Wed, Aug 14, 9:39 PM (153 days ago)
For the quarter ended June 30, 2024, The Chosen, Inc. reported significant financial changes, reflecting a substantial increase in total revenues to $83,940,000, up 214% year-over-year, driven primarily by $68,872,000 in production services revenue. This revenue surge was offset by a decline in contribution revenues, which were eliminated following a contract amendment with Come and See Foundation (CAS). Operating expenses rose sharply to $69,901,000, largely due to increased production and marketing costs associated with the Series. Notably, the company recognized a gain of $13,022,000 from the sale of intellectual property rights related to the Series. Net income for the quarter reached $16,832,000, compared to $4,928,000 in the prior year. However, the six-month period showed a net loss of $4,823,000, highlighting volatility in earnings. Cash and equivalents declined to $28,158,000 from $65,179,000 due to cash used in operations, primarily for production expenses. The company’s long-term debt was significantly reduced to $293,000 following the forgiveness of a $145,500,000 loan from CAS as part of the CAS Transaction. Overall, while revenues surged, the operational cash flow challenges and reliance on major customers remain critical considerations for future performance.