10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 10-Q

______________________

(Mark one)

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

For the quarterly period ended December 31, 2023

OR

o    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: 001-36827

______________________

Anterix Inc.

(Exact name of registrant as specified in its charter)

______________________

Delaware	33-0745043
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3 Garret Mountain Plaza Suite 401 Woodland Park, New Jersey	07424
(Address of principal executive offices)	(Zip Code)

(973) 771-0300

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

______________________

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

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $0.0001 par value	ATEX	The Nasdaq Stock Market LLC (Nasdaq Capital Market)

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. x Yes o 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). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	x
Emerging growth company	o

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. o

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

At February 12, 2024, 18,519,884 shares of the registrant’s common stock were outstanding.

Anterix Inc.

FORM 10-Q

For the quarterly period ended December 31, 2023

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements	5
	Consolidated Balance Sheets as of December 31, 2023 (Unaudited) and March 31, 2023	5
	Unaudited Consolidated Statements of Operations for the three and nine months ended December 31, 2023 and 2022	6
	Unaudited Consolidated Statements of Stockholders’ Equity for the three and nine months ended December 31, 2023	7
	Unaudited Consolidated Statements of Stockholders’ Equity for the three and nine months ended December 31, 2022	8
	Unaudited Consolidated Statements of Cash Flows for the nine months ended December 31, 2023 and 2022	9
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION		33
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35
SIGNATURES		36

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the “Quarterly Report”) includes statements of our expectations, intentions, plans, projections, guidance and beliefs that constitute “forward-looking statements.” These forward-looking statements are principally, but not solely, contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements include, but are not limited to, statements about our strategies, plans, objectives, expectations, projections, guidance, intentions, expenditures and assumptions and other statements contained herein that are not historical facts. Our forward-looking statements are generally, but not always, accompanied by words such as, but not limited to, “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend” “may,” “might,” “ongoing,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” and similar expressions or phrases, or the negative of those expressions or phrases, or other words that convey the uncertainty of future events or outcomes, which are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations, guidance and projections and related assumptions about future events and financial trends. While our management considers these expectations, guidance, projections and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. There can be no assurance that actual developments will be as we anticipate. Actual results may differ materially from those expressed or implied in these statements as a result of significant risks and uncertainties, including, but not limited to:

•our ability to qualify for and obtain broadband licenses in a timely manner or at all from the Federal Communications Commission (the “FCC”) in accordance with the requirements of the Report and Order approved by the FCC on May 13, 2020 (the “Report and Order”);

•our ability to successfully commercialize our spectrum assets to our targeted utility and critical infrastructure customers on a timely basis, including those customers that are above the Demonstrated Intent threshold, and on commercially favorable terms, including our ability to monetize our spectrum on financial terms consistent with our business plan and assumptions;

•our ability to correctly estimate our cash receipts, revenues and operating expenses and our future financial needs;

•our ability to achieve our operating and financial projections and guidance;

•our ability to support our future operations and business plans and return capital to our stockholders through our share repurchase program with our existing cash resources and the proceeds we generate from our commercial operations without raising additional capital through the issuance of stock or debt securities;

•the extent and duration of the impact of macroeconomic pressures, including but not limited to pandemics, inflation, regulatory and policy changes, and geopolitical matters, on our business and on our potential customers’ businesses;

•our ability to retune, protect or acquire covered incumbent narrowband licensees, including complex systems, in a timely manner and on commercially reasonable terms, or at all;

•our ability to satisfy our obligations, including the delivery of cleared spectrum and broadband licenses, and the other contingencies required by our commercial agreements with our customers on a timely basis and on commercially reasonable terms;

•whether federal and state agencies and commissions will support the deployment of broadband networks and services by our targeted customers;

•our ability to maintain any narrowband and broadband licenses that we own, acquire and/or obtain;

•government regulations or actions taken by governmental bodies could adversely affect our business prospects, liquidity and results of operations, including any changes by the FCC to the Report and Order or to the FCC rules and regulations governing the 900 MHz band;

•our ability to successfully compete against the third parties who offer spectrum and communication technologies, products and solutions to our targeted customers;

•our ability to retain executive officers and key personnel and attract, retain and motivate qualified talent;

•our ability to successfully manage our planned growth;

•the ability to develop and sustain a robust market for our common stock;

3

•our ability to predict, influence or control factors that may cause our common stock price to be volatile or cause the value of our common stock to decline;

•the expected timing and amount of purchases and the related impact to our common stock relating to our share repurchase program; and

•how the concentrated ownership of our common stock may limit other stockholders’ ability to influence corporate matters.

The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. Many of these risks, uncertainties and other factors are beyond our ability to control, influence, or predict. The most significant of these risks, uncertainties and other factors are described in “Item 1A—Risk Factors” in Part II of this Quarterly Report and in our Annual Report on Form 10-K for the year ended March 31, 2023, filed with the SEC on June 14, 2023. As a result, investors are urged not to place undue reliance on any forward-looking statements. These forward-looking statements reflect our views and assumptions only as of the date such forward-looking statements were made. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

4

PART I. FINANCIAL INFORMATION

Item 1: Consolidated Financial Statements

Anterix Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

	December 31, 2023		March 31, 2023
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	62,033	$	43,182
Prepaid expenses and other current assets	15,816		16,277
Total current assets	77,849		59,459
Escrow deposits	7,517		—
Property and equipment, net	2,129		3,606
Right of use assets, net	4,629		3,371
Intangible assets	213,719		202,044
Other assets	15,037		10,078
Total assets	$	320,880	$	278,558
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses	$	8,212	$	6,624
Due to related parties	—		533
Operating lease liabilities	1,888		1,725
Contingent liability	1,000		20,249
Deferred revenue	6,163		2,769
Total current liabilities	17,263		31,900
Operating lease liabilities	3,700		2,922
Contingent liability	15,000		—
Deferred revenue	100,897		57,990
Deferred gain on sale of intangible assets	4,911		—
Deferred income tax	6,332		5,440
Other liabilities	513		513
Total liabilities	148,616		98,765
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2023 and March 31, 2023	—		—
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,554,424 shares issued and outstanding at December 31, 2023 and 18,921,999 shares issued and outstanding at March 31, 2023	2		2
Additional paid-in capital	529,054		518,160
Accumulated deficit	(356,792)		(338,369)
Total stockholders’ equity	172,264		179,793
Total liabilities and stockholders’ equity	$	320,880	$	278,558

See accompanying notes to consolidated financial statements.

5

Anterix Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Spectrum revenues	$	1,271	$	578	$	2,931	$	1,311
Operating expenses
General and administrative	11,252		12,085		34,830		34,871
Sales and support	1,380		1,385		3,965		3,785
Product development	1,238		936		3,454		3,012
Depreciation and amortization	198		373		653		1,107
Operating expenses	14,068		14,779		42,902		42,775
Gain on disposal of intangible assets, net	(13,737)		(5,776)		(33,035)		(9,329)
Gain on sale of intangible assets, net	(32)		—		(7,364)		—
Loss (gain) on disposal of long-lived assets, net	3		(21)		39		1
Gain (loss) from operations	969		(8,404)		389		(32,136)
Interest income	666		409		1,448		670
Other income	31		185		189		232
Income (loss) before income taxes	1,666		(7,810)		2,026		(31,234)
Income tax expense	1,338		210		1,743		625
Net income (loss)	$	328	$	(8,020)	$	283	$	(31,859)
Net income (loss) per common share basic	$	0.02	$	(0.42)	$	0.02	$	(1.69)
Net income (loss) per common share diluted	$	0.02	$	(0.42)	$	0.01	$	(1.69)
Weighted-average common shares used to compute basic net income (loss) per share	18,704,400		18,930,594		18,858,472		18,834,991
Weighted-average common shares used to compute diluted net income (loss) per share	18,916,246		18,930,594		19,082,867		18,834,991

See accompanying notes to consolidated financial statements.

6

Anterix Inc.

Consolidated Statements of Stockholders’ Equity

(in thousands)

(Unaudited)

	Number of Shares
	Common stock	Common stock		Additional paid-in capital		Accumulated deficit		Total
Balance at September 30, 2023	18,768	$	2	$	525,248	$	(349,149)	$	176,101
Equity based compensation	—	—		3,921		—		3,921
Restricted shares issued	19	—		—		—		—
Stock option exercises	—	—		—		—		—
Shares withheld for taxes	(3)	—		(115)		—		(115)
Retirement of common stock	(230)	—		—		(7,971)		(7,971)
Net income	—	—		—		328		328
Balance at December 31, 2023	18,554	$	2	$	529,054	$	(356,792)	$	172,264
Balance at March 31, 2023	18,922	$	2	$	518,160	$	(338,369)	$	179,793
Equity based compensation	—	—		12,024		—		12,024
Restricted shares issued	229	—		—		—		—
Stock option exercises	—	—		7		—		7
Shares withheld for taxes	(34)	—		(1,137)		—		(1,137)
Retirement of common stock	(563)	—		—		(18,706)		(18,706)
Net income	—	—		—		283		283
Balance at December 31, 2023	18,554	$	2	$	529,054	$	(356,792)	$	172,264

See accompanying notes to consolidated financial statements.

7

Anterix Inc.

Consolidated Statements of Stockholders’ Equity

(in thousands)

(Unaudited)

	Number of Shares
	Common stock	Common stock		Additional paid-in capital		Accumulated deficit		Total
Balance at September 30, 2022	18,960	$	2	$	508,480	$	(342,393)	$	166,089
Equity based compensation	—	—		4,592		—		4,592
Restricted shares issued	18	—		—		—		—
Shares withheld for taxes	(3)	—		(138)		—		(138)
Retirement of common stock	(106)	—		—		(3,498)		(3,498)
Net loss	—	—		—		(8,020)		(8,020)
Balance at December 31, 2022	18,869	$	2	$	512,934	$	(353,911)	$	159,025
Balance at March 31, 2022	18,378	$	2	$	500,125	$	(313,829)	$	186,298
Equity based compensation	—	—		13,411		—		13,411
Restricted shares issued	203	—		—		—		—
Stock option exercises	37	—		872		—		872
Motorola shares	500	—		—		—		—
Shares withheld for taxes	(33)	—		(1,474)		—		(1,474)
Retirement of common stock	(216)	—		—		(8,223)		(8,223)
Net loss	—	—		—		(31,859)		(31,859)
Balance at December 31, 2022	18,869	$	2	$	512,934	$	(353,911)	$	159,025

See accompanying notes to consolidated financial statements.

8

Anterix Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

	Nine months ended December 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	283	$	(31,859)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	653		1,107
Non-cash compensation expense attributable to stock awards	12,024		13,411
Deferred income taxes	892		613
Gain on disposal of intangible assets, net	(33,035)		(9,329)
Gain on sale of intangible assets, net	(7,364)		—
Loss on disposal of long-lived assets, net	39		1
Changes in operating assets and liabilities
Prepaid expenses and other assets	322		666
Right of use assets	(1,258)		480
Accounts payable and accrued expenses	1,588		43
Due to related parties	(533)		—
Operating lease liabilities	941		(747)
Contingent liability	15,000		249
Deferred revenue	46,301		6,689
Net cash provided by (used in) operating activities	35,853		(18,676)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets, including refundable deposits	(14,809)		(19,069)
Proceeds from sale of spectrum	25,427		—
Purchases of equipment	(267)		(1,543)
Net cash provided by (used in) investing activities	10,351		(20,612)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises	7		872
Repurchase of common stock	(18,706)		(8,223)
Payments of withholding tax on net issuance of restricted stock	(1,137)		(1,474)
Net cash used in financing activities	(19,836)		(8,825)
Net change in cash and cash equivalents and restricted cash	26,368		(48,113)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash at beginning of the period	43,182		105,624
Cash and cash equivalents and restricted cash at end of the period	$	69,550	$	57,511
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period:
Taxes paid	$	1	$	12
Non-cash investing activity:
Network equipment provided in exchange for wireless licenses	$	616	$	30
Deferred gain on sale of intangible assets	$	4,911	$	—
Derecognition of contingent liability related to sale of intangible assets	$	19,249	$	—

See accompanying notes to consolidated financial statements.

9

The following tables provide a reconciliation of cash and cash equivalents and restricted cash reported on the Consolidated Balance Sheets that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:
	December 31, 2023		March 31, 2023
Cash and cash equivalents	$	62,033	$	43,182
Escrow deposits	7,517		—
Total cash and cash equivalents and restricted cash	$	69,550	$	43,182
	December 31, 2022		March 31, 2022
Cash and cash equivalents	$	57,511	$	105,624
Escrow deposits	—		—
Total cash and cash equivalents and restricted cash	$	57,511	$	105,624

10

Anterix Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1.    Nature of Operations and Basis of Presentation

Anterix Inc. (the “Company”) is a wireless communications company focused on commercializing its spectrum assets to enable its targeted utility and critical infrastructure customers to deploy private broadband networks and on offering innovative broadband solutions to the same target customers. The Company is the largest holder of licensed spectrum in the 900 MHz band (896 - 901 / 935 - 940 MHz) with nationwide coverage throughout the contiguous United States, Hawaii, Alaska and Puerto Rico. On May 13, 2020, the Federal Communications Commission (the “FCC”) approved the Report and Order (the “Report and Order”) to modernize and realign the 900 MHz band to increase its usability and capacity by allowing it to be utilized for the deployment of broadband networks, technologies and solutions. The Report and Order was published in the Federal Register on July 16, 2020, and became effective on August 17, 2020. The Company is now engaged in qualifying for and securing broadband licenses from the FCC. At the same time, the Company is pursuing opportunities to monetize the broadband spectrum it secures to its targeted utility and critical infrastructure customers. The Company is also expanding the benefits and solutions it offers to the same targeted customers. As part of the Company’s solution expansion, the Company launched an integrated platform to accelerate the scale benefits of combining, or networking together, individual private broadband networks to enhance utilities’ resiliency, reach and collaboration. The first commercial service on the platform, CatalyX, includes public network roaming management solution along with secure, remote SIM provisioning. CatalyX is a turnkey connectivity management solution that helps utilities gain economic and operational benefits leveraging commercial broadband during their transition to private LTE (“PLTE”) networks, extending coverage into gap areas or providing back-up connectivity for private networks. The Company has successfully led and completed initiatives in 3GPP to secure enhancements to the US 900 MHz spectrum to benefit its customers, including the designation of a new band, both for LTE and 5G, as well as a transition to 5G, which received worldwide wireless industry support.

Business Developments

TECO Agreement

On November 22, 2023, the Company entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial term of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. See Note 2 Revenue for further discussion on the TECO Agreement.

LCRA Agreement

In April 2023, the Company entered into an agreement with Lower Colorado River Authority (“LCRA”) to sell 900 MHz Broadband Spectrum covering 68 counties and more than 30 cities in LCRA’s wholesale electric, transmission, and water service area (the “LCRA Agreement”) for total payments of $30.0 million plus the contribution of select LCRA 900 MHz narrowband spectrum. The LCRA Agreement will support LCRA’s deployment of a PLTE network which will provide a host of capabilities including grid awareness, communications and operational intelligence that will enhance resilience and spur innovation at LCRA. The new licenses will enable LCRA to move from narrowband to next generation broadband and provide mission-critical data and voice services within LCRA and to more than 100 external customers such as electric cooperatives, schools and transit authorities across more than 73,000 square miles. Total consideration of $30.0 million is to be paid through fiscal year 2026 pursuant to the terms of the LCRA Agreement. During the quarter ended December 31, 2023, the Company received an initial $15.0 million payment, of which $7.5 million was deposited in an escrow account (refer to Note 3 Escrow Deposits for further discussion). See Note 10 Contingencies and Guaranty for further discussion on the LCRA Agreement.

