# EDGAR Filing Document

**Accession Number:** 0001733443
**File Stem:** 0001410578-25-001822
**Filing Date:** 2025-8
**Character Count:** 122951
**Document Hash:** b93a94e712317fffb5859c950107c3b2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-25-001822.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001410578-25-001822

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 60

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** 5&2 Studios, Inc.
- **CENTRAL INDEX KEY:** 0001733443
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MOTION PICTURE & VIDEO TAPE PRODUCTION [7812]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 823246222
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56519
- **FILM NUMBER:** 251220122

**BUSINESS ADDRESS:**
- **STREET 1:** 8291 BAUCUM ROAD
- **CITY:** MIDLOTHIAN
- **STATE:** TX
- **ZIP:** 76065
- **BUSINESS PHONE:** 833-924-6736

**MAIL ADDRESS:**
- **STREET 1:** 8291 BAUCUM ROAD
- **CITY:** MIDLOTHIAN
- **STATE:** TX
- **ZIP:** 76065

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Chosen, Inc.
- **DATE OF NAME CHANGE:** 20221207

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Chosen, LLC
- **DATE OF NAME CHANGE:** 20180305

?xml version='1.0' encoding='ASCII'? 5&2 STUDIOS, INC._2025-06-30

[**Table of Contents**](#TOC)

------

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**Form 10-Q**

**(Mark One)**

**☒** **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE TRANSITION PERIOD FROM TO**

**Commission file number: 000-55029**

**5&2 STUDIOS, INC.**

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

---

| | |
|:---|:---|
| **Delaware** | **82-3246222** |
| *(State or other jurisdiction of<br>incorporation or organization)* | *(I.R.S. Employer<br>Identification No.)* |
| **8291 Baucum RoadMidlothian, TX**  | **76065** |
| *(Address of principal executive offices)* | *(Zip Code)* |

---

**(833) 924-6736**

*(Registrant's telephone number, including area code)*

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| None | N/A | N/A |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At August 1, 2025, 6,950,000 shares of the registrant's Series A Common Stock, $0.001 par value per share, were issued and outstanding and 5,585,229 shares of the registrant's Series B Common Stock, $0.001 par value per share, were issued and outstanding.

------

[**Table of Contents**](#TOC)

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | Page<br>|
| [**Part I - Financial Information**](#PartIFinancialInformation_556255) | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1. Financial Statements](#Item1FinancialStatements_268073) | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item2ManagementsDiscussionandAnalysisofF) | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#Item3QuantitativeandQualitativeDisclosur) | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 4. Controls and Procedures](#Item4ControlsandProcedures_318364) | 31 |
| [**Part II - Other Information**](#PartIIOtherInformation_918148) | **32** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1. Legal Proceedings](#Item1LegalProceedings_741026) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1A. Risk Factor](#Item1ARiskFactors_32660)s | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#Item2UnregisteredSalesofEquitySecurities) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 3. Default upon Senior Securities](#Item3DefaultuponSeniorSecurities_478444) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 4. Mine Safety Disclosures](#Item4MineSafetyDisclosures_36723) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 5. Other Information](#Item5OtherInformation_852028) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 6. Exhibits](#Item6Exhibits_683975) | 33 |

---

[**Table of Contents**](#TOC)

#### CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS
THIS QUARTERLY REPORT ON FORM 10-Q (THIS "QUARTERLY REPORT") MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE THIS FILING, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

[**Table of Contents**](#TOC)

**Part I - Financial Information**

#### Item 1. Financial Statements
**5&2 Studios, Inc.**

**Condensed Consolidated Balance Sheets**

**(in thousands, except par value)**

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
|  | (Unaudited) |  |
| **Assets** |  |  |
| Cash and cash equivalents | $31072 | $6466 |
| Accounts receivable, net of allowances of $0 and $22 as of June 30, 2025 and December 31, 2024, respectively | 53851 | 13474 |
| Inventory | 4575 | 5858 |
| Prepaid assets | 4270 | 3299 |
| Other current assets | 3477 | 2613 |
| &nbsp;&nbsp;Total current assets | 97245 | 31710 |
| Property and equipment, net | 26188 | 28431 |
| Film costs, net | 10725 | 16733 |
| Other assets | 5487 | 2696 |
| Deferred tax asset, net | 18464 | 15270 |
| &nbsp;&nbsp;Total assets | $158109 | $94840 |
| **Liabilities and Equity** |  |  |
| Accounts payable | $2495 | $2753 |
| Accrued expenses and other current liabilities | 59261 | 10773 |
| Deferred revenue | 65697 | 62112 |
| Current portion of lease liabilities | 664 | 659 |
| &nbsp;&nbsp;Total current liabilities | 128117 | 76297 |
| Other noncurrent liabilities | 6840 | 2552 |
| &nbsp;&nbsp;Total liabilities | 134957 | 78849 |
| Commitments and contingencies (Note 9) |  |  |
| Series A Common Stock, $0.001 par value; 10,900 shares authorized; 6,950 and 6,950 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 7 | 7 |
| Series B Common Stock, $0.001 par value; 25,000 shares authorized; 5,585 and 5,591 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 6 | 6 |
| Additional paid-in capital | 10237 | 10237 |
| Retained earnings | 10953 | 1558 |
| Noncontrolling interests | 1949 | 4183 |
| Total equity | 23152 | 15991 |
| Total liabilities and equity | $158109 | $94840 |

---

See accompanying notes to the condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**5&2 Studios, Inc.**

**Condensed Consolidated Statements of Operations**

**(Unaudited, in thousands, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Revenues |  |  |  |  |
| Licensed content and merchandise revenues | $38154 | $15068 | $74249 | $42605 |
| Production services revenues | 59014 | 68872 | 76122 | 68872 |
| Total revenues | 97168 | 83940 | 150371 | 111477 |
| Cost of licensed content and merchandise revenues | 32995 | 7271 | 62984 | 17598 |
| Cost of production services revenues | 28719 | 40083 | 36647 | 40083 |
| Distribution and marketing | 2814 | 7860 | 4523 | 22630 |
| Amortization of film costs |  | 3714 | 1901 | 14553 |
| Impairment of film costs | 10496 |  | 10496 |  |
| Depreciation and amortization | 1432 | 3577 | 4973 | 6403 |
| General and administrative | 9883 | 7396 | 19059 | 21352 |
| Operating expenses | 86339 | 69901 | 140583 | 122619 |
| Gain on sale of assets |  | 13022 |  | 13022 |
| Net operating income | 10829 | 27061 | 9788 | 1880 |
| Interest income | 176 | 77 | 288 | 370 |
| Interest expense |  | (2477) |  | (5432) |
| Other income, net  | 36 | 277 | 41 | 443 |
| Net income (loss) before income taxes | 11041 | 24938 | 10117 | (2739) |
| Provision for income taxes | (3219) | (8106) | (2956) | (2084) |
| Net income (loss) | 7822 | 16832 | 7161 | (4823) |
| Net loss attributable to noncontrolling interests | 762 | 1629 | 2234 | 3039 |
| Net income (loss) attributable to 5&2 Studios, Inc. | $8584 | $18461 | $9395 | $(1784) |
| Earnings (loss) per Common Stock, basic and diluted<sup>(1)</sup> | $0.68 | $1.47 | $0.75 | $(0.14) |
| Weighted average Common Stock outstanding, basic and diluted<sup>(1)</sup> | 12535 | 12544 | 12535 | 12544 |

---

<sup>(1)</sup> Represents earnings (loss) per share and weighted average issued and outstanding Series A Common Stock and Series B Common Stock (see Note 3).

See accompanying notes to the condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**5&2 Studios, Inc.**

**Condensed Consolidated Statements of Equity**

**(Unaudited, in thousands)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A** | **Series A** | **Series B** | **Series B** | | | | |
|  | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | |
| **Three Months Ended June 30, 2025** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** | <br>**Retained**<br>**Earnings**  | <br>**Noncontrolling**<br>**Interests** | <br>**Total**<br>**Equity** |
| **Balance as of March 31, 2025** | 6950 | $7 | 5585 | $6 | $10237 | $2369 | $2711 | $15330 |
| Net income (loss) |  |  |  |  |  | 8584 | (762) | 7822 |
| **Balance as of June 30, 2025** | 6950 | $7 | 5585 | $6 | $10237 | $10953 | $1949 | $23152 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A** | **Series A** | **Series B** | **Series B** | | | | |
|  | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | |
| **Six Months Ended June 30, 2025** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** | <br>**Retained**<br>**Earnings** | <br>**Noncontrolling**<br>**Interests** | <br>**Total**<br>**Equity** |
| **Balance as of December 31, 2024** | 6950 | $7 | 5591 | $6 | $10237 | $1558 | $4183 | $15991 |
| Retirement of common stock |  |  | (6) | (0) |  |  |  | (0) |
| Net income (loss) |  |  |  |  |  | 9395 | (2234) | 7161 |
| **Balance as of June 30, 2025** | 6950 | $7 | 5585 | $6 | $10237 | $10953 | $1949 | $23152 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A** | **Series A** | **Series B** | **Series B** | | | | |
|  | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | |
| **Three Months Ended June 30, 2024** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** | <br>**Retained**<br>**Earnings** | <br>**Noncontrolling**<br>**Interests** | <br>**Total**<br>**Equity** |
| **Balance as of March 31, 2024** | 6950 | $7 | 5595 | $6 | $10237 | $(5810) | $8325 | $12765 |
| Retirement of common stock |  |  | (1) | (0) |  |  |  | (0) |
| Net income (loss) |  |  |  |  |  | 18461 | (1629) | 16832 |
| **Balance as of June 30, 2024** | 6950 | $7 | 5594 | $6 | $10237 | $12651 | $6696 | $29597 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A** | **Series A** | **Series B** | **Series B** | | | | |
|  | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | |
| **Six Months Ended June 30, 2024** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** | <br>**Retained**<br>**Earnings** | <br>**Noncontrolling**<br>**Interests** | <br>**Total**<br>**Equity** |
| **Balance as of December 31, 2023** | 6950 | $7 | 5595 | $6 | $10237 | $14435 | $9735 | $34420 |
| Retirement of common stock |  |  | (1) | (0) |  |  |  | (0) |
| Net loss |  |  |  |  |  | (1784) | (3039) | (4823) |
| **Balance as of June 30, 2024** | 6950 | $7 | 5594 | $6 | $10237 | $12651 | $6696 | $29597 |

