6-K 1 eps9560.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer Pursuant to Section 13(a)-16 or 15(d)-16 of the Securities Exchange Act of 1934

For the month of March, 2021

 

001-36176

(Commission file number)

 

EROS STX GLOBAL CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________

 

3900 West Alameda Avenue, 32nd Floor

Burbank, California 91505

Tel: (818) 524-7000

(Address of principal executive office)

_________________________________________

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☑  Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

Explanatory Note:

 

This Report of Foreign Private Issuer on Form 6-K contains the unaudited consolidated balance sheet and statement of operations of the Company (as defined below) as of and for the six-month period ended September 30, 2020.

 

Eros International Plc (“Eros”) and STX Filmworks, Inc., (“STX”) entered into an Agreement and Plan of Merger, dated April 17, 2020 (the “Merger Agreement”). As of July 30, 2020, pursuant to the Merger Agreement, Merger Sub, a subsidiary of Eros, merged with and into STX (the “Merger”), with STX surviving as an indirect and wholly owned subsidiary of Eros. Following the Merger, Eros changed its corporate name to Eros STX Global Corporation (“Eros STX”). Eros STX, as the combined company following the Merger, is referred to herein as the “Company”, the “combined company,” “we,” “us” or “our.”

 

The Merger was accounted for as a business combination using the acquisition method of accounting under the provisions of ASC 805, with STX selected as the accounting acquirer under this guidance. Consequently, all information reported as of or for periods prior to completion of the Merger reflects the historical results of legacy STX. The financial information reflects the results of the combined company for only the post-Merger period from July 30, 2020 to September 30, 2020.

 

This unaudited consolidated financial information has been prepared in accordance with United States generally accepted accounting principles (“GAAP”). This financial information is not a comprehensive statement of our financial results as of and for the six months ended September 30, 2020 and should not be viewed as a substitute for full unaudited consolidated financial statements prepared in accordance with GAAP. Operating results for the six months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021.

 

The Company expects to issue its full unaudited consolidated financial statements for the six months ended September 30, 2020 prepared in accordance with GAAP by April 30, 2021. The financial information included in this report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Transition Report on Form 20-F submitted to the SEC on October 30, 2020, and in the Company’s Annual Report on Form 20-F submitted to the SEC on July 30, 2020.

 

Press Release

 

On March 31, 2021, the Company issued a press release discussing the operating results for this interim period. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

 

The information furnished in this Report on Form 6-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

 

 

EROS STX GLOBAL CORPORTATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30,
2020		   March 31,
2020		 
   (Amounts in thousands) 
ASSETS        
Current assets:          
Cash and cash equivalents  $81,807   $25,705 
Restricted cash   4,944    — 
Accounts receivable, net   80,718    102,430 
Other current assets   15,237    24,215 
Total current assets   182,706    152,350 
Accounts receivable, noncurrent, net   24,810    15,450 
Investment in films and television programs, net   210,068    97,308 
Property and equipment, net   8,120    3,496 
Intangible assets   147,367    1,493 
Goodwill   496,213    — 
Investments   22,345    — 
Other assets   27,622    22,665 
Total assets  $1,119,251   $292,762 
           
LIABILITIES          
Current liabilities          
Accounts payable and accrued liabilities   171,215    109,921 
Accrued participations and residuals, current   56,698    28,314 
Deferred revenue, current   23,951    29,142 
Short-term debt   100,213    — 
Total current liabilities   352,077    167,377 
Long-term debt   261,592    225,989 
Term loan due to related party, net   22,234    42,092 
Accrued participations and residuals, non-current   37,375    70,916 
Deferred revenue, non-current   19,987    12,986 
Other liabilities   13,867    45,847 
Total liabilities   707,132    565,207 
           
