The Company’s lease assets and lease liabilities for its studios and corporate offices were as follows:
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Successor |
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|
|
March 31, |
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|
December 31, |
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|
|
2026 |
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|
2025 |
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Assets: |
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|
|
|
|
|
Operating leases |
|
$ |
2,549 |
|
|
$ |
2,933 |
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Total lease assets |
|
$ |
2,549 |
|
|
$ |
2,933 |
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|
|
|
|
|
|
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Liabilities: |
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|
|
|
|
Current |
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|
|
|
|
|
Operating leases |
|
$ |
1,183 |
|
|
$ |
1,260 |
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Noncurrent |
|
|
|
|
|
|
Operating leases |
|
|
1,571 |
|
|
|
1,893 |
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Total lease liabilities |
|
$ |
2,754 |
|
|
$ |
3,153 |
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The components of the Company’s lease cost were as follows:
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Successor |
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|
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Predecessor |
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|
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Three Months Ended |
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|
|
Three Months Ended |
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|
|
March 31, 2026 |
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|
|
March 29, 2025 |
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Operating lease cost: |
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|
|
|
|
|
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Fixed lease cost |
|
$ |
444 |
|
|
|
$ |
3,459 |
|
Variable lease cost |
|
|
— |
|
|
|
|
2 |
|
Total operating lease cost |
|
$ |
444 |
|
|
|
$ |
3,461 |
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The Company recorded sublease income for the three months ended March 31, 2026 (Successor) and the three months ended March 29, 2025 (Predecessor) of $172 and $1,119, respectively, as an offset to selling, general and administrative expenses. The Company’s weighted average remaining lease term and weighted average discount rates were as follows:
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|
|
|
|
|
|
|
Successor |
|
|
|
March 31, |
|
|
December 31, |
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|
|
2026 |
|
|
2025 |
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Weighted Average Remaining Lease Term (years) |
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|
|
|
|
|
Operating leases |
|
|
2.55 |
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|
|
2.69 |
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|
|
|
|
|
|
|
Weighted Average Discount Rate |
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|
|
|
|
|
Operating leases |
|
|
9.44 |
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|
|
9.42 |
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The Company’s leases have remaining lease terms of 0 to 4 years with a weighted average lease term of 2.55 years at March 31, 2026 (Successor). At March 31, 2026 (Successor), the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:
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|
|
|
|
Operating
Leases |
|
Remainder of fiscal 2026 |
$ |
1,045 |
|
Fiscal 2027 |
|
990 |
|
Fiscal 2028 |
|
675 |
|
Fiscal 2029 |
|
423 |
|
Fiscal 2030 |
|
— |
|
Fiscal 2031 |
|
— |
|
Thereafter |
|
— |
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Total lease payments |
$ |
3,133 |
|
Less imputed interest |
|
379 |
|
Present value of lease liabilities |
$ |
2,754 |
|
Supplemental cash flow information related to leases were as follows:
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|
|
|
Successor |
|
|
|
Predecessor |
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|
|
Three Months Ended |
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|
|
Three Months Ended |
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|
|
March 31, 2026 |
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|
|
March 29, 2025 |
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Cash paid for amounts included in the measurement of lease liabilities |
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|
|
|
|
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Operating cash flows from operating leases |
|
$ |
486 |
|
|
|
$ |
3,698 |
|
Operating cash flows from finance leases |
|
$ |
— |
|
|
|
$ |
— |
|
Financing cash flows from finance leases |
|
$ |
— |
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Lease assets obtained in exchange for new operating lease liabilities |
|
$ |
— |
|
|
|
$ |
171 |
|
Lease assets obtained in exchange for new finance lease liabilities |
|
$ |
— |
|
|
|
$ |
— |
|
|