Annual Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | o | Accelerated filer | o | ||||||||
x | Smaller reporting company | ||||||||||
Emerging Growth Company |
Documents | Form 10-K Reference | ||||
Proxy Statement for 2024 Annual Meeting of Shareholders expected to be filed by April 29, 2024 (the day that is 120 days after the last day of the registrant’s 2023 fiscal year) | Part III |
Page | |||||
STATION AND MARKET | MARKET RANK BY REVENUE | FORMAT | PRIMARY DEMOGRAPHIC TARGET AGES | RANKING IN PRIMARY DEMOGRAPHIC TARGET | STATION AUDIENCE SHARE | |||||||||||||||||||||||||||
New York, NY | 2 | |||||||||||||||||||||||||||||||
WQHT(FM) | Hip-Hop | 18-34 | 10 | 3.9 | ||||||||||||||||||||||||||||
WBLS(FM) | Urban Adult Contemporary | 25-54 | 8 | 4.0 |
NAME | POSITION | AGE AT DECEMBER 31, 2023 | YEAR FIRST ELECTED OFFICER | |||||||||||||||||
Kudjo Sogadzi | Interim President and Chief Operating Officer | 41 | 2023 | |||||||||||||||||
Ann C. Beemish | Executive Vice President, Chief Financial Officer and Treasurer | 51 | 2021 |
Radio Market | Stations | City of License | Frequency | Expiration Date of License | FCC Class | Height Above Average Terrain (in feet) | Power (in Kilowatts) | |||||||||||||||||||||||||||||||||||||
New York, NY | WQHT(FM) | New York, NY | 97.1 | June 2030 | B | 1,339 | 6.7 | |||||||||||||||||||||||||||||||||||||
WBLS(FM) | New York, NY | 107.5 | June 2030 | B | 1,362 | 4.2 |
Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||||||||||||||
October 1, 2023 – October 31, 2023 | 10,166 | $ | 0.73 | 10,166 | $ | 1,026,472 | ||||||||||||||||||||
November 1, 2023 – November 30, 2023 | 12,370 | $ | 0.61 | 12,370 | $ | 1,018,958 | ||||||||||||||||||||
December 1, 2023 – December 31, 2023 | 22,740 | $ | 0.54 | 22,740 | $ | 1,006,775 | ||||||||||||||||||||
Total | 45,276 | $ | 0.60 | 45,276 |
Year Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Spot Radio Advertising | $ | 18,650 | 57.6 | % | $ | 25,790 | 66.8 | % | |||||||||||||||
Digital | 3,677 | 11.4 | % | 4,713 | 12.2 | % | |||||||||||||||||
Syndication | 2,427 | 7.5 | % | 1,891 | 4.9 | % | |||||||||||||||||
Events and Sponsorships | 5,766 | 17.8 | % | 3,380 | 8.8 | % | |||||||||||||||||
Other | 1,871 | 5.7 | % | 2,821 | 7.3 | % | |||||||||||||||||
Total net revenues | $ | 32,391 | $ | 38,595 |
October 1, 2023 | October 1, 2022 | ||||||||||
Discount Rate | 12.7% | 12.7% | |||||||||
Long-term Revenue Growth Rate | 0.5% | 0.6% | |||||||||
Mature Market Share | 10.8% | 9.8% | |||||||||
Operating Profit Margin | 22.9-29.0% | 23.5-29.0% |
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Net revenues | $ | 32,391 | $ | 38,595 | $ | (6,204) | (16.1) | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Operating expenses excluding depreciation and amortization expenses: | $ | 32,633 | $ | 32,847 | $ | (214) | (0.7) | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Corporate expenses | $ | 5,451 | $ | 6,463 | $ | (1,012) | (15.7) | % |
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Depreciation and amortization | $ | 568 | $ | 666 | $ | (98) | (14.7) | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Loss on disposal of assets | $ | 526 | $ | 5 | $ | 521 | 10,420.0 | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Operating (loss) income | $ | (6,787) | $ | (1,386) | $ | (5,401) | 389.7 | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Interest expense | $ | (426) | $ | (6,980) | $ | 6,554 | (93.9) | % |
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Other income | $ | 100 | $ | 125 | $ | (25) | (20.0) | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Loss on debt extinguishment | $ | — | $ | (1,218) | $ | 1,218 | (100.0) | % | |||||||||||||||
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Provision for income taxes | $ | 308 | $ | 336 | $ | (28) | (8.3) | % |
Year ended December 31, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Consolidated net (loss) income | $ | (7,631) | $ | 30,914 | $ | (38,545) | (124.7) | % |
Year ended December 31, | |||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | |||||||||
NET REVENUES | $ | $ | |||||||||
OPERATING EXPENSES: | |||||||||||
