Mon, May 20, 9:35 PM (154 days ago)
Chicken Soup for the Soul Entertainment, Inc. (CSSE) reported significant financial challenges for the quarter ending March 31, 2024. Revenue dropped by 75% year-over-year to $27.4 million, driven by a 70% decrease in VOD and streaming revenue and a 52% decline in retail revenue. Licensing and other revenue fell by 96%, primarily due to the absence of significant deals like those seen in the prior year. Operating costs decreased by 71% to $28.4 million, reflecting lower content amortization and distribution costs. However, selling, general, and administrative expenses remained high at $21.3 million, despite a 35% reduction from the previous year. The company reported an operating loss of $27.4 million and a net loss of $48.7 million. Interest expenses increased due to higher debt levels and interest rates. CSSE's cash position was $4.9 million, with total debt at $561.8 million. The company faces substantial doubt about its ability to continue as a going concern and is pursuing strategic financing transactions to address liquidity issues. If unsuccessful, CSSE may need to seek bankruptcy protection.