---

See accompanying notes to the condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**5&2 Studios, Inc.**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited, in thousands)**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net income (loss) | $7161 | $(4823) |
| Adjustments to reconcile net income (loss) to net cash from operating activities: |  |  |
| Depreciation and amortization expense | 4973 | 6403 |
| Amortization of film costs | 1901 | 14553 |
| Impairment of film costs | 10496 |  |
| Deferred income tax benefit | (3194) | (1547) |
| Accretion of debt discount and issuance costs |  | 473 |
| Non-cash lease expense | 12 | 17 |
| Gain on sale of assets |  | (13022) |
| Allowance (recovery) for credit losses | (1) | 43 |
| Changes in operating assets and liabilities: |  |  |
| (Increase) decrease in accounts receivable | (40355) | (17170) |
| (Increase) decrease in inventory | 598 | 68 |
| (Increase) decrease in prepaids and other current assets | (961) | (5319) |
| (Increase) decrease in film costs | (6332) | (5565) |
| &nbsp;&nbsp;Increase (decrease) in accounts payable | (489) | (2023) |
| &nbsp;&nbsp;Increase (decrease) in accrued expenses and other current liabilities | 49116 | 10410 |
| &nbsp;&nbsp;Increase (decrease) in deferred revenue | 3585 | (25999) |
| &nbsp;&nbsp;Increase (decrease) in other noncurrent liabilities | 595 | 1855 |
| Net cash flows provided by (used in) operating activities | 27105 | (41646) |
| **Cash flows from investing activities** |  |  |
| Acquisition of property & equipment | (2499) | (7059) |
| Net cash flows (used in) investing activities | (2499) | (7059) |
| **Cash flows from financing activities** |  |  |
| Proceeds from issuance of debt |  | 11684 |
| Net cash flows provided by financing activities |  | 11684 |
| Net increase (decrease) in cash and cash equivalents | 24606 | (37021) |
| Cash and cash equivalents, beginning of period | 6466 | 65179 |
| Cash and cash equivalents, end of period | $31072 | $28158 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $5010 | $— |
| Cash paid for interest | $— | $2697 |
| Cash received for interest | $288 | $370 |
| **Supplemental disclosure of non-cash investing and financing information:** |  |  |
| Purchase of property and equipment with accounts payable | $231 | $1163 |
| Accounts payable and accrued expenses and other current liabilities related to film costs, net | $57 | $(1672) |
| Forgiveness of debt in CAS Transaction | $— | $157184 |

---

See accompanying notes to the condensed consolidated financial statements.

[**Table of Contents**](#TOC)

**5&2 Studios, Inc.**

**Notes to the Condensed Consolidated Financial Statements**

**(Unaudited)**

#### Note 1 – Basis of Presentation and Summary of Significant Accounting Policies
5&2 Studios Inc. ("5&2"), a Delaware corporation, is an independent studio and film production company, which was created to develop and produce an episodic television series entitled *The Chosen* (the "Series"). The Series is based on the gospels of the Bible and tells the story of the life of Jesus Christ primarily through the perspectives of those who met him throughout his life. While 5&2 Studios, Inc. is primarily focused on producing the remaining two seasons of the Series, it continues to evaluate opportunities to diversify its content through other Biblical based productions. 5&2 is engaged in new productions, including a series based on the life of Moses, a series based on the life of Joseph called *Joseph of Egypt*, a series based on the book of Acts, an animated series based on *The Chosen* called *The Chosen Adventures*, and an unscripted show featuring *The Chosen* cast and adventure enthusiast Bear Grylls called *The Chosen in the Wild*.

The condensed consolidated financial statements of 5&2, its wholly owned subsidiaries The Chosen Texas, LLC, TCI Animation, LLC, The Chosen House, LLC, Dream Weaver Stories, LLC, and Pit to Palace Productions, LLC, and its variable controlling interests in Impossible Math, LLC and SAS52, LLC (collectively, the "Company"), have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and are consistent in all material respects with those applied in the Company's Annual Report for the year ended December 31, 2024 included in the Company's Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 31, 2025. All significant intercompany balances and transactions have been eliminated in consolidation.

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the expected project cost for production services, amortization of content assets, recognition and measurement of income tax assets and liabilities, determination of the standalone selling price for licensed content revenue, and fair value assessments related to film cost impairments. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. On a regular basis, the Company evaluates the assumptions, judgments, and estimates. Actual results may differ from these estimates.

The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Interim results are not necessarily indicative of the results for a full year.

The following is provided to update the Company's significant accounting policies previously described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. There have been no other changes in the Company's significant accounting policies as compared to the significant accounting policies described in the Company's Annual Report for the year ended December 31, 2024.

***Impairment Assessment for Film Costs***

Each film project is evaluated for impairment when an event or change in circumstances indicates that the fair value of a film may be less than its unamortized costs. The estimated fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the film. If the result of the impairment test indicates that the unamortized film costs exceed the estimated fair value, an impairment charge will then be recorded for the amount of the difference.

As a result of revised ultimate revenue forecasts and a change in distribution strategy for certain content, the Company recognized an impairment of film costs of $10,496 thousand reflected in impairment of film costs in the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025. There were no amounts recorded related to impairment of film costs for the three and six months ended June 30, 2024.

[**Table of Contents**](#TOC)

#### Consolidation
SAS52, LLC was formed on March 28, 2025, to develop, produce, and monetize original animated content, and on April 4, 2025, 5&2 became an equity holder. The Company holds a 50% voting interest in SAS52, LLC through its wholly owned subsidiary, 5&2 JV Holdco, LLC, and also holds a 50% economic interest as of June 30, 2025. The Company determined that SAS52, LLC is a variable interest entity ("VIE"). This is because while 5&2 Studios, Inc. does not have a majority equity interest compared to other owners, 5&2 Studios, Inc. controls SAS52, LLC through its role as managing member and decision-making authority over key operational and financial matters once projects are approved. Further, the Company concluded it is the primary beneficiary through its power to direct activities that most significantly impact SAS52's economic performance and its exposure to significant variable interests, including funding obligations, priority return rights, and revenue-based service fees.

As of June 30, 2025, and December 31, 2024, total consolidated assets and liabilities of the Company's consolidated VIEs, Impossible Math, LLC and SAS52, were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Total current assets | $42 | $252 |
| Total non-current assets | 21700 | 20450 |
| Total assets | $21742 | $20702 |
| Total current liabilities | $685 | $225 |
| Total non-current liabilities | 3817 | 126 |
| Total liabilities | $4502 | $351 |

---

As of June 30, 2025, the total non-contributing interest equity balances attributable to Impossible Math, LLC and SAS52 were $17,494 thousand and $0 thousand, respectively. As of December 31, 2024, the total non-contributing interest equity balance attributable to Impossible Math, LLC was $17,494 thousand; SAS52 did not exist at this time.

#### Concentrations of Credit Risk
The Company maintains its cash in bank deposit accounts which, at times, exceed federally insured limits. As of June 30, 2025, and December 31, 2024, the bank balance exceeded the federally insured limit by $15,329 thousand and $3,242 thousand, respectively.

A major customer is considered to be one that comprises more than 10% of the Company's accounts receivable or annual revenues.

For the three months ended June 30, 2025, the Company had three customers that individually comprised greater than 10% of revenue, representing 60.5%, 15.3%, and 13.8%, respectively. For the three months ended June 30, 2024, the Company had one customer that individually comprised greater than 10% of revenue, representing 82.0%.

For the six months ended June 30, 2025, the Company had three customers that individually comprised greater than 10% of revenue, representing 50.5%, 26.4%, and 13.9%, respectively. For the six months ended June 30, 2024, the Company had two customers that each individually comprised greater than 10% of revenue, representing 61.8% and 13.6%, respectively.

As of June 30, 2025, two customers accounted for a total of 81.2% of our accounts receivable balance or 70.8% and 10.4%, respectively. As of December 31, 2024, three customers accounted for a total of 90.5% of our accounts receivable balance or 43.2%, 30.2%, and 17.1%, respectively.

[**Table of Contents**](#TOC)

#### Note 2 - Revenue Recognition
Licensed content revenues are earned from licensing agreements which include distribution of the Company's intellectual property rights via (i) streaming of digital media, (ii) physical media (digital versatile discs ("DVDs") and Blu-ray discs), (iii) linear television, (iv) theatrical distribution of certain episodes or other content, (v) books and printed materials and (vi) merchandise.

Under these arrangements, the Company's performance obligation is a license that provides the licensee the right to use the Company's functional intellectual property rights, or uploaded marketing advertisements, as it exists at a point in time. Merchandise revenue is generated from online store and wholesale sales of *The Chosen* and 5&2 Studios, Inc. branded physical media products, and merchandise. The Company contracts with third parties to fulfill orders and also utilizes third-party distributors to sell merchandise to retailers. Other revenue consists of ticket revenues and fixed sponsor fees for events and experiences related to *The Chosen* and 5&2 Studios, Inc. Revenue from event promotion or production is recognized when the event occurs.

Production services revenue is earned by providing production services on a work-for-hire basis for the development, production, and delivery of the production project.

The following table presents the Company's disaggregated revenues (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Licensed content | $31812 | $2903 | $64264 | $25719 |
| Merchandise | 6242 | 12165 | 9885 | 16886 |
| Other | 100 |  | 100 |  |
| Licensed content and merchandise revenues | $38154 | $15068 | $74249 | $42605 |
| Production services revenues | 59014 | 68872 | 76122 | 68872 |
| Total revenues | $97168 | $83940 | $150371 | $111477 |

---

The following table presents revenue recognized for goods transferred at a point in time and services transferred over time on the Condensed Consolidated Statements of Operations (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Point in time | $38154 | $15068 | $74249 | $42605 |
| Over time | 59014 | 68872 | 76122 | 68872 |
| Total revenues | $97168 | $83940 | $150371 | $111477 |

---

*Transaction Price Allocated to the Remaining Performance Obligations*

The Company's remaining performance obligations under contracts primarily relate to production services arrangements that have original expected durations longer than one year. For arrangements that are short-term in nature with a contract term of one year or less, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

As of June 30, 2025, the aggregate consideration of the Company's revenue arrangement allocated to remaining performance obligations in the Company's arrangements was approximately $237,365 thousand, which relates to the allocated fixed and variable consideration for the Company's remaining production services performance obligations to develop, produce and deliver the rights and completed content of the sixth and seventh seasons of *The Chosen*. The Company expects to recognize the revenue from these remaining partially satisfied and unsatisfied performance obligations over one to three years.

[**Table of Contents**](#TOC)

*Contract Assets and Liabilities*

A contract asset is recorded when revenue is recognized in advance of the Company's right to bill and receive consideration, and that right is conditioned upon something other than the passage of time. The Company did not have any contract assets from arrangements with customers as of June 30, 2025 and December 31, 2024.