Operating expenses excluding depreciation and amortization expense | |||||||||||
Corporate expenses | |||||||||||
Depreciation and amortization | |||||||||||
Loss on disposal of assets | |||||||||||
Total operating expenses | |||||||||||
OPERATING LOSS | ( | ( | |||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest expense, net | ( | ( | |||||||||
Other income | |||||||||||
Loss on debt extinguishment | ( | ||||||||||
Total other expense | ( | ( | |||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | ( | ( | |||||||||
PROVISION FOR INCOME TAXES | |||||||||||
NET LOSS FROM CONTINUING OPERATIONS | ( | ( | |||||||||
DISCONTINUED OPERATIONS: | |||||||||||
Loss from discontinued operations before income taxes | ( | ( | |||||||||
Gain on sale of discontinued operations | |||||||||||
Income tax benefit (expense) from discontinued operations | ( | ||||||||||
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS | ( | ||||||||||
CONSOLIDATED NET (LOSS) INCOME | ( | ||||||||||
PREFERRED STOCK DIVIDENDS | |||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | ( | $ | ||||||||
Net (loss) income per share attributable to common shareholders - basic and diluted: | |||||||||||
Continuing operations | $ | ( | $ | ( | |||||||
Discontinued operations | $ | ( | $ | ||||||||
Net (loss) income per share attributable to common shareholders - basic and diluted: | $ | ( | $ | ||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
(in thousands, except share data) | DECEMBER 31, 2023 | DECEMBER 31, 2022 | |||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Prepaid expenses | |||||||||||
Other | |||||||||||
Current assets of discontinued operations | |||||||||||
Total current assets | |||||||||||
PROPERTY AND EQUIPMENT: | |||||||||||
Leasehold improvements | |||||||||||
Broadcasting equipment | |||||||||||
Office equipment, computer equipment, software and automobiles | |||||||||||
Construction in progress | |||||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Total property and equipment, net | |||||||||||
INTANGIBLE ASSETS: | |||||||||||
Indefinite lived intangibles | |||||||||||
Other intangibles | |||||||||||
Less accumulated amortization | ( | ( | |||||||||
Total intangible assets, net | |||||||||||
OTHER ASSETS: | |||||||||||
Operating lease right of use assets | |||||||||||
Deposits and other | |||||||||||
Total other assets | |||||||||||
Total assets | $ | $ |
(in thousands, except share data) | DECEMBER 31, 2023 | DECEMBER 31, 2022 | |||||||||
LIABILITIES AND RETAINED DEFICIT | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Current maturities of long-term debt | |||||||||||
Accrued salaries and commissions | |||||||||||
Deferred revenue | |||||||||||
Operating lease liabilities | |||||||||||
Other | |||||||||||
Income taxes payable | |||||||||||
Current liabilities of discontinued operations | |||||||||||
Total current liabilities | |||||||||||
LONG-TERM DEBT, NET OF CURRENT PORTION | |||||||||||
OPERATING LEASE LIABILITIES, NET OF CURRENT | |||||||||||
DEFERRED INCOME TAXES | |||||||||||
OTHER NONCURRENT LIABILITIES | |||||||||||
Total liabilities | |||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 11) | |||||||||||
SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK, $ | |||||||||||
EQUITY: | |||||||||||
Class A common stock, $ | |||||||||||
Class B common stock, $ | |||||||||||
Class C common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Class A Common Stock | Class B Common Stock | ||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | APIC | Retained Earnings (Deficit) | Total | ||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of class A to employees, officers and directors | — | — | — | ||||||||||||||||||||||||||||||||||||||
Conversion of convertible promissory notes | — | — | — | ||||||||||||||||||||||||||||||||||||||
Conversion of preferred shares | — | — | — | ||||||||||||||||||||||||||||||||||||||
Repurchase of class A common shares | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Issuance of class A to employees, officers and directors | — | — | — | ||||||||||||||||||||||||||||||||||||||
Repurchase of class A common shares | ( | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2023 | $ | $ | $ | $ | ( | $ |
