8-K
CuriosityStream Inc. (CURI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________
FORM 8-K
_________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 19, 2024
_________________________________________
CURIOSITYSTREAM INC.
(Exact Name of Issuer as Specified in Charter)
_________________________________________
| Delaware | 001-39139 | 84-1797523 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
8484 Georgia Ave., Suite 700
Silver Spring, Maryland
(Address of principal executive offices)
20910
(Zip code)
(301) 755-2050
(Registrant’s telephone number, including area code)
_________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol(s) | Name of exchange<br><br>on which registered |
|---|---|---|
| Common Stock, par value $0.0001 | CURI | NASDAQ |
| Warrants, each exercisable for one share of Common stock at an exercise price of $11.50 per share | CURIW | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On March 20, 2024, CuriosityStream Inc. (the “Company”) announced its financial results for the fourth quarter and full year ended December 31, 2023, in a press release dated March 20, 2024 (the "Press Release"). The full text of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Current Report”) and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished under Item 2.02 of this Current Report (including Exhibit 99.1) is deemed to be “furnished” and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
As previously reported, on September 19, 2023, the Company received written notice (the "Notice") from the Nasdaq Stock Market, LLC ("Nasdaq") indicating that the bid price for the Company's common stock (the "Common Stock"), for the last 31 consecutive business days, had closed below the minimum $1.00 per share and, as a result, the Company was not in compliance with the $1.00 minimum bid price requirement for the continued listing on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Bid Price Rule").
On March 19, 2024, the Company received written notification from the Listing Qualifications Department of Nasdaq, granting the Company's request for a 180-day extension to regain compliance the Bid Price Rule. The Company now has until September 16, 2024, to meet the requirement. If at any time prior to September 16, 2024, the bid price of the Company's Common Stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Company will regain compliance with the Bid Price Rule.
If the Company does not regain compliance with the Bid Price Rule during the additional 180-day extension, Nasdaq will provide written notification to the Company that its Common Stock will be delisted. At that time, the Company may appeal the relevant delisting determination to a hearings panel pursuant to the procedures set forth in the applicable Nasdaq Listing Rules. However, there can be no assurance that, if the Company does appeal the delisting determination by Nasdaq to the hearings panel, that such appeal would be successful.
Nasdaq's extension notice has no immediate effect on the listing or trading of the Company's Common Stock, which will continue to trade on the Nasdaq Capital Market under the symbol “CURI”.
The Company intends to actively monitor the closing bid price of its Common Stock and may, if appropriate, consider implementing available options to regain compliance with the Bid Price Rule under the Nasdaq Listing Rules.
Item 8.01 Other Events.
On March 20, 2024, the Company announced in the Press Release that the Company's Board of Directors approved that the Company declare a quarterly cash dividend of $0.025 per share of the Company's Common Stock payable on April 30, 2024, to stockholders of record on April 12, 2024.
Cautionary Statements Regarding Forward-Looking Information
Certain statements in this Current Report on Form 8-K may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions, plans to pay regular dividends, consumers’ valuation of factual content, the Company’s ability to regain compliance with the Bid Price Rule and the Company’s continued success. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such
statements. Certain of these risks are identified and discussed under “Risk Factors” in CuriosityStream’s Annual Report on Form 10-K for the year ended December 31, 2023, that we expect to file with the Securities and Exchange Commission (the “SEC”) on or about March 22, 2024, and in CuriosityStream’s other SEC filings. These risk factors are important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.
In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream’s ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase CuriosityStream’s subscriber base and retain customers; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) the ability to meet Nasdaq’s listing standards; and (vii) privacy and data protection laws, privacy or data breaches, or the loss of data.
Item 9.01 Financial Statement and Exhibits.