11

Xcel Energy Agreement

In October 2022, the Company entered into an agreement with Xcel Energy Services Inc. (“Xcel Energy”) providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states (the “Xcel Energy Agreement”) for a total of $80.0 million, of which $8.0 million was received by the Company in December 2022. In July 2023 and November 2023, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband licenses and received the full milestone payments of $21.2 million in each period. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively.

SDG&E Agreement

In February 2021, the Company entered into an agreement with San Diego Gas & Electric Company, a subsidiary of Sempra Energy (“SDG&E”), to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, including San Diego and Imperial Counties and portions of Orange County (the “SDG&E Agreement”) for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. During the quarter ended September 30, 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. During the quarter ended December 31, 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. See Note 4 Intangible Assets for further discussion.

2023 Stock Plan

On August 8, 2023, the Company adopted a new equity-based compensation plan known as the Anterix Inc. 2023 Stock Plan (the “2023 Stock Plan”). The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. See Note 8 Stockholders’ Equity for further discussion.

2023 Share Repurchase Program

On September 21, 2023, the Board of Directors (the “Board”) authorized a new share repurchase program (the “2023 Share Repurchase Program”) pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. See Note 8 Stockholders’ Equity for further discussion.

Basis of Presentation and Use of Estimates

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on June 14, 2023 (the “2023 Annual Report”). In the Company’s opinion all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. The Company believes that the disclosures made in the unaudited consolidated interim financial statements are adequate to make the information not misleading. The results of operations for the interim periods presented are not necessarily indicative of the results for the year. The Company is also required to make certain estimates and assumptions that affect the reported amounts. These estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

12

Recently Issued Accounting Pronouncements

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This update is effective for annual periods beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. This update is effective for annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

2.    Revenue

The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Spectrum revenues
900 MHz Broadband Spectrum Revenue
Ameren Corporation	$	152	$	152	$	456	$	457
Evergy	274		244		822		308
Xcel Energy (1)	663		—		1,107		—
Narrowband Spectrum Revenue
Motorola	182		182		546		546
Total spectrum revenue (2)	$	1,271	$	578	$	2,931	$	1,311

1.The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to Xcel Energy during the three months ended September 2023.

2.Revenue recognized during the three and nine months ended December 31, 2023 and 2022 was included in deferred revenue at the beginning of the respective periods.

Spectrum Revenue Agreements

Refer to the Company’s 2023 Annual Report for a description of the Company’s spectrum revenue agreements entered into prior to March 31, 2023. The following reflects agreements entered into during the nine months ended December 31, 2023:

On November 22, 2023, the Company entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an

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option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial terms of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. The remaining prepayments for the 20-year initial term are due by fiscal year 2026, per the terms of the TECO Agreement and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses. The Company is working with incumbents to clear the 900 MHz Broadband Spectrum allocation in TECO service territories. The payments of prepaid fees under the TECO Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue will be recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband licenses are delivered by respective county, over the contractual term of approximately 20 years.

Capitalized contract costs

The Company capitalizes incremental costs associated with obtaining a contract with a customer, which generally includes sales commissions. The Company’s capitalized contract costs consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	884	$	693	$	870	$	638
Additions	12		47		45		109
Amortization	(13)		(4)		(32)		(11)
Balance at the end of the period	883		736		883		736
Less amount classified as current assets (1)	(425)		(347)		(425)		(347)
Noncurrent assets (1)	$	458	$	389	$	458	$	389

1.Current assets are recorded as prepaid expenses and other current assets and noncurrent assets are recorded as other assets on the Company’s Consolidated Balance Sheets.

Contract liabilities

Contract liabilities primarily relate to advanced consideration received from customers for spectrum services, for which revenue is recognized over time, as the services are performed. The Company’s contract liabilities consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	80,265	$	53,945	$	60,759	$	54,678
Additions (1)	28,066		8,000		49,232		8,000
Revenue recognized	(1,271)		(578)		(2,931)		(1,311)
Balance at the end of the period	107,060		61,367		107,060		61,367
Less amount classified as current liabilities (2)	(6,163)		(2,656)		(6,163)		(2,656)
Noncurrent liabilities (2)	$	100,897	$	58,711	$	100,897	$	58,711

1.Represents milestone payments of received from customer contracts pursuant to the terms of the associated spectrum lease agreements.

2.Current liabilities and noncurrent liabilities are recorded as deferred revenue on the Company’s Consolidated Balance Sheets.

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Remaining Performance Obligations

Revenue allocated to remaining performance obligations of the Company’s contracts represent contracted revenue that will be recognized in future periods. Total performance obligations include deferred revenue (i.e., contract liabilities) as well as amounts that will be invoiced and recognized in future periods. Revenue allocated to remaining performance obligations was $188.5 million as of December 31, 2023, which will be recognized ratably over the remaining contract terms up to 30 years.

3.    Escrow Deposits

Escrow deposits are considered restricted cash as the deposits are restricted from use until the terms of the escrow agreement are met. Escrow deposits are classified as current assets on the Company’s Consolidated Balance Sheets.

In connection with the LCRA Agreement, the Company and LCRA entered into an escrow agreement. Pursuant to the escrow agreement, the escrow funds shall be held and invested in a money market deposit account. All interest and other income earned shall be allocated to the Company, payable with the final distribution of the escrow funds. The escrow funds shall be distributed upon written request by both the Company and LCRA pursuant to the terms within the LCRA Agreement. During the quarter ended December 31, 2023, the Company received $15.0 million, of which $7.5 million was deposited in an escrow account.

4.    Intangible Assets

Wireless licenses are considered indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but instead are tested for impairment annually, or more frequently if an event indicates that the asset might be impaired. There were no impairment charges related to the Company’s indefinite-lived intangible assets during the three and nine months ended December 31, 2023 and 2022.

Intangible assets consist of the following activity for the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Balance at the beginning of period	$	202,044	$	151,169
Acquisitions	11,042		9,159
Sale of intangible assets	(32,402)		—
Exchanges – licenses received	41,250		13,107
Exchanges – licenses surrendered	(8,215)		(3,778)
Balance at the end of period	$	213,719	$	169,657

Purchases of intangible assets, including refundable deposits

During the nine months ended December 31, 2023 and 2022, the Company entered into agreements with several third parties in multiple U.S. markets to acquire, retune or swap wireless licenses for cash consideration (“deals”) and made Anti-Windfall Payments to the US Treasury Department. The initial deposits to incumbents are recorded as prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets and are refundable if the FCC does not approve the sale, retuning or swap of the spectrum. The initial deposits are transferred to other assets or intangible assets in the Company’s Consolidated Balance Sheets, as applicable, upon meeting the relevant deal milestones. The final payments related to closed retuning or swap deals are recorded as other assets on the Company’s Consolidated Balance Sheets. The final payments for license purchases or Anti-Windfall Payments are recorded as intangible assets on the Company’s Consolidated Balance Sheets.

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The purchases of intangible assets, including refundable deposits, consisted of the following activity during the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Refundable deposits	$	2,274	$	5,317
Retuning cost and Swaps	1,493		4,593
Purchases and Anti-Windfall Payments	11,042		9,159
Total	$	14,809	$	19,069

Broadband License Exchanges

During the nine months ended December 31, 2023, the Company was granted by the FCC, broadband licenses for 24 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $41.3 million. In connection with receiving the broadband licenses, the Company disposed of $8.2 million, related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 24 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $13.7 million and $33.0 million, for the three and nine months ended December 31, 2023, respectively.

During the nine months ended December 31, 2022, the Company was granted by the FCC, broadband licenses for 70 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $13.1 million. In connection with receiving the broadband licenses, the Company disposed of $3.8 million, related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 70 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $5.8 million and $9.3 million, for the three and nine months ended December 31, 2022, respectively.

Broadband License Sale

During the quarter ended September 30, 2023, the Company transferred to SDG&E the San Diego County broadband license for total cumulative payments of $44.0 million net of delivery delay adjustments of $1.1 million. As a result, the Company recognized a reduction in intangible assets of $31.8 million and recorded a $7.3 million gain on sale of intangible assets on the Company’s Consolidated Statements of Operations.

During the quarter ended December 31, 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license to Imperial County for total cumulative payments of $0.7 million. As a result, the Company recognized a reduction in intangible assets of $0.6 million and recorded a $32 thousand gain on sale of intangible assets on the Company’s Consolidated Statements of Operations.

As part of the SDG&E Agreement, SDG&E has an option to pursue additional spectrum with the Company. In accordance with ASC 606, the Company recorded a $4.9 million deferred gain on sale of intangible assets on the Company’s Consolidated Balance Sheets as of December 31, 2023, related to this option, which expires in September 2028.

5.    Related Party Transactions

Refer to the Company’s 2023 Annual Report for a more complete description of the nature of its related party transactions prior to March 31, 2023. The following reflects the related party activity during the three and nine months ended December 31, 2023 and 2022.

In connection with the transfer of its TeamConnect business and support for its pdvConnect business, the Company entered into a memorandum of understanding (“MOU”) with the principals of Goosetown on December 31, 2018. Under the MOU, the Company agreed to assign the intellectual property rights to its pdvConnect application to TeamConnect LLC (“LLC”), a new entity formed by the principals of Goosetown, in exchange for a 19.5% ownership interest in the LLC, effective April 30, 2019. The Company was obligated to pay the LLC a monthly

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service fee for a 24-month period ending on January 7, 2021 for its assumption of the Company’s support obligations under the A BEEP and Goosetown Agreements. The Company was also obligated to pay the LLC a certain portion of the billed revenue received by the Company from pdvConnect customers for a 48-month period. On February 22, 2023, the Company amended the LLC agreement to withdraw as a member of the LLC for no consideration and did not incur payments during the three and nine months ended December 31, 2023. For the three and nine months ended December 31, 2022, the Company incurred payments of $15,000 and $45,000 to the parties associated with the transferred business. As of December 31, 2023 and March 31, 2023, the Company did not have outstanding liabilities to the related parties associated with the transferred business.

6.    Leases

All the leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029 which includes lease extensions for its corporate headquarters ranging from three to ten years. The Company entered into multiple lease agreements for tower space. The lease expiration dates range from February 29, 2024 to December 18, 2030.

Substantially all of the Company’s leases are classified as operating leases. Operating lease agreements are required to be recognized on the Company’s Consolidated Balance Sheet as right of use (“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows:

	Nine months ended December 31,
	2023	2022
Weighted average term - operating lease liabilities	3.50 years	3.01 years
Weighted average incremental borrowing rate - operating lease liabilities	9%	12%

Total lease cost amounted to approximately $0.5 million and $1.5 million, respectively, for the three and nine months ended December 31, 2023 and approximately $0.5 million and $1.4 million, respectively, for the three and nine months ended December 31, 2022. Total lease cost is included in general and administrative expenses on the Company’s Consolidated Statements of Operations.

The following table presents total lease cost for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Lease cost
Operating lease cost (cost resulting from lease payments)	$	479	$	461	$	1,457	$	1,355
Short term lease cost	—		—		—		7
Total lease cost	$	479	$	461	$	1,457	$	1,362

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The following table presents supplemental cash flow and non-cash activity information for the nine months ended December 31, 2023 and 2022 (in thousands):

	Nine months ended December 31,
	2023		2022
Cash paid activity:
Operating lease - operating cash flows (fixed payments)	$	1,732	$	1,634
Operating lease - operating cash flows (liability reduction)	$	1,373	$	747
Non-cash activity:
Right of use assets obtained in exchange for new operating lease liabilities	$	439	$	165

The following table presents supplemental balance sheet information as of December 31, 2023 and March 31, 2023 (in thousands):

	December 31, 2023		March 31, 2023
Non-current assets - right of use assets, net	$	4,629	$	3,371
Current liabilities - operating lease liabilities	$	1,888	$	1,725
Non-current liabilities - operating lease liabilities	$	3,700	$	2,922

Future minimum payments under existing non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the nine months ended December 31, 2023, are as follows (in thousands):

Fiscal Year	Operating Leases
2024 (excluding the nine months ended December 31, 2023)	$	655
2025	2,156
2026	1,409
2027	994
2028	645
After 2028	522
Total future minimum lease payments	6,381
Amount representing interest	(793)
Present value of net future minimum lease payments	$	5,588

7.    Income Taxes

The Company used a discrete effective tax rate method to calculate taxes for the three and nine months ended December 31, 2023 and 2022, which were a result of its inability to use some portion of its federal and state net operating losses (“NOLs”) carryforwards against the deferred tax liability created by the amortization of indefinite-lived intangible assets and the change in the state effective tax rate. The Company determined that applying an estimate of the annual effective tax rate would not provide a reasonable estimate as small changes in estimated “ordinary” loss could result in significant changes in the estimated annual effective tax rate. Accordingly, for the three and nine months ended December 31, 2023, the Company recorded a total tax expense of $1.3 million and $1.7 million, respectively. For the three and nine months ended December 31, 2022, the Company recorded a total tax expense of $0.2 million and $0.6 million, respectively.

The Company’s NOL generated after March 31, 2018 may be used as an indefinite-lived asset to offset its deferred tax liability but are limited to 80% of future taxable income. The deferred tax liabilities as of December 31, 2023 are approximately $3.1 million for federal and $3.2 million for state. The deferred tax liabilities as of March 31, 2023 are approximately $2.7 million for federal and $2.7 million for state.

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8.    Stockholders’ Equity

On August 8, 2023 (the “Effective Date”), the Company adopted a new equity-based compensation plan known as the 2023 Stock Plan. The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. As of the Effective Date, no additional awards may be granted under the Anterix Inc. 2014 Stock Plan (the “2014 Stock Plan”). The 2023 Stock Plan authorizes 250,000 shares of common stock of the Company (“Shares”) for grant. Additionally, Shares remaining for grant under the 2014 Stock Plan immediately prior to the Effective Date, Shares subject to outstanding stock awards granted under the 2014 Stock Plan that, following the Effective Date, expire or are terminated or cancelled without having been exercised or settled in full, and Shares acquired pursuant to an award subject to forfeiture or repurchase that are forfeited or repurchased by the Company for an amount not greater than the recipient’s purchase price, are issuable under the 2023 Stock Plan. As of December 31, 2023, 579,973 shares are available for future issuance, including 388,151 shares that were remaining under the 2014 Stock Plan and up to 181,887 shares which may be granted upon meeting certain performance levels above 100% for performance stock unit awards.

During the nine months ended December 31, 2023 and the year ended March 31, 2023, a total of 194,611 and 260,370 shares, respectively, were issued in connection with the vesting, conversion and or exercise of grants under the Company’s 2014 and 2023 Stock Plan.

Share Repurchase Program

In September 2021, the Board authorized a share repurchase program (the “2021 Share Repurchase Program”) pursuant to which the Company may repurchase up to $50.0 million of the Company’s common stock on or before September 29, 2023. The Company repurchased and subsequently retired a total of $33.9 million of the Company’s common stock under the 2021 Share Repurchase Program, including $10.7 million during fiscal year 2024. On September 21, 2023, the Board authorized the new 2023 Share Repurchase Program pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. The Company repurchased and subsequently retired a total of $8.0 million of the Company’s common stock under the 2023 Share Repurchase Program during fiscal year 2024. The Company may repurchase shares of its common stock via the open market and/or privately negotiated transactions. Repurchases will be made in accordance with applicable securities laws and may be effected pursuant to Rule 10b5-1 trading plans. The manner, timing and amount of any share repurchases will be determined by the Company based on a variety of factors, including proceeds from customer contracts, the timing of which is unpredictable, as well as general business and market conditions, the Company’s capital position, and other strategic considerations. The 2023 Share Repurchase Program does not obligate the Company to repurchase any particular amount of its common stock.