Year ended December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
OPERATING ACTIVITIES: | |||||||||||
Consolidated net (loss) income | $ | ( | $ | ||||||||
Less: Loss (income) from discontinued operations, net of tax | ( | ||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities from continuing operations: | |||||||||||
Noncash loss on debt extinguishment | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of deferred financing costs, including original issue discount | |||||||||||
Noncash interest expense | |||||||||||
Noncash lease expense | |||||||||||
Provision for bad debts | |||||||||||
Provision for deferred income taxes | |||||||||||
Noncash compensation | |||||||||||
Loss on sale of property and equipment | |||||||||||
Other noncash items | |||||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Other assets | |||||||||||
Accounts payable and accrued liabilities | ( | ||||||||||
Deferred revenue | ( | ( | |||||||||
Operating lease liabilities | ( | ( | |||||||||
Income taxes | ( | ||||||||||
Other liabilities | ( | ||||||||||
Net cash (used in) provided by continuing operating activities | ( | ||||||||||
Net cash provided by (used in) discontinued operating activities | ( | ||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Purchases of internally-created software | ( | ( | |||||||||
Proceeds from sale of discontinued operations | |||||||||||
Net cash (used in) provided by continuing investing activities | ( | ||||||||||
Net cash used in discontinued investing activities | ( | ||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
FINANCING ACTIVITIES: | |||||||||||
Payments on long-term debt | ( | ||||||||||
Repurchases of class A common stock | ( | ( | |||||||||
Settlement of tax withholding obligations | ( | ( | |||||||||
Net cash used in continuing financing activities | ( | ( | |||||||||
Net cash used in discontinued financing activities | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ( | ||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||||||
Beginning of period | |||||||||||
End of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes - Federal | |||||||||||
Income taxes - State | |||||||||||
Balance At Beginning Of Period | Provision | Write-Offs | Balance At End Of Period | ||||||||||||||||||||
Year ended December 31, 2022 | $ | ( | $ | ||||||||||||||||||||
Year ended December 31, 2023 | $ | ( | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Numerator: | |||||||||||
Loss from continuing operations | $ | ( | $ | ( | |||||||
Less: Preferred stock dividends | ( | ( | |||||||||
Loss from continuing operations available to common shareholders | ( | ( | |||||||||
(Loss) income from discontinued operations, net of income taxes | ( | ||||||||||
Net (loss) income available to common shareholders | ( | ||||||||||
Denominator: | |||||||||||
Weighted-average shares of common stock outstanding — basic and diluted | |||||||||||
Earnings per share of common stock attributable to common shareholders: | |||||||||||
Net (loss) income per share attributable to common shareholders - basic and diluted: | |||||||||||
Continuing operations | $ | ( | $ | ( | |||||||
Discontinued operations | ( | ||||||||||
Net (loss) income per share attributable to common shareholders - basic and diluted: | $ | ( | $ | ||||||||
Year Ended December 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Convertible Emmis promissory note | |||||||||||
Convertible Standard General promissory notes | |||||||||||
Series A convertible preferred stock | |||||||||||
Restricted stock awards | |||||||||||
Total |
Year ended December 31, | |||||||||||
2023 | 2022(a) | ||||||||||
Net revenues | $ | $ | |||||||||
OPERATING EXPENSES | |||||||||||
Operating expenses excluding depreciation and amortization expense | |||||||||||
Depreciation and amortization | |||||||||||
Loss on disposal of assets | |||||||||||
Total operating expenses | |||||||||||
(Loss) income from operations of discontinued operations | ( | ||||||||||
Interest and other, net | ( | ||||||||||
Loss from discontinued operations before income taxes and gain on sale | ( | ( | |||||||||
