Note 19: Commitments and Contingencies

The following is a schedule of future minimum cash contractual obligations as of March 31, 2025 (in thousands):

Leases

The present value discount of the minimum operating lease payments above was $2.2 million which when deducted from the cash commitments for the leases included in the table above, equates to the lease liabilities of $6.2 million recorded as of March 31, 2025 on the Company’s condensed consolidated balance sheet.

Employment contracts

The Company has entered into employment agreements with certain key executives, which remain in effect for fixed terms. Under these agreements, the executives receive a base salary, subject to potential reviews at the discretion of the Board of Directors. Some of these agreements also include provisions for severance benefits in certain circumstances. As a result, the Company's commitments under these agreements represent future salary or severance payments obligations.

Other Funding Commitments

The Company enters into various agreements associated with its individual properties. Some of these agreements call for the potential future payment of royalties or “profit” participations for either (i) the use of third party intellectual property, in which the Company is obligated to share net profits with the underlying rights holders on a certain basis as defined in the respective agreements, or (ii) services rendered by animation studios, post-production studios, writers, directors, musicians or other creative talent for which the Company is obligated to share with these service providers a portion of the net profits of the properties on which they have rendered services, as defined in each respective agreement.

In May 2024, the Company entered into a license agreement for the animated television series Andrew the Big BIG Unicorn, under which it committed to provide a non-refundable advance to one of the co-producers. As of March 31, 2025, approximately $0.5 million of the committed advance remains unpaid and is expected to be funded in 2025. The advance is recoupable from future distribution and licensing revenues generated within the Company’s licensed territories.