The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Excise tax accrued for the three and nine months ended December 31, 2023 was approximately $74 thousand and $118 thousand, respectively.

The following table presents the share repurchase activity for the three and nine months ended December 31, 2023 and 2022 (in thousands, except per share data):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Number of shares repurchased and retired	230		106		563		216
Average price paid per share*	$	34.77	$	33.11	$	33.62	$	47.05
Total cost to repurchase	$	7,971	$	3,498	$	18,706	$	8,223

*Average price paid per share includes costs associated with the repurchases.

As of December 31, 2023, $242.0 million is remaining under the share repurchase program.

Motorola Investment

In September 2014, Motorola Solutions, Inc. (“Motorola”) invested $10.0 million to purchase 500,000 Class B Units of the Company’s subsidiary, PDV Spectrum Holding Company, LLC (at a price equal to $20.00 per unit). The

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Company owns 100% of the Class A Units in the Subsidiary. Motorola had the right at any time to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock and in May 2022, Motorola exercised such right to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock.

9.    Net Income (Loss) Per Share of Common Stock

Basic net income (loss) per common share is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. For purposes of the diluted net income (loss) per share calculation, stock options and restricted stock units and awards are considered to be potentially dilutive securities. Diluted earnings per share was computed using the treasury stock method.

The following table reconciles net income (loss) and weighted-average common shares used to compute basic and diluted net income (loss) per share:

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Net income (loss):	$	328	$	(8,020)	$	283	$	(31,859)
Weighted-average common shares:
Basic weighted-average shares	18,704,400		18,930,594		18,858,472		18,834,991
Add: dilutive effect of stock options and restricted stock units	211,846		—		224,395		—
Diluted weighted-average common shares	18,916,246		18,930,594		19,082,867		18,834,991

For the three and nine months ended December 31, 2023, there were 1,129,994 and 1,048,902 stock options and restricted stock units outstanding, excluded from the calculation of diluted weighted-average shares because the effect was anti-dilutive. For the three and nine months ended December 31, 2022, there were 201,100 and 381,432 potentially dilutive stock options and restricted stock units outstanding, respectively, excluded from the calculation of diluted weighted-average shares as their effects are anti-dilutive because the Company reported a net loss for the three and nine months ended December 31, 2022, respectively.

10.    Contingencies and Guaranty

Contingent Liabilities

SDG&E Refund Obligations

In February 2021, the Company entered into an agreement with SDG&E, a subsidiary of Sempra Energy to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, the SDG&E Agreement, for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. As the Company is required to refund payments it has received from SDG&E in the event of termination or non-delivery of the specific county’s full 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to SDG&E.

In September 2022, the Company transferred to SDG&E 1.4 x 1.4 cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. In September 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. In December 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. This resulted in the recognition of a gain on the sale of spectrum and derecognition of the contingent liability associated with San Diego County and Imperial County. See Note 4 Intangible Assets for further discussion on the sale of intangible assets.

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Subsequent to the derecognition of the contingent liability related to the delivery of San Diego County and Imperial County licenses, the remaining contingent liability related to SDG&E of $1.0 million for Orange County was classified as a short-term liability due to the expected timing of delivery.

LCRA Refund Obligation

In April 2023, the Company entered into the LCRA Agreement for a total payment of $30.0 million, to be paid through fiscal year 2026 pursuant to the terms of the agreement. During the quarter ended December 31, 2023, the Company received $15.0 million in milestone payments, of which $7.5 million was deposited in an escrow account. The remaining payments are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to LCRA. As the Company is required to refund the deposit it has received from LCRA in the event of termination or non-delivery of the specific county’s full cleared 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to LCRA. See Note 3 Escrow Deposits for further discussion on the escrow deposit.

Xcel Energy Guaranty

In October 2022, the Company entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states the Xcel Energy Agreement. In connection with Xcel Energy Agreement, the Company entered into a guaranty agreement, under which the Company guaranteed the delivery of the relevant 900 MHz Broadband Spectrum and the associated broadband licenses in Xcel Energy’s service territory in eight states along with other commercial obligations. In the event of default or non-delivery of the specific territory’s 900 MHz Broadband Spectrum, the Company is required to refund payments it has received. In addition, to the extent Anterix has performed any obligations, the Company’s liability and remaining obligations under the Xcel Energy Agreement will extend only to the remaining unperformed obligations. The Company recorded $50.3 million in deferred revenue in connection with the prepayments received as of December 31, 2023. The Company commenced delivery of the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses in the first quarter of fiscal year 2024 and will continue through 2029. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively. As of December 31, 2023, the maximum potential liability of future undiscounted payments under this agreement is approximately $49.2 million.

Litigation

From time to time, the Company may be involved in litigation that arises from the ordinary operations of the business, such as contractual or employment disputes or other general actions. The Company is not involved in any material legal proceedings at this time.

Pandemic and Macroeconomic Conditions

Recent macroeconomic events, including the outbreak of COVID-19, inflation, and geopolitical matters, have increased operating costs or resulted in delays in customer contracting or impacted the availability of equipment necessary for the deployment of our target customers’ planned PLTE projects. The Company continues to closely monitor these risks. Although difficult to quantify, the Company believes the current macroeconomic environment, including inflation, may have an adverse effect on the Company’s target customers’ businesses, which may harm the Company’s commercialization efforts and negatively impact the Company’s revenues and liquidity. If the Company is not able to control its operating costs or if the Company’s commercialization efforts are slowed or negatively impacted, continued periods of high inflation could have a material adverse effect on the Company’s business, operating results and financial condition.

11.    Concentrations of Credit Risk

Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The cash balance at times may exceed federally insured limits, however, the Company places its cash and temporary cash investments with financial institutions for which credit loss is not anticipated.

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As of December 31, 2023 and March 31, 2023, the Company does not have an outstanding accounts receivable balance.

12.    Subsequent Events

Xcel Energy Agreement

During the quarter ended December 31, 2023, the Company cleared 900 MHz Broadband Spectrum in 10 additional counties in Xcel Energy’s service territory and applied for the associated broadband licenses. As a result, it received an advanced payment of $16.8 million in January 2024.

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Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion and analysis of the financial condition and results of operations of Anterix Inc. (“Anterix,” the “Company”, “we”, “us”, or “our”) should be read in conjunction with our financial statements and notes thereto included in this Quarterly Report on Form 10-Q (this “Quarterly Report”) and the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on June 14, 2023 (the “2023 Annual Report”). In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors including, but not limited to, those identified or referenced in “Item 1A—Risk Factors” in Part II of this Quarterly Report. As a result, investors are urged not to place undue reliance on any forward-looking statements. Except as required by applicable law, we do not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Quarterly Report.

Overview

We are a wireless communications company focused on commercializing our spectrum assets to enable our targeted utility and critical infrastructure customers to deploy private broadband networks and on offering innovative broadband solutions to the same target customers. We are the largest holder of licensed spectrum in the 900 MHz band (896 - 901 / 935 - 940 MHz) with nationwide coverage throughout the contiguous United States, Hawaii, Alaska and Puerto Rico. On May 13, 2020, the FCC approved the Report and Order to modernize and realign the 900 MHz band to increase its usability and capacity by allowing it to be utilized for the deployment of broadband networks, technologies and solutions. The Report and Order was published in the Federal Register on July 16, 2020 and became effective on August 17, 2020. We are now engaged in qualifying for and securing broadband licenses from the FCC. At the same time, we are pursuing opportunities to monetize the broadband spectrum we secure to our targeted utility and critical infrastructure customers. We are also expanding the benefits and solutions we offer to the same targeted customers. As part of our solution expansion, we launched an integrated platform to accelerate the scale benefits of combining, or networking together, individual private broadband networks to enhance utilities’ resiliency, reach and collaboration. The first commercial service on the platform, CatalyX, includes public network roaming management solution along with secure, remote SIM provisioning. CatalyX is a turnkey connectivity management solution that helps utilities gain economic and operational benefits leveraging commercial broadband during their transition to private LTE (“PLTE”) networks, extending coverage into gap areas or providing back-up connectivity for private networks. We have successfully led and completed initiatives in 3GPP to secure enhancements to the US 900 MHz spectrum to benefit our customers, including the designation of a new band, both for LTE and 5G, as well as a transition to 5G, which received worldwide wireless industry support.

Refer to our 2023 Annual Report for a more complete description of the nature of our business, including details regarding the process and costs to secure our broadband licenses.

Business Developments

TECO Agreement

On November 22, 2023, we entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of our 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial term of the TECO Agreement total $34.5 million, of which $6.9 million was received in December 2023. See Note 2 Revenue in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion on the TECO Agreement.

LCRA Agreement

In April 2023, we entered into an agreement with Lower Colorado River Authority (“LCRA”) to sell 900 MHz Broadband Spectrum covering 68 counties and more than 30 cities in LCRA’s wholesale electric, transmission, and water service area (the “LCRA Agreement”) for total payments of $30.0 million plus the contribution of select LCRA 900 MHz narrowband spectrum. The LCRA Agreement will support LCRA’s deployment of a PLTE network which will provide a host of

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capabilities including grid awareness, communications and operational intelligence that will enhance resilience and spur innovation at LCRA. The new licenses will enable LCRA to move from narrowband to next generation broadband and provide mission-critical data and voice services within LCRA and to more than 100 external customers such as electric cooperatives, schools and transit authorities across more than 73,000 square miles. Total consideration of $30.0 million is to be paid through fiscal year 2026 pursuant to the terms of the LCRA Agreement. During the quarter ended December 31, 2023, we received an initial $15.0 million payment, of which $7.5 million was deposited in an escrow account (refer to Note 3 Escrow Deposits in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion). See Note 10 Contingencies and Guaranty in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion on the LCRA Agreement.

Xcel Energy Agreement

In October 2022, we entered into an agreement with Xcel Energy Services Inc. (“Xcel Energy”) providing Xcel Energy dedicated long-term usage of our 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states (the “Xcel Energy Agreement”) for a total of $80.0 million, of which $8.0 million was received in December 2022. In July 2023 and November 2023, we delivered the cleared 900 MHz Broadband Spectrum and the associated broadband licenses and received the full milestone payments of $21.2 million in each period. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively.

During the quarter ended December 31, 2023, we cleared 900 MHz Broadband Spectrum in 10 additional counties in Xcel Energy’s service territory and applied for the associated broadband licenses. As a result, we received an advanced payment of $16.8 million in January 2024.

SDG&E Agreement

In February 2021, we entered into an agreement with San Diego Gas & Electric Company, a subsidiary of Sempra Energy (“SDG&E”), to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, including San Diego and Imperial Counties and portions of Orange County (the “SDG&E Agreement”) for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as we deliver the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. During the quarter ended September 30, 2023, we transferred to SDG&E the San Diego County broadband license and received a milestone payment net of delivery delay adjustments of $25.2 million. During the quarter ended December 31, 2023, we transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. Refer to Note 4 Intangible Assets in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion on the sale of intangible assets.

2023 Stock Plan

On August 8, 2023, we adopted a new equity-based compensation plan known as the Anterix Inc. 2023 Stock Plan (the “2023 Stock Plan”). The 2023 Stock Plan permits us to grant equity compensation awards to employees, consultants and non-employee directors of the Company. Refer to Note 8 Stockholders’ Equity in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion.

2023 Share Repurchase Program

On September 21, 2023, our Board of Directors (“Board”) authorized a new share repurchase program (the “2023 Share Repurchase Program”) pursuant to which we may repurchase up to $250.0 million of our common stock on or before September 21, 2026. Refer to Note 8 Stockholders’ Equity in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion.

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Results of Operations

Comparison of the three and nine months ended December 31, 2023 and 2022

The following tables set forth our results of operations for the three and nine months ended December 31, 2023 and 2022. The period-to-period comparison of financial results is not necessarily indicative of financial results to be achieved in future periods.

Spectrum revenues

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Spectrum revenues	$	1,271	$	578	$	693	120	%	$	2,931	$	1,311	$	1,620	124	%

Spectrum revenues increased by $0.7 million, or 120%, to $1.3 million for the three months ended December 31, 2023 from $0.6 million for the three months ended December 31, 2022. The increase for the three months ended December 31, 2023 of $0.7 million, was attributable to revenue recognized in connection with our agreement with Xcel Energy of approximately $0.7 million. Spectrum revenues increased by $1.6 million, or 124%, to $2.9 million for the nine months ended December 31, 2023 from $1.3 million for the nine months ended December 31, 2022. The increase for the nine months ended December 31, 2023 of $1.6 million, was attributable to revenue recognized in connection with our agreements with Evergy and Xcel Energy of approximately $0.5 million and $1.1 million, respectively.

Operating expenses

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
General and administrative	$	11,252	$	12,085	$	(833)	-7	%	$	34,830	$	34,871	$	(41)	—	%
Sales and support	1,380		1,385		(5)		—	%	3,965		3,785		180		5	%
Product development	1,238		936		302		32	%	3,454		3,012		442		15	%
Depreciation and amortization	198		373		(175)		-47	%	653		1,107		(454)		-41	%
Operating expenses	$	14,068	$	14,779	$	(711)	-5	%	$	42,902	$	42,775	$	127	—	%

General and administrative expenses

General and administrative expenses decreased by $0.8 million, or -7%, to $11.3 million for the three months ended December 31, 2023 from $12.1 million for the three months ended December 31, 2022. The decrease for the three months ended December 31, 2023 of $0.8 million primarily resulted from $0.6 million lower stock compensation expense due to fewer grants awarded. General and administrative expenses for the nine months ended December 31, 2023 remained relatively flat as compared to the nine months ended December 31, 2022.

Sales and support expenses

Sales and support expenses for the three months ended December 31, 2023 remained relatively flat as compared for the three months ended December 31, 2022. Sales and support expenses increased by $0.2 million, or 5%, to $4.0 million for the nine months ended December 31, 2023 from $3.8 million for nine months ended December 31, 2022. The increase for the nine months ended December 31, 2023 of $0.2 million primarily resulted from $0.2 million higher headcount and related costs.

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Product development expenses

Product development expenses increased by $0.3 million, or 32%, to $1.2 million for the three months ended December 31, 2023 from $0.9 million for three months ended December 31, 2022. The increase for the three months ended December 31, 2023 of $0.3 million primarily resulted from $0.4 million higher consulting costs, $0.2 million higher headcount and related costs, partially offset by $0.2 million lower IT related costs, and $0.1 million lower stock compensation expense due to fewer grants. Product development expenses increased by $0.4 million, or 15%, to $3.5 million for the nine months ended December 31, 2023 from $3.0 million for nine months ended December 31, 2022. The increase for the nine months ended December 31, 2023 of $0.4 million primarily resulted from $0.4 million higher headcount and related costs, $0.1 million higher IT related costs, $0.1 million higher professional services, partially offset by $0.2 million lower stock compensation expense due to fewer grants.

Depreciation and amortization

Depreciation and amortization decreased by $0.2 million, or -47%, to $0.2 million for the three months ended December 31, 2023 from $0.4 million for three months ended December 31, 2022. Depreciation and amortization decreased by $0.5 million, or -41%, to $0.7 million for the nine months ended December 31, 2023 from $1.1 million for nine months ended December 31, 2022. The decreases were as a result of certain assets becoming fully depreciated during the current period compared to the prior period.

