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CAPITALIZED PRODUCTION COSTS
12 Months Ended
Dec. 31, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
CAPITALIZED PRODUCTION COSTS

NOTE 6 — CAPITALIZED PRODUCTION COSTS

 

The Company amortizes capitalized production costs (included as direct costs) in the consolidated statements of operations using the individual film forecast computation method. During the years ended December 31, 2025 and 2024, the Company amortized $99,975 and $1,781,810 of capitalized production costs in connection with The Blue Angels documentary film that was released in May 2024. In total, the Company capitalized $2,250,000 of production costs related to The Blue Angels documentary film, as discussed in Note 24.

 

 

The Company purchases scripts and incurs other costs, such as preparation of budgets, casting, etc., for other motion picture or digital productions. During the year ended December 31, 2025, the Company impaired $88,127 related to costs of projects it does not intend to produce or options that have expired. No impairments were recorded during the year ended December 31, 2024. The Company intends to produce the remaining projects, but they were not yet in production as of December 31, 2025 or 2024. The Company has assessed events and changes in circumstances that would indicate whether the Company should assess if the fair value of the productions is less than the unamortized costs capitalized and, aside from the ones mentioned above, did not identify other indicators of impairment. The amortization of capitalized production costs and the impairment of capitalized production costs are recorded in direct costs on the Company’s consolidated statement of operations.

 

As of December 31, 2025 and 2024, the Company had total, net capitalized production costs of $520,338 and $594,763, respectively, on its consolidated balance sheets.