# EDGAR Filing Document

**Accession Number:** 0001463833
**File Stem:** 0001213900-23-020329
**Filing Date:** 2023-3
**Character Count:** 19991
**Document Hash:** a052018d8436d0bcdeb7cd6bce749cc8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-020329.hdr.sgml**: 20230315

**ACCESSION NUMBER**: 0001213900-23-020329

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230315

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230315

**DATE AS OF CHANGE**: 20230315

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** IDW MEDIA HOLDINGS, INC.
- **CENTRAL INDEX KEY:** 0001463833
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-ADVERTISING [7310]
- **IRS NUMBER:** 264831346
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34355
- **FILM NUMBER:** 23735455

**BUSINESS ADDRESS:**
- **STREET 1:** 520 BROAD STREET
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102
- **BUSINESS PHONE:** 973-438-3385

**MAIL ADDRESS:**
- **STREET 1:** 520 BROAD STREET
- **CITY:** NEWARK
- **STATE:** NJ
- **ZIP:** 07102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CTM MEDIA HOLDINGS, INC.
- **DATE OF NAME CHANGE:** 20090511

?xml version="1.0" encoding="utf-8"?

**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 15, 2023**

**IDW Media Holdings, Inc.**

**(Exact name of registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **Delaware** | **001-34355** | **26-4831346** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

---

| | |
|:---|:---|
| **520 Broad Street**<br> **Newark, New Jersey** | **07102** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: 323-433-6670**

**Not Applicable**

**(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))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Title of each class** | **Trading Symbol** | **Name of each exchange on**<br> **which registered** |
| &nbsp;&nbsp;&nbsp;Class B common stock, par value $0.01 per share | IDW | NYSE American |

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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. ☐

**Item 2.02. Results of Operations and Financial Condition.**

On March 15, 2023, IDW Media Holdings, Inc. (the "Registrant") issued a press release announcing its results of operations for the fiscal quarter ended January 31, 2023. A copy of the earnings release concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the "SEC"). This information shall not be deemed to be "filed" with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition, this Report and the earnings release contain statements intended as "forward-looking statements" that are subject to the cautionary statements about forward-looking statements

set forth in the earnings release.

**Item 9.01** **Financial Statements and Exhibits.**

(d)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.

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| | |
|:---|:---|
| **Exhibit No.** | **Document** |
| 99.1 | [Earnings Release, dated March 15, 2023, reporting the results of operations for the fiscal quarter ended January 31, 2023.](ea175250ex99-1_idwmedia.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**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.

---

| | |
|:---|:---|
| **IDW MEDIA HOLDINGS, INC.** | **IDW MEDIA HOLDINGS, INC.** |
| By: | /s/ Allan I. Grafman |
| Name: | Allan I. Grafman |
| Title: | Chief Executive Officer |

---

Dated: March 15, 2023

**<u>EXHIBIT INDEX</u>**

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| | |
|:---|:---|
| **Exhibit No.** | **Document** |
| 99.1 | [Earnings Release, dated March 15, 2023, reporting the results of operations for the fiscal quarter ended January 31, 2023.](ea175250ex99-1_idwmedia.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

## Exhibit 99.1

**Exhibit 99.1**

**<u>IDW Announces Results for First Quarter Fiscal Year 2023</u>**

**LOS ANGELES, CA and NEWARK, NJ – March 15, 2023:** <u>IDW Media Holdings, Inc</u>., (the "Company" or "IDW") (NYSE American: IDW), an integrated media company, today reported results for the three months ended January 31, 2023.

**<u>First Quarter Fiscal 2023 (1Q23) Developments</u>**

● Consolidated revenue decreased 44% to $6.6 million from $11.8 million in 1Q22, primarily as a result of no meaningful revenue recognition for IDW Entertainment ("IDWE") during 1Q23.

● IDW Publishing ("IDWP") revenue decreased to $6.6 million from $7.5 million in 1Q22 primarily due to a decrease in games revenue compared to 1Q22, partially offset by an increase in retailer exclusive revenue and non-direct market publishing revenue. 1Q22 publishing revenue included approximately $1.9 million from the fulfillment of the direct-to-consumer games campaign for *Batman Adventures*.

● IDWE reported no meaningful revenue recognition in 1Q23 compared to $4.3 million in 1Q22, primarily related to revenue recognition related to the full delivery of *Locke & Key* season 2 in 1Q22.

● Consolidated loss from operations was $2.0 million compared to consolidated income from operations of $2.0 million in 1Q22.

● Net loss was $2.0 million, or $0.15 per share, compared to net income of $2.0 million, or $0.15 per share, in 1Q22.