(d)Exhibits
| Exhibit<br><br>No. | Description |
|---|---|
| 99.1 | Press Release, dated March 20, 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.
| CURIOSITYSTREAM INC. | |
|---|---|
| Date: March 20, 2024 | |
| /s/ Tia Cudahy | |
| Tia Cudahy | |
| Chief Operating Officer and General Counsel |
Document
Exhibit 99.1
CURIOSITYSTREAM ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS AND
INITIATION OF DIVIDEND PROGRAM
SILVER SPRING, Md. (March 20, 2024) – CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2023. In addition, the Company’s Board of Directors declared a quarterly cash dividend of $0.025 per share, with the first dividend payable on April 30, 2024, to stockholders of record on April 12, 2024. With the initiation of a cash dividend program, CuriosityStream intends to pay regular quarterly dividends.
“Our fourth quarter revenue results met our guidance range while adjusted free cash flow exceeded our guidance range, and we delivered sequential revenue growth in our Direct Business. We continued to decrease our cost base, as we achieved our fifth straight quarter of sequential adjusted free cash flow improvement,” said Clint Stinchcomb, President & CEO. "Looking forward, we will be guiding to positive adjusted free cash flow for the first quarter of 2024, and we believe the initiation of the dividend program, which will be paid from excess cash, underscores our positive outlook for cash flow in 2024."
Fourth Quarter 2023 Financial Results
•Revenue of $14.8 million, compared to $14.5 million in the fourth quarter of 2022;
•Gross profit of $6.7 million, compared to $1.4 million in the fourth quarter of 2022;
•Total advertising and marketing and general and administrative expenses of $11.4 million, a 32% year-over-year reduction;
•Net loss of $4.7 million, compared to net loss of $14.5 million in the fourth quarter of 2022;
•Net cash used in operating activities of $2.5 million, compared to net cash used in operating activities of $8.8 million in the fourth quarter of 2022;
•Adjusted Free Cash Flow of $(2.4) million, compared to Adjusted Free Cash Flow of $(8.8) million in the fourth quarter of 2022;
•Adjusted EBITDA of $(3.4) million, compared to Adjusted EBITDA of $(13.6) million in the fourth quarter of 2022; and
•Cash and restricted cash balance of $38.2 million and no debt as of December 31, 2023.
Full Year 2023 Financial Results
•Revenue of $56.9 million, compared to $78.0 million in 2022;
•Gross profit of $21.3 million, compared to $26.5 million in 2022;
•Total advertising and marketing and general and administrative expenses of $46.8 million, a 40% year-over-year reduction;
•Net loss of $48.9 million, compared to net loss of $50.9 million in 2022;
•Net loss included a $19.0 million charge related to the impairment of content assets;
•Net cash used in operating activities of $16.2 million, compared to net cash used in operating activities of $39.5 million in 2022;
•Adjusted Free Cash Flow of $(16.2) million, compared to Adjusted Free Cash Flow of $(39.7) million in 2022; and
•Adjusted EBITDA of $(20.2) million, compared to Adjusted EBITDA of $(44.3) million in 2022.
Full Year 2023 Business Highlights
•Premiered multiple groundbreaking original series and specials, including The Real Wild West, Deadly Science, The True Story of Pirates, Lift the Ice, Vikings: The Lost Kingdom, GIANTS, 2023:A Space Odyssey, History: The Interesting Bits, CSI On Trial, Nature's Hidden Miracles, Queens of Ancient Egypt, Rescued Chimpanzees of the Congo with Jane Goodall, Search for Earth’s Lost Moon, Scary Tales of New York, Connections with James Burke, AI Tipping Point, Amazing DinoWorld 2 and Top Science Stories of 2023.
•Signed new licensing, Pay TV and AVOD agreements with several partners during the year;
•Added hundreds of titles to underserved areas like hosted series, crime, aviation and automotive, and to core genres like history, science and tech;
•Launched a series of annual promotional stunts showcasing our most engaging titles for subscribers across SPACE WEEK, DINO WEEK, ANCIENT EGYPT WEEK, JAWS & CLAWS WEEK, and EARTH MONTH.