Contract liabilities are recorded when consideration is received from a customer prior to fully satisfying a performance obligation in a contract. The Company's contract liabilities primarily consist of deferred revenue for cash received related to production services in advance of, or in excess of, the revenue recognized from satisfaction of the production service obligations, licensed content arrangements under which a payment has been received and related the content has not yet been made available to the customer, and cash received related to merchandise arrangements under which a payment has been received and the order is unfulfilled. These contract liabilities will be recognized as revenues when the performance obligation is satisfied, and control is transferred to the customer.

As of June 30, 2025 and December 31, 2024, total deferred revenue was $65,697 thousand and $62,112 thousand, respectively, which primarily relates to deferred amounts for production services in progress for Season 6 and the Company's obligations to perform production services for Season 7 of the Series. Revenue recognized during the three and six months ended June 30, 2025 from amounts included in total deferred revenue as of December 31, 2024 was $44,831 thousand and $61,795 thousand, respectively. Revenue recognized during the three and six months ended June 30, 2024 from amounts included in total deferred revenue as of December 31, 2023 was $70 thousand and $900 thousand, respectively.

#### Note 3 – Earnings (loss) per share
Earnings (loss) per share ("EPS") is calculated using the two-class method, which requires the allocation of earnings to each class of common stock outstanding and to participating securities with rights to earnings that would otherwise have been available to common stockholders. Except with respect to the number of votes per share, Series A Common Stock and Series B Common Stock have the same rights and preferences, including equal rights to participation in the dividends and other distributions of the Company. Accordingly, basic and diluted earnings per share is the same for both classes and EPS for the six months ended June 30, 2025 have been presented as a single class of common stock.

As of June 30, 2025, the Company does not have any potentially dilutive instruments outstanding.

#### Note 4 – Balance Sheet Components

#### Inventory
Inventory consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Raw materials | $175 | $175 |
| Finished goods | 4540 | 5745 |
| Inventory reserve | (140) | (62) |
| Inventory | $4575 | $5858 |

---

[**Table of Contents**](#TOC)

#### Property and Equipment
Property and Equipment and accumulated depreciation consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** | <br>**Estimated**<br>**Useful Lives** |
|  | (in thousands) | (in thousands) | (in years) |
| Land | $90 | $90 |  |
| Capitalized software and IT systems | 782 | 668 | 3 |
| Buildings and improvements | 51855 | 51078 | 2 – 30 |
| Equipment | 549 | 519 | 3 – 15 |
| Furniture and fixtures | 140 | 130 | 5 |
| Vehicles | 476 | 476 | 8 |
| Construction in process | 1824 | 25 |  |
| &nbsp;&nbsp;Property and equipment, gross | 55716 | 52986 |  |
| &nbsp;&nbsp;Accumulated depreciation | (29528) | (24555) |  |
| &nbsp;&nbsp;Property and equipment, net | $26188 | $28431 |  |

---

No impairment of property and equipment was recorded during the six months ended June 30, 2025 or the year ended December 31, 2024. Depreciation of property and equipment was $1,432 thousand and $3,575 thousand for the three months ended June 30, 2025 and 2024, respectively. Depreciation of property and equipment was $4,973 thousand and $6,399 thousand for the six months ended June 30, 2025 and 2024, respectively.

#### Film Costs
The following table represents the components of film costs (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Released and completed film costs | $2469 | $2469 |
| Not released, in production film costs | 18297 | 14680 |
| In development or preproduction film costs | 2925 | 153 |
| &nbsp;&nbsp;Film costs, gross | 23691 | 17302 |
| &nbsp;&nbsp;Accumulated amortization and impairments  | (12966) | (569) |
| &nbsp;&nbsp;Film costs, net  | $10725 | $16733 |

---

Amortization expense for film costs for the three months ended June 30, 2025 and 2024 was $— thousand and $3,714 thousand, respectively. Amortization expense for film costs for the six months ended June 30, 2025 and 2024 was $1,901 and $14,553 thousand, respectively.

There are no future aggregate amounts of amortization expense expected to be recognized over the next five years related to released and completed film costs as of June 30, 2025.

As a result of revised ultimate revenue forecasts and a change in distribution strategy for certain content, the Company recognized an impairment of film costs of $10,496 thousand for the three and six months ended June 30, 2025. There were no amounts recorded related to impairment of film costs for the three and six months ended June 30, 2024. Impairments of film costs are recorded in Impairment of film costs on the Company's Condensed Consolidated Statements of Operations.

[**Table of Contents**](#TOC)

#### Leases
The Company has operating leases for certain Company offices and other facilities related to film production. The leases expire at various dates through 2036 and provide for renewal options ranging from one month to four terms of ten-years. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties. There were no finance leases as of June 30, 2025 and December 31, 2024.

The Company's operating right-of-use assets and lease liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Operating right of use assets (1) | $4670 | $984 |
| Operating short-term lease liabilities (2) | $664 | $659 |
| Operating long-term lease liabilities (3) | 3904 | 211 |
| Total operating lease liabilities | $4568 | $870 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Included in Other assets in the Condensed Consolidated Balance Sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Included in Current portion of lease liabilities in the Condensed Consolidated Balance Sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Included in Other noncurrent liabilities, net of current portion in the Condensed Consolidated Balance Sheets.

The components of lease costs consisted of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Lease costs** |  |  |  |  |
| Operating lease cost | $263 | $134 | $477 | $268 |
| Variable and short-term lease cost | 2243 | 616 | 2685 | 1079 |
| Total lease cost | $2506 | $750 | $3162 | $1347 |

---

Cash paid during the period for amounts included in the measurement of lease liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** |
| Operating cash flows for amounts included in the measurement of operating lease liabilities | $465 | $251 |
| Right-of-use assets obtained in exchange for operating lease obligations | $4096 | $79 |

---

Supplemental balance sheet information related to leases consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Weighted average remaining lease term (in years): |  |  |
| Operating leases | 10.28 years | 1.40 years |
| Weighted average discount rate: |  |  |
| Operating leases | 6.37% | 6.59% |

---

[**Table of Contents**](#TOC)

Maturities of lease liabilities as of June 30, 2025 were as follows (in thousands):

---

| | |
|:---|:---|
|  | **Operating Leases** |
| Remainder of 2025 | $565 |
| 2026 | 674 |
| 2027 | 527 |
| 2028 | 500 |
| 2029 | 500 |
| Thereafter | 3459 |
| &nbsp;&nbsp;Total lease payments | 6225 |
| Imputed interest | (1657) |
| &nbsp;&nbsp;Total lease liability | $4568 |

---

#### Accrued expenses and other current liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **As of**  | **As of**  |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Royalties, residuals, and participation fees | $47436 | $4745 |
| Income tax payable | 4365 | 3123 |
| Returns allowance | 1838 | 1858 |
| Accrued compensation | 1729 | 61 |
| Accrued inventory purchases  | 872 | 167 |
| Credit card liabilities  | 630 | 268 |
| Other  | 2391 | 551 |
| Accrued expenses and other current liabilities | $59261 | $10773 |

---

#### Note 5 - Equity
Each share of Series A Common Stock is entitled to ten votes per share, and each share of Series B Common Stock is entitled to one vote per share. Except with respect to the number of votes per share, Series A Common Stock and Series B Common Stock have the same rights and preferences, including equal rights to participation in the dividends and other distributions of the Company.

#### Note 6 - Income Taxes

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six Months Ended**  | **Six Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Deferred provision for income tax | $604 | $4605 | $(3194) | $(1547) |
| Current income taxes | 2615 | 3501 | 6150 | 3631 |
| Provision for income taxes | $3219 | $8106 | $2956 | $2084 |
| Effective tax rate | 29% | 33% | 29% | -76% |

---

The effective tax rate for the three and six months ended June 30, 2025 differed from the Federal statutory rate primarily due to the impact from the net loss attributable to noncontrolling interest ("NCI"), executive compensation, and the benefit of state income taxes, net of Federal income tax effect.

The effective tax rate for the three and six months ended June 30, 2024 differed from the Federal statutory rate primarily due to the impact from the net loss attributable to NCI and the benefit of state income taxes, net of Federal income tax effect.

[**Table of Contents**](#TOC)

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes significant changes to U.S. tax law, including modifications to making bonus depreciation permanent, enabling domestic research cost expensing, and adjusting the business interest expense limitation. The Company is in the process of evaluating the impact of the OBBBA on its Consolidated Financial Statements.

#### Note 7 – Employee Benefits
***Defined Contribution Retirement***

**The Company sponsors a defined contribution retirement savings plan under Section 401(k) of the Internal Revenue Code which covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre- or post-tax basis. During the three months ended June 30, 2025 and 2024, the Company contributions to the plan amounted to $185 thousand and $135 thousand, respectively. During the six months ended June 30, 2025 and 2024, the Company contributions to the plan amounted to $355 thousand and $265 thousand, respectively.**

#### Phantom Stock Compensation Plans
**During the year ended December 31, 2024, 5&2 Studios, Inc. authorized three incentive plans (collectively the "Phantom Unit Plans") aimed at driving the Company's success by motivating key contributors. Each plan grants awards in the form of "Phantom Units," which provide recipients with the right to receive cash payments, less applicable withholding, equivalent to the distribution rights of Series B common shares in a qualifying sale event. While these Phantom Units do not confer ownership rights, they are also entitled to dividends, if declared, equivalent to those of Series B common stock in addition to the right to cash payment contingent upon a qualifying sale event.**

#### The following table presents Phantom Units authorized, as well as granted and outstanding under each plan as of June 30, 2025:

---

| | |
|:---|:---|
|  | **Phantom Units** |
| Authorized | 2,930,000 |
| Outstanding as of December 31, 2024 | 2,178,000 |
| Granted | 482,000 |
| Outstanding as of June 30, 2025 | 2,660,000 |

---

**The vesting conditions for all Phantom Units granted under the plans include a performance condition contingent upon a qualifying sale event, as defined in the respective agreements. The units may only be settled through cash payment. Pursuant to the first amendment to the Phantom Unit Plans executed on January 28, 2025 ("First Amendment to the Phantom Unit Plans"), payment relating to certain of the Phantom Unit's award agreements fully vests upon occurrence of a qualifying event, subject to continuous employment with the Company through each date. Prior to the First Amendment to the Phantom Unit Plans, payment under these award agreements previously vested upon the qualifying sale event, and in part, subject to the occurrence of a qualifying sale event, at which time a specified percentage of the unit's right to payment would be immediately vested, based on a years of service formula as of the qualifying sale date, while the remaining portion would vest in two equal annual installments following the qualifying sale date anniversary, subject to continuous employment with the Company through each date. Additionally, certain Phantom Units were granted for which cash payment fully vests upon the qualifying sale event and shall be entitled to the cash payment at the qualifying sale event plus a sale bonus percentage, as specified in the award agreement.**

**The awards are liability-classified as they may only be settled in cash and are therefore subject to remeasurement based on changes in the estimated fair value of the Phantom Units at each reporting date through date of settlement. The fair value of the units was determined by considering a number of objective and subjective factors, including the following: the Company's operating and financial forecasts with consideration to the valuation of comparable companies, the discount for lack of marketability of common stock, and other general and industry specific economic factors. As all Phantom Units are contingent upon the performance vesting condition of a qualifying sale, expense is only recognized once the event becomes probable, which shall be upon the occurrence of the qualifying sale event. Therefore, as the qualifying sale event is not considered probable, no expense has been recognized for these awards. As such, no compensation expense or liability was recognized as of June 30, 2025, related to these awards.**

[**Table of Contents**](#TOC)

#### Note 8 - Related Party Transactions
The Company has entered into various agreements with an executive and their immediate family member to write various books related to the Series. They receive a percentage of sales for each book. The Company recognized expenses from transactions with related parties for writer fees and book royalties of $20 thousand and $34 thousand during the three months ended June 30, 2025 and 2024, respectively. The Company recognized expenses from transactions with related parties for writer fees and book royalties of $23 thousand and $53 thousand during the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and 2024, there were related party liability balances of $9 thousand and $21 thousand, respectively.