Gain on disposal of intangible assets, net

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Gain on disposal of intangible assets, net	$	(13,737)	$	(5,776)	$	(7,961)	138	%	$	(33,035)	$	(9,329)	$	(23,706)	254	%

During the three months ended December 31, 2023, we exchanged our narrowband licenses for broadband licenses in 10 counties. In connection with the exchange, we recorded an estimated accounting cost basis of $17.1 million for the new broadband licenses and relinquished to the FCC narrowband licenses for those same 10 counties valued at $3.4 million. As a result, we recorded a $13.7 million non-monetary gain on disposal of the intangible assets on our Consolidated Statements of Operations for the three months ended December 31, 2023. During the nine months ended December 31, 2023, we exchanged our narrowband licenses for broadband licenses in 24 counties. In connection with the exchange, we recorded an estimated accounting cost basis of $41.3 million for the new broadband licenses and relinquished to the FCC narrowband licenses for those same 24 counties valued at $8.2 million. As a result, we recorded a $33.0 million non-monetary gain on disposal of the intangible assets on our Consolidated Statements of Operations for the nine months ended December 31, 2023.

During the three months ended December 31, 2022, we exchanged our narrowband licenses for broadband licenses in 25 counties. In connection with the exchange, we recorded an estimated accounting cost basis of $8.2 million for the new broadband licenses and relinquished to the FCC narrowband licenses for those same 25 counties valued at $2.4 million. As a result, we recorded a $5.8 million non-monetary gain on disposal of the intangible assets on our Consolidated Statements of Operations for the three ended December 31, 2022. During the nine months ended December 31, 2022, we exchanged our narrowband licenses for broadband licenses in 70 counties. In connection with the exchange, we recorded an estimated accounting cost basis of $13.1 million for the new broadband licenses and relinquished to the FCC narrowband licenses for those same 70 counties valued at $3.8 million. As a result, we recorded a $9.3 million non-monetary gain on disposal of the intangible assets on our Consolidated Statements of Operations for the nine months ended December 31, 2022. Refer to Note 4 Intangibles Assets in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion on the exchanges.

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Gain on sale of intangible assets, net

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Gain on sale of intangible assets, net	$	(32)	$	—	$	(32)	100	%	$	(7,364)	$	—	$	(7,364)	100	%

During the three months ended December 31, 2023, we transferred to SDG&E the Imperial County broadband license. As a result, we recorded a $32 thousand gain on sale of intangible assets on our Consolidated Statements of Operations for the three months ended December 31, 2023. In addition, during the nine months ended December 31, 2023, we transferred to SDG&E the San Diego County broadband license and recorded a cumulative $7.4 million gain on sale of intangible assets on our Consolidated Statements of Operations for the nine months ended December 31, 2023. As part of the SDG&E Agreement, SDG&E has an option to pursue additional spectrum with us. In accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, we recorded a cumulative $4.9 million deferred gain on sale of intangible assets on our Consolidated Balance Sheets as of December 31, 2023, related to this option, which expires within 5 years of each delivery date. Refer to Note 4 Intangible Assets in the Notes to the Unaudited Consolidated Financial Statements contained within this Quarterly Report for further discussion on the sale of intangible assets.

Loss (gain) on disposal of long-lived assets, net

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Loss (gain) on disposal of long-lived assets, net	$	3	$	(21)	$	24	-115	%	$	39	$	1	$	38	3839	%

Loss (gain) on disposal of long-lived assets, net increased by $24 thousand, or -115%, to $3 thousand for the three months ended December 31, 2023 from $21 thousand for three months ended December 31, 2022. Loss (gain) on disposal of long-lived assets, net increased by $38 thousand, or 3839%, to $39 thousand for the nine months ended December 31, 2023 from $1 thousand for nine months ended December 31, 2022.

Interest income

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Interest income	$	666	$	409	$	257	63	%	$	1,448	$	670	$	778	116	%

Interest income increased by $0.3 million, or 63%, to $0.7 million for the three months ended December 31, 2023 from $0.4 million for three months ended December 31, 2022. Interest income increased by $0.8 million, or 116%, to $1.4 million for the nine months ended December 31, 2023 from $0.7 million for nine months ended December 31, 2022. The increase for both the three and nine months ended December 31, 2023 and 2022 was attributable to higher interest rates and higher cash balance.

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Other income

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Other income	$	31	$	185	$	(154)	-83	%	$	189	$	232	$	(43)	-19	%

Other income decreased by $0.2 million, or -83%, to $31 thousand for the three months ended December 31, 2023 from $0.2 million for three months ended December 31, 2022. Other income (expense) decreased by $43 thousand, or -19%, to $0.2 million for the nine months ended December 31, 2023 from $0.2 million for nine months ended December 31, 2022.

Income tax expense

	Three months ended December 31,				Aggregate Change				Nine months ended December 31,				Aggregate Change
(in thousands)	2023		2022		2023 from 2022				2023		2022		2023 from 2022
	(Unaudited)		(Unaudited)						(Unaudited)		(Unaudited)
Income tax expense	$	1,338	$	210	$	1,128	537	%	$	1,743	$	625	$	1,118	179	%

Income tax expense increased by $1.1 million, or 537%, to $1.3 million for the three months ended December 31, 2023 from $0.2 million for three months ended December 31, 2022. Income tax expense increased by $1.1 million, or 179%, to $1.7 million for the nine months ended December 31, 2023 from $0.6 million for nine months ended December 31, 2022. The change in income tax expense is a result of our inability to use some portion of federal and state NOL carryforwards against the deferred tax liability created by amortization of indefinite-lived intangible assets and the change in the state effective tax rate.

Liquidity and Capital Resources

Our principal source of liquidity is our cash and cash equivalents generated from customer contract proceeds. At December 31, 2023, we had cash and cash equivalents of $62.0 million.

We believe our cash and cash equivalents on hand, along with contracted proceeds from customers, will be sufficient to meet our financial obligations through at least 12 months from the date of this Quarterly Report. As noted above, our future capital requirements will depend on a number of factors, including among others, future customer contracts, the costs and timing of our spectrum retuning activities, spectrum acquisitions and the Anti-Windfall Payments to the U.S. Treasury, our operating activities, any cash proceeds we generate through our commercialization activities, our ability to timely deliver broadband licenses to our customers in accordance with our contractual obligations and our obligation to refund payments or pay penalties if we do not meet our commercial obligations. We deploy this capital at our determined pace based on several key ongoing factors, including customer demand, market opportunity, and offsetting income from spectrum leases. We cannot reasonably estimate any potential financial impact to our results of operations, commercialization efforts and financial condition of any potential future changes to our macroeconomic, legal or regulatory environment, including potential legislation affecting the energy or utility industry, the telecommunications environment, or supply chains. We are actively managing our business to maintain our cash flow and believe that we currently have adequate liquidity. To implement our business plans and initiatives, however, we may need to raise additional capital. We cannot predict with certainty the exact amount or timing for any future capital raises. See “Risk Factors” in Item 1A of Part II of this Quarterly Report for a reference to the risks and uncertainties that could cause our costs to be more than we currently anticipate and/or our revenue and operating results to be lower than we currently anticipate. If required, we intend to raise additional capital through debt or equity financing or through some other financing arrangement. However, we cannot be sure that additional financing will be available if and when needed, or that, if available, we can obtain financing on terms favorable to our stockholders and to us. Any failure to obtain financing when required will have a material adverse effect on our business, operating results, financial condition and liquidity.

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Cash Flows from Operating, Investing and Financing Activities

	Nine months ended December 31,
(in thousands)	2023		2022
	(Unaudited)		(Unaudited)
Net cash provided by (used in) operating activities	$	35,853	$	(18,676)
Net cash provided by (used in) investing activities	$	10,351	$	(20,612)
Net cash used in financing activities	$	(19,836)	$	(8,825)

Net cash provided by (used in) operating activities.

Our principal source of cash provided by operating activities is our customer contract proceeds in the form of advanced payments. For spectrum lease agreements, we record these advanced payments as deferred revenue on our Consolidated Balance Sheets and recognize revenue over the term of the lease, which is typically 20 to 30 years. For spectrum sale agreements, we record advanced payments as a contingent liability on our Consolidated Balance Sheets and derecognize this liability upon closing of the sale along with recording a gain or loss on sale. In addition, our cash flows will reflect a non-cash gain or loss on disposal of intangible assets for the difference in cost basis as we exchange narrowband licenses for broadband licenses. We expect net cash provided by (used in) operating activities to be affected by the progress on our customer agreements as well as changes in other operating assets and liabilities. The following represents our changes in net cash provided by (used in) operating activities for the nine months ended December 31, 2023 and 2022.

Net cash provided by operating activities was approximately $35.9 million in the nine months ended December 31, 2023. The net cash provided by operating activities in the nine months ended December 31, 2023 was primarily due to the following:

•$0.3 million net income, offset by the following non-cash activity:

◦increase of $0.7 million for depreciation and amortization as a result of assets placed in service during the year;

◦increase of $12.0 million in stock-based compensation expense due to additional grants awarded; and

◦decrease of $33.0 million related to the non-monetary gain on disposal of intangible assets in connection with our exchange of narrowband licenses for broadband licenses;

◦decrease of $7.4 million related to the gain on sale of intangible assets in connection with our delivery of the agreed upon 900 MHz Broadband Spectrum;

•$15.0 million increase in contingent liability related to the LCRA Agreement;

•$46.3 million increase in deferred revenue due to $49.2 million cash proceeds from our 900 MHz Broadband Spectrum customer prepayments offset by $2.9 million in revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum.

Net cash used in operating activities was approximately $18.7 million in the nine months ended December 31, 2022. The net cash used in operating activities in the nine months ended December 31, 2022 was primarily due to the following:

•$31.9 million net loss, offset by the following non-cash activity:

◦increase of $1.1 million for depreciation and amortization as a result of assets placed in service during the year;

◦increase of $13.4 million in stock-based compensation expense due to additional grants awarded;

◦decrease of $9.3 million related to the non-monetary gain on disposal of intangible assets in connection with our exchange of narrowband licenses for broadband licenses;

•$0.2 million increase in contingent liability related to the SDG&E Agreement

•$6.7 million increase in deferred revenue due to $8.0 million cash proceeds from our 900 MHz Broadband Spectrum customer prepayments offset by $1.3 million in revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum.

Net cash provided by (used in) investing activities.

Our principal outflow of cash used in investing activities is our purchases of intangible assets, including refundable deposits, which represent our spectrum clearing efforts as we work toward the conversion from narrowband to broadband spectrum. The purchases of intangible assets may be offset by current period cash proceeds from the sale of intangible assets, with a potential non-cash derecognition of the contingent liability for any proceeds received and recognized in operating activities in a prior period. We expect net cash provided by (used in) investing activities to be affected by the timing of our spectrum clearing efforts and the closing of our sale transactions and the related transfer of broadband

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licenses. The following represents our changes in net cash provided by (used in) investing activities for the nine months ended December 31, 2023 and 2022.

Net cash provided by investing activities was $10.4 million for the nine months ended December 31, 2023, as compared to net cash used in investing activities of $20.6 million for the nine months ended December 31, 2022. For the nine months ended December 31, 2023, net cash provided by investing activities was primarily from the $25.4 million sale of spectrum related to our transfer of the San Diego County and Imperial County broadband license to SDG&E partially offset by payments made to acquire, swap or retune wireless licenses in markets across the United States. For the nine months ended December 31, 2022, net cash used in investing activities was primarily from payments made to acquire, swap or retune wireless licenses in markets across the United States.

Net cash used in financing activities.

Our principal outflow of cash used in financing activities is a result of our equity transactions, including repurchases of common stock and taxes and fees associated with the issuance of restricted stock awards, offset by proceeds from stock options exercised in the period. We expect net cash used in financing activities to be affected by the timing of future equity transactions including the timing of our repurchases of common stock. The following represents our changes in net cash used in financing activities for the nine months ended December 31, 2023 and 2022.

Net cash used in financing activities was $19.8 million for the nine months ended December 31, 2023, as compared to $8.8 million for the nine months ended December 31, 2022. For the nine months ended December 31, 2023, net cash used in financing activities was primarily from the repurchase of common stock of $18.7 million, payments of withholding tax on net issuance of restricted stock of $1.1 million. For the nine months ended December 31, 2022, net cash used in financing activities was primarily from the repurchase of common stock of $8.2 million, payments of withholding tax on net issuance of restricted stock of $1.5 million, partially offset by the proceeds from stock option exercises of $0.9 million.

Material Cash Requirements

Our future capital requirements will depend on many factors, including: costs and time related to the commercialization of our spectrum assets; and our ability to sign customer contracts and generate revenues from the license or transfer of any broadband licenses we secure; our ability to timely deliver broadband licenses and clear spectrum to our customers in accordance with our contractual obligation; any requirement to refund payments or pay penalties if we do not satisfy our contractual obligations; the timeline and costs to acquire broadband licenses pursuant to the Report and Order, including the costs to acquire additional spectrum, the costs related to retuning, or swapping spectrum held by 900 MHz site-based licensees in the broadband segment that is required under section 90.621(b) to be protected by a broadband licensee with a base station at any location within the county, or any 900 MHz geographic-based SMR licensee in the broadband segment whose license area completely or partially overlaps the county, and the costs of paying Anti-Windfall Payments to the U.S. Treasury.

We are obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029, which includes a three to ten-year lease extension for our corporate headquarters. We have also entered into multiple lease agreements for tower space related to our historical TeamConnect business and in connection with obtaining spectrum licenses. The lease expiration dates range from February 29, 2024 to December 18, 2030. Total estimated payments for these lease agreements are approximately $6.4 million (exclusive of real estate taxes, utilities, maintenance and other costs borne by us). In addition to the lease payments for our tower space, we also have an obligation to clear the tower site locations, for which we recorded an asset retirement obligation (the “ARO”). Total estimated payments as a result of the ARO is approximately $0.6 million.

Xcel Energy Guaranty

In October 2022, we entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of our 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states the Xcel Energy Agreement. In connection with Xcel Energy Agreement, we entered into a guaranty agreement, under which we guaranteed the delivery of the relevant 900 MHz Broadband Spectrum and the associated broadband licenses in Xcel Energy’s service territory in eight states along with other commercial obligations. In the event of default or non-delivery of the specific territory’s 900 MHz Broadband Spectrum, we are required to refund payments we have received. In addition, to the extent Anterix has performed any obligations, our liability and remaining obligations under the Xcel Energy Agreement will extend only to the remaining unperformed obligations. We recorded $50.3 million in deferred revenue in connection with the prepayments received as of December 31, 2023. We commenced delivery of the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses in the first quarter of fiscal year 2024 and will continue

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through 2029. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively. As of December 31, 2023, the maximum potential liability of future undiscounted payments under this agreement is approximately $49.2 million.

Share Repurchase Program

In September 2021, our Board authorized a share repurchase program (the “2021 Share Repurchase Program”) pursuant to which we may repurchase up to $50.0 million of our common stock on or before September 29, 2023. We repurchased and subsequently retired a total of $33.9 million of our common stock under the 2021 Share Repurchase Program, including $10.7 million during fiscal year 2024. On September 21, 2023, our Board authorized the new 2023 Share Repurchase Program pursuant to which we may repurchase up to $250.0 million of our common stock on or before September 21, 2026. The Company repurchased and subsequently retired a total of $8.0 million of the Company’s common stock under the 2023 Share Repurchase Program during fiscal year 2024. We may repurchase shares of our common stock via the open market and/or privately negotiated transactions. Repurchases will be made in accordance with applicable securities laws and may be effected pursuant to Rule 10b5-1 trading plans. The manner, timing and amount of any share repurchases will be determined by us based on a variety of factors, including proceeds from customer contracts, the timing of which is unpredictable, as well as general business and market conditions, our capital position, and other strategic considerations. The 2023 Share Repurchase Program does not obligate us to repurchase any particular amount of our common stock.

The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Excise tax accrued for the three and nine months ended December 31, 2023 was approximately $74 thousand and $118 thousand, respectively.

