v3.25.2
LICENSE AND MEDIA RIGHTS
6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
LICENSE AND MEDIA RIGHTS LICENSE AND MEDIA RIGHTS
MLB Promotion Rights Agreement
On October 11, 2022, the Company entered into a Promotional Rights Agreement (the "MLB Promotional Rights Agreement") with MLB Advanced Media L.P., on its own behalf and on behalf of Major League Baseball Properties, Inc., the Office of the Commissioner of Baseball, The MLB Network, LLC and the Major League Baseball Clubs (collectively, the "MLB"), pursuant to which the Company entered into a strategic partnership with MLB to promote the Company’s new NSF-Certified for Sport® product line. On May 13, 2025, the Company and MLB entered into a letter agreement ("PRA Letter Agreement") terminating the MLB Promotional Rights Agreement and waives the Company's obligation to pay the remaining aggregate rights fee of $18 million for the remainder of the term of the MLB Promotional Rights Agreement.
As consideration under the MLB promotional rights agreement, the Company was committed to pay a combination of cash over the license period, along with upfront non-cash consideration in the form of equity, as well as contingent consideration in the form of contingent payments based on revenue.
The PRA Letter Agreement terminates the MLB Promotional Rights Agreement. As a result of the termination, the license and media rights assets as well as the current and non-current payable previously recorded on the condensed consolidated balance sheets were written off. This write-off resulted in the recognition of a gain of $2,326 which is included in Other income (expense), net within the condensed consolidated statements of operations. The gain reflects the net impact of the derecognition of related obligation exceeding the carrying value of the associated assets.
As of June 30, 2025 and December 31, 2024, the carrying value of the licensed properties was $0 and $11,691, respectively, recorded as a license and media rights asset within the condensed consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the carrying value of the media rights was $0 and $3,000 recorded as a prepaid asset and a license and media rights asset within the condensed consolidated balance sheets. For the three months ended June 30, 2025 and June 30, 2024, the Company paid MLB $0, respectively, as part of the committed cash payments, and recognized $0 and $1,025, respectively, in amortization expense related to the license and media right assets. For the six months ended June 30, 2025 and June 30, 2024, the Company paid MLB $0 and $2,500, respectively, as part of the committed cash payments, and recognized $0 and $1,999, respectively, in amortization expense related to the license and media right assets. Licensed properties were amortized straight line and media rights were amortized as incurred.