filed 2013-05-09 |
10-K | 2012-12-31 | Filed 2013-03-18 |
10-Q | 2012-09-30 | Filed 2012-11-09 |
10-Q | 2012-06-30 | Filed 2012-08-09 |
10-Q | 2012-03-31 | Filed 2012-05-10 |
10-K | 2011-12-31 | Filed 2012-03-15 |
10-Q | 2011-09-30 | Filed 2011-11-09 |
10-Q | 2011-06-30 | Filed 2011-08-09 |
10-Q | 2011-03-31 | Filed 2011-05-10 |
10-K | 2010-12-31 | Filed 2011-03-11 |
10-Q | 2010-09-30 | Filed 2010-11-08 |
10-Q | 2010-06-30 | Filed 2010-08-09 |
10-Q | 2010-03-31 | Filed 2010-05-10 |
10-K | 2009-12-31 | Filed 2010-03-16 |
8-K | 2020-11-05 | |
8-K | 2020-09-09 | |
8-K | 2020-08-03 | |
8-K | 2020-06-09 | |
8-K | 2020-04-23 | |
8-K | 2020-02-24 | |
8-K | 2019-11-01 | |
8-K | 2019-08-05 | |
8-K | 2019-04-25 | |
8-K | 2019-03-04 | |
8-K | 2018-11-05 | |
8-K | 2018-10-01 | |
8-K | 2018-08-06 | |
8-K | 2018-05-03 | |
8-K | 2018-03-21 | |
8-K | 2018-02-26 |
Part I - Financial Information |
Item 1.Financial Statements (Unaudited) |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II - Other Information |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. Defaults Upon Senior Securities. |
Item 4. Mine Safety Disclosures. |
Item 5. Other Information. |
Item 6. Exhibits |
EX-31.1 | gaia-ex311_9.htm |
EX-31.2 | gaia-ex312_7.htm |
EX-32.1 | gaia-ex321_8.htm |
EX-32.2 | gaia-ex322_6.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
United States
Securities and Exchange Commission
Washington, D.C. 20549
Form
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
(Exact name of registrant as specified in its charter)
|
| |
(State or other jurisdiction of incorporation or organization) |
| (I.R.S. Employer Identification No.) |
(Address of principal executive offices)
(
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| ||
|
|
|
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| | |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | |
Emerging growth company | |
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Class |
| Outstanding at November 6, 2020 |
Class A Common Stock ($.0001 par value) |
| |
Class B Common Stock ($.0001 par value) |
| |
GAIA, INC.
FORM 10-Q
INDEX
| ||
|
| |
Item 1. | 3 | |
|
|
|
| Condensed Consolidated Balance Sheets at September 30, 2020 and December 31, 2019 | 4 |
|
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| 5 | |
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| 6 | |
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| 7 | |
|
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|
| Notes to interim condensed consolidated financial statements | 8 |
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|
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13 |
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Item 3. | 17 | |
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Item 4. | 17 | |
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18 | ||
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Item 1. | 18 | |
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Item 1A. | 18 | |
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Item 2. | 18 | |
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Item 3. | 18 | |
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Item 4. | 18 | |
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Item 5. | 18 | |
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Item 6. | 19 | |
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| 20 |
2
PART I—FINANCIAL INFORMATION
Item 1.Financial Statements (Unaudited)
Unaudited Interim Condensed Consolidated Financial Statements
We have prepared our unaudited interim condensed consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to these rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. In our opinion, the unaudited interim condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly, in all material respects, our consolidated financial position as of September 30, 2020, the interim results of operations for the three and nine months ended September 30, 2020 and 2019, and cash flows for the nine months ended September 30, 2020 and 2019. Operating results for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results that may be expected for a full year or any future interim period. These interim statements have not been audited. The balance sheet as of December 31, 2019 was derived from our audited consolidated financial statements included in our Annual Report on Form 10-K. The interim condensed consolidated financial statements contained herein should be read in conjunction with our audited consolidated financial statements, including the notes thereto, for the year ended December 31, 2019.
3
GAIA, INC.