#### Note 9 - Commitments and Contingencies

#### Commitments
The Company does not have any contractual commitments outside those addressed below.

Refer to Note 4 *Balance Sheet Components* for information related to the Company's contractual commitments for leasing arrangements.

***Contingencies***

*Phantom Stock Compensation Plans*

The Phantom Units granted and outstanding in the Company's Phantom Stock Compensation Plans are liability-classified awards that may only be settled in cash and are remeasured to fair value at each reporting date through the date of settlement. Cash payment pursuant to the Phantom Units and the associated compensation expense related to these awards are only incurred in the event of a qualifying sale event, and as such, no expense or liability has been recognized as of June 30, 2025. The estimated contingent liability and unrecognized compensation expense related to the outstanding units was $33,803 thousand and $27,325 thousand as of June 30, 2025 and December 31, 2024, respectively.

#### Litigation
As of October 18, 2022, the Company had entered into a non-exclusive license agreement ("Content License Agreement") with Angel Studios, Inc. ("Angel" or "Angel Studios") pursuant to which the Company granted Angel a non-exclusive license to exploit the Series in exchange for a defined share of Angel's revenues from such exploitation. As described in the Form 8-K filed on April 10, 2023, by the Company, the Company delivered to Angel a Notice of Termination of the Content License Agreement on April 4, 2023, due to Angel's previously noticed and uncured material breaches of the Content License Agreement. Initially, the Company elected to hold the termination in abeyance pending binding arbitration of the dispute with Angel, which the Company initiated on April 6, 2023. On October 15, 2023, following additional noticed and uncured material breaches by Angel, the Company delivered to Angel a second Notice of Termination, with such termination of the Content License Agreement to be effective as of October 20, 2023.

As disclosed in the Company's Form 10 - K filed with the SEC on April 1, 2024, the Company's Form 10 - Q filed with the SEC on May 15, 2024, August 14, 2024 and November 14, 2024, respectively, and the Company's Current Reports on Form 8 - K filed with the SEC on April 10, 2023, October 19, 2023, May 15, 2024, May 31, 2024 and October 1, 2024, the termination of the Content License Agreement was the subject of a private binding arbitration initiated by the Company to resolve the dispute. On May 28, 2024, the arbitrator of the dispute issued an interim arbitration award in favor of the Company which, among other things, found multiple material breaches had been committed by Angel and upheld the Company's termination of the Content License Agreement. As described in the Form 8 - K filed on October 1, 2024, the arbitrator of the dispute issued the final arbitration award in favor of the Company on September 25, 2024, which includes an award of $5,097 thousand in attorneys' fees and recoverable costs payable by Angel to the Company. Angel filed a notice of appeal of the final arbitration award with the American Arbitration Association on October 25, 2024, pursuant to the appellate procedures provided for in the Content License Agreement. On June 13, 2025, the appellate tribunal affirmed the final arbitration award.

[**Table of Contents**](#TOC)

Additionally, on August 16, 2024, Angel Studios filed a complaint against the Company in the Fourth Judicial District of Utah. That complaint and record are classified as private under Utah law. On September 4, 2024, the Company filed a motion to dismiss the complaint or have the proceedings compelled to arbitration. On May 27, 2025, the Court granted the Company's motion to compel arbitration and found Angel Studios liable for reasonable attorneys' fees incurred in connection with the Company's motion. On June 5, 2025, Angel Studios filed a Demand for Arbitration against the Company with the American Arbitration Association in accordance with the Court's May 27, 2025 ruling.

Based on the outcome of the ongoing proceedings to date, the Company does not believe these proceedings will have a material negative impact on the Company's financial position, results of operations, or liquidity. Furthermore, any potential recovery represents a gain contingency; accordingly, due to uncertainty regarding collection as of June 30, 2025, the Company has not recorded any potential recovery. Subsequent to June 30, 2025, the Company satisfactorily settled all of the aforementioned disputes through a comprehensive settlement agreement with Angel Studios (see Note 11 regarding subsequent events).

*Employment Agreement*

On March 28, 2025, the Company entered into an employment agreement with a key executive officer that provides for two contingent performance-based one-time bonuses, each with a maximum payout of $1,000 thousand, subject to the achievement of defined performance targets. In addition, the executive is eligible to receive episodic fees for services provided as a showrunner, writer, and director on designated projects, and an episodic executive producer fee for projects in which the executive is not serving as showrunner. Each such fee as well as the executive's salary is subject to an automatic 5% annual escalation effective January 1 of each year. Additionally, the agreement includes provisions for severance benefits, including in certain circumstances, payment of salary and bonuses through the remainder of the executive agreement contract term. As a result, the Company's commitments and contingencies relate to future salary, bonuses, and severance payment obligations.

*Film Cost Incentives*

The Company has access to a governmental program that is designed to promote content production within the States of Texas, Utah, and New Mexico. As of June 30, 2025, and December 31, 2024, the Company had received $2,723 thousand and $— in incentives, respectively. The Company recognizes these benefits when there is reasonable assurance regarding the realizable amount of the incentive.

#### Note 10 – Information on Business Segments
The Company operates in five operating and reportable segments: Theatrical, Television & Streaming, Merchandise, Events/Other, and Production Services. The segments are based on the nature of products and services offered, as well as how the chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer and Chief Financial Officer together, reviews financial results for evaluating segment performance and allocating resources. The CODM uses segment adjusted operating income / (loss) to assess financial performance and allocate resources. Segment information is based on the "management" approach, which designates the internal reporting used by management for making decisions and assessing performance of the segments.

Segment adjusted operating income / (loss) results include the revenues and cost of revenues, distribution and marketing, and general and administrative expenses which are directly attributable to each segment. Segment adjusted operating income / (loss) excludes income and expenses which are not directly related to the operations of the segment or management believes are not relevant to management's assessment of the operating performance of the segments to make resource allocations. These excluded costs include amortization and impairment of film costs, depreciation and amortization, unallocated indirect distribution and marketing and general and administrative costs, which costs are corporate or company-wide in nature, as well as nonrecurring items and non-operating income and expenses. The CODM does not review assets in evaluating the results of the segments, and therefore, such information is not presented.

[**Table of Contents**](#TOC)

The financial results of the Company's segments for the three and six months ended June 30, 2025 were as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** | **For the Three Months Ended June 30, 2025** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Theatrical** | **Television & Streaming** | **Merchandise** | **Events/Other** | **Production Services** | **Total** |
| Total revenues: |  |  |  |  |  |  |
| Licensed content and merchandise revenues | $18653 | $13159 | $6242 | $100 | $— | $38154 |
| Production services revenues |  |  |  |  | 59014 | 59014 |
| Total revenues | 18653 | 13159 | 6242 | 100 | 59014 | 97168 |
| Cost of revenues - direct |  |  | 4274 |  | 28719 | 32993 |
| Royalties, residuals and participation fees | 17187 | 10361 | 1172 |  |  | 28720 |
| Distribution & marketing - direct |  |  | 1232 |  |  | 1232 |
| Other segment items |  |  | 629 |  | 666 | 1295 |
| Segment adjusted operating income (loss) | $1466 | $2798 | $(1065) | $100 | $29629 | $32928 |
| Corporate and unallocated operating expenses |  |  |  |  |  | (7442) |
| Nonrecurring operating expenses |  |  |  |  |  | (2729) |
| Amortization and impairment of film costs |  |  |  |  |  | (10496) |
| Depreciation and amortization |  |  |  |  |  | (1432) |
| Gain on sale of assets |  |  |  |  |  |  |
| Interest income |  |  |  |  |  | 176 |
| Interest expense |  |  |  |  |  |  |
| Other income, net |  |  |  |  |  | 36 |
| Provision for income taxes  |  |  |  |  |  | (3219) |
| Net income |  |  |  |  |  | $7822 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** | **For the Six Months Ended June 30, 2025** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Theatrical** | **Television & Streaming** | **Merchandise** | **Events/Other** | **Production Services** | **Total** |
| Total revenues: |  |  |  |  |  |  |
| Licensed content and merchandise revenues | $24633 | $39631 | $9885 | $100 | $— | $74249 |
| Production services revenues |  |  |  |  | 76122 | 76122 |
| Total revenues | 24633 | 39631 | 9885 | 100 | 76122 | 150371 |
| Cost of revenues - direct |  |  | 7407 |  | 36647 | 44054 |
| Royalties, residuals and participation fees | 22435 | 31469 | 1673 |  |  | 55577 |
| Distribution & marketing - direct |  |  | 1941 |  |  | 1941 |
| Other segment items |  |  | 1203 |  | 1516 | 2719 |
| Segment adjusted operating income (loss) | $2198 | $8162 | $(2339) | $100 | $37959 | $46080 |
| Corporate and unallocated operating expenses |  |  |  |  |  | (13674) |
| Nonrecurring operating expenses |  |  |  |  |  | (5248) |
| Amortization and impairment of film costs  |  |  |  |  |  | (12397) |
| Depreciation and amortization |  |  |  |  |  | (4973) |
| Gain on sale of assets |  |  |  |  |  |  |
| Interest income |  |  |  |  |  | 288 |
| Interest expense |  |  |  |  |  |  |
| Other income, net |  |  |  |  |  | 41 |
| Provision for income taxes |  |  |  |  |  | (2956) |
| Net income  |  |  |  |  |  | $7161 |

