In February 2023, MidCap exercised their put option requiring CSSE to purchase such CSS AVOD Shares for $11,500,000. See Note 19, Subsequent Events, for further details.
Legal and Other Matters
The Company is not presently a party to any legal proceedings the resolution of which the Company believes would have a material adverse effect on its business, financial condition, operating results, or cash flows. However, any legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on its business, financial position, results of operations, and /or cash flows. Additionally, although the Company has specific insurance for certain potential risks, the Company may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on its business, financial condition, or results of operations.
Note 16 – Stockholders’ Equity
Amendment to Authorized Shares
On June 30, 2022, the shareholders of the Company approved an increase in the total authorized shares from 100,000,000 to 200,000,000, comprised of 140,000,000 million shares of Class A common stock, 20,000,000 share of Class B common stock and 40,000,000 shares of preferred stock, of which, 10,000,000 are classified as Series A preferred stock.
Treasury Stock
On February 25, 2022, the Board of Directors increased the total authorization under the Company’s stock repurchase program by $10,000,000 to $30,000,000. At December 31, 2022, the Company had $3,474,299 of authorization remaining under the $30,000,000 stock repurchase program. During 2022, the Company repurchased 1,410,036 shares of common stock at an average price of $9.90. During 2021, the Company repurchased 870,267 shares of common stock at an average price of $14.44.
Common Stock Issuance for Redbox Merger
On August 11, 2022, the Company acquired all the outstanding equity interests of Redbox. In conjunction with the merger, the Company issued 4,662,195 shares of its Class A common stock. See Note 4, Business Combinations, for additional information.
Common and Preferred Stock Issuance for 1091
On March 4, 2022, the Company acquired all the outstanding equity interests of 1091. In conjunction with the merger, the Company issued 375,000 shares of its Class A common stock and 80,000 shares of its preferred stock. See Note 4, Business Combinations, for additional information.
Underwritten Public Common Stock Offering
On July 7, 2021, the Company completed an underwritten public offering of 1,875,000 shares of common stock at a price $40.00 per common share, generating net proceeds of $70,500,000.
Common Stock Private Placement
On January 20, 2021, the Company completed a private placement of 1,022,727 shares of common stock at a price of $22.00 per common share, generating net proceeds of $21,374,994.
At the Market Offering
During the years ended December 31, 2022 and 2021, the Company completed the sale of an aggregate of 376,163 and 126,000 shares, respectively of Class A common stock, generating net proceeds of $3,702,926 and $3,435,819 in the respective periods.