Condensed Consolidated Balance Sheets
|
| September 30, |
|
| December 31, |
| ||
(in thousands, except share and per share data) |
| 2020 |
|
| 2019 |
| ||
|
| (unaudited) |
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
| $ | |
|
| $ | |
|
Accounts receivable |
|
| |
|
|
| |
|
Prepaid expenses and other current assets |
|
| |
|
|
| |
|
Total current assets |
|
| |
|
|
| |
|
Building and land, net |
|
| |
|
|
| |
|
Media library, software and equipment, net |
|
| |
|
|
| |
|
Goodwill |
|
| |
|
|
| |
|
Investments and other assets |
|
| |
|
|
| |
|
Total assets |
| $ | |
|
| $ | |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, accrued and other liabilities |
| $ | |
|
| $ | |
|
Deferred revenue |
|
| |
|
|
| |
|
Total current liabilities |
|
| |
|
|
| |
|
Long-term debt and other liabilities, net |
|
| |
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|
| |
|
Deferred taxes |
|
| |
|
|
| |
|
Total liabilities |
|
| |
|
|
| |
|
Equity: |
|
|
|
|
|
|
|
|
Gaia, Inc. shareholders’ equity: |
|
|
|
|
|
|
|
|
Class A common stock, $ authorized, at September 30, 2020 and December 31, 2019, respectively |
|
| |
|
|
| |
|
Class B common stock, $ authorized, at September 30, 2020 and December 31, 2019 |
|
| |
|
|
| |
|
Additional paid-in capital |
|
| |
|
|
| |
|
Accumulated deficit |
|
| ( | ) |
|
| ( | ) |
Total equity |
|
| |
|
|
| |
|
Total liabilities and equity |
| $ | |
|
| $ | |
|
See accompanying notes to the interim condensed consolidated financial statements.
4
GAIA, INC.
Condensed Consolidated Statements of Operations
|
| For the Three Months Ended September 30, |
|
| For the Nine Months Ended September 30, |
| ||||||||||||||||||||
(in thousands, except per share data) |
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||||||||||||
|
| (unaudited) |
|
| (unaudited) |
| ||||||||||||||||||||
Revenues, net |
| $ | |
|
| $ | |
|
| $ | |
|
| $ | |
| ||||||||||
Cost of revenues |
|
| |
|
|
| |
|
|
| |
|
|
| |
| ||||||||||
Gross profit |
|
| |
|
|
| |
|
|
| |
|
|
| |
| ||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Selling and operating |
|
| |
|
|
| |
|
|
| |
|
|
| |
| ||||||||||
Corporate, general and administration |
|
| |
|
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| |
|
|
| |
|
|
| |
| ||||||||||
Total operating expenses |
|
| |
|
|
| |
|
|
| |
|
|
| |
| ||||||||||
Income (loss) from operations |
|
| |
|
|
| ( | ) |
|
| ( | ) |
|
| ( | ) | ||||||||||
Interest and other income (expense), net |
|
| |
|
|
| ( | ) |
|
| |
|
|
| ( | ) | ||||||||||
Income (loss) before income taxes |
|
| |
|
|
| ( | ) |
|
| |
|
|
| ( | ) | ||||||||||
Provision for income taxes |
|
| — |
|
|
| |
|
|
| |
|
|
| |
| ||||||||||
Income (loss) from continuing operations |
|
| |
|
|
| ( | ) |
|
| |
|
|
| ( | ) | ||||||||||
Loss from discontinued operations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| ( | ) | ||||||||||
Net income (loss) |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | ( | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Continuing operations |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | ( | ) | ||||||||||
Discontinued operations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| ( | ) | ||||||||||
Basic earnings per share |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | ( | ) | ||||||||||
Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Continuing operations |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | ( | ) | ||||||||||
Discontinued operations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| ( | ) | ||||||||||
Diluted earnings per share |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | ( | ) | ||||||||||
Weighted-average shares outstanding: |
|
|
|
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|
|
|
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|
|
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| ||||||||||
Basic |
|
| |
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| |
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| |
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| |
| ||||||||||
Diluted |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
See accompanying notes to the interim condensed consolidated financial statements.