---

[**Table of Contents**](#TOC)

The financial results of the Company's segments for the three and six months ended June 30, 2024 were as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** | **For the Three Months Ended June 30, 2024** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Theatrical** | **Television & Streaming** | **Merchandise** | **Events/Other** | **Production Services** | **Total** |
| Total revenues: |  |  |  |  |  |  |
| Licensed content and merchandise revenues | $1158 | $1438 | $12165 | $307 | $— | $15068 |
| Production services revenues |  |  |  |  | 68872 | 68872 |
| Total revenues | 1158 | 1438 | 12165 | 307 | 68872 | 83940 |
| Cost of revenues - direct |  |  | 6309 |  | 40104 | 46413 |
| Royalties, residuals and participation fees | 4 | 127 | 811 |  |  | 942 |
| Distribution & marketing - direct | 404 |  | 1559 |  |  | 1963 |
| Other segment items |  |  | 411 |  | 1117 | 1528 |
| Segment adjusted operating income | $750 | $1311 | $3075 | $307 | $27651 | $33094 |
| Corporate and unallocated operating expenses |  |  |  |  |  | (7429) |
| Nonrecurring operating expenses |  |  |  |  |  | (4335) |
| Amortization of film costs |  |  |  |  |  | (3714) |
| Depreciation and amortization |  |  |  |  |  | (3577) |
| Gain on sale of assets |  |  |  |  |  | 13022 |
| Interest income |  |  |  |  |  | 77 |
| Interest expense |  |  |  |  |  | (2477) |
| Other income, net |  |  |  |  |  | 277 |
| Provision for income taxes |  |  |  |  |  | (8106) |
| Net income |  |  |  |  |  | $16832 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** | **For the Six Months Ended June 30, 2024** |
| **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Theatrical** | **Television & Streaming** | **Merchandise** | **Events/Other** | **Production Services** | **Total** |
| Total revenues: |  |  |  |  |  |  |
| Licensed content and merchandise revenues | $15769 | $8291 | $16886 | $1659 | $— | $42605 |
| Production services revenues |  |  |  |  | 68872 | 68872 |
| Total revenues | 15769 | 8291 | 16886 | 1659 | 68872 | 111477 |
| Cost of revenues - direct |  |  | 9342 |  | 40104 | 49446 |
| Royalties, residuals and participation fees | 7238 | 127 | 871 |  |  | 8236 |
| Distribution & marketing - direct | 7438 |  | 2302 |  |  | 9740 |
| Other segment items |  |  | 741 |  | 1117 | 1858 |
| Segment adjusted operating income | $1093 | $8164 | $3630 | $1659 | $27651 | $42197 |
| Corporate and unallocated operating expenses |  |  |  |  |  | (20363) |
| Nonrecurring operating expenses |  |  |  |  |  | (12020) |
| Amortization of film costs |  |  |  |  |  | (14553) |
| Depreciation and amortization |  |  |  |  |  | (6403) |
| Gain on sale of assets |  |  |  |  |  | 13022 |
| Interest income |  |  |  |  |  | 370 |
| Interest expense |  |  |  |  |  | (5432) |
| Other income, net |  |  |  |  |  | 443 |
| Provision for income taxes |  |  |  |  |  | (2084) |
| Net loss |  |  |  |  |  | $(4823) |

---

[**Table of Contents**](#TOC)

*Other Segment Items* – Represents costs that are directly attributable to the Company's segments, including direct employee costs and certain IT expenses, contracted services expenses, and meals and entertainment expenses.

*Corporate and Unallocated Operating Expenses* – Represents costs that are not directly attributable to the Company's segments, including undistributed general and administrative expenses and unallocated advertising and marketing expenses related to brand awareness.

*Nonrecurring Operating Expenses* – Includes significant and infrequent expenses that are not expected to recur regularly as part of normal operations or directly related to the Company's segments, such as abandoned marketing project expenses, nonrecurring legal and litigation expenses, and nonrecurring accounting and consulting expenses.

#### Note 11 - Subsequent Events
Management has evaluated events and transactions for potential recognition or disclosure through August 14, 2025, the date the condensed consolidated financial statements were available to be issued.

*Angel Litigation Settlement*

On July 11, 2025, the Company entered into a settlement agreement with Angel (the "Settlement"), under which the Company and Angel settled all pending lawsuits and arbitrations between them. Pursuant to the Settlement, Angel agreed to pay $5,761 thousand to the Company. Additionally, as part of the Settlement, the Company and Angel mutually agreed to engage a third party to notify all customers who contributed Pay-It-Forward ("PIF") funds to Angel intended for The Chosen since October 20, 2023 that they could elect to either have those funds returned to them or redirect those funds to Come and See Foundation, Inc. Accordingly, the Company deposited $2,766 thousand representing the Company's share of such PIF funds into a third party administered escrow account. The net impact of the Settlement of $2,995 thousand will be recorded in the Company's operating results for the quarter ending September 30, 2025.

[**Table of Contents**](#TOC)

#### Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
*For purposes of this discussion, the use of the words "we," "us," "Company," or "our" refers to 5&2 Studios, Inc. (f/k/a The Chosen, Inc.) and its subsidiaries, except where the context otherwise requires.*

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the Company's Annual Report for the year ended December 31, 2024 on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 31, 2025, including the audited consolidated financial statements and the related notes included therein and the consolidated interim financial statements and related notes included elsewhere in this Quarterly Report. Our historical results are not necessarily indicative of the results to be expected for any future period, and results for any interim period are not necessarily indicative of the results to be expected for the full year.*

*In addition to our unaudited consolidated interim financial statements, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. See "Cautionary Statement Concerning Forward-Looking Statements" and the "Risk Factors" set forth in Part II, Item 1A herein for a discussion of the uncertainties, risks and assumptions associated with these statements.*

#### Results of Operations

#### Overview
The Company is an entertainment company, which develops, produces, and licenses for distribution, domestically and internationally, an episodic television series entitled *The Chosen* and other production projects. The Company collaborates with partners to market, source, curate and distribute the Series to targeted audiences through (i) existing and emerging digital home entertainment platforms, including but not limited to Prime Video, and other streaming platforms, as well as (ii) physical media, including DVD and Blu-ray Discs, (iii) linear television, (iv) theatrical distribution of certain episodes or other content, (v) books, and (vi) merchandise. In September 2024, the Company announced a number of new productions, including a series based on the life of Moses, a series based on the life of Joseph called *Joseph of Egypt*, a series based on the book of Acts, an animated series based on *The Chosen* called *The Chosen Adventures*, and an unscripted show featuring *The Chosen* cast and adventure enthusiast Bear Grylls called *The Chosen in the Wild*.

The Company's revenue model primarily includes production services related to the Series, royalties received from the licensing of *The Chosen* as well as online store and wholesale sales of *The Chosen* and 5&2 Studios, Inc. branded physical media products, and merchandise. Our marketing efforts include limited and strategically focused distribution and marketing campaigns through targeted TV, streaming, and social media campaigns.

We operate in five business segments: Theatrical, Television and Streaming, Merchandise, Events/Other, and Production Services. We organize our business segments based on the nature of the products and services offered.

[**Table of Contents**](#TOC)

*Theatrical*

The Theatrical segment focuses on the periodic theatrical exhibition of the Series as well as other original content. The Company theatrically released Season 5 in three parts, with part one (episodes 1 and 2) in March 2025, and part two (episodes 3, 4, 5) and part three (episodes 6, 7, 8) released in April 2025. The Company also released, theatrically, the 2021 film "Christmas with the Chosen: The Messengers" and the 2023 film "Christmas with the Chosen: Holy Night." In 2023, with the release of Season 3, *The Chosen* became one of the only episodic television series to release episodes theatrically. We debuted Season 3 with a theatrical release of episodes 1 and 2 and later concluded the season with a theatrical release of episodes 7 and 8. In 2024, with the release of Season 4, *The Chosen* again set precedent by being one of the only episodic television shows to release all eight episodes theatrically. The Theatrical segment includes activities such as managing relationships with distribution partners and exhibitors, marketing theatrical events, and ensuring broad distribution of content to as many theaters as possible. Theatrical releases are not only viewed as revenue generating activities, but also as marketing opportunities and brand awareness events.

*Television & Streaming*

The Television & Streaming segment engages primarily in the distribution, licensing, exhibition, and marketing of the Series and other content to television networks and streaming platforms. Activities for this segment include negotiating and approving domestic and international licensing deals with various television networks and streaming platforms and managing the delivery of content assets to those licensees.

*Merchandise*

The Merchandise segment specializes in the design, manufacture, and sale of branded merchandise. This includes products such as clothing, toys, collectibles, and other consumer goods related to our entertainment properties. Also included in the Merchandise segment is the physical production, distribution, and sale of DVDs and Blu-Ray discs. Merchandise, or "gifts" as we refer to them with our audience, are critical to our strategy of engaging with our audience and providing our fans a way to share the Series and other content with those around them.

*Events/Other*

The Events/Other segment organizes and manages live events, exhibitions, and other entertainment-related activities. For example, in 2023 and 2024, the Company hosted thousands of fans at a live event branded as "ChosenCon." This segment also includes other ancillary revenue streams not attributable to one of the other identified segments, such as sponsorships and Pay-it-Forward ("PIF") revenues.

*Production Services*

The Production Services segment provides television and film production services for third-party clients. This includes offering expertise to produce films, TV shows, commercials, and other media content.