The following table presents the share repurchase activity for the three and nine months ended December 31, 2023 and 2022 (in thousands, except per share data):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2023		2022		2023		2022
Number of shares repurchased and retired	230		106		563		216
Average price paid per share*	$	34.77	$	33.11	$	33.62	$	47.05
Total cost to repurchase	$	7,971	$	3,498	$	18,706	$	8,223

*Average price paid per share includes costs associated with the repurchases.

As of December 31, 2023, $242.0 million is remaining under the share repurchase program.

Off-balance sheet arrangements

As of December 31, 2023 and March 31, 2023, we did not have and do not have any relationships with unconsolidated entities or financial partnerships that were established for the purpose of facilitating off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

Our financial instruments consist of cash, cash equivalents, trade accounts receivable and accounts payable. We consider investments in highly liquid instruments purchased with original maturities of 90 days or less to be cash equivalents. Our primary exposure to market risk is interest income sensitivity, which is affected by changes in the general level of U.S. interest rates. However, because of the short-term nature of the highly liquid instruments in our portfolio, a 10% change in market interest rates would not be expected to have a material impact on our financial condition and/or results of operations.

Foreign Currency Exchange Rate Fluctuations

Our operations are based in the United States and, accordingly, all of our transactions are denominated in U.S. dollars. We are currently not exposed to market risk from changes in foreign currency.

31

Inflation Risk

Inflationary factors may adversely affect our operating results. As a result of recent increases in inflation, certain of our operating expenses have increased. Additionally, although difficult to quantify, we believe that the current macroeconomic environment, including inflation, could have an adverse effect on our target customers’ businesses, which may harm our commercialization efforts and negatively impact our revenues. Continued periods of high inflation could have a material adverse effect on our business, operating results and financial condition if we are not able to control our operating costs or if our commercialization efforts are slowed or negatively impacted, continued periods of high inflation could have a material adverse effect on our business, operating results and financial condition.

We continue to monitor our market risk exposure, including any adverse impacts related to health pandemics or the current macroeconomic environment, which has resulted in significant market volatility.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our President and Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report. Based on that evaluation, our management, including our President and Chief Executive Officer and our Chief Financial Officer, concluded that our disclosure controls and procedures were effective as of the end of such period.

Changes in Internal Control over Financial Reporting

In connection with the evaluation required by Exchange Act Rule 13a-15(d), our management, including our President and Chief Executive Officer and our Chief Financial Officer, concluded that no changes in our internal control over financial reporting occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our President and Chief Executive Officer and our Chief Financial Officer, do not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints and that the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

32

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We are not involved in any material legal proceedings.

Item 1A. Risk Factors.

In evaluating us and our common stock, we urge you to carefully consider the risks and other information in this Quarterly Report as well as the risk factors disclosed in our 2023 Annual Report. There have been no material changes from the risk factors as previously disclosed in our 2023 Annual Report. Any of the risks discussed in this Quarterly Report, if any, and in our 2023 Annual Report, as well as additional risks and uncertainties not currently known to us or that we currently deem immaterial, could materially and adversely affect our results of operations or financial condition.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Purchase of Equity Securities by the Issuer and Affiliated Purchasers.

The following table provides information with respect to purchases of our common stock by the Company or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) under the Exchange Act, during the three months ended December 31, 2023.

Issuer Purchases of Equity Securities (1)

(in thousands except for share and per share data)

Period	Total Number of Shares Purchased	Average Price Paid per Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet be Purchased Under Publicly Announced Plans or Programs
October 1, 2023 through October 31, 2023
Open market and privately negotiated purchases	—	$	—	—	$	250,000
November 1, 2023 November 30, 2023
Open market and privately negotiated purchases	40,599	32.34		40,599	248,687
December 1, 2023 through December 31, 2023
Open market and privately negotiated purchases	189,008	35.12		189,008	242,029
Total	229,607	$	34.77	229,607	$	242,029

(1)On September 29, 2021, our Board authorized a share repurchase program pursuant to which we may repurchase up to $50.0 million of our outstanding shares of common stock on or before September 29, 2023. We repurchased and subsequently retired a total of $33.9 million of our common stock under the 2021 Share Repurchase Program, including $10.7 million during fiscal year 2024. On September 21, 2023, our Board authorized the new 2023 Share Repurchase Program pursuant to which we may repurchase up to $250.0 million of our common stock on or before September 21, 2026. The Company repurchased and subsequently retired a total of $8.0 million of the Company’s common stock under the 2023 Share Repurchase Program during fiscal year 2024. We may repurchase shares of our common stock via the open market and/or privately negotiated transactions. Repurchases will be made in accordance with applicable securities laws and may be effected pursuant to Rule 10b5-1 trading plans. The manner, timing and amount of any share repurchases will be determined by us based on a variety of factors, including proceeds from customer contracts, the timing of which is unpredictable, as well as general business and market conditions, our capital position, and other strategic considerations. The 2023 Share Repurchase Program does not obligate us to repurchase any particular amount of our common stock.

(2)Average price paid per share includes cost associated with the repurchases.

33

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Director and Executive Officer Trading

During the three months ended December 31, 2023, Timothy Gray, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K) on November 30, 2023. The maximum plan provides for the potential exercise of up to 50,000 stock options and sales of underlying shares of the Company’s common stock. The Plan is set to expire on May 14, 2024 or on such earlier date that all transactions under the trading plan are completed. The options covered by Mr. Gray’s Rule 10b5-1 Plan will expire on May 14, 2024. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). Mr. Gray’s Rule 10b5-1 Plan was adopted and precleared in accordance with the Company’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC.

34

Item 6. Exhibits.

Exhibit No.	Description of Exhibit
3.1(1)	Amended and Restated Certificate of Incorporation of the Company.
3.2(2)	Certificate of Amendment No. 1 of Amended and Restated Certificate of Incorporation of the Company.
3.3(3)	Certificate of Amendment No. 2 of Amended and Restated Certificate of Incorporation of the Company.
3.4(4)	Amended and Restated Bylaws of the Company.
3.5(5)	Amendment No. 1 to the Amended and Restated Bylaws of the Company.
31.1#	Certification of Principal Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated pursuant to the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2#	Certification of Principal Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated pursuant to the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1#*	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2#*	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101)

____________

(1)Incorporated by reference to Exhibit 3.1 of the Registrant’s Registration Statement on Form S-1 (File No. 333-201156), filed with the SEC on December 19, 2014.

(2)Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K (File No. 001-36827), filed with the SEC on November 5, 2015.

(3)Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K (File No. 001-36827), filed with the SEC on August 6, 2019.

(4)Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K (File No. 001-36827), filed with the SEC on June 27, 2017.

(5)Incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K (File No. 001-36827), filed with the SEC on May 8, 2020.

#    Filed herewith.

*The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference.

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	Anterix Inc.
Date: February 14, 2024	/s/ Robert H. Schwartz
	Robert H. Schwartz
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: February 14, 2024	/s/ Timothy A. Gray
	Timothy A. Gray
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

36

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Robert H. Schwartz, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarter ended December 31, 2023 of Anterix Inc.;

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;

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;

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:

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;

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;

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

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

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):

(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

(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: February 14, 2024	By:	/s/ Robert H. Schwartz
		Robert H. Schwartz
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Timothy A. Gray, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarter ended December 31, 2023 of Anterix Inc.;

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;

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;

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:

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;

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;

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

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

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):

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

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: February 14, 2024	By:	/s/ Timothy A. Gray
		Timothy A. Gray
		Chief Financial Officer
		(Principal Financial and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Anterix Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert H. Schwartz, President and Chief Executive Officer of the Company, certify, solely for purposes of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 14, 2024	By:	/s/ Robert H. Schwartz
		Robert H. Schwartz
		President and Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Anterix Inc. and will be retained by Anterix Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This certification that accompanies the Report to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Anterix Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Anterix Inc. (the “Company”) on Form 10-Q for the period ended December 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Timothy A. Gray, Chief Financial Officer of the Company, certify, solely for purposes of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 14, 2024	By:	/s/ Timothy A. Gray
		Timothy A. Gray
		Chief Financial Officer
		(Principal Financial and Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Anterix Inc. and will be retained by Anterix Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

This certification that accompanies the Report to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Anterix Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

XML

Cover - shares	9 Months Ended
	Dec. 31, 2023	Feb. 12, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Entity File Number	001-36827
Entity Registrant Name	Anterix Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0745043
Entity Address, Address Line One	3 Garret Mountain Plaza
Entity Address, Address Line Two	Suite 401
Entity Address, City or Town	Woodland Park
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07424
City Area Code	973
Local Phone Number	771-0300
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ATEX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		18,519,884
Entity Central Index Key	0001304492
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Current Assets
Cash and cash equivalents	$ 62,033	$ 43,182
Prepaid expenses and other current assets	15,816	16,277
Total current assets	77,849	59,459
Escrow deposits	7,517	0
Property and equipment, net	2,129	3,606
Right of use assets, net	4,629	3,371
Intangible assets	213,719	202,044
Other assets	15,037	10,078
Total assets	320,880	278,558
Current liabilities
Accounts payable and accrued expenses	8,212	6,624
Due to related parties	0	533
Operating lease liabilities	1,888	1,725
Contingent liability	1,000	20,249
Deferred revenue	6,163	2,769
Total current liabilities	17,263	31,900
Operating lease liabilities	3,700	2,922
Contingent liability	15,000	0
Deferred revenue	100,897	57,990
Deferred gain on sale of intangible assets	4,911	0
Deferred income tax	6,332	5,440
Other liabilities	513	513
Total liabilities	148,616	98,765
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2023 and March 31, 2023	0	0
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,554,424 shares issued and outstanding at December 31, 2023 and 18,921,999 shares issued and outstanding at March 31, 2023	2	2
Additional paid-in capital	529,054	518,160
Accumulated deficit	(356,792)	(338,369)
Total stockholders’ equity	172,264	179,793
Total liabilities and stockholders’ equity	$ 320,880	$ 278,558

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Mar. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	18,554,424	18,921,999
Common stock, shares outstanding (in shares)	18,554,424	18,921,999

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Spectrum revenues	$ 1,271	$ 578	$ 2,931	$ 1,311
Operating expenses
General and administrative	11,252	12,085	34,830	34,871
Sales and support	1,380	1,385	3,965	3,785
Product development	1,238	936	3,454	3,012
Depreciation and amortization	198	373	653	1,107
Operating expenses	14,068	14,779	42,902	42,775
Gain on disposal of intangible assets, net	(13,737)	(5,776)	(33,035)	(9,329)
Gain on sale of intangible assets, net	(32)	0	(7,364)	0
Loss (gain) on disposal of long-lived assets, net	3	(21)	39	1
Gain (loss) from operations	969	(8,404)	389	(32,136)
Interest income	666	409	1,448	670
Other income	31	185	189	232
Income (loss) before income taxes	1,666	(7,810)	2,026	(31,234)
Income tax expense	1,338	210	1,743	625
Net income (loss)	$ 328	$ (8,020)	$ 283	$ (31,859)
Net loss per common share basic (in dollars per share)	$ 0.02	$ (0.42)	$ 0.02	$ (1.69)
Net loss per common share diluted (in dollars per share)	$ 0.02	$ (0.42)	$ 0.01	$ (1.69)
Weighted-average common shares used to compute basic net loss per share (in shares)	18,704,400	18,930,594	18,858,472	18,834,991
Weighted-average common shares used to compute diluted net loss per share (in shares)	18,916,246	18,930,594	19,082,867	18,834,991

XML

Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common ‎stock	Additional ‎paid-in ‎capital	Accumulated ‎deficit
Beginning balance (in shares) at Mar. 31, 2022		18,378,000
Beginning balance at Mar. 31, 2022	$ 186,298	$ 2	$ 500,125	$ (313,829)
Equity based compensation	13,411		13,411
Restricted shares issued (in shares)		203,000
Stock option exercises (in shares)		37,000
Stock option exercises	872		872
Motorola shares (in shares)		500,000
Shares withheld for taxes (in shares)		(33,000)
Shares withheld for taxes	(1,474)		(1,474)
Retirement of common stock (in shares)		(216,000)
Retirement of common stock	(8,223)			(8,223)
Net income (loss)	(31,859)			(31,859)
Ending balance (in shares) at Dec. 31, 2022		18,869,000
Ending balance at Dec. 31, 2022	159,025	$ 2	512,934	(353,911)
Beginning balance (in shares) at Sep. 30, 2022		18,960,000
Beginning balance at Sep. 30, 2022	166,089	$ 2	508,480	(342,393)
Equity based compensation	4,592		4,592
Restricted shares issued (in shares)		18,000
Shares withheld for taxes (in shares)		(3,000)
Shares withheld for taxes	(138)		(138)
Retirement of common stock (in shares)		(106,000)
Retirement of common stock	(3,498)			(3,498)
Net income (loss)	(8,020)			(8,020)
Ending balance (in shares) at Dec. 31, 2022		18,869,000
Ending balance at Dec. 31, 2022	159,025	$ 2	512,934	(353,911)
Beginning balance (in shares) at Mar. 31, 2023		18,922,000
Beginning balance at Mar. 31, 2023	179,793	$ 2	518,160	(338,369)
Equity based compensation	12,024		12,024
Restricted shares issued (in shares)		229,000
Stock option exercises	7		7
Shares withheld for taxes (in shares)		(34,000)
Shares withheld for taxes	(1,137)		(1,137)
Retirement of common stock (in shares)		(563,000)
Retirement of common stock	(18,706)			(18,706)
Net income (loss)	283			283
Ending balance (in shares) at Dec. 31, 2023		18,554,000
Ending balance at Dec. 31, 2023	172,264	$ 2	529,054	(356,792)
Beginning balance (in shares) at Sep. 30, 2023		18,768,000
Beginning balance at Sep. 30, 2023	176,101	$ 2	525,248	(349,149)
Equity based compensation	3,921		3,921
Restricted shares issued (in shares)		19,000
Shares withheld for taxes (in shares)		(3,000)
Shares withheld for taxes	(115)		(115)
Retirement of common stock (in shares)		(230,000)
Retirement of common stock	(7,971)			(7,971)
Net income (loss)	328			328
Ending balance (in shares) at Dec. 31, 2023		18,554,000
Ending balance at Dec. 31, 2023	$ 172,264	$ 2	$ 529,054	$ (356,792)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 328	$ (8,020)	$ 283	$ (31,859)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization			653	1,107
Non-cash compensation expense attributable to stock awards			12,024	13,411
Deferred income taxes			892	613
Gain on disposal of intangible assets, net	(13,737)	(5,776)	(33,035)	(9,329)
Gain on sale of intangible assets, net	(32)	0	(7,364)	0
Loss on disposal of long-lived assets, net	3	(21)	39	1
Changes in operating assets and liabilities
Prepaid expenses and other assets			322	666
Right of use assets			(1,258)	480
Accounts payable and accrued expenses			1,588	43
Due to related parties			(533)	0
Operating lease liabilities			941	(747)
Contingent liability			15,000	249
Deferred revenue			46,301	6,689
Net cash provided by (used in) operating activities			35,853	(18,676)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of intangible assets, including refundable deposits			(14,809)	(19,069)
Proceeds from sale of spectrum			25,427	0
Purchases of equipment			(267)	(1,543)
Net cash provided by (used in) investing activities			10,351	(20,612)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises			7	872
Repurchase of common stock			(18,706)	(8,223)
Payments of withholding tax on net issuance of restricted stock			(1,137)	(1,474)
Net cash used in financing activities			(19,836)	(8,825)
Net change in cash and cash equivalents and restricted cash			26,368	(48,113)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents and restricted cash at beginning of the period			43,182	105,624
Cash and cash equivalents and restricted cash at end of the period	69,550	57,511	69,550	57,511
Cash paid during the period:
Taxes paid			1	12
Non-cash investing activity:
Network equipment provided in exchange for wireless licenses			616	30
Deferred gain on sale of intangible assets	4,911	0	4,911	0
Derecognition of contingent liability related to sale of intangible assets			19,249	0
Reconciliation of Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	62,033	57,511	62,033	57,511
Escrow deposits	7,517	0	7,517	0
Total cash and cash equivalents and restricted cash	$ 69,550	$ 57,511	$ 69,550	$ 57,511

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Nature of Operations and Basis of Presentation

9 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

Nature of Operations and Basis of Presentation

Anterix Inc. (the “Company”) is a wireless communications company focused on commercializing its spectrum assets to enable its targeted utility and critical infrastructure customers to deploy private broadband networks and on offering innovative broadband solutions to the same target customers. The Company is the largest holder of licensed spectrum in the 900 MHz band (896 - 901 / 935 - 940 MHz) with nationwide coverage throughout the contiguous United States, Hawaii, Alaska and Puerto Rico. On May 13, 2020, the Federal Communications Commission (the “FCC”) approved the Report and Order (the “Report and Order”) to modernize and realign the 900 MHz band to increase its usability and capacity by allowing it to be utilized for the deployment of broadband networks, technologies and solutions. The Report and Order was published in the Federal Register on July 16, 2020, and became effective on August 17, 2020. The Company is now engaged in qualifying for and securing broadband licenses from the FCC. At the same time, the Company is pursuing opportunities to monetize the broadband spectrum it secures to its targeted utility and critical infrastructure customers. The Company is also expanding the benefits and solutions it offers to the same targeted customers. As part of the Company’s solution expansion, the Company launched an integrated platform to accelerate the scale benefits of combining, or networking together, individual private broadband networks to enhance utilities’ resiliency, reach and collaboration. The first commercial service on the platform, CatalyX, includes public network roaming management solution along with secure, remote SIM provisioning. CatalyX is a turnkey connectivity management solution that helps utilities gain economic and operational benefits leveraging commercial broadband during their transition to private LTE (“PLTE”) networks, extending coverage into gap areas or providing back-up connectivity for private networks. The Company has successfully led and completed initiatives in 3GPP to secure enhancements to the US 900 MHz spectrum to benefit its customers, including the designation of a new band, both for LTE and 5G, as well as a transition to 5G, which received worldwide wireless industry support.