Financial Outlook
CuriosityStream expects the following for the first quarter of 2024:
•Revenue within the range of $11.5 - $12.5 million
•Adjusted Free Cash Flow within the range of $0.25 - $1.00 million
Conference Call Information
CuriosityStream will host a Q&A conference call today to discuss the Company’s fourth quarter and full year 2023 results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live audio webcast of the call will be available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com. Participants may also dial-in toll free at (888) 510-2008 or International at (646) 960-0306 and reference conference ID# 3957505. An audio replay of the conference call will be available for two weeks following the call on the CuriosityStream Investor Relations website at https://investors.curiositystream.com.
Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions, plans to pay regular dividends, consumers’ valuation of factual content, and the Company’s continued success. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in CuriosityStream’s Annual Report on Form 10-K for the year ended December 31, 2023, that we expect to file with the Securities and Exchange Commission (the “SEC”) on or about March 22, 2024, and in CuriosityStream’s other SEC filings. These risk factors are important to consider in determining future results and should be reviewed in their entirety.
Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.
In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream’s ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase CuriosityStream's subscriber base and retain customers; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) the ability to meet Nasdaq’s listing standards; and (vii) privacy and data protection laws, privacy or data breaches, or the loss of data.
Non-GAAP Financial Measures
To supplement our unaudited consolidated statement of operations, which is prepared in accordance with GAAP, we present Adjusted EBITDA and Adjusted Free Cash Flow in this press release. Our use of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted Free Cash Flow, has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.
We use these non-GAAP financial measures in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. These measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA and Adjusted Free Cash Flow are widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from net income to calculate Adjusted EBITDA: interest and other income (expense), provision for income taxes, depreciation and non-content amortization, loss/(gain) on the change in fair value of our warrants, equity interests loss (gain), impairment of goodwill, intangible assets and content assets, restructuring charges and stock-based compensation. Adjusted Free Cash Flow is calculated as net cash flow used in operating activities less purchases of property and equipment and restructuring charges.
Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (2) Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; or (b) tax payments that may represent a reduction in cash available to us; and (3) Adjusted Free Cash Flow does not reflect: (a) our cash flow available for discretionary payments; (b) our future contractual commitments (such as any debt service requirements or dividend payments); (c) funds available for investment or other discretionary uses; (d) certain capital expenditure requirements; or (e) the total increase or decrease in our cash balances for the stated period. The non-GAAP financial measures we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP financial measures has been provided in the financial statements tables included in this press release and investors are encouraged to review the reconciliation.
About Curiosity Inc.
Curiosity Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows, and series covering science, nature, history, technology, society, and lifestyle. With millions of subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; Curiosity University, featuring talks from the best professors at the world's most renowned universities as well as courses, short and long-form videos, and podcasts; Curiosity Now, a free, ad-supported channel; Curiosity Audio Network, with original content and podcasts; and Curiosity Studios, which oversees original programming. Curiosity Inc. is a wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI). For more information, visit CuriosityStream.com.
Contacts:
CuriosityStream Investor Relations
Andrew Lata
IR@CuriosityStream.com
CuriosityStream Inc.