[**Table of Contents**](#TOC)

#### Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024
The following summary of our condensed consolidated results of operations should be read in conjunction with our unaudited condensed consolidated interim financial statements, and related notes, included herein.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |  |  | **Six Months Ended**  | **Six Months Ended**  |  |  |
|  | **June 30,**  | **June 30,**  | **Change** | **Change** | **June 30,**  | **June 30,**  | **Change** | **Change** |
|  | **2025** | **2024** | **2025 vs. 2024** | **2025 vs. 2024** | **2025** | **2024** | **2025 vs. 2024** | **2025 vs. 2024** |
|  | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) | (in thousands, except percentages) |
| Revenues: |  |  |  |  |  |  |  |  |
| Licensed content and merchandise revenues | $38154 | $15068 | $23086 | 153% | $74249 | $42605 | $31644 | 74% |
| Production services revenues | 59014 | 68872 | (9858) | (14)% | 76122 | 68872 | 7250 | 11% |
| Total revenues | 97168 | 83940 | 13228 | 16% | 150371 | 111477 | 38894 | 35% |
| Cost of licensed content and merchandise revenues | 32995 | 7271 | 25724 | 354% | 62984 | 17598 | 45386 | 258% |
| Cost of production services revenues | 28719 | 40083 | (11364) | (28)% | 36647 | 40083 | (3436) | (9)% |
| Distribution and marketing | 2814 | 7860 | (5046) | (64)% | 4523 | 22630 | (18107) | (80)% |
| Amortization of film costs |  | 3714 | (3714) | (100)% | 1901 | 14553 | (12652) | (87)% |
| Impairment of film costs | 10496 |  | 10496 | 100% | 10496 |  | 10496 | 100% |
| Depreciation and amortization | 1432 | 3577 | (2145) | (60)% | 4973 | 6403 | (1430) | (22)% |
| General and administrative | 9883 | 7396 | 2487 | 34% | 19059 | 21352 | (2293) | (11)% |
| Operating expenses | 86339 | 69901 | 16438 | 24% | 140583 | 122619 | 17964 | 15% |
| Gain on sale of assets |  | 13022 | (13022) | (100)% |  | 13022 | (13022) | (100)% |
| Net operating income | 10829 | 27061 | (16232) | (60)% | 9788 | 1880 | 7908 | 421% |
| Interest income | 176 | 77 | 99 | 129% | 288 | 370 | (82) | (22)% |
| Interest expense |  | (2477) | 2477 | 100% |  | (5432) | 5432 | 100% |
| Other income | 36 | 277 | (241) | (87)% | 41 | 443 | (402) | (91)% |
| Net income (loss) before income taxes | 11041 | 24938 | (13897) | (56)% | 10117 | (2739) | 12856 | 469% |
| Provision for income taxes | (3219) | (8106) | 4887 | 60% | (2956) | (2084) | (872) | 42% |
| Net income (loss) | $7822 | $16832 | $(9010) | (54)% | $7161 | $(4823) | $11984 | 248% |

---

*Licensed Content and Merchandise Revenues*

Licensed content and merchandise revenues include payments received, principally via royalties, from our licensing agreements and sales of merchandise. Revenues for the three months ended June 30, 2025 increased $23,086 thousand, or 153%, as compared to the three months ended June 30, 2024, primarily due to an increase of program licensing revenue of $28,909 thousand relating to a new exclusive distribution deal entered into by the Company in February 2025, and the release of Season 5 in addition to *Chosen in the Wild* being made available during the three months ended June 30, 2025, offset by a decrease of merchandise revenue of $5,923 thousand relating to lower sales from the Company's digital fan-focused celebration ("5&2 Day") in May 2025 and lower Season 5 DVD sales compared to Season 4.

Licensed content and merchandise revenues for the six months ended June 30, 2025 increased $31,644 thousand, or 74%, as compared to the six months ended June 30, 2024, primarily due to an increase of program licensing revenue of $38,545 thousand relating to a new exclusive distribution deal entered into by the Company in February 2025, and the release of Season 5 in addition to *Chosen in the Wild* being made available during the six months ended June 30, 2025, offset by a decrease of merchandise revenue of $7,001 thousand relating to lower 5&2 Day sales in May 2025 and lower Season 5 DVD sales compared to Season 4.

[**Table of Contents**](#TOC)

*Production Services Revenues*

Production services revenues are generated by providing production services on a work-for-hire basis for Come and See Foundation, Inc. ("CAS") for the development, production, and delivery of the remaining seasons of the Series. Production services revenues for the three months ended June 30, 2025 decreased $9,858 thousand, or 14%, as compared to the three months ended June 30, 2024, primarily due to the timing of film production for Season 6 compared to Season 5.

Production services revenue for the six months ended June 30, 2025 increased $7,250, or 11%, as compared to the six months ended June 30, 2024, primarily due to a higher transaction price allocated to Season 6 compared to Season 5.

*Cost of Licensed Content and Merchandise Revenues*

Cost of licensed content and merchandise revenues primarily includes the costs of products, third-party expenses to fulfill third-party merchandise sales orders, costs associated with events related to *The Chosen* and 5&2 Studios, Inc., and participation and residual costs owed to writers, producers, actors and other film participants. Cost of licensed content and merchandise revenues for the three months ended June 30, 2025 increased $25,724 thousand, or 354%, as compared to the three months ended June 30, 2024, primarily due to an increase in costs of sales related to royalties of $21,710 thousand due pursuant to the CAS Transaction, in addition to an increase of licensed content costs of $4,203 thousand relating to the Season 5 theatrical release bonus.

Cost of licensed content and merchandise revenues for the six months ended June 30, 2025 increased $45,386 thousand, or 258%, respectively as compared to the six months ended June 30, 2024, primarily due to an increase of royalty payments of $46,147 thousand.

*Cost of Production Services Revenues*

Cost of production services revenues is associated with providing production services on a work-for-hire basis, focusing on the development, production, and delivery of the remaining seasons of the Series. For the three months ended June 30, 2025, the costs related to production services revenue decreased $11,364 thousand, or 28%, as compared to the three months ended June 30, 2024, primarily due to the timing of film production for Season 6 compared to Season 5.

Cost of production services revenues for the six months ended June 30, 2025 decreased $3,436, or 9%, as compared to the six months ended June 30, 2024, primarily due to the timing of film production for Season 6 compared to Season 5.

*Distribution and Marketing*

Distribution and marketing include costs to promote the Series and primarily includes marketing on social and digital platforms as well as costs for producing marketing and managing the exploitation of the licensed content for both domestic and international audiences. This primarily includes marketing on social and digital platforms as well as creative costs for producing marketing.

Distribution and marketing expense for the three months ended June 30, 2025 decreased $5,046 thousand, or 64%, as compared to the three months ended June 30, 2024. The decrease is primarily attributable to a marketing reimbursement of $5,314 thousand from CAS for qualifying marketing costs incurred by the Company, related to the Series.

Distribution and marketing expense for the six months ended June 30, 2025 decrease $18,107 thousand, or 80%, as compared to the six months ended June 30, 2024, primarily due to a decrease in paid media costs of $6,874 thousand due to a decrease in media spend. The remaining decrease was attributable to a marketing reimbursement of $11,794 thousand from CAS for qualifying marketing costs incurred by the Company, related to the Series.

*Amortization of Film Costs*

Costs of producing the Series are amortized using the individual-film-forecast method, based on the ratio of the current period's revenues to the Company's estimated ultimate revenue.

[**Table of Contents**](#TOC)

Amortization of film costs for the three months ended June 30, 2025 decreased $3,714 thousand, or 100%, as compared to the three months ended June 30, 2024, due to no additional film costs capitalization related to the Series after June 30, 2024 as a result of the Company's sale of the commercial right to the Series pursuant to the CAS Transaction.

Amortization of film costs for the six months ended June 30, 2025 decreased $12,652 thousand, or 87%, as compared to the six months ended June 30, 2024, primarily as a result of the Company's sale of the commercial right to the Series pursuant to the CAS Transaction, offset by the full amortization of the remaining capitalized costs associated with *Jonathan and Jesus* of $1,901 thousand during the three months ended March 31, 2025.

*Impairment of Film Costs*

Impairment of film costs for the three months ended June 30, 2025 increased $10,496 thousand, as compared to the three months ended June 30, 2024, due to the recognition of in impairment loss during the three months ended June 30, 2025 as a result of revised ultimate revenue forecasts and a change in distribution strategy for a not yet released film project.

Impairment of film costs for the six months ended June 30, 2025 increased $10,496 thousand, as compared to the six months ended June 30, 2024, due to the recognition of in impairment loss during the six months ended June 30, 2025 as a result of revised ultimate revenue forecasts and a change in distribution strategy for a not yet released film project.

*Depreciation and Amortization*

Depreciation and amortization for the three months ended June 30, 2025 decreased $2,145 thousand, or 60%, as compared to the three months ended June 30, 2024, primarily due to leasehold improvement asset lives being extended in conjunction with the amended film campus property lease.

Depreciation and amortization for the six months ended June 30, 2025 decreased $1,430 thousand, or 22%, as compared to the six months ended June 30, 2024, primarily due to leasehold improvement asset lives being extended in conjunction with the amended film campus property lease.

*General and Administrative*

General and administrative expenses for the three months ended June 30, 2025 increased $2,487 thousand, or 34%, as compared to the three months ended June 30, 2024, primarily due to an increase in payroll spend of $1,388 thousand due to an increase in headcount and an increase of predevelopment costs of $848 related to other potential future productions.

General and administrative expenses for the six months ended June 30, 2025 decreased $2,293 thousand, or 11%, as compared to the six months ended June 30, 2024, primarily due to a $2,243 thousand decrease in technology spend resulting from non-recurring application maintenance spend in 2024 related to the Chosen App, which was sold in September, 2024, and a $2,429 thousand decrease in legal expenses resulting from higher 2024 legal, accounting, and professional services fees attributed to the Angel Studios, Inc. ("Angel") arbitration and other corporate maters. This was partially offset by $2,783 thousand of increased compensation expense, primarily associated with an increase in headcount and one-time costs in 2025 of the contract renewal for our Chief Creative Officer.

*Gain on Sale of Assets*

There was no gain on sale for the three and six months ended June 30, 2025. Gain on sale for the three and six months ended June 30, 2024 was related to the sale of *The Chosen* IP as a result of the CAS Transaction.

*Income Taxes*

Income tax provision for the three months ended June 30, 2025 decreased $4,887 thousand or 60%, as compared to three months ended June 30, 2024, primarily due to the decrease in the Company's net income before income taxes.

Income tax provision for the six months ended June 30, 2025 increased $872 thousand, or 42% as compared to the six months ended June 30, 2024, primarily due to the increase in the Company's net income before provision for income taxes.

[**Table of Contents**](#TOC)

The effective tax rate for the three months ended June 30, 2025 decreased 4%, as compared to the three months ended June 30, 2024, primarily due to non-deductible interest expense in the prior year offset by the impact of the decrease in the net income before income taxes.

The effective tax rate for the six months ended June 30, 2025 increased 105%, as compared to the six months ended June 30, 2024, primarily due to non-deductible interest expense in the prior year offset by the impact of the increase in the net income before income taxes and executive compensation limitation.

#### Liquidity and Capital Resource
*Comparison of June 30, 2025 and December 31, 2024*

---

| | | | |
|:---|:---|:---|:---|
|  | **As of** | **As of** | |
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** | <br>**Change** |
|  | (in thousands) | (in thousands) | (in thousands) |
| Cash and cash equivalents | $31072 | $6466 | $24606 |
| Lease liabilities | 4568 | 870 | 3698 |

---

The Company's primary sources of liquidity are from cash flows generated from operations.