Pre-tax gain on sale | |||||||||||
(Loss) income from discontinued operations, before income taxes | ( | ||||||||||
Income tax benefit (expense) | ( | ||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | ( | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
Assets: | |||||||||||
Accounts receivable, net | |||||||||||
Other | |||||||||||
Total current assets of discontinued operations | |||||||||||
Liabilities: | |||||||||||
Accounts payable and accrued expenses | |||||||||||
Total current liabilities of discontinued operations | |||||||||||
Awards | Price | ||||||||||
Grants outstanding, beginning of period | $ | ||||||||||
Granted | |||||||||||
Vested (restriction lapsed) | ( | ||||||||||
Forfeited | ( | ||||||||||
Grants outstanding, end of period | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating expenses excluding depreciation and amortization | $ | $ | |||||||||
Corporate expenses | |||||||||||
Loss from discontinued operations before income taxes | |||||||||||
Stock-based compensation expense | $ | $ |
Year Ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Spot Radio Advertising | $ | % | $ | % | |||||||||||||||||||
Digital | % | % | |||||||||||||||||||||
Syndication | % | % | |||||||||||||||||||||
Events and Sponsorships | % | % | |||||||||||||||||||||
Other | % | % | |||||||||||||||||||||
Total net revenues | $ | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Lease Cost | |||||||||||
Operating lease cost | $ | $ | |||||||||
Other Information | |||||||||||
Operating cash flows from operating leases | |||||||||||
Weighted average remaining lease term - operating leases (in years) | |||||||||||
Weighted average discount rate - operating leases | % | % |
Year ended December 31, | |||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
After 2028 | |||||
Total lease payments | |||||
Less: imputed interest | ( | ||||
Total recorded lease liabilities | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
Indefinite-lived intangible assets: | |||||||||||
FCC Licenses | $ | $ | |||||||||
Definite-lived intangible assets: | |||||||||||
Software | |||||||||||
Total | $ | $ |
October 1, 2023 | October 1, 2022 | ||||||||||
Discount Rate | |||||||||||
Long-term Revenue Growth Rate | |||||||||||
Mature Market Share | |||||||||||
Operating Profit Margin |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Remaining Useful Life (in years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||
Software | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Year ended December 31, | Amortization Expense | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
After 2028 | ||||||||
Total | $ |
Year ended December 31, | Total Payments | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Current: | |||||||||||
Federal | $ | $ | |||||||||
State | |||||||||||
Total current | |||||||||||
Deferred: | |||||||||||
Federal | |||||||||||
State | |||||||||||
Total deferred | |||||||||||
Provision for income taxes | $ | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Federal statutory income tax rate | % | % | |||||||||
Computed income tax provision at federal statutory rate | $ | ( | $ | ( | |||||||
State income tax | ( | ( | |||||||||
State tax rate change | ( | ||||||||||
Equity based compensation | |||||||||||
Valuation allowance | |||||||||||
Other | |||||||||||
Provision for income taxes | $ | $ |
December 31, 2023 | December 31, 2022 | ||||||||||
Deferred tax assets: | |||||||||||
Intangible assets | $ | $ | |||||||||
Lease liability | |||||||||||
Interest deduction carryforward | |||||||||||
Stock compensation | |||||||||||
Net operating losses | |||||||||||
Property and equipment | |||||||||||
Other | |||||||||||
Valuation allowance | ( | ( | |||||||||
Total deferred tax assets | |||||||||||
Deferred tax liabilities | |||||||||||
Indefinite-lived intangible assets | ( | ( | |||||||||
Right of use asset | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred tax liabilities | $ | ( | $ | ( |
December 31, 2023 | December 31, 2022 | ||||||||||
Gross unrecognized tax benefit - opening balance | $ | $ | |||||||||
Gross increases - tax position prior year | ( | ||||||||||