5
GAIA, INC.
Condensed Consolidated Statements of Changes in Equity
|
|
|
|
|
| Gaia, Inc. Shareholders |
| |||||||||||||
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
(in thousands, except shares) |
| Total Equity |
|
| Accumulated Deficit |
|
| Common Stock Amount |
|
| Additional Paid-in Capital |
|
| Common Stock Shares |
| |||||
Balance at January 1, 2019 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
Issuance of Gaia, Inc. common stock for stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| — |
|
Net loss |
|
| ( | ) |
|
| ( | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance at March 31, 2019 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
| $ | |
|
Issuance of Gaia, Inc. common stock for stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| — |
|
Issuance of Gaia, Inc. common stock asset acquisition and business combination |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| |
|
Net loss |
|
| ( | ) |
|
| ( | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance at June 30, 2019 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
Issuance of Gaia, Inc. common stock for stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| — |
|
Net loss |
|
| ( | ) |
|
| ( | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance at September 30, 2019 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2020 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
Issuance of Gaia, Inc. common stock for RSU releases, employee stock purchase plan, stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| |
|
Net loss |
|
| ( | ) |
|
| ( | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance at March 31, 2020 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
| $ | |
|
Issuance of Gaia, Inc. common stock for stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| |
|
Issuance of Gaia, Inc. common stock for note conversion and business combination |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| |
|
Net loss |
|
| ( | ) |
|
| ( | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Balance at June 30, 2020 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
Issuance of Gaia, Inc. common stock for employee stock purchase plan, stock option exercises and share-based compensation |
|
| |
|
|
| — |
|
|
| — |
|
|
| |
|
|
| |
|
Net income |
|
| |
|
|
| |
|
|
| — |
|
|
| — |
|
|
| — |
|
Balance at September 30, 2020 |
| $ | |
|
| $ | ( | ) |
| $ | |
|
| $ | |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the interim condensed consolidated financial statements.
6
GAIA, INC.
Condensed Consolidated Statements of Cash Flows
|
| For the Nine Months Ended September 30, |
| |||||
(in thousands) |
| 2020 |
|
| 2019 |
| ||
|
| (unaudited) |
| |||||
Operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | |
|
| $ | ( | ) |
Loss from discontinued operations |
|
| — |
|
|
| |
|
Income (loss) from continuing operations |
|
| |
|
|
| ( | ) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| |
|
|
| |
|
Share-based compensation expense |
|
| |
|
|
| |
|
Gain on sale of real estate |
|
| ( | ) |
|
| — |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| ( | ) |
|
| ( | ) |
Prepaid expenses and other assets |
|
| |
|
|
| ( | ) |
Accounts payable and accrued liabilities |
|
| ( | ) |
|
| |
|
Deferred revenue |
|
| |
|
|
| |
|
Net cash provided by (used in) operating activities - continuing operations |
|
| |
|
|
| ( | ) |
Net cash provided by operating activities - discontinued operations |
|
| — |
|
|
| |
|
Net cash provided by (used in) operating activities |
|
| |
|
|
| ( | ) |
Investing activities: |
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired, and purchases of intangible assets |
|
| — |
|
|
| ( | ) |
Proceeds from sale of real estate |
|
| |
|
|
| — |
|
Additions to media library, property and equipment |
|
| ( | ) |
|
| ( | ) |
Net cash provided by (used in) investing activities |
|
| |
|
|
| ( | ) |
Financing activities: |
|
|
|
|
|
|
|
|
Repayment of debt |
|
| ( | ) |
|
| ( | ) |
Proceeds from issuance of debt, net of issuance costs |
|
| |
|
|
| |
|
Proceeds from the issuance of common stock |
|
| |
|
|
| — |
|
Net cash provided by (used in) financing activities |
|
| ( | ) |
|
| |
|
Net decrease in cash |
|
| ( | ) |
|
| ( | ) |
Cash at beginning of period |
|
| |
|
|
| |
|
Cash at end of period |
| $ | |
|
| $ | |
|
See accompanying notes to the interim condensed consolidated financial statements.