Consolidated Balance Sheets
| (In thousands, except par value) | December 31,<br>2023 | December 31,<br>2022 | ||
|---|---|---|---|---|
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 37,715 | $ | 40,007 |
| Restricted cash | 500 | 500 | ||
| Short-term investments in debt securities | — | 14,986 | ||
| Accounts receivable, net | 4,760 | 10,899 | ||
| Other current assets | 2,315 | 3,118 | ||
| Total current assets | 45,290 | 69,510 | ||
| Investments in equity method investees | 6,354 | 10,766 | ||
| Property and equipment, net | 727 | 1,094 | ||
| Content assets, net | 44,943 | 68,502 | ||
| Operating lease right-of-use assets | 3,350 | 3,702 | ||
| Other assets | 358 | 539 | ||
| Total assets | $ | 101,022 | $ | 154,113 |
| Liabilities and stockholders’ equity | ||||
| Current liabilities | ||||
| Content liabilities | $ | 407 | $ | 2,862 |
| Accounts payable | 4,765 | 6,065 | ||
| Accrued expenses and other liabilities | 3,705 | 7,752 | ||
| Deferred revenue | 14,521 | 14,281 | ||
| Total current liabilities | 23,398 | 30,960 | ||
| Warrant liability | 44 | 257 | ||
| Non-current operating lease liabilities | 4,283 | 4,648 | ||
| Other liabilities | 651 | 622 | ||
| Total liabilities | 28,376 | 36,487 | ||
| Stockholders’ equity | ||||
| Common stock, $0.0001 par value – 125,000 shares authorized as of December 31, 2023, and December 31, 2022; 53,286 shares issued and outstanding as of December 31, 2023; 52,853 issued and outstanding as of December 31, 2022 | 5 | 5 | ||
| Additional paid-in capital | 362,636 | 358,760 | ||
| Accumulated other comprehensive loss | — | (40) | ||
| Accumulated deficit | (289,995) | (241,099) | ||
| Total stockholders’ equity | 72,646 | 117,626 | ||
| Total liabilities and stockholders’ equity | $ | 101,022 | $ | 154,113 |
CuriosityStream Inc.
Consolidated Statements of Operations
| Three Months Ended<br>December 31, | Year Ended<br>December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||
| Revenues | $ | 14,775 | $ | 14,499 | $ | 56,889 | $ | 78,043 |
| Operating expenses | ||||||||
| Cost of revenues | 8,125 | 13,132 | 35,553 | 51,536 | ||||
| Advertising and marketing | 4,966 | 9,107 | 17,390 | 40,709 | ||||
| General and administrative | 6,449 | 7,616 | 29,447 | 37,479 | ||||
| Impairment of content assets | — | — | 18,970 | — | ||||
| Impairment of goodwill and intangible assets | — | — | — | 3,603 | ||||
| Total operating expenses | 19,540 | 29,855 | 101,360 | 133,327 | ||||
| Operating loss | (4,765) | (15,356) | (44,471) | (55,284) | ||||
| Change in fair value of warrant liability | 29 | 552 | 213 | 5,404 | ||||
| Interest and other income (expense) | 416 | 740 | 1,272 | 176 | ||||
| Equity method investment loss | (312) | (280) | (5,404) | (846) | ||||
| Loss before income taxes | (4,632) | (14,344) | (48,390) | (50,550) | ||||
| Provision for income taxes | 27 | 202 | 506 | 367 | ||||
| Net loss | $ | (4,659) | $ | (14,546) | $ | (48,896) | $ | (50,917) |
| Net loss per share | ||||||||
| Basic | $ | (0.09) | $ | (0.28) | $ | (0.92) | (0.96) | |
| Diluted | $ | (0.09) | $ | (0.28) | $ | (0.92) | (0.96) | |
| Weighted average number of common shares outstanding | ||||||||
| Basic | 53,071 | 52,811 | 53,044 | 52,787 | ||||
| Diluted | 53,071 | 52,811 | 53,044 | 52,787 |
CuriosityStream Inc.