Gross increases - tax position current year | |||||||||||
Decreases relating to settlement with taxing authorities | |||||||||||
Gross decreases - lapse of applicable statute of limitation | |||||||||||
Gross unrecognized tax benefit - ending balance | ( |
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column (A)) | |||||||||||||||
Plan Category | (A) | (B) | (C) | ||||||||||||||
Class A common stock | |||||||||||||||||
Equity Compensation Plans | |||||||||||||||||
Approved by Security Holders | 1,162,669 | $ | 1.17 | 209,143 | |||||||||||||
Equity Compensation Plans | |||||||||||||||||
Not Approved by Security Holders | — | — | — | ||||||||||||||
Total | 1,162,669 | $ | 1.17 | 209,143 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit | Filing Date | ||||||||||||||||||||||||||||||||
3.1 | 10-KT | 12/31/2019 | 3.1 | 3/27/2020 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 3.1 | 3/27/2023 | |||||||||||||||||||||||||||||||||||
3.3 | 10-K | 12/31/2021 | 3.2 | 3/24/2022 | ||||||||||||||||||||||||||||||||||
4.1 | 10-KT | 12/31/2019 | 4.1 | 3/27/2020 | ||||||||||||||||||||||||||||||||||
10.2† | 8-K | 99.1 | 2/11/2022 | |||||||||||||||||||||||||||||||||||
10.4† | Definitive Proxy | Ex. A | 4/2/2021 | |||||||||||||||||||||||||||||||||||
10.5 | 8-K | 10.8 | 11/27/2019 | |||||||||||||||||||||||||||||||||||
10.7† | 10-Q | 6/30/2020 | 10.2 | 8/14/2020 | ||||||||||||||||||||||||||||||||||
10.8† | 8-K | 99.1 | 7/17/2023 | |||||||||||||||||||||||||||||||||||
10.9† | 8-K | 99.1 | 10/12/2023 | |||||||||||||||||||||||||||||||||||
21 | X | |||||||||||||||||||||||||||||||||||||
23 | X | |||||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
97† | X |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Period Ending | Exhibit | Filing Date | ||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document | X | ||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | X |
MEDIACO HOLDING INC. | ||||||||
Date: April 1, 2024 | By: | /s/ Kudjo Sogadzi | ||||||
Kudjo Sogadzi | ||||||||
Interim President and Chief Operating Officer (Principal Executive Officer) |
SIGNATURE | TITLE | |||||||||||||
Date: April 1, 2024 | /s/ Kudjo Sogadzi | Interim President and Chief Operating Officer | ||||||||||||
Kudjo Sogadzi | (Principal Executive Officer) | |||||||||||||
Date: April 1, 2024 | /s/ Ann C. Beemish | Executive Vice President, Chief Financial Officer and Treasurer | ||||||||||||
Ann C. Beemish | (Principal Financial Officer and Principal Accounting Officer) | |||||||||||||
Date: April 1, 2024 | /s/ Patrick M. Walsh | Director | ||||||||||||
Patrick M. Walsh | ||||||||||||||
Date: April 1, 2024 | /s/ J. Scott Enright | Director | ||||||||||||
J. Scott Enright | ||||||||||||||
Date: April 1, 2024 | /s/ Andrew Glaze | Director | ||||||||||||
Andrew Glaze | ||||||||||||||
Date: April 1, 2024 | /s/ Robert L. Greene | Director | ||||||||||||
Robert L. Greene | ||||||||||||||
Date: April 1, 2024 | /s/ Mary Beth McAdaragh | Director | ||||||||||||
Mary Beth McAdaragh | ||||||||||||||
Date: April 1, 2024 | /s/ Deborah McDermott | Director | ||||||||||||
Deborah McDermott | ||||||||||||||
Date: April 1, 2024 | /s/ Jeffrey H. Smulyan | Director | ||||||||||||
Jeffrey H. Smulyan | ||||||||||||||
Date: April 1, 2024 | /s/ Amit Thakrar | Director | ||||||||||||
Amit Thakrar |
Name Under Which Subsidiary Does Business | Jurisdiction of Organization | ||||
MediaCo Holding Inc. | IN | ||||
MediaCo WQHT License LLC | IN | ||||
MediaCo WBLS License LLC | IN |
/s/ Kudjo Sogadzi | |||||
Kudjo Sogadzi | |||||
Interim President and Chief Operating Officer (Principal Executive Officer) |
/s/ Ann C. Beemish | |||||
Ann C. Beemish | |||||
Executive Vice President, Chief Financial Officer and Treasurer |
/s/ Kudjo Sogadzi | |||||
Kudjo Sogadzi | |||||
Interim President and Chief Operating Officer (Principal Executive Officer) |
/s/ Ann C. Beemish | |||||
Ann C. Beemish | |||||
Executive Vice President, Chief Financial Officer and Treasurer |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Indianapolis, IN |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Statement [Abstract] | ||
NET REVENUES | $ 32,391 | $ 38,595 |
OPERATING EXPENSES: | ||