Business Developments

TECO Agreement

On November 22, 2023, the Company entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial term of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. See Note 2 Revenue for further discussion on the TECO Agreement.

LCRA Agreement

In April 2023, the Company entered into an agreement with Lower Colorado River Authority (“LCRA”) to sell 900 MHz Broadband Spectrum covering 68 counties and more than 30 cities in LCRA’s wholesale electric, transmission, and water service area (the “LCRA Agreement”) for total payments of $30.0 million plus the contribution of select LCRA 900 MHz narrowband spectrum. The LCRA Agreement will support LCRA’s deployment of a PLTE network which will provide a host of capabilities including grid awareness, communications and operational intelligence that will enhance resilience and spur innovation at LCRA. The new licenses will enable LCRA to move from narrowband to next generation broadband and provide mission-critical data and voice services within LCRA and to more than 100 external customers such as electric cooperatives, schools and transit authorities across more than 73,000 square miles. Total consideration of $30.0 million is to be paid through fiscal year 2026 pursuant to the terms of the LCRA Agreement. During the quarter ended December 31, 2023, the Company received an initial $15.0 million payment, of which $7.5 million was deposited in an escrow account (refer to Note 3 Escrow Deposits for further discussion). See Note 10 Contingencies and Guaranty for further discussion on the LCRA Agreement.

Xcel Energy Agreement

In October 2022, the Company entered into an agreement with Xcel Energy Services Inc. (“Xcel Energy”) providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states (the “Xcel Energy Agreement”) for a total of $80.0 million, of which $8.0 million was received by the Company in December 2022. In July 2023 and November 2023, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband licenses and received the full milestone payments of $21.2 million in each period. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively.

SDG&E Agreement

In February 2021, the Company entered into an agreement with San Diego Gas & Electric Company, a subsidiary of Sempra Energy (“SDG&E”), to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, including San Diego and Imperial Counties and portions of Orange County (the “SDG&E Agreement”) for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. During the quarter ended September 30, 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. During the quarter ended December 31, 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. See Note 4 Intangible Assets for further discussion.

2023 Stock Plan

On August 8, 2023, the Company adopted a new equity-based compensation plan known as the Anterix Inc. 2023 Stock Plan (the “2023 Stock Plan”). The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. See Note 8 Stockholders’ Equity for further discussion.

2023 Share Repurchase Program

On September 21, 2023, the Board of Directors (the “Board”) authorized a new share repurchase program (the “2023 Share Repurchase Program”) pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. See Note 8 Stockholders’ Equity for further discussion.

Basis of Presentation and Use of Estimates

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on June 14, 2023 (the “2023 Annual Report”). In the Company’s opinion all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. The Company believes that the disclosures made in the unaudited consolidated interim financial statements are adequate to make the information not misleading. The results of operations for the interim periods presented are not necessarily indicative of the results for the year. The Company is also required to make certain estimates and assumptions that affect the reported amounts. These estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Recently Issued Accounting Pronouncements

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This update is effective for annual periods beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. This update is effective for annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

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Revenue

9 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Spectrum revenues
900 MHz Broadband Spectrum Revenue
Ameren Corporation	$	152	$	152	$	456	$	457
Evergy	274		244		822		308
Xcel Energy (1)	663		—		1,107		—
Narrowband Spectrum Revenue
Motorola	182		182		546		546
Total spectrum revenue (2)	$	1,271	$	578	$	2,931	$	1,311

1.The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to Xcel Energy during the three months ended September 2023.

2.Revenue recognized during the three and nine months ended December 31, 2023 and 2022 was included in deferred revenue at the beginning of the respective periods.

Spectrum Revenue Agreements

Refer to the Company’s 2023 Annual Report for a description of the Company’s spectrum revenue agreements entered into prior to March 31, 2023. The following reflects agreements entered into during the nine months ended December 31, 2023:

On November 22, 2023, the Company entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an

option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial terms of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. The remaining prepayments for the 20-year initial term are due by fiscal year 2026, per the terms of the TECO Agreement and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses. The Company is working with incumbents to clear the 900 MHz Broadband Spectrum allocation in TECO service territories. The payments of prepaid fees under the TECO Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue will be recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband licenses are delivered by respective county, over the contractual term of approximately 20 years.

Capitalized contract costs

The Company capitalizes incremental costs associated with obtaining a contract with a customer, which generally includes sales commissions. The Company’s capitalized contract costs consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	884	$	693	$	870	$	638
Additions	12		47		45		109
Amortization	(13)		(4)		(32)		(11)
Balance at the end of the period	883		736		883		736
Less amount classified as current assets (1)	(425)		(347)		(425)		(347)
Noncurrent assets (1)	$	458	$	389	$	458	$	389

1.Current assets are recorded as prepaid expenses and other current assets and noncurrent assets are recorded as other assets on the Company’s Consolidated Balance Sheets.

Contract liabilities

Contract liabilities primarily relate to advanced consideration received from customers for spectrum services, for which revenue is recognized over time, as the services are performed. The Company’s contract liabilities consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	80,265	$	53,945	$	60,759	$	54,678
Additions (1)	28,066		8,000		49,232		8,000
Revenue recognized	(1,271)		(578)		(2,931)		(1,311)
Balance at the end of the period	107,060		61,367		107,060		61,367
Less amount classified as current liabilities (2)	(6,163)		(2,656)		(6,163)		(2,656)
Noncurrent liabilities (2)	$	100,897	$	58,711	$	100,897	$	58,711

1.Represents milestone payments of received from customer contracts pursuant to the terms of the associated spectrum lease agreements.

2.Current liabilities and noncurrent liabilities are recorded as deferred revenue on the Company’s Consolidated Balance Sheets.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations of the Company’s contracts represent contracted revenue that will be recognized in future periods. Total performance obligations include deferred revenue (i.e., contract liabilities) as well as amounts that will be invoiced and recognized in future periods. Revenue allocated to remaining performance obligations was $188.5 million as of December 31, 2023, which will be recognized ratably over the remaining contract terms up to 30 years.

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Escrow Deposits

9 Months Ended

Dec. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Escrow Deposits

Escrow Deposits

Escrow deposits are considered restricted cash as the deposits are restricted from use until the terms of the escrow agreement are met. Escrow deposits are classified as current assets on the Company’s Consolidated Balance Sheets.

In connection with the LCRA Agreement, the Company and LCRA entered into an escrow agreement. Pursuant to the escrow agreement, the escrow funds shall be held and invested in a money market deposit account. All interest and other income earned shall be allocated to the Company, payable with the final distribution of the escrow funds. The escrow funds shall be distributed upon written request by both the Company and LCRA pursuant to the terms within the LCRA Agreement. During the quarter ended December 31, 2023, the Company received $15.0 million, of which $7.5 million was deposited in an escrow account.

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Intangible Assets

9 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Wireless licenses are considered indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but instead are tested for impairment annually, or more frequently if an event indicates that the asset might be impaired. There were no impairment charges related to the Company’s indefinite-lived intangible assets during the three and nine months ended December 31, 2023 and 2022.

Intangible assets consist of the following activity for the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Balance at the beginning of period	$	202,044	$	151,169
Acquisitions	11,042		9,159
Sale of intangible assets	(32,402)		—
Exchanges – licenses received	41,250		13,107
Exchanges – licenses surrendered	(8,215)		(3,778)
Balance at the end of period	$	213,719	$	169,657

Purchases of intangible assets, including refundable deposits

During the nine months ended December 31, 2023 and 2022, the Company entered into agreements with several third parties in multiple U.S. markets to acquire, retune or swap wireless licenses for cash consideration (“deals”) and made Anti-Windfall Payments to the US Treasury Department. The initial deposits to incumbents are recorded as prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets and are refundable if the FCC does not approve the sale, retuning or swap of the spectrum. The initial deposits are transferred to other assets or intangible assets in the Company’s Consolidated Balance Sheets, as applicable, upon meeting the relevant deal milestones. The final payments related to closed retuning or swap deals are recorded as other assets on the Company’s Consolidated Balance Sheets. The final payments for license purchases or Anti-Windfall Payments are recorded as intangible assets on the Company’s Consolidated Balance Sheets.

The purchases of intangible assets, including refundable deposits, consisted of the following activity during the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Refundable deposits	$	2,274	$	5,317
Retuning cost and Swaps	1,493		4,593
Purchases and Anti-Windfall Payments	11,042		9,159
Total	$	14,809	$	19,069

Broadband License Exchanges

During the nine months ended December 31, 2023, the Company was granted by the FCC, broadband licenses for 24 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $41.3 million. In connection with receiving the broadband licenses, the Company disposed of $8.2 million, related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 24 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $13.7 million and $33.0 million, for the three and nine months ended December 31, 2023, respectively.

During the nine months ended December 31, 2022, the Company was granted by the FCC, broadband licenses for 70 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $13.1 million. In connection with receiving the broadband licenses, the Company disposed of $3.8 million, related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 70 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $5.8 million and $9.3 million, for the three and nine months ended December 31, 2022, respectively.

Broadband License Sale

During the quarter ended September 30, 2023, the Company transferred to SDG&E the San Diego County broadband license for total cumulative payments of $44.0 million net of delivery delay adjustments of $1.1 million. As a result, the Company recognized a reduction in intangible assets of $31.8 million and recorded a $7.3 million gain on sale of intangible assets on the Company’s Consolidated Statements of Operations.

During the quarter ended December 31, 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license to Imperial County for total cumulative payments of $0.7 million. As a result, the Company recognized a reduction in intangible assets of $0.6 million and recorded a $32 thousand gain on sale of intangible assets on the Company’s Consolidated Statements of Operations.

As part of the SDG&E Agreement, SDG&E has an option to pursue additional spectrum with the Company. In accordance with ASC 606, the Company recorded a $4.9 million deferred gain on sale of intangible assets on the Company’s Consolidated Balance Sheets as of December 31, 2023, related to this option, which expires in September 2028.

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Related Party Transactions

9 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Refer to the Company’s 2023 Annual Report for a more complete description of the nature of its related party transactions prior to March 31, 2023. The following reflects the related party activity during the three and nine months ended December 31, 2023 and 2022.

In connection with the transfer of its TeamConnect business and support for its pdvConnect business, the Company entered into a memorandum of understanding (“MOU”) with the principals of Goosetown on December 31, 2018. Under the MOU, the Company agreed to assign the intellectual property rights to its pdvConnect application to TeamConnect LLC (“LLC”), a new entity formed by the principals of Goosetown, in exchange for a 19.5% ownership interest in the LLC, effective April 30, 2019. The Company was obligated to pay the LLC a monthly

service fee for a 24-month period ending on January 7, 2021 for its assumption of the Company’s support obligations under the A BEEP and Goosetown Agreements. The Company was also obligated to pay the LLC a certain portion of the billed revenue received by the Company from pdvConnect customers for a 48-month period. On February 22, 2023, the Company amended the LLC agreement to withdraw as a member of the LLC for no consideration and did not incur payments during the three and nine months ended December 31, 2023. For the three and nine months ended December 31, 2022, the Company incurred payments of $15,000 and $45,000 to the parties associated with the transferred business. As of December 31, 2023 and March 31, 2023, the Company did not have outstanding liabilities to the related parties associated with the transferred business.

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Leases

9 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

All the leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029 which includes lease extensions for its corporate headquarters ranging from three to ten years. The Company entered into multiple lease agreements for tower space. The lease expiration dates range from February 29, 2024 to December 18, 2030.

Substantially all of the Company’s leases are classified as operating leases. Operating lease agreements are required to be recognized on the Company’s Consolidated Balance Sheet as right of use (“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows:

	Nine months ended December 31,
	2023	2022
Weighted average term - operating lease liabilities	3.50 years	3.01 years
Weighted average incremental borrowing rate - operating lease liabilities	9%	12%

Total lease cost amounted to approximately $0.5 million and $1.5 million, respectively, for the three and nine months ended December 31, 2023 and approximately $0.5 million and $1.4 million, respectively, for the three and nine months ended December 31, 2022. Total lease cost is included in general and administrative expenses on the Company’s Consolidated Statements of Operations.

The following table presents total lease cost for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Lease cost
Operating lease cost (cost resulting from lease payments)	$	479	$	461	$	1,457	$	1,355
Short term lease cost	—		—		—		7
Total lease cost	$	479	$	461	$	1,457	$	1,362

The following table presents supplemental cash flow and non-cash activity information for the nine months ended December 31, 2023 and 2022 (in thousands):

	Nine months ended December 31,
	2023		2022
Cash paid activity:
Operating lease - operating cash flows (fixed payments)	$	1,732	$	1,634
Operating lease - operating cash flows (liability reduction)	$	1,373	$	747
Non-cash activity:
Right of use assets obtained in exchange for new operating lease liabilities	$	439	$	165

The following table presents supplemental balance sheet information as of December 31, 2023 and March 31, 2023 (in thousands):

	December 31, 2023		March 31, 2023
Non-current assets - right of use assets, net	$	4,629	$	3,371
Current liabilities - operating lease liabilities	$	1,888	$	1,725
Non-current liabilities - operating lease liabilities	$	3,700	$	2,922

Future minimum payments under existing non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the nine months ended December 31, 2023, are as follows (in thousands):

Fiscal Year	Operating Leases
2024 (excluding the nine months ended December 31, 2023)	$	655
2025	2,156
2026	1,409
2027	994
2028	645
After 2028	522
Total future minimum lease payments	6,381
Amount representing interest	(793)
Present value of net future minimum lease payments	$	5,588

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Income Taxes

9 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company used a discrete effective tax rate method to calculate taxes for the three and nine months ended December 31, 2023 and 2022, which were a result of its inability to use some portion of its federal and state net operating losses (“NOLs”) carryforwards against the deferred tax liability created by the amortization of indefinite-lived intangible assets and the change in the state effective tax rate. The Company determined that applying an estimate of the annual effective tax rate would not provide a reasonable estimate as small changes in estimated “ordinary” loss could result in significant changes in the estimated annual effective tax rate. Accordingly, for the three and nine months ended December 31, 2023, the Company recorded a total tax expense of $1.3 million and $1.7 million, respectively. For the three and nine months ended December 31, 2022, the Company recorded a total tax expense of $0.2 million and $0.6 million, respectively.