Consolidated Statements of Cash Flows
| Year Ended<br>December 31, | ||||
|---|---|---|---|---|
| (In thousands) | 2023 | 2022 | ||
| Cash flows from operating activities | ||||
| Net loss | $ | (48,896) | $ | (50,917) |
| Adjustments to reconcile net loss to net cash used in operating activities | ||||
| Change in fair value of warrant liability | (213) | (5,404) | ||
| Additions to content assets | (18,316) | (34,771) | ||
| Change in content liabilities | (2,455) | (6,822) | ||
| Amortization of content assets | 22,905 | 39,291 | ||
| Depreciation and amortization expenses | 496 | 699 | ||
| Impairment of content assets | 18,970 | — | ||
| Impairment of goodwill and intangible assets | — | 3,603 | ||
| Amortization of premiums and accretion of discounts associated with investments in debt securities, net | 26 | 1,191 | ||
| Stock-based compensation | 3,999 | 6,644 | ||
| Equity method investment loss | 5,404 | 846 | ||
| Other non-cash items | 481 | 1,141 | ||
| Changes in operating assets and liabilities | ||||
| Accounts receivable | 6,139 | 11,862 | ||
| Other assets | 855 | 3,355 | ||
| Accounts payable | (1,295) | 2,654 | ||
| Accrued expenses and other liabilities | (4,542) | (4,645) | ||
| Deferred revenue | 270 | (8,250) | ||
| Net cash used in operating activities | (16,172) | (39,523) | ||
| Cash flows from investing activities | ||||
| Purchases of property and equipment | (5) | (130) | ||
| Investment in equity method investees | (992) | (2,438) | ||
| Sales of investments in debt securities | — | 22,893 | ||
| Maturities of investments in debt securities | 15,000 | 43,873 | ||
| Purchases of investments in debt securities | — | (1,497) | ||
| Net cash provided by investing activities | 14,003 | 62,701 | ||
| Cash flows from financing activities | ||||
| Payments related to tax withholding | (123) | (218) | ||
| Net cash used in financing activities | (123) | (218) | ||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (2,292) | 22,960 | ||
| Cash, cash equivalents and restricted cash, beginning of period | 40,507 | 17,547 | ||
| Cash, cash equivalents and restricted cash, end of period | $ | 38,215 | $ | 40,507 |
| Supplemental disclosure: | ||||
| Cash paid for taxes | $ | 195 | $ | 614 |
| Cash paid for operating leases | $ | 466 | $ | 486 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | — | $ | 3,965 |
CuriosityStream Inc.
Reconciliation from Net Loss to Adjusted EBITDA
| Year Ended<br>December 31, | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) | 2022 | 2023 | 2022 | ||||
| Net loss | (4,659) | $ | (14,546) | $ | (48,896) | $ | (50,917) |
| Change in fair value of warrant liability | (552) | (213) | (5,404) | ||||
| Interest and other (income) expense | (740) | (1,272) | (176) | ||||
| Provision for Income taxes | 202 | 506 | 367 | ||||
| Equity method investment loss1 | 280 | 5,404 | 846 | ||||
| Depreciation and amortization2 | 126 | 496 | 699 | ||||
| Restructuring3 | — | 819 | — | ||||
| Impairment of content assets | — | 18,970 | — | ||||
| Impairment of goodwill and intangible assets | — | — | 3,603 | ||||
| Stock-based compensation | 1,589 | 3,999 | 6,644 | ||||
| Adjusted EBITDA | (3,407) | $ | (13,641) | $ | (20,187) | $ | (44,338) |
| 1 For the year ended December 31, 2023, the equity method investment losses included impairment charges of 2.3 million for the Company's investment in Watch Nebula LLC, and 2.0 million for the Company's investment in Spiegel TV Geschichte und Wissen GmbH & Co. KG. | |||||||
| 2 These amounts do not include amortization of content assets. | |||||||
| 3 Comprised primarily of severance and workforce optimization costs resulting from a December 2023 reduction in workforce. |
All values are in US Dollars.
CuriosityStream Inc.
Reconciliation from Net Cash Flow used in Operating Activities to Adjusted Free Cash Flow
| Three Months Ended<br>December 31, | Year Ended<br>December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2023 | 2022 | 2023 | 2022 | ||||
| Net cash flow used in operating activities | $ | (2,542) | $ | (8,779) | $ | (16,172) | $ | (39,523) |
| Purchases of property and equipment | — | — | (5) | (130) | ||||
| Restructuring payments1 | 144 | — | 144 | |||||
| Adjusted Free Cash Flow | $ | (2,398) | $ | (8,779) | $ | (16,177) | $ | (39,653) |
| 1 Consists primarily of severance and workforce optimization payments resulting from a December 2023 reduction in workforce. |