7
Notes to interim condensed consolidated financial statements
References in this report to “we”, “us”, “our” or “Gaia” refer to Gaia, Inc. and its consolidated subsidiaries, unless we indicate otherwise.
1. Organization, Nature of Operations, and Principles of Consolidation
Gaia, Inc. was incorporated under the laws of the State of Colorado on July 7, 1988, and operates a global digital video subscription service and on-line community that caters to a unique and underserved member base. Our digital content library includes approximately
Our mission is to create a transformational network that empowers a global conscious community. Content on our network is currently curated into
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) and they include our accounts and those of our subsidiaries. Intercompany transactions and balances have been eliminated. The unaudited condensed consolidated financial position, results of operations and cash flows for the interim periods disclosed in this report are not necessarily indicative of future financial results.
There have been no material changes in our significant accounting policies, other than the adoption of accounting pronouncements below, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates and Reclassifications
The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and disclosures. Although we base these estimates on our best knowledge of current events and actions that we may undertake in the future, actual results may be different from the estimates. We have made certain reclassifications to prior period amounts to conform to the current period presentations.
Recently Adopted Accounting Policies
In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials, in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires reassessing estimates of the use of a film in a film group and accounting for any changes prospectively. In addition, ASU 2019-02 requires testing films and program material license agreements for impairment at a film group level when the films or license agreements are predominantly monetized with other films and license agreements. We adopted the new standard on
2. Revenue Recognition
Revenues consist primarily of subscription fees paid by our members. We present revenues net of taxes collected from members. Members are billed in advance and revenues are recognized ratably over the subscription term. Deferred revenue consists of subscription fees collected from members that have not been earned and is recognized ratably over the remaining term of the subscription. We recognize revenue on a net basis for relationships where our partners have the primary relationship, including billing and service delivery, with the member. Payments made to partners to assist in promoting our service on their platforms are expensed as marketing expenses in the period incurred. We do not allow access to our service to be provided as part of a bundle by any of our partners.
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3. Equity and Share-Based Compensation
In June 2019, we issued
In June 2020, we issued
During the first nine months of 2020 and 2019, we recognized approximately $
4. Goodwill and Other Intangible Assets
There were
The following table represents our other intangible assets by major asset class as of the dates indicated, which are included in Investments and other assets on the accompanying condensed consolidated balance sheet:
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| September 30, |
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| December 31, |
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(in thousands) |
| 2020 |
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| 2019 |
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Amortizable Intangible Assets |
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Customer related |
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Gross carrying amount |
| $ | — |
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| $ | |
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Accumulated amortization |
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| — |
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| ( | ) |
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| $ | — |
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| $ | |
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Unamortized Intangible Assets |
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Domain names |
| $ | |
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| $ | |
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The customer related intangible assets were being amortized on a
5. Debt
On April 26, 2019, we replaced the line of credit of our wholly owned subsidiary Boulder Road LLC (“Boulder Road”) with a $
On September 9, 2020, Boulder Road sold a
In June 2019, one of our wholly owned subsidiaries issued a $
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Also in June 2019, one of our wholly owned subsidiaries issued a $
6. Leases
As discussed in Note 5, we entered into an operating lease in connection with the sale of a portion of our corporate campus. We record the right to use the underlying asset for the operating lease term as an asset and our obligation to make lease payments as a liability.
Because the rate implicit in the lease is not readily determinable, we use our incremental borrowing rate to determine the present value of lease payments. Information related to our right of use asset and related lease liability were as follows:
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| September 30, |
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| December 31, |
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(in thousands) |
| Balance Sheet Classification |
| 2020 |
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| 2019 |
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Right-of-use asset |
| Building and land, net |
| $ | |
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| $ | — |
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Operating lease liability (current) |
| Accounts payable, accrued and other liabilities |
| $ | |
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| $ | — |
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Operating lease liability (non-current) |
| Long-term debt and other liabilities, net |
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| — |
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| $ | |
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| $ | — |
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| For the Nine Months Ended September 30, |
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(in thousands) |