The Company’s NOL generated after March 31, 2018 may be used as an indefinite-lived asset to offset its deferred tax liability but are limited to 80% of future taxable income. The deferred tax liabilities as of December 31, 2023 are approximately $3.1 million for federal and $3.2 million for state. The deferred tax liabilities as of March 31, 2023 are approximately $2.7 million for federal and $2.7 million for state.

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Stockholders’ Equity

9 Months Ended

Dec. 31, 2023

Equity [Abstract]

Stockholders’ Equity

Stockholders’ Equity

On August 8, 2023 (the “Effective Date”), the Company adopted a new equity-based compensation plan known as the 2023 Stock Plan. The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. As of the Effective Date, no additional awards may be granted under the Anterix Inc. 2014 Stock Plan (the “2014 Stock Plan”). The 2023 Stock Plan authorizes 250,000 shares of common stock of the Company (“Shares”) for grant. Additionally, Shares remaining for grant under the 2014 Stock Plan immediately prior to the Effective Date, Shares subject to outstanding stock awards granted under the 2014 Stock Plan that, following the Effective Date, expire or are terminated or cancelled without having been exercised or settled in full, and Shares acquired pursuant to an award subject to forfeiture or repurchase that are forfeited or repurchased by the Company for an amount not greater than the recipient’s purchase price, are issuable under the 2023 Stock Plan. As of December 31, 2023, 579,973 shares are available for future issuance, including 388,151 shares that were remaining under the 2014 Stock Plan and up to 181,887 shares which may be granted upon meeting certain performance levels above 100% for performance stock unit awards.

During the nine months ended December 31, 2023 and the year ended March 31, 2023, a total of 194,611 and 260,370 shares, respectively, were issued in connection with the vesting, conversion and or exercise of grants under the Company’s 2014 and 2023 Stock Plan.

Share Repurchase Program

In September 2021, the Board authorized a share repurchase program (the “2021 Share Repurchase Program”) pursuant to which the Company may repurchase up to $50.0 million of the Company’s common stock on or before September 29, 2023. The Company repurchased and subsequently retired a total of $33.9 million of the Company’s common stock under the 2021 Share Repurchase Program, including $10.7 million during fiscal year 2024. On September 21, 2023, the Board authorized the new 2023 Share Repurchase Program pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. The Company repurchased and subsequently retired a total of $8.0 million of the Company’s common stock under the 2023 Share Repurchase Program during fiscal year 2024. The Company may repurchase shares of its common stock via the open market and/or privately negotiated transactions. Repurchases will be made in accordance with applicable securities laws and may be effected pursuant to Rule 10b5-1 trading plans. The manner, timing and amount of any share repurchases will be determined by the Company based on a variety of factors, including proceeds from customer contracts, the timing of which is unpredictable, as well as general business and market conditions, the Company’s capital position, and other strategic considerations. The 2023 Share Repurchase Program does not obligate the Company to repurchase any particular amount of its common stock.

The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Excise tax accrued for the three and nine months ended December 31, 2023 was approximately $74 thousand and $118 thousand, respectively.

The following table presents the share repurchase activity for the three and nine months ended December 31, 2023 and 2022 (in thousands, except per share data):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Number of shares repurchased and retired	230		106		563		216
Average price paid per share*	$	34.77	$	33.11	$	33.62	$	47.05
Total cost to repurchase	$	7,971	$	3,498	$	18,706	$	8,223

*Average price paid per share includes costs associated with the repurchases.

As of December 31, 2023, $242.0 million is remaining under the share repurchase program.

Motorola Investment

In September 2014, Motorola Solutions, Inc. (“Motorola”) invested $10.0 million to purchase 500,000 Class B Units of the Company’s subsidiary, PDV Spectrum Holding Company, LLC (at a price equal to $20.00 per unit). The

Company owns 100% of the Class A Units in the Subsidiary. Motorola had the right at any time to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock and in May 2022, Motorola exercised such right to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock.

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Net Income (Loss) Per Share of Common Stock

9 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Share of Common Stock

Net Income (Loss) Per Share of Common Stock

Basic net income (loss) per common share is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. For purposes of the diluted net income (loss) per share calculation, stock options and restricted stock units and awards are considered to be potentially dilutive securities. Diluted earnings per share was computed using the treasury stock method.

The following table reconciles net income (loss) and weighted-average common shares used to compute basic and diluted net income (loss) per share:

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Net income (loss):	$	328	$	(8,020)	$	283	$	(31,859)
Weighted-average common shares:
Basic weighted-average shares	18,704,400		18,930,594		18,858,472		18,834,991
Add: dilutive effect of stock options and restricted stock units	211,846		—		224,395		—
Diluted weighted-average common shares	18,916,246		18,930,594		19,082,867		18,834,991

For the three and nine months ended December 31, 2023, there were 1,129,994 and 1,048,902 stock options and restricted stock units outstanding, excluded from the calculation of diluted weighted-average shares because the effect was anti-dilutive. For the three and nine months ended December 31, 2022, there were 201,100 and 381,432 potentially dilutive stock options and restricted stock units outstanding, respectively, excluded from the calculation of diluted weighted-average shares as their effects are anti-dilutive because the Company reported a net loss for the three and nine months ended December 31, 2022, respectively.

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Contingencies and Guaranty

9 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Guaranty

Contingencies and Guaranty

Contingent Liabilities

SDG&E Refund Obligations

In February 2021, the Company entered into an agreement with SDG&E, a subsidiary of Sempra Energy to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, the SDG&E Agreement, for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. As the Company is required to refund payments it has received from SDG&E in the event of termination or non-delivery of the specific county’s full 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to SDG&E.

In September 2022, the Company transferred to SDG&E 1.4 x 1.4 cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. In September 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. In December 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. This resulted in the recognition of a gain on the sale of spectrum and derecognition of the contingent liability associated with San Diego County and Imperial County. See Note 4 Intangible Assets for further discussion on the sale of intangible assets.

Subsequent to the derecognition of the contingent liability related to the delivery of San Diego County and Imperial County licenses, the remaining contingent liability related to SDG&E of $1.0 million for Orange County was classified as a short-term liability due to the expected timing of delivery.

LCRA Refund Obligation

In April 2023, the Company entered into the LCRA Agreement for a total payment of $30.0 million, to be paid through fiscal year 2026 pursuant to the terms of the agreement. During the quarter ended December 31, 2023, the Company received $15.0 million in milestone payments, of which $7.5 million was deposited in an escrow account. The remaining payments are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to LCRA. As the Company is required to refund the deposit it has received from LCRA in the event of termination or non-delivery of the specific county’s full cleared 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to LCRA. See Note 3 Escrow Deposits for further discussion on the escrow deposit.

Xcel Energy Guaranty

In October 2022, the Company entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states the Xcel Energy Agreement. In connection with Xcel Energy Agreement, the Company entered into a guaranty agreement, under which the Company guaranteed the delivery of the relevant 900 MHz Broadband Spectrum and the associated broadband licenses in Xcel Energy’s service territory in eight states along with other commercial obligations. In the event of default or non-delivery of the specific territory’s 900 MHz Broadband Spectrum, the Company is required to refund payments it has received. In addition, to the extent Anterix has performed any obligations, the Company’s liability and remaining obligations under the Xcel Energy Agreement will extend only to the remaining unperformed obligations. The Company recorded $50.3 million in deferred revenue in connection with the prepayments received as of December 31, 2023. The Company commenced delivery of the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses in the first quarter of fiscal year 2024 and will continue through 2029. The revenue recognized for the three and nine months ended December 31, 2023, was approximately $0.7 million and $1.1 million, respectively. As of December 31, 2023, the maximum potential liability of future undiscounted payments under this agreement is approximately $49.2 million.

Litigation

From time to time, the Company may be involved in litigation that arises from the ordinary operations of the business, such as contractual or employment disputes or other general actions. The Company is not involved in any material legal proceedings at this time.

Pandemic and Macroeconomic Conditions

Recent macroeconomic events, including the outbreak of COVID-19, inflation, and geopolitical matters, have increased operating costs or resulted in delays in customer contracting or impacted the availability of equipment necessary for the deployment of our target customers’ planned PLTE projects. The Company continues to closely monitor these risks. Although difficult to quantify, the Company believes the current macroeconomic environment, including inflation, may have an adverse effect on the Company’s target customers’ businesses, which may harm the Company’s commercialization efforts and negatively impact the Company’s revenues and liquidity. If the Company is not able to control its operating costs or if the Company’s commercialization efforts are slowed or negatively impacted, continued periods of high inflation could have a material adverse effect on the Company’s business, operating results and financial condition.

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Concentrations of Credit Risk

9 Months Ended

Dec. 31, 2023

Risks and Uncertainties [Abstract]

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The cash balance at times may exceed federally insured limits, however, the Company places its cash and temporary cash investments with financial institutions for which credit loss is not anticipated.

As of December 31, 2023 and March 31, 2023, the Company does not have an outstanding accounts receivable balance.

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Subsequent Events

9 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Xcel Energy Agreement

During the quarter ended December 31, 2023, the Company cleared 900 MHz Broadband Spectrum in 10 additional counties in Xcel Energy’s service territory and applied for the associated broadband licenses. As a result, it received an advanced payment of $16.8 million in January 2024.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income (loss)	$ 328	$ (8,020)	$ 283	$ (31,859)

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Insider Trading Arrangements

3 Months Ended

9 Months Ended

Dec. 31, 2023

shares

Dec. 31, 2023

shares

Trading Arrangements, by Individual

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Timothy Gray [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended December 31, 2023, Timothy Gray, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement (as defined in Item 408 of Regulation S-K) on November 30, 2023. The maximum plan provides for the potential exercise of up to 50,000 stock options and sales of underlying shares of the Company’s common stock. The Plan is set to expire on May 14, 2024 or on such earlier date that all transactions under the trading plan are completed. The options covered by Mr. Gray’s Rule 10b5-1 Plan will expire on May 14, 2024. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). Mr. Gray’s Rule 10b5-1 Plan was adopted and precleared in accordance with the Company’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC.

Name

Timothy Gray

Title

Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

November 30, 2023

Arrangement Duration

166 days

Aggregate Available

50,000

50,000

XML

Nature of Operations and Basis of Presentation (Policies)

9 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Use of Estimates

Basis of Presentation and Use of Estimates

The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the SEC on June 14, 2023 (the “2023 Annual Report”). In the Company’s opinion all normal and recurring adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been included. The Company believes that the disclosures made in the unaudited consolidated interim financial statements are adequate to make the information not misleading. The results of operations for the interim periods presented are not necessarily indicative of the results for the year. The Company is also required to make certain estimates and assumptions that affect the reported amounts. These estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates.

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This update is effective for annual periods beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. This update is effective for annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures.

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Revenue (Tables)

9 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Spectrum revenues
900 MHz Broadband Spectrum Revenue
Ameren Corporation	$	152	$	152	$	456	$	457
Evergy	274		244		822		308
Xcel Energy (1)	663		—		1,107		—
Narrowband Spectrum Revenue
Motorola	182		182		546		546
Total spectrum revenue (2)	$	1,271	$	578	$	2,931	$	1,311

1.The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to Xcel Energy during the three months ended September 2023.

2.Revenue recognized during the three and nine months ended December 31, 2023 and 2022 was included in deferred revenue at the beginning of the respective periods.

Schedule of Contract Assets

The Company’s capitalized contract costs consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	884	$	693	$	870	$	638
Additions	12		47		45		109
Amortization	(13)		(4)		(32)		(11)
Balance at the end of the period	883		736		883		736
Less amount classified as current assets (1)	(425)		(347)		(425)		(347)
Noncurrent assets (1)	$	458	$	389	$	458	$	389

1.Current assets are recorded as prepaid expenses and other current assets and noncurrent assets are recorded as other assets on the Company’s Consolidated Balance Sheets.

Schedule of Contract Liabilities

The Company’s contract liabilities consisted of the following activity during the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Balance at the beginning of the period	$	80,265	$	53,945	$	60,759	$	54,678
Additions (1)	28,066		8,000		49,232		8,000
Revenue recognized	(1,271)		(578)		(2,931)		(1,311)
Balance at the end of the period	107,060		61,367		107,060		61,367
Less amount classified as current liabilities (2)	(6,163)		(2,656)		(6,163)		(2,656)
Noncurrent liabilities (2)	$	100,897	$	58,711	$	100,897	$	58,711

1.Represents milestone payments of received from customer contracts pursuant to the terms of the associated spectrum lease agreements.

2.Current liabilities and noncurrent liabilities are recorded as deferred revenue on the Company’s Consolidated Balance Sheets.

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Intangible Assets (Tables)

9 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consist of the following activity for the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Balance at the beginning of period	$	202,044	$	151,169
Acquisitions	11,042		9,159
Sale of intangible assets	(32,402)		—
Exchanges – licenses received	41,250		13,107
Exchanges – licenses surrendered	(8,215)		(3,778)
Balance at the end of period	$	213,719	$	169,657

The purchases of intangible assets, including refundable deposits, consisted of the following activity during the nine months ended December 31, 2023 and 2022 (in thousands):

	2023		2022
Refundable deposits	$	2,274	$	5,317
Retuning cost and Swaps	1,493		4,593
Purchases and Anti-Windfall Payments	11,042		9,159
Total	$	14,809	$	19,069

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Leases (Tables)

9 Months Ended

Dec. 31, 2023

Leases [Abstract]

Additional Lease Cost Information

Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows:

	Nine months ended December 31,
	2023	2022
Weighted average term - operating lease liabilities	3.50 years	3.01 years
Weighted average incremental borrowing rate - operating lease liabilities	9%	12%

Lease Cost

The following table presents total lease cost for the three and nine months ended December 31, 2023 and 2022 (in thousands):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Lease cost
Operating lease cost (cost resulting from lease payments)	$	479	$	461	$	1,457	$	1,355
Short term lease cost	—		—		—		7
Total lease cost	$	479	$	461	$	1,457	$	1,362

Supplemental Lease Information

The following table presents supplemental cash flow and non-cash activity information for the nine months ended December 31, 2023 and 2022 (in thousands):

	Nine months ended December 31,
	2023		2022
Cash paid activity:
Operating lease - operating cash flows (fixed payments)	$	1,732	$	1,634
Operating lease - operating cash flows (liability reduction)	$	1,373	$	747
Non-cash activity:
Right of use assets obtained in exchange for new operating lease liabilities	$	439	$	165

The following table presents supplemental balance sheet information as of December 31, 2023 and March 31, 2023 (in thousands):

	December 31, 2023		March 31, 2023
Non-current assets - right of use assets, net	$	4,629	$	3,371
Current liabilities - operating lease liabilities	$	1,888	$	1,725
Non-current liabilities - operating lease liabilities	$	3,700	$	2,922

Future Minimum Payments

Future minimum payments under existing non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the nine months ended December 31, 2023, are as follows (in thousands):

Fiscal Year	Operating Leases
2024 (excluding the nine months ended December 31, 2023)	$	655
2025	2,156
2026	1,409
2027	994
2028	645
After 2028	522
Total future minimum lease payments	6,381
Amount representing interest	(793)
Present value of net future minimum lease payments	$	5,588

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Stockholders’ Equity (Tables)

9 Months Ended

Dec. 31, 2023

Equity [Abstract]

Share Repurchase Program

The following table presents the share repurchase activity for the three and nine months ended December 31, 2023 and 2022 (in thousands, except per share data):

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Number of shares repurchased and retired	230		106		563		216
Average price paid per share*	$	34.77	$	33.11	$	33.62	$	47.05
Total cost to repurchase	$	7,971	$	3,498	$	18,706	$	8,223

*Average price paid per share includes costs associated with the repurchases.