Operating expenses excluding depreciation and amortization expense | 32,633 | 32,847 |
Corporate expenses | 5,451 | 6,463 |
Depreciation and amortization | 568 | 666 |
Loss on disposal of assets | 526 | 5 |
Total operating expenses | 39,178 | 39,981 |
OPERATING LOSS | (6,787) | (1,386) |
OTHER INCOME (EXPENSE): | ||
Interest expense, net | (426) | (6,980) |
Other income | 100 | 125 |
Loss on debt extinguishment | 0 | (1,218) |
Total other expense | (326) | (8,073) |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (7,113) | (9,459) |
PROVISION FOR INCOME TAXES | 308 | 336 |
NET LOSS FROM CONTINUING OPERATIONS | (7,421) | (9,795) |
Loss from discontinued operations before income taxes | (284) | (3,081) |
Gain on sale of discontinued operations | 0 | 46,875 |
Income tax benefit (expense) from discontinued operations | 74 | (3,085) |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS | (210) | 40,709 |
CONSOLIDATED NET (LOSS) INCOME | (7,631) | 30,914 |
PREFERRED STOCK DIVIDENDS | 2,415 | 3,330 |
Net income (loss) available to common shareholders, basic | (10,046) | 27,584 |
Net income (loss) available to common shareholders, diluted | $ (10,046) | $ 27,584 |
Net (loss) income per share attributable to common shareholders - basic and diluted: | ||
Continuing operations - basic (in dollars per share) | $ (0.39) | $ (0.98) |
Continuing operations - diluted (in dollars per share) | (0.39) | (0.98) |
Discontinued operations - basic (in dollars per share) | (0.01) | 3.04 |
Discontinued operations - diluted (in dollars per share) | (0.01) | 3.04 |
Earnings per share, basic (in dollars per share) | (0.40) | 2.06 |
Earnings per share, diluted (in dollars per share) | $ (0.40) | $ 2.06 |
Weighted average common shares outstanding: | ||
Weighted average number of shares outstanding, basic (in shares) | 24,876,000 | 13,380,000 |
Weighted average number of shares outstanding, diluted (in shares) | 24,876,000 | 13,380,000 |
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,817 | $ 10,925 |
Restricted cash | 1,337 | 2,500 |
Accounts receivable, net of allowance for doubtful accounts of $353 and $122, respectively | 6,675 | 8,568 |
Prepaid expenses | 891 | 979 |
Other | 1,188 | 341 |
Current assets of discontinued operations | 0 | 1,066 |
Total current assets | 13,908 | 24,379 |
PROPERTY AND EQUIPMENT: | ||
Leasehold improvements | 1,102 | 8,474 |
Broadcasting equipment | 3,516 | 5,786 |
Office equipment, computer equipment, software and automobiles | 1,027 | 1,973 |
Construction in progress | 740 | 31 |
Total property and equipment | 6,385 | 16,264 |
Less accumulated depreciation and amortization | (5,005) | (15,683) |
Total property and equipment, net | 1,380 | 581 |
INTANGIBLE ASSETS: | ||
Indefinite lived intangibles | 63,266 | 63,266 |
Other intangibles | 3,737 | 3,649 |
Total intangible assets | 67,003 | 66,915 |
Less accumulated amortization | (2,410) | (2,212) |
Total intangible assets, net | 64,593 | 64,703 |
OTHER ASSETS: | ||
Operating lease right of use assets | 13,614 | 5,088 |
Deposits and other | 1,996 | 1,954 |
Total other assets | 15,610 | 7,042 |
Total assets | 95,491 | 96,705 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 2,625 | 3,880 |
Current maturities of long-term debt | 6,458 | 0 |
Accrued salaries and commissions | 539 | 875 |
Deferred revenue | 557 | 825 |
Operating lease liabilities | 1,444 | 1,816 |
Other | 65 | 35 |
Income taxes payable | 29 | 3,008 |
Current liabilities of discontinued operations | 0 | 659 |
Total current liabilities | 11,717 | 11,098 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 0 | 5,950 |
OPERATING LEASE LIABILITIES, NET OF CURRENT | 14,333 | 3,808 |
DEFERRED INCOME TAXES | 2,775 | 2,483 |
OTHER NONCURRENT LIABILITIES | 502 | 51 |
Total liabilities | 29,327 | 23,390 |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | ||
SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK, $0.01 PAR VALUE, 10,000,000 SHARES AUTHORIZED; 286,031 AND 260,000 SHARES ISSUED AND OUTSTANDING AT DECEMBER 31, 2023 AND 2022 | 28,754 | 26,339 |
EQUITY: | ||
Additional paid-in capital | 60,294 | 59,817 |
Accumulated deficit | (23,148) | (13,102) |
