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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): August 18, 2023
Chicken
Soup for the Soul Entertainment Inc. |
(Exact Name of Registrant as Specified in Charter) |
Delaware |
|
001-38125 |
|
81-2560811 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
132 E. Putnam Avenue, Floor 2W, Cos Cob, CT |
|
06807 |
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (855) 398-0443
N/A |
(Former Name or Former Address, if Changed Since Last Report) |
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):
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c)) |
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 ¨
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. ¨
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Ticker
symbol(s) |
|
Name of each exchange on which registered |
Class A Common Stock, $0.0001 par value per share |
|
CSSE |
|
The Nasdaq Stock Market LLC |
9.75% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.0001 par value per share |
|
CSSEP |
|
The Nasdaq Stock Market LLC |
9.50% Notes due 2025 |
|
CSSEN |
|
The Nasdaq Stock Market LLC |
Redeemable warrants, each 11.494 warrants exercisable for one share of common stock at an exercise price of $132.18 per share |
|
CSSEL |
|
The Nasdaq Stock Market LLC |
Securities
registered pursuant to Section 12(g) of the Act:
Title of each class |
|
Ticker
symbol(s) |
|
Name
of each exchange on which registered |
Class Z Warrants to purchase Class A Common Stock |
|
CSSEZ |
|
OTC Markets |
On August 18, 2023, Chicken Soup for
the Soul Entertainment Inc. (the “Company”) announced the timing for the payment of its declared regular monthly dividend,
for September 2023, of $0.2031 per share of the Company’s 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock, par value
$0.0001 (the “Series A Preferred Stock”). The dividend will be payable on or around September 15, 2023 to holders of
record as of August 31, 2023. The dividend will be paid in cash.
On August 18, 2023, the Company issued
a press release announcing the dividend. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and
is incorporated herein by reference.
ITEM 9.01. | FINANCIAL STATEMENT AND EXHIBITS. |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 18, 2023 |
CHICKEN SOUP FOR THE SOUL ENTERTAINMENT
INC. |
|
|
|
By: |
/s/ William
J. Rouhana, Jr. |
|
|
Name: William J. Rouhana, Jr. |
|
|
Title: Chief Executive Officer |
Exhibit 99.1
Chicken Soup for the Soul Entertainment Announces
Timing of Regular Monthly Dividend for September for Series A Cumulative Redeemable Perpetual Preferred Stock
COS COB, CT – August 18, 2023 –
Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE, CSSEP, CSSEL, CSSEN), one of the largest providers of premium content to value-conscious
consumers, today announced the timing for the payment of its declared regular monthly dividend of $0.2031 per share of its 9.75% Series
A Cumulative Redeemable Perpetual Preferred Stock for September 2023. The dividend will be payable on or around September 15, 2023 to
holders of record as of August 31, 2023. The dividend will be paid in cash.
About Chicken Soup for the Soul Entertainment
Chicken Soup for the Soul Entertainment (Nasdaq:
CSSE) provides premium content to value-conscious consumers. The company is one of the largest advertising-supported video-on-demand (AVOD)
companies in the US, with three flagship AVOD streaming services: Redbox, Crackle, and Chicken Soup for the Soul. In addition, the company
operates Redbox Free Live TV, a free ad-supported streaming television service (FAST), with nearly 180 FAST channels as well as a
transaction video on demand (TVOD) service, and a network of approximately 29,000 kiosks across the US for DVD rentals. To provide
original and exclusive content to its viewers, the company creates, acquires, and distributes films and TV series through its
Screen Media and Chicken Soup for the Soul TV Group subsidiaries. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup
for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand
name.