Commitments and contingencies          
           
Convertible Redeemable Preferred Stock          
Class A convertible redeemable preferred stock, $0.01 par value per share; no shares authorized, issued or outstanding as of September 30, 2020; 10,207  shares authorized, issued and outstanding as of March 31, 2020   —    20,031 
Class B convertible redeemable preferred stock, $0.01 par value per share; no shares authorized, issued or outstanding as of September 30, 2020; 85,000 shares authorized, issued and outstanding as of March 31, 2020   —    169,442 
Class C convertible redeemable preferred stock, $0.01 par value per share; no shares authorized, issued or outstanding as of September 30, 2020;  214,588 shares authorized and 166,088 shares issued and outstanding as of March 31, 2020   —    219,095 
Class D convertible redeemable preferred stock, $0.01 par value per share; no shares authorized, issued or outstanding as of September 30, 2020; 132,168 shares authorized and 125,104 shares issued and outstanding as of March 31, 2020   —    111,433 
Class E convertible redeemable preferred stock, $0.01 par value per share; no shares authorized, issued or outstanding as of September 30, 2020 and March 31, 2020   —    — 
           
Equity (Deficit)          
A Ordinary shares, $0.39 par value per share; 500,000,000 cumulative shares authorized for A Ordinary and B Ordinary; 185,251,177 shares issued and outstanding as of September 30, 2020; no shares authorized, issued or outstanding as of March 31, 2020   72,458    — 
B Ordinary shares, $0.39 par value per share; 500,000,000 cumulative shares authorized for A Ordinary and B Ordinary; 21,700,418 shares issued and outstanding as of September 30, 2020; no shares authorized, issued or outstanding as of March 31, 2020   8,487    — 
Common stock, $0.01 par value per share;  no shares authorized, issued or outstanding as of September 30, 2020; 100,000,000 shares authorized, 11,572,291 shares issued and outstanding as of March 31, 2020   —    116 
Additional paid-in capital   1,165,425    — 
Accumulated deficit   (843,373)   (792,162)
Accumulated other comprehensive loss   (527)   (400)
Total Eros STX Global Corporation stockholders' equity (deficit)   402,470    (792,446)
Non-controlling interest   9,649    — 
Total equity (deficit)   412,119    (792,446)
Total liabilities, convertible preferred stock and equity (deficit)  $1,119,251   $292,762 

 

 

 

EROS STX GLOBAL CORPORTATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Six Months Ended 
   September 30, 
   2020   2019 
   (Amounts in thousands, except per share amounts) 
Revenues  $144,139   $210,193 
           
Expenses:          
Direct operating   73,894    137,107 
Distribution and marketing   21,305    113,035 
General and administrative   36,685    24,407 
Depreciation and amortization   1,983    1,124 
Restructuring and other   17,755    — 
Total expenses   151,622   275,673 
Operating loss   (7,483)   (65,480)
           
Interest expense   (14,286)   (10,505)
Interest income   63    162 
Stockholder exit expense   (6,642)   (19,223)
Other expense   (20)   — 
Loss before income taxes   (28,368)   (95,046)
Income tax provision   197    349 
Net loss   (28,565)   (95,395)
Less: Net income attributable to non-controlling interest   139    — 
Net loss attributable to Eros STX Global Corporation stockholders   (28,704)   (95,395)
Less: Deemed dividend on convertible preferred stock   22,614    31,045 
Net loss attributable to Eros STX Global Corporation A Ordinary and B Ordinary stockholders  $(51,318)  $(126,440)
           
Per share information attributable to Eros STX Global Corporation stockholders:          
Net loss per A Ordinary and B Ordinary share, basic and diluted  $(0.27)  $(1.52)
Weighted average number of A Ordinary and B Ordinary shares outstanding, basic and diluted   190,383,927    83,045,960 

 

 

Exhibit No. Description
99.1 Press Release, dated March 31, 2021

 

 

 

 

SIGNATURE

 

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

 

Date: March 31, 2021 Eros STX Global Corporation
     
  /s/ Andrew Warren              
  Name: Andrew Warren
  Title: Chief Financial Officer