Allan Grafman, Chief Executive Officer of IDW Media Holdings, commented, "The first quarter last year included revenues of $4.3 million from *Locke & Key Season 2* as well as almost $2 million for the fulfillment of a direct-to-consumer games campaign, providing for a challenging comparison. Importantly, print revenue in our publishing division delivered solid growth this quarter with strong sales for such titles as *Teenage Mutant Ninja Turtles, Last Ronin and Sonic the Hedgehog.* Strategically, we are focused on continuing to drive print sales but also realizing more consistent revenues through digital initiatives where we see considerable growth opportunity. On the entertainment side of the business, last year's first quarter demonstrated the positive impact that entertainment deals can have on our profitability, and the comparison to the current quarter shows the unpredictability of revenues in that industry. As we scale the entertainment business, there will be quarters where we will not recognize meaningful entertainment revenue and the magnitude of revenues moving forward may not be commensurate with those from historical deals. To be clear, within any given year, there will need to be a few productions put in place in order to break through to profitability. That said, we have some exciting properties optioned with top Hollywood partners and moving more properties to greenlit status remains a key focus.

"We view fiscal 2023 as an important building year for the company on our path to creating sustained shareholder value. Our publishing division has delivered consistent revenues throughout the last four quarters, and we are intently focused on discovering content and creators to continue to build our library. Overall, IDW is well-known and well-respected as the creative partner of choice from submission of original ideas to the development of dynamic entertainment vehicles that can be leveraged across numerous platforms. We continue to identify exciting new content from undiscovered, disruptive creators, and our team is energized by the opportunities that we are seeing to drive long-term growth as a leading independent media entity."

**<u>Consolidated P&L Highlights\*</u>**

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| | | | |
|:---|:---|:---|:---|
| *(\*In millions, except per <br> share data. Quarterly <br> results are unaudited <br> Numbers may not foot due to rounding)* | **1Q23** | **4Q22** | **1Q22** |
| Revenue | $6.6 | $10.5 | $11.8 |
| Direct cost of revenue | $3.4 | $4.4 | $4.8 |
| SG&A including non-cash compensation | $4.9 | $5.7 | $5.0 |
| &nbsp;&nbsp;&nbsp;Non-cash compensation included in SG&A | $0.2 | $0.2 | $0.1 |
| Depreciation & amortization | $0.2 | $0.1 | $0.1 |
| (Loss) income from operations | $(2.0) | $0.3 | $2.0 |
| Net (loss) income | $(2.0) | $0.4 | $2.0 |
| Net (loss) income per share | $(0.15) | $0.03 | $0.15 |

---

**<u>Segment P&L Highlights\*</u>**

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| | | | |
|:---|:---|:---|:---|
|  | **1Q23** | **4Q22** | **1Q22** |
| **Revenue** |  |  |  |
| IDW Publishing | $6.6 | $5.7 | $7.5 |
| IDW Entertainment | $- | $4.8 | $4.3 |
| **(Loss) income from operations** |  |  |  |
| IDW Publishing | $(0.3) | $(1.6) | $0.5 |
| IDW Entertainment | $(0.5) | $2.8 | $2.0 |
| Corporate (unallocated overhead) | $(1.2) | $(0.9) | $(0.5) |

---

**<u>Financial Take-Aways</u>**

*(1Q23 compared to 1Q22)*

● **Revenue:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o IDWP: In 1Q23, revenue decreased primarily due to a decrease in games revenue driven by fulfillment of the direct-to-consumer games
campaign for *Batman Adventures* in the prior year period, partially offset by an increase in sales for *Teenage Mutant Ninja Turtles: The Last Ronin* and retailer exclusive revenue predominately related to *Sonic the Hedgehog*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o IDWE: In 1Q23, IDWE did not generate meaningful revenue as the unit did not deliver any entertainment projects during the quarter.
IDWE recognizes revenue upon the delivery of the entertainment products it develops. In 1Q22, IDWE generated revenue of $4.3 million primarily
related to the full delivery of season 2 of *Locke & Key.* 

● **(Loss) Income from Operations:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o IDWP: In 1Q23, loss from operations was $0.3 million, compared to income from operations of $0.5 million in 1Q22. SG&A as a percentage
of revenue was 48.7% compared to 42.9% in 1Q22.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o IDWE: In 1Q23, loss from operations was $0.5 million, compared to income from operations of $2.0 million in 1Q22. SG&A decreased
to $0.5 million compared to $1.3 million in 1Q22.

● **Balance Sheet Highlights:** At January 31, 2023 IDW's cash balance was $9.3 million. Working capital (current assets less current liabilities) totaled $16.8 million.

**<u>Earnings Conference Call</u>**

IDW's management will host an earnings conference call beginning at 5:00 PM Eastern time today to present results, outlook, and strategy followed by Q&A with investors. To listen to the call and participate in the Q&A, dial (877) 704-4453 (domestic) or (201) 389-0920 (international) and request the 'IDW Media call' or use this link for instant telephone access to the call via your web browser.

A replay of the conference call can be accessed approximately three hours after the call concludes through Wednesday, March 22, 2023, by dialing (844) 512-2921 (domestic) or (412) 317-6671 (international) and providing the replay pin: 13736801. A recording of the conference call will also be available via streaming audio through the IDW investor relations website.