Note Regarding Use of Non-GAAP Financial Measures
Our consolidated financial statements are
prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). We use a
non-GAAP financial measure to evaluate our results of operations and as a supplemental indicator of our operating performance. The
non-GAAP financial measure that we use is Adjusted EBITDA. Adjusted EBITDA (as defined below) is considered a non-GAAP financial
measure as defined by Regulation G promulgated by the SEC under the Securities Act of 1933, as amended. Due to the significance of
non-cash and non-recurring expenses recognized during the years ended December 31, 2022 and 2021, and six months ended June 30, 2023
and 2022, and the likelihood of material non-cash, non-recurring, and acquisition related expenses to occur in future periods, we
believe that this non-GAAP financial measure enhances the understanding of our historical and current financial results as well as
provides investors with measures used by management for the planning and forecasting of future periods, as well as for measuring
performance for compensation of executives and other members of management. Further, we believe that Adjusted EBITDA enables our
board of directors and management to analyze and evaluate financial and strategic planning decisions that will directly affect
operating decisions and investments. We believe this measure is an important indicator of our operational strength and performance
of our business because it provides a link between operational performance and operating income. It is also a primary measure used
by management in evaluating companies as potential acquisition targets. We believe the presentation of this measure is relevant and
useful for investors because it allows investors to view performance in a manner similar to the method used by management. We
believe it helps improve investors’ ability to understand our operating performance and makes it easier to compare our results
with other companies that have different capital structures or tax rates. In addition, we believe this measure is also among the
primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our
operating performance to other companies in our industry.
The presentation of Adjusted EBITDA should not
be construed as an inference that our future results will be unaffected by unusual, infrequent or non-recurring items or by non-cash items.
This non-GAAP financial measure should be considered in addition to, rather than as a substitute for, our actual operating results included
in our condensed consolidated financial statements.
We define Adjusted EBITDA as consolidated operating
income (loss) adjusted to exclude interest, taxes, depreciation, amortization (including tangible and intangible assets), film library
amortization and related costs (film library amortization, film library revenue shares and participation costs, theatrical release costs)
as well as amortization for certain program rights, acquisition-related costs, consulting fees related to acquisitions, dividend payments,
non-cash share-based compensation expense, and adjustments for other unusual and infrequent in nature identified charges, including transition
related expenses. Adjusted EBITDA is not an earnings measure recognized by U.S. GAAP and does not have a standardized meaning prescribed
by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other companies. We believe Adjusted EBITDA
to be a meaningful indicator of our performance that management uses and believes provides useful information to investors regarding our
financial condition and results of operations. The most comparable GAAP measure is operating income (loss).
A reconciliation of net loss to Adjusted EBITDA
will be provided in the company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023 filed on or about
August 14, 2023, under the section thereof entitled “Management’s Discussion and Analysis of Financial Condition and
Results of Operations – Reconciliation of Unaudited Historical Results to Adjusted EBITDA.”
Forward-Looking Statements and Available Information
This press release
includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements
that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release,
and on the current expectations of management and are not predictions of actual performance. Such assumptions involve a number of
known and unknown risks and uncertainties, including but not limited to risks relating to our core strategy, operating income and
margin, seasonality, liquidity, including cash flows from operations, available funds, and access to financing sources, free cash
flows, revenues, net income, profitability, stock price volatility, future regulatory changes, price changes, ability to achieve and
sustain market acceptance of our content streaming services and other content offerings, ability to recruit and retain officers, key
employees, or directors, ability to protect our intellectual property, ability to complete and integrate into our existing
operations future strategic acquisitions, ability to manage growth, ability to pay dividends and our debt obligations, as well as
evolving regulatory or other operational risks, and risks presented by changing general market conditions impacting demand for our
services. For a more complete description of these and other risks and uncertainties, please refer to Item 1A (Risk Factors) in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023, as amended. If
any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied
by the forward-looking statements contained in this press release. Information regarding the acquisition of Redbox and related
transactions is qualified by reference to the Company’s Current Reports on Form 8-K filed with the SEC on May 11, 2022 as
amended May 12, 2022, June 6, 2022, August 12, 2022, November 14, 2022 and thereafter from time to time, and all exhibits filed with
respect to such reports. The forward-looking statements contained in this press release speak only as of the date hereof and the
Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
###
INVESTOR RELATIONS
Zaia Lawandow
Chicken Soup for the Soul Entertainment
Zlawandow@chickensoupforthesoul.com
MEDIA CONTACT
Peter Binazeski
Chicken Soup for the Soul Entertainment Corporate
pbinazeski@chickensoupforthesoul.com
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