The Company's primary uses of cash generally relate to film costs associated with the production of content. Primary sources of cash are related to production of the Series and licensed content revenues. The increase in cash and cash equivalents was primarily due to a $22,250 thousand milestone payments received by the Company from CAS upon completion and delivery of Season 5 of the Series and milestone payments received for the sale of the Chosen App.

The Company believes its existing cash and expected cash flows from operations will be sufficient to meet our working capital, capital expenditures, and expected cash requirements from known contractual obligations for the next twelve months and beyond.

#### Comparison of the Six Months Ended June 30, 2025 and, 2024
Our cash flow activities were as follows for the periods presented:

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended**  | **Six Months Ended**  | |
|  | **June 30,**  | **June 30,**  | |
|  | **2025** | **2024** | <br>**Change** |
|  | (in thousands) | (in thousands) | (in thousands) |
| Net cash flows provided by (used in) operating activities | $27105 | $(41646) | $68751 |
| Net cash flows (used in) investing activities | (2499) | (7059) | 4560 |
| Net cash flows provided by financing activities |  | 11684 | (11684) |

---

*Operating activities*

Net cash flows provided by and used in operating activities was $27,105 thousand and $41,646 thousand for the six months ended June 30, 2025, and 2024, respectively. The increase of net cash flows provided by operating activities of $68,751 thousand was primarily driven by an increase of $38,706 thousand in accrued expenses and other accrued liabilities, in addition to an increase of deferred revenue of $29,584 thousand.

*Investing activities*

Net cash flows used in investing activities was $2,499 thousand and $7,059 thousand for the six months ended June 30, 2025 and 2024, respectively. The decrease of net cash flows used in investing activities of $4,560 thousand was primarily driven by the decrease in acquisition of property and equipment.

[**Table of Contents**](#TOC)

*Financing activities*

There was no financing activity for the six months ended June 30, 2025. The financing activities of $11,684 thousand for the six months ended June 30, 2024 included proceeds from issuance of debt of $11,684 thousand.

**Segment Reporting**

The Company operates in five operating and reportable segments: Theatrical, Television & Streaming, Merchandise, Events/Other, and Production Services. The segments are based on the nature of products and services offered, as well as how the chief operating decision maker ("CODM"), who is the Company's President and Chief Financial Officer together, reviews financial results for evaluating segment performance and allocating resources. The CODM uses segment adjusted operating income / (loss) to assess financial performance and allocate resources. Segment information is based on the "management" approach, which designates the internal reporting used by management for making decisions and assessing performance of the segments.

Segment adjusted operating income / (loss) results include the revenues and cost of revenues, distribution and marketing, and general and administrative expenses which are directly attributable to each segment. Segment adjusted operating income / (loss) excludes income and expenses which are not directly related to the operations of the segment or management believes are not relevant to management's assessment of the operating performance of the segments to make resource allocations. These excluded costs include amortization of film costs, depreciation and amortization, unallocated indirect distribution and marketing and general and administrative costs, which costs are corporate or company-wide in nature, as well as nonrecurring items and non-operating income and expenses.

See *Note 10 – Information on Business Segments* in the accompanying unaudited interim condensed consolidated financial statements for further detail, including a reconciliation of segment adjusted operating income / (loss) to consolidated net income / (loss).

***Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024***

Our segment revenues were as follows for the periods presented:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
|  | (in thousands) | (in thousands) |  | (in thousands) | (in thousands) |  |
| Theatrical | $18653 | $1158 | $17495 | $24633 | $15769 | $8864 |
| Television & Streaming | 13159 | 1438 | 11721 | 39631 | 8291 | 31340 |
| Merchandise | 6242 | 12165 | (5923) | 9885 | 16886 | (7001) |
| Events/Other | 100 | 307 | (207) | 100 | 1659 | (1559) |
| Production Services | 59014 | 68872 | (9858) | 76122 | 68872 | 7250 |
| Total Revenues | $97168 | $83940 | $13228 | $150371 | $111477 | $38894 |

---

Our segment adjusted operating incomes were as follows for the periods presented:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **Change** | **2025** | **2024** | **Change** |
|  | (in thousands) | (in thousands) |  | (in thousands) | (in thousands) |  |
| Theatrical | $1466 | $750 | $716 | $2198 | $1093 | $1105 |
| Television & Streaming | 2798 | 1311 | 1487 | 8162 | 8164 | (2) |
| Merchandise | (1065) | 3075 | (4140) | (2339) | 3630 | (5969) |
| Events/Other | 100 | 307 | (207) | 100 | 1659 | (1559) |
| Production Services | 29629 | 27651 | 1978 | 37959 | 27651 | 10308 |
| Total segment adjusted operating income | $32928 | $33094 | $(166) | $46080 | $42197 | $3883 |

---

[**Table of Contents**](#TOC)

*Theatrical*

Theatrical revenues for the three months ended June 30, 2025 and 2024 were $18,653 thousand and $1,158 thousand, respectively. Theatrical revenue increased $17,495 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to the timing of the Season 5 theatrical release as compared to the timing of the Season 4 theatrical release in the prior year. Season 5 released on March 28, 2025, and extended into the second quarter of 2025 whereas the Season 4 theatrical release was primarily in the first quarter of 2024.

Theatrical segment adjusted operating income for the three months ended June 30, 2025 and 2024 were $1,466 thousand and $750 thousand, respectively. Theatrical segment adjusted operating income increased $716 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to increased theatrical revenues because of the timing of the Season 5 theatrical release as compared to the timing of the Season 4 theatrical release in the prior year. This was partially offset by an associated increase in royalties and residuals associated with the theatrical release of Season 5 compared to Season 4 owed following the Company's sale of the commercial right to the Series pursuant to the CAS Transaction in June 2024.

Theatrical revenues for the six months ended June 30, 2025 and 2024 were $24,633 thousand and $15,769 thousand, respectively. Theatrical revenue increased $8,864 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to the growth of the theatrical release of Season 5 compared to Season 4.

Theatrical segment adjusted operating income for the six months ended June 30, 2025 and 2024 were $2,198 thousand and $1,093 thousand, respectively. Theatrical segment adjusted operating income increased $1,105 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increased revenues of $8,864 of the theatrical release of Season 5 compared to Season 4 as well as a decrease in direct distribution and marketing expenses of $7,438 thousand due to marketing reimbursement from CAS for qualifying marketing costs. This was partially offset by an associated increase in royalties and residuals of $15,197 thousand from the theatrical release of Season 5 compared to Season 4 owed following the Company's sale of the commercial right to the Series pursuant to the CAS Transaction in June 2024.

*Television & Streaming*

Television & Streaming revenues for the three months ended June 30, 2025 and 2024 were $13,159 thousand and $1,438 thousand, respectively. Television & Streaming revenues increased $11,721 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a new exclusive distribution deal entered into by the Company in February 2025, and the release of Season 5 in addition to *Chosen in the Wild* being made available during the three months ended June 30, 2025.

Television & Streaming segment adjusted operating income for the three months ended June 30, 2025 and 2024 were $2,798 thousand and $1,311 thousand, respectively. Television & Streaming segment adjusted operating income increased $1,487 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to the above revenue impact of a new exclusive distribution deal entered into by the Company in February 2025, and the release of Season 5 in addition to *Chosen in the Wild* being made available during the three months ended June 30, 2025. This was partially offset by an associated increase in royalties and residuals of $10,234 thousand from June 30, 2025, compared to June 30, 2024 owed following the Company's sale of the commercial rights to the Series and IP pursuant to the CAS Transaction in June 2024.

Television & Streaming revenues for the six months ended June 30, 2025, and 2024, were $39,631 thousand and $8,291 thousand, respectively. Television & Streaming revenues increased $31,340 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a new exclusive distribution deal entered into by the Company in February 2025, and the release of Season 5 in addition to *Chosen in the Wild* being made available during the three months ended June 30, 2025.

Television & Streaming segment adjusted operating income for the six months ended June 30, 2025 and 2024 were $8,162 thousand and $8,164 thousand, respectively. Television & Streaming segment adjusted operating income decreased $2 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in royalties and residuals, owed following the Company's sale of the commercial right to the Series and IP pursuant to the CAS Transaction in June 2024, of $31,342 thousand associated increase in revenues due to the release of Season 5, in addition to *Chosen in the Wild* being made

[**Table of Contents**](#TOC)

available during the six months ended June 30, 2025. This was partially offset by the increase in Television & Streaming revenues for the six months ended June 30, 2025, and June 30, 2024 of $31,340 thousand.

*Merchandise*

Merchandise revenues for the three months ended June 30, 2025 and 2024 were $6,242 thousand and $12,165 thousand, respectively. Merchandise revenue decreased $5,923 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to lower 5&2 Day sales in May 2025 and a decrease of Season 5 DVD sales compared to Season 4.

Merchandise segment adjusted operating loss and income, respectively, for the three months ended June 30, 2025 and 2024, were ($1,065) thousand and $3,075 thousand, respectively. Merchandise segment adjusted operating income decreased $4,140 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to lower 5&2 Day sales in May 2025 and a decrease of Season 5 DVD sales compared to Season 4. This was partially offset by associated $2,035 thousand lower costs of merchandise revenues for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.

Merchandise revenues for the six months ended June 30, 2025 and 2024 were $9,885 thousand and $16,886 thousand, respectively. Merchandise revenue decreased $7,001 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to lower 5&2 Day sales in May 2025 and a decrease of Season 5 DVD sales compared to Season 4.

Merchandise segment adjusted operating loss and income, respectively, for the six months ended June 30, 2025 and 2024 were ($2,339) thousand and $3,630 thousand, respectively. Merchandise segment adjusted operating income decreased $5,969 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to lower 5&2 Day sales in May 2025 and a decrease of Season 5 DVD sales compared to Season 4. This was partially offset by associated $1,935 thousand lower costs of merchandise revenues for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

*Events/Other*

Events/Other revenues for the three months ended June 30, 2025 and 2024, were $100 thousand and $307 thousand, respectively. Events/Other revenue decreased $207 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to PIF revenue ending in Q3 of 2024 in conjunction with the Angel litigation.

Events/Other segment adjusted operating income for the three months ended June 30, 2025 and 2024 were $100 thousand and $307 thousand, respectively. Events/Other segment adjusted operating income decreased $207 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to PIF revenue ending in Q3 of 2024, in conjunction with the Angel litigation.

Events/Other revenues for the six months ended June 30, 2025 and 2024, were $100 thousand and $1,659 thousand, respectively. Events/Other revenue decreased $1,559 thousand for the three months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to PIF revenue ending in Q3 of 2024, in conjunction with the Angel litigation.