**About IDW Media Holdings:**

IDW (NYSE American: IDW) is an integrated media company providing compelling stories and characters for global audiences. Our IDW Publishing and IDW Entertainment businesses acquire IP for holistic franchise development across comics and graphic novels, television and other entertainment platforms and leverage established stories from our creative partners.

***Forward-Looking Statements:***

 ****

*In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended October 30, 2021 (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), and subsequent quarterly reports on Form 10-Q. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.*

**Contact:**

John Nesbett/Jennifer Belodeau

IMS Investor Relations

idw@imsinvestorrelations.com

**IDW MEDIA HOLDINGS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
| **(in thousands, except per share data)** | **January 31,<br> 2023**<br> **(unaudited)** | **October 31,<br> 2022** |
| **Assets** | | |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $9328 | $10014 |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 5661 | 6448 |
| &nbsp;&nbsp;&nbsp;Inventory | 4218 | 4285 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2395 | 2714 |
| Total current assets | 21602 | 23461 |
| **Non-current assets** |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 687 | 725 |
| &nbsp;&nbsp;&nbsp;Right-of-use assets, net | 1088 | 1157 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 731 | 859 |
| &nbsp;&nbsp;&nbsp;Goodwill | 199 | 199 |
| &nbsp;&nbsp;&nbsp;Television costs, net | 1536 | 1486 |
| &nbsp;&nbsp;&nbsp;Other assets | 54 | 54 |
| **Total assets** | $**25897** | $**27941** |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts payable | $1729 | $1321 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 2710 | 3353 |
| &nbsp;&nbsp;&nbsp;Production costs payable |  | 33 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 42 |  |
| &nbsp;&nbsp;&nbsp;Operating lease obligations – current portion | 284 | 278 |
| Total current liabilities | 4765 | 4985 |
| **Non-current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease obligations – long term portion | 837 | 911 |
| **Total liabilities** | $**5602** | $**5896** |
| **Stockholders' equity (see Note 3):** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value; authorized shares – 500; no shares issued at January 31, 2023 and October 31, 2022 |  |  |
| &nbsp;&nbsp;&nbsp;Class B common stock, $0.01 par value; authorized shares – 20,000; 14,101 and 14,053 shares issued and 13,582 and 13,534 shares outstanding at January 31, 2023 and October 31, 2022, respectively | 134 | 134 |
| &nbsp;&nbsp;&nbsp;Class C common stock, $0.01 par value; authorized shares – 2,500; 545 shares issued and outstanding at January 31, 2023 and October 31, 2022 | 5 | 5 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 104801 | 104553 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (83449) | (81451) |
| &nbsp;&nbsp;&nbsp;Treasury stock, at cost, consisting of 519 shares of Class B common stock at January 31, 2023 and October 31, 2022 | (1196) | (1196) |
| &nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **20295** | **22045** |
| **Total liabilities and stockholders' equity** | $**25897** | $**27941** |

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**IDW MEDIA HOLDINGS, INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)**

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| <br>**(in thousands, except per share data)** | **January 31, <br> 2023** | **January 31, <br> 2022** |
| Revenues | $6593 | $11849 |
| Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Direct cost of revenues | 3448 | 4790 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 4933 | 4992 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 202 | 83 |
| Total costs and expenses | 8583 | 9865 |
| (Loss) income from operations | (1990) | 1984 |
| Interest income (expense), net | 28 | (10) |
| Other (expense) income, net | (36) | 15 |
| **Net (loss) income** | $**(1998)** | $**1989** |
| Basic and diluted net (loss) income per share (see Note 2): |  |  |
| &nbsp;&nbsp;&nbsp;Net loss (income) | $(0.15) | $0.15 |
| Weighted-average number of shares used in the calculation of basic and diluted (loss) income per share: | 12932 | 12858 |

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**IDW MEDIA HOLDINGS, INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)**

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| <br>**(in thousands)** | **January 31,<br> 2023** | **January 31,<br> 2022** |
| **Operating activities:** | | |
| Net (loss) income | $(1998) | $1989 |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of television costs | (166) | 999 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 202 | 83 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 36 |  |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 13 |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 248 | 144 |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use asset | 69 | 121 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Trade accounts receivable | 774 | 1442 |
| &nbsp;&nbsp;&nbsp;Inventory | 67 | 168 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 319 | 492 |
| &nbsp;&nbsp;&nbsp;Television costs | 116 | (1101) |
| &nbsp;&nbsp;&nbsp;Operating lease liability | (68) | (154) |
| &nbsp;&nbsp;&nbsp;Trade accounts payable, accrued expenses, production costs payable and other current liabilities | (268) | (2534) |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 42 | (1980) |
| Net cash used in operating activities | (614) | (331) |
| **Investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (72) | (204) |
| Net cash used in investing activities | (72) | (204) |
| **Financing activities:** |  |  |
| Net cash used in financing activities | - | - |
| Net decrease in cash and cash equivalents | (686) | (535) |
| Cash and cash equivalents at beginning of period | 10014 | 17532 |
| Cash and cash equivalents at end of period | $**9328** | $**16997** |

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