Film cost amortization as well as participation liabilities are based on management’s estimates. Costs to produce films are amortized and estimated liabilities for participations are accrued using the individual film forecast method, based on the ratio of the current period’s revenues to management’s estimated remaining total gross revenues to be earned (“ultimate revenue”). The Company’s judgment is required in estimating ultimate revenue and the costs to be incurred throughout the life of each film.

The Company estimates ultimate revenue based on historical experience with similar titles or the title genre, the general public appeal of the cast, actual performance (when available) at the box office or in markets currently being exploited, and other factors such as the quality and acceptance of motion pictures or programs that our competitors release into the marketplace at or near the same time, critical reviews, general economic conditions, and other tangible and intangible factors, many of which we do not control and which may change. For feature films, ultimate revenue includes estimates over a period not to exceed 10 years following the date of initial release of the motion picture.

The Company amortized $2.6 million and $3.9 million of film costs for the three months ended June 30, 2026 and 2025, respectively, and $3.3 million and $3.9 million for the six months ended June 30, 2026 and 2025, respectively. Film cost amortization is included in cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations.

The Company enters into co-financing arrangements with third parties to jointly finance or distribute certain of its film productions. These arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor who owns an undivided copyright interest in the film. The number of investors and the terms of these arrangements can vary, although investors generally assume the full risks and rewards of ownership proportionate to their ownership in the film. The Company accounts for the proceeds received from the investor under these arrangements as a reduction of its capitalized film costs (which approximated $4.1 million and $4.7 million as of June 30, 2026 and December 31, 2025, respectively), and the investor’s interest in the profit or loss of the film is recorded as either a charge or a benefit, respectively, in cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations. The investor’s interest in the profit or loss of a film is recorded each period using the individual film forecast computation method.

Production tax incentives reduced capitalized film costs by $4.9 million and $2.6 million as of June 30, 2026 and December 31, 2025, respectively. Production tax incentives resulted in a reduction of cost of revenue, excluding depreciation and amortization, in the condensed consolidated statements of operations of approximately $0.6 million and $0.8 million for the three and six months ended June 30, 2026, respectively, and $0.9 million and $0.9 million for the three and six months ended June 30, 2025, respectively. The Company had receivables related to production tax credits of $4.4 million and $3.2 million as of June 30, 2026 and December 31, 2025, respectively, included in prepaid and other current assets in the condensed consolidated balance sheets.


	Six Months Ended June 30,
	2026		2025
Cash paid for income taxes, net	$	131	$	454
Cash paid for interest	3,022		1,643
Non-cash investing and financing activities:
Debt assumed for acquisition of Girls Like Girls Film Inc.	—		4,790

Non-cash consideration from film financing arrangements	—		500

Accrued debt issuance / modification costs for Term Loan	90		570
Accrued deferred offering costs	—		67
Accounts payable and accrued expenses related to property and equipment	34		711
Non-cash contingent consideration for business combination	—		481
Promissory Note receivable from First Stock Purchase Agreement	(100,000)		—
Accrued interest for stock subscription receivable	(479)		—
Reconciliation of cash and cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows:
Cash and cash equivalents	16,299		10,432
Restricted cash	525		15,750
Noncurrent restricted cash	2,999		3,524
Total cash and cash equivalents and restricted cash	$	19,823	$	29,706