Events/Other segment adjusted operating income for the six months ended June 30, 2025 and 2024 were $100 thousand, and $1,659 thousand, respectively. Events/Other segment adjusted operating income decreased $1,559 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to PIF revenue ending in Q3 of 2024, in conjunction with the Angel litigation.

*Production Services*

Production Services revenues for the three months ended June 30, 2025 and 2024 were $59,014 thousand and $68,872 thousand, respectively. Production Services decreased $9,858 thousand for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to the timing of film production for Season 6 compared to Season 5.

Production Services adjusted operating income for the three months ended June 30, 2025 and 2024 were $29,629 thousand and $27,651 thousand respectively. Production Services segment adjusted operating income increased $1,978 thousand for the three months

[**Table of Contents**](#TOC)

ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to decreased revenue of $9,858 thousand, offset by the higher margin on Season 6 production due to higher production service price for Season 6 compared to Season 5.

Production Services revenues for the six months ended June 30, 2025 and 2024 were $76,122 thousand and $68,872 thousand, respectively. Production Services revenue increased $7,250 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to higher transaction price allocated to Season 6 compared to Season 5.

Production Services segment adjusted operating income for the six months ended June 30, 2025 and 2024 were $37,959 thousand and $27,651 thousand, respectively. Production Services segment adjusted operating income increased $10,308 thousand for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increased revenue of $7,250 thousand, as well as the higher margin on Season 6 production due to higher production service price for Season 6 compared to Season 5.

#### Critical Accounting Estimates
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported periods. The SEC has defined a company's critical accounting policies as the ones that are most important to the portrayal of a company's financial condition and results of operations, and which require a company to make its most difficult and subjective judgments. Based on this definition, the Company has identified the critical accounting policies and judgments addressed below. Estimates are based on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The following is provided to update the Company's critical accounting estimates previously described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

***Impairment Assessment for Film Costs***

Each film project is evaluated for impairment when an event or change in circumstances indicates that the fair value of a film may be less than its unamortized costs. The estimated fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the film. If the result of the impairment test indicates that the unamortized film costs exceed the estimated fair value, an impairment charge will then be recorded for the amount of the difference.

***Revenue Recognition***

*Licensed Content Revenue*

For licensed content arrangements that include the right to exploit multiple titles with various seasons with a fixed upfront payment, the availability of each title's season is considered a separate performance obligation, and the fixed payment is allocated to each season on a relative standalone selling price basis. Estimation of standalone selling prices requires judgment, which can impact the timing of recognizing revenues. Revenue is recognized when the season is available for use by the licensee.

#### Off-Balance Sheet Arrangements
As of June 30, 2025 and 2024, the Company had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company's financial condition, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

[**Table of Contents**](#TOC)

#### Item 3. Quantitative and Qualitative Disclosures About Market Risk
Quantitative and qualitative disclosures about market risks have been omitted as permitted under rules applicable to smaller reporting companies.

#### Item 4. Controls and Procedures
*Evaluation of disclosure controls and procedures*

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934 (the "Exchange Act"), we evaluated, under the supervision and with the participation of our management, including our President and our Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q.

Based on the foregoing evaluation, our President and our Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level that we would meet our disclosure obligations.

*Changes in internal control over financial reporting*

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(e) of the Exchange Act) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

[**Table of Contents**](#TOC)

**Part II - Other Information**

#### Item 1. Legal Proceedings
From time to time we may be involved in various disputes and litigation matters that arise in the ordinary course of business. Other than as set forth below, we are currently not a party to any material legal proceeding.

As disclosed in the Company's Form 10-K filed with the SEC on March 31, 2025, the Company delivered to Angel Studios two separate Notices of Termination (the "Termination Notices") of the Content License Agreement, dated October 18, 2022 (the "Content License Agreement"), between Angel Studios and the Company. The Company delivered the Termination Notices due to Angel Studios' material breach of the Content License Agreement. Such termination was effective on October 20, 2023. The termination of the Content License Agreement was the subject of a private binding arbitration initiated by the Company to resolve the dispute. On May 28, 2024, the arbitrator of the dispute issued an interim arbitration award in favor of the Company which, among other things, found multiple material breaches had been committed by Angel Studios and upheld the Company's termination of the Content License Agreement. As described in the Form 8-K filed on October 1, 2024, the arbitrator of the dispute issued the final arbitration award in favor of the Company on September 25, 2024, which includes an award of $5,097 thousand in attorneys' fees and recoverable costs payable by Angel Studios to the Company. Angel Studios filed a notice of appeal of the final arbitration award with the American Arbitration Association on October 25, 2024 pursuant to the appellate procedures provided for in the Content License Agreement. The Company prevailed in the appeal pursuant to a decision issued on June 13, 2025.

On August 16, 2024, Angel Studios filed a complaint against the Company in the Fourth Judicial District of Utah. That complaint and record are classified as private under Utah law. On September 4, 2024, the Company filed a motion to dismiss the complaint or have the proceedings compelled to arbitration. The Company prevailed on its motion, and Angel Studios initiated a related arbitration against the Company on June 5, 2025.

As of July 11, 2025, the Company and Angel Studios settled all ongoing legal disputes between them and agreed that the Content License Agreement, and any and all of the parties' respective obligations thereunder, were fully and finally terminated as of October 20, 2023.

*See* Note 9 of the Company's interim condensed consolidated financial statements for additional information concerning the termination of the Content License Agreement.

#### Item 1A. Risk Factors
Other than as set forth below, there have been no material changes from the risk factors previously disclosed within Item 1A "Risk Factors" in the Form 10-K.

#### Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.

#### Item 3. Default upon Senior Securities
None.

#### Item 4. Mine Safety Disclosures
None.

#### Item 5. Other Information
To come.

[**Table of Contents**](#TOC)

#### Item 6. Exhibits
(**Note Regarding Reliance on Statements in Our Contracts**: In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember that they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about 5&2 Studios, Inc., its subsidiaries or affiliates, or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and (i) should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to investors; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about 5&2 Studios, Inc., its subsidiaries and affiliates may be found elsewhere in this Quarterly Report on Form 10-Q and 5&2 Studios, Inc.'s other public filings, which are available without charge through the SEC website at https://www.sec.gov.)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Incorporated By Reference** | **Incorporated By Reference** | **Incorporated By Reference** | **Incorporated By Reference** | **Incorporated By Reference** |
| <br>**Exhibit**<br>**No.** | <br>**Description** | **Form**<br><BORDER_TOP> | **File**<br>**Number**<br><BORDER_TOP> | **Exhibit**<br><BORDER_TOP> | **Filing Date**<br><BORDER_TOP> | **Filed or Furnished Herewith**<br><BORDER_TOP> |
| 2.1 | [Plan of Conversion of The Chosen, LLC into a Delaware corporation to be known as "The Chosen, Inc."](https://www.sec.gov/Archives/edgar/data/1733443/000110465922124128/tm2231845d1_ex2-1.htm) | 1-U | 24R-00162 | 2.1 | December 2, 2022 |  |
| 3.1 | [Certificate of Incorporation dated November 29, 2022](https://www.sec.gov/Archives/edgar/data/1733443/000110465922124128/tm2231845d1_ex2-2.htm) | 1-U | 24R-00162 | 2.2 | December 2, 2022 |  |
| 3.2 | [Certificate of Amendment to the Certificate of Incorporation, effective September 25, 2024](https://www.sec.gov/Archives/edgar/data/1733443/000110465924104349/tm2425165d1_ex3-1.htm) | 8-K | 000-56519 | 3.1 | September 30, 2024 |  |
| 3.3 | [Bylaws of The Chosen, Inc.](https://www.sec.gov/Archives/edgar/data/1733443/000110465923009391/tm234496d1_ex3-2.htm) | 10-12G | 000-56519 | 3.2 | February 2, 2023 |  |
| 10.1 | [Second Amendment to Ground Lease Agreement, dated April 10, 2025 by and between 5&2 Studios, Inc. and the Salvation Army](https://www.sec.gov/Archives/edgar/data/1733443/000141057825001317/tmb-20250331xex10d6.htm) | 10-Q | 000-56519 | 10.6 | May 15, 2025 |  |
| 31.1 | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](tmb-20250630xex31d1.htm) |  |  |  |  | X |
| 31.2 | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](tmb-20250630xex31d2.htm) |  |  |  |  | X |
| 32.1 | [Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](tmb-20250630xex32d1.htm) |  |  |  |  | X |
| 32.2 | [Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](tmb-20250630xex32d2.htm) |  |  |  |  | X |

---

[**Table of Contents**](#TOC)

---

| | | |
|:---|:---|:---|
| | | **Incorporated By Reference** |
| <br>**Exhibit**<br>**No.** | <br>**Description** | **Filed or Furnished Herewith**<br><BORDER_TOP> |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | X |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | X |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). | X |

---

[**Table of Contents**](#TOC)

**SIGNATURES**

Pursuant to the requires of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **5&2 STUDIOS, INC.** | **5&2 STUDIOS, INC.** |
|  | By: | /s/ Bradley Pelo |
|  | By: | Name: Bradley Pelo <br>Title: President<br>/s/ JD Larsen |
|  |  | Name: JD Larsen |
|  |  | Title: Chief Financial Officer |
| Date: August 14, 2025 |  |  |

---

## Exhibit 31.1

**Exhibit 31.1**

<u>CERTIFICATIONS</u>

I, Bradley Pelo, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of 5&2 Studios, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | August 14, 2025 |  |
|  |  | /s/ Bradley Pelo  |
|  |  | Bradley Pelo |
|  |  | President |

---

------

## Exhibit 31.2

**Exhibit 31.2**

<u>CERTIFICATIONS</u>

I, JD Larsen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of 5&2 Studios, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | August 14, 2025 |  |
|  |  | /s/ JD Larsen |
|  |  | JD Larsen |
|  |  | Chief Financial Officer |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**SECTION 906 CERTIFICATION**

**CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE**

I, Bradley Pelo, certify that (i) 5&2 Studios, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of 5&2 Studios, Inc.

---

| | |
|:---|:---|
| Date: August 14, 2025 |  |
|  | /s/ Bradley Pelo |
|  | Bradley Pelo |
|  | President |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**SECTION 906 CERTIFICATION**

**CERTIFICATION PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE**

I, JD Larsen, certify that (i) 5&2 Studios, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Form 10-Q") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of 5&2 Studios, Inc.

---

| | |
|:---|:---|
| Date: August 14, 2025 |  |
|  | /s/ JD Larsen |
|  | JD Larsen |
|  | Chief Financial Officer |

---

------