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Net Income (Loss) Per Share of Common Stock (Tables)

9 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table reconciles net income (loss) and weighted-average common shares used to compute basic and diluted net income (loss) per share:

	Three months ended December 31,				Nine months ended December 31,
	2023		2022		2023		2022
Net income (loss):	$	328	$	(8,020)	$	283	$	(31,859)
Weighted-average common shares:
Basic weighted-average shares	18,704,400		18,930,594		18,858,472		18,834,991
Add: dilutive effect of stock options and restricted stock units	211,846		—		224,395		—
Diluted weighted-average common shares	18,916,246		18,930,594		19,082,867		18,834,991

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Nature of Operations and Basis of Presentation (Details) $ in Thousands		1 Months Ended								3 Months Ended			9 Months Ended		45 Months Ended
	Nov. 22, 2023 USD ($) mi² term	Dec. 31, 2023 USD ($)	Nov. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jul. 31, 2023 USD ($)	Apr. 30, 2023 mi² people city county	Oct. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Feb. 28, 2021 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) county	Dec. 31, 2022 USD ($) county	Dec. 31, 2026 USD ($)	Sep. 21, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)
Conversion of Stock [Line Items]
Prepayments received		$ 107,060		$ 80,265				$ 53,945		$ 107,060	$ 80,265	$ 61,367	$ 107,060	$ 61,367			$ 60,759	$ 54,678
Broadband licenses granted, number of counties | county													24	70
Payments to acquire intangible assets													$ 14,809	$ 19,069
Increase in deposit assets										7,500
Spectrum revenues										1,271		578	2,931	1,311
Contingent liability		15,000							$ 20,000	15,000			15,000				$ 0
Stock repurchase program, authorized amount																$ 250,000			$ 50,000
SDG&E
Conversion of Stock [Line Items]
Consideration transferred									$ 50,000
Tampa Electric Company | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Conversion of Stock [Line Items]
Agreement term	20 years
Number of agreement extension terms | term	2
Agreement extension term	10 years
Service area | mi²	2,000
Total scheduled prepayments	$ 34,500
Prepayments received		6,900								6,900			6,900
Lower Colorado River Authority (LCRA) | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Conversion of Stock [Line Items]
Initial payment received										15,000
Lower Colorado River Authority (LCRA) | Licensing Agreements
Conversion of Stock [Line Items]
Broadband licenses granted, number of counties | county						68
Broadband licenses granted, number of cities | city						30
Broadband licenses granted, number of customers | people						100
Broadband licenses granted, service area | mi²						73,000
Lower Colorado River Authority (LCRA) | Licensing Agreements | Forecast
Conversion of Stock [Line Items]
Payments to acquire intangible assets															$ 30,000
Xcel Energy | Spectrum revenue
Conversion of Stock [Line Items]
Spectrum revenues										663		0	1,107	0
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Conversion of Stock [Line Items]
Agreement term							20 years
Total scheduled prepayments							$ 80,000
Prepayments received		50,300								50,300		$ 8,000	$ 50,300	$ 8,000
Milestone payment received			$ 21,200		$ 21,200
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Conversion of Stock [Line Items]
Milestone payment received		$ 200		$ 25,200				$ 200		$ 200	25,200
Delivery delay adjustments											$ 1,100

XML

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Spectrum revenues	$ 1,271	$ 578	$ 2,931	$ 1,311
Spectrum revenue | Ameren Corporation
Disaggregation of Revenue [Line Items]
Spectrum revenues	152	152	456	457
Spectrum revenue | Evergy
Disaggregation of Revenue [Line Items]
Spectrum revenues	274	244	822	308
Spectrum revenue | Xcel Energy
Disaggregation of Revenue [Line Items]
Spectrum revenues	663	0	1,107	0
Spectrum revenue | Motorola
Disaggregation of Revenue [Line Items]
Spectrum revenues	$ 182	$ 182	$ 546	$ 546

XML

Revenue - Narrative (Details) $ in Thousands	Nov. 22, 2023 USD ($) mi² term	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Prepayments received		$ 107,060	$ 80,265	$ 60,759	$ 61,367	$ 53,945	$ 54,678
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, amount		$ 188,500
Remaining performance obligation, expected timing of satisfaction, period		30 years
Tampa Electric Company | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Disaggregation of Revenue [Line Items]
Agreement term	20 years
Number of agreement extension terms | term	2
Agreement extension term	10 years
Service area | mi²	2,000
Total scheduled prepayments	$ 34,500
Prepayments received		$ 6,900

XML

Revenue - Schedule of Contract Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Roll Forward]
Beginning balance	$ 884	$ 693	$ 870	$ 638
Additions	12	47	45	109
Amortization	(13)	(4)	(32)	(11)
Ending balance	883	736	883	736
Capitalized Contract Cost, Net, Classified [Abstract]
Balance	883	736	883	736
Less amount classified as current assets	(425)	(347)	(425)	(347)
Noncurrent assets	$ 458	$ 389	$ 458	$ 389

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Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Revenue from Contract with Customer [Roll Forward]
Beginning balance	$ 80,265	$ 53,945	$ 60,759	$ 54,678
Additions	28,066	8,000	49,232	8,000
Revenue recognized	(1,271)	(578)	(2,931)	(1,311)
Ending balance	107,060	61,367	107,060	61,367
Contract with Customer, Liability [Abstract]
Balance	107,060	61,367	107,060	61,367	$ 60,759
Less amount classified as current liabilities	(6,163)	(2,656)	(6,163)	(2,656)	(2,769)
Noncurrent liabilities	$ 100,897	$ 58,711	$ 100,897	$ 58,711	$ 57,990

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Escrow Deposits (Details) $ in Millions	3 Months Ended
	Dec. 31, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Increase in deposit assets	$ 7.5

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Intangible Assets - Narrative (Details)	3 Months Ended			9 Months Ended
	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) county	Dec. 31, 2022 USD ($) county	Mar. 31, 2023 USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment	$ 0		$ 0	$ 0	$ 0
Broadband licenses granted, number of counties | county				24	70
Exchanges – licenses received				$ 41,250,000	$ 13,107,000
Licenses exchanged				8,215,000	3,778,000
Gain on disposal of intangible assets, net	(13,700,000)		(5,800,000)	(33,000,000)	(9,300,000)
Sale of intangible assets				25,427,000	0
Gain on sale of intangible assets, net	32,000		0	7,364,000	0
Deferred gain on sale of intangible assets	4,911,000		$ 0	4,911,000	0	$ 0
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Acquired Indefinite-lived Intangible Assets [Line Items]
Delivery delay adjustments		$ 1,100,000
Licensing Agreements
Acquired Indefinite-lived Intangible Assets [Line Items]
Exchanges – licenses received				41,300,000	13,100,000
Licenses exchanged				$ 8,200,000	$ 3,800,000
Sale of intangible assets	700,000	44,000,000
Reduction of intangible assets	600,000	31,800,000
Gain on sale of intangible assets, net	$ 32,000	$ 7,300,000

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Intangible Assets - Schedule of Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Indefinite-Lived Intangible Assets [Roll Forward]
Beginning balance	$ 202,044	$ 151,169
Acquisitions	11,042	9,159
Amount disposed	(32,402)	0
Exchanges – licenses received	41,250	13,107
Exchanges – licenses surrendered	(8,215)	(3,778)
Ending balance	$ 213,719	$ 169,657

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Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire intangible assets	$ 14,809	$ 19,069
Refundable Deposits
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire intangible assets	2,274	5,317
Returnable Costs and Swaps
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire intangible assets	1,493	4,593
Purchases and Anti-Windfall Payments
Indefinite-lived Intangible Assets [Line Items]
Payments to acquire intangible assets	$ 11,042	$ 9,159

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Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022	Apr. 30, 2019
Related Party Transaction [Line Items]
Contract liability	$ 107,060,000	$ 61,367,000	$ 107,060,000	$ 61,367,000	$ 80,265,000	$ 60,759,000	$ 53,945,000	$ 54,678,000
Teamconnect Llc
Related Party Transaction [Line Items]
Ownership percentage									19.50%
Teamconnect Llc
Related Party Transaction [Line Items]
Service fee term			24 months
Teamconnect Llc | PDVConnect
Related Party Transaction [Line Items]
Service fee term			48 months
Goosetown And A BEEP | Related Party
Related Party Transaction [Line Items]
Consulting fees	0	$ 15,000	$ 0	$ 45,000
TeamConnect LLC | Related Party
Related Party Transaction [Line Items]
Contract liability	$ 0		$ 0			$ 0

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Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Lease [Line Items]
Net lease cost	$ 479	$ 461	$ 1,457	$ 1,362
Minimum
Lease [Line Items]
Lease extension	3 years		3 years
Maximum
Lease [Line Items]
Lease extension	10 years		10 years

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Leases - Additional Lease Cost Information (Details)	Dec. 31, 2023	Dec. 31, 2022
Lease, Cost [Abstract]
Weighted average term - operating lease liabilities	3 years 6 months	3 years 3 days
Weighted average incremental borrowing rate - operating lease liabilities	9.00%	12.00%

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Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Lease, Cost [Abstract]
Operating lease cost (cost resulting from lease payments)	$ 479	$ 461	$ 1,457	$ 1,355
Short term lease cost	0	0	0	7
Total lease cost	$ 479	$ 461	$ 1,457	$ 1,362

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Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease - operating cash flows (fixed payments)	$ 1,732	$ 1,634
Operating lease - operating cash flows (liability reduction)	1,373	747
Right of use assets obtained in exchange for new operating lease liabilities	$ 439	$ 165

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Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Mar. 31, 2023
Leases [Abstract]
Non-current assets - right of use assets, net	$ 4,629	$ 3,371
Current liabilities - operating lease liabilities	1,888	1,725
Non-current liabilities - operating lease liabilities	$ 3,700	$ 2,922

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Leases - Future Minimum Payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024 (excluding the nine months ended December 31, 2023)	$ 655
2025	2,156
2026	1,409
2027	994
2028	645
After 2028	522
Total future minimum lease payments	6,381
Amount representing interest	(793)
Present value of net future minimum lease payments	$ 5,588

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Income Tax Disclosure [Line Items]
Income tax expense	$ 1,338	$ 210	$ 1,743	$ 625
Federal and State
Income Tax Disclosure [Line Items]
Income tax expense	1,300	$ 200	1,700	$ 600
Federal
Income Tax Disclosure [Line Items]
Deferred tax liability	3,100		3,100		$ 2,700
State
Income Tax Disclosure [Line Items]
Deferred tax liability	$ 3,200		$ 3,200		$ 2,700

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Stockholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended	28 Months Ended
	Sep. 30, 2014	May 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Dec. 31, 2023	Sep. 21, 2023	Aug. 08, 2023	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available (in shares)			579,973		579,973			579,973
Awards issued (in shares)					194,611		260,370
Stock repurchase program, authorized amount									$ 250,000		$ 50,000
Stock repurchased and subsequently retired			$ 7,971	$ 3,498	$ 18,706	$ 8,223		$ 33,900
Shares repurchased			7,971	$ 3,498	18,706	$ 8,223
Excise taxes accrued			74		118
Stock repurchase program, remaining repurchase amount			$ 242,000		242,000			$ 242,000
Shares issued on conversion (in shares)		500,000
Common Class B | Pdv Spectrum Holding Company Llc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity method investee, cumulative proceeds received on all transactions	$ 10,000
Sale of stock (in shares)	500,000	500,000
Sale of stock (in dollars per share)	$ 20.00
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of units owned	100.00%
Common Class A | Pdv Spectrum Holding Company Llc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Subsidiary equity units for which investor has right to convert to common stock (in shares)	500,000
2023 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized and reserved for issuance (in shares)										250,000
Stock repurchased and subsequently retired					$ 8,000
2023 Stock Plan | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance threshold, percentage					100.00%
2014 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available (in shares)			388,151		388,151			388,151
2014 Stock Plan | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized and reserved for issuance (in shares)			181,887		181,887			181,887
2021 Share Repurchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased and subsequently retired					$ 10,700

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Stockholders’ Equity - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Number of shares repurchased (in shares)	230	106	563	216
Average price paid per share (in dollars per share)	$ 34.77	$ 33.11	$ 33.62	$ 47.05
Total cost to repurchase	$ 7,971	$ 3,498	$ 18,706	$ 8,223

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Net Income (Loss) Per Share of Common Stock - Reconciliation of Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 328	$ (8,020)	$ 283	$ (31,859)
Weighted-average common shares:
Basic weighted-average shares (in shares)	18,704,400	18,930,594	18,858,472	18,834,991
Add: dilutive effect of stock options and restricted stock units (in shares)	211,846	0	224,395	0
Diluted weighted-average common shares (in shares)	18,916,246	18,930,594	19,082,867	18,834,991

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Net Income (Loss) Per Share of Common Stock - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	1,129,994	201,100	1,048,902	381,432

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Contingencies and Guaranty (Details) - USD ($) $ in Thousands	1 Months Ended							3 Months Ended			9 Months Ended		45 Months Ended
	Dec. 31, 2023	Nov. 30, 2023	Sep. 30, 2023	Jul. 31, 2023	Oct. 31, 2022	Sep. 30, 2022	Feb. 28, 2021	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2026	Mar. 31, 2023	Mar. 31, 2022
Commitments And Contingencies [Line Items]
Contingent liability	$ 15,000						$ 20,000	$ 15,000			$ 15,000			$ 0
Contingent liability	1,000							1,000			1,000			20,249
Payments to acquire intangible assets											14,809	$ 19,069
Increase in deposit assets								7,500
Prepayments received	107,060		$ 80,265			$ 53,945		107,060	$ 80,265	$ 61,367	107,060	61,367		$ 60,759	$ 54,678
Spectrum revenues								1,271		578	2,931	1,311
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Commitments And Contingencies [Line Items]
Milestone payment received	200		25,200			$ 200		200	$ 25,200
Delivery delay adjustments			$ 1,100
Xcel Energy | Spectrum revenue
Commitments And Contingencies [Line Items]
Spectrum revenues								663		0	1,107	0
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Commitments And Contingencies [Line Items]
Milestone payment received		$ 21,200		$ 21,200
Agreement term					20 years
Prepayments received	50,300							50,300		$ 8,000	50,300	$ 8,000
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Maximum
Commitments And Contingencies [Line Items]
Prepayments received	$ 49,200							$ 49,200			$ 49,200
Lower Colorado River Authority (LCRA) | Forecast | Licensing Agreements
Commitments And Contingencies [Line Items]
Payments to acquire intangible assets													$ 30,000
SDG&E
Commitments And Contingencies [Line Items]
Consideration transferred							$ 50,000

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Concentrations of Credit Risk (Details) - USD ($)	Dec. 31, 2023	Mar. 31, 2023
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Accounts receivable	$ 0	$ 0

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Subsequent Events (Details) - Collaborative Arrangement, Transaction with Party to Collaborative Arrangement - Xcel Energy $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2024 USD ($)	Dec. 31, 2023 county
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of counties cleared for licenses | county		10
Subsequent Event
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Advance payment received | $	$ 16.8