Total equity | 37,410 | 46,976 |
Total liabilities and equity | 95,491 | 96,705 |
Class A Common Stock | ||
EQUITY: | ||
Common Stock | 210 | 207 |
Class B Common Stock | ||
EQUITY: | ||
Common Stock | 54 | 54 |
Class C Common Stock | ||
EQUITY: | ||
Common Stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts receivable, allowance | $ 353 | $ 122 |
Series A Cumulative Convertible Participating Preferred Stock | ||
Convertible participating preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible participating preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Convertible participating preferred stock, issued (in shares) | 286,031 | 286,031 |
Convertible participating preferred stock, outstanding (in shares) | 260,000 | 260,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 20,741,865 | 20,443,138 |
Common stock, shares outstanding (in shares) | 20,741,865 | 20,443,138 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 5,413,197 | 5,413,197 |
Common stock, shares outstanding (in shares) | 5,413,197 | 5,413,197 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS (DEFICIT) - USD ($) $ in Thousands |
Total |
Convertible Promissory Notes |
Preferred Shares |
Class A Common Stock |
Class B Common Stock |
Common Stock |
Common Stock
Class A Common Stock
|
Common Stock
Class A Common Stock
Convertible Promissory Notes
|
Common Stock
Class A Common Stock
Preferred Shares
|
Common Stock
Class B Common Stock
|
APIC |
APIC
Convertible Promissory Notes
|
APIC
Preferred Shares
|
Retained Earnings (Deficit) |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2021 | 3,056,757 | 5,413,197 | ||||||||||||
Beginning balance at Dec. 31, 2021 | $ (16,571) | $ 31 | $ 54 | $ 24,030 | $ (40,686) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | 30,914 | 30,914 | ||||||||||||
Issuance of class A to employees, officers and directors (in shares) | 530,001 | |||||||||||||
Issuance of class A to employees, officers and directors | 1,281 | $ 6 | 1,275 | |||||||||||
Conversion of convertible promissory notes and preferred shares (in shares) | 13,714,730 | 3,328,728 | ||||||||||||
Conversion of convertible promissory notes and preferred shares | $ 30,904 | $ 4,000 | $ 138 | $ 34 | $ 30,766 | $ 3,966 | ||||||||
Repurchase of class A common shares (in shares) | (187,078) | |||||||||||||
Repurchase of class A common shares | (222) | $ (200) | $ (2) | (220) | ||||||||||
Preferred stock dividends | (3,330) | (3,330) | ||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 20,443,138 | 5,413,197 | 20,443,138 | 5,413,197 | ||||||||||
Ending balance at Dec. 31, 2022 | 46,976 | $ 207 | $ 54 | 59,817 | (13,102) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income (loss) | (7,631) | (7,631) | ||||||||||||
Issuance of class A to employees, officers and directors (in shares) | 928,607 | |||||||||||||
Issuance of class A to employees, officers and directors | 1,251 | $ 9 | 1,242 | |||||||||||
Repurchase of class A common shares (in shares) | (629,880) | |||||||||||||
Repurchase of class A common shares | (771) | $ (800) | $ (6) | (765) | ||||||||||
Preferred stock dividends | (2,415) | (2,415) | ||||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 20,741,865 | 5,413,197 | 20,741,865 | 5,413,197 | ||||||||||
Ending balance at Dec. 31, 2023 | $ 37,410 | $ 210 | $ 54 | $ 60,294 | $ (23,148) |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
OPERATING ACTIVITIES: | ||
Consolidated net (loss) income | $ (7,631) | $ 30,914 |
Less: Loss (income) from discontinued operations, net of tax | 210 | (40,709) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities from continuing operations: | ||
Noncash loss on debt extinguishment | 0 | 1,180 |
Depreciation and amortization | 568 | 666 |
Amortization of deferred financing costs, including original issue discount | 0 | 610 |
Noncash interest expense | 508 | 1,436 |
Noncash lease expense | 1,557 | 2,162 |
Provision for bad debts | 282 | 2 |
Provision for deferred income taxes | 272 | 336 |
Noncash compensation | 1,688 | 2,514 |
Loss on sale of property and equipment | 565 | 5 |
Other noncash items | 342 | 53 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,611 | 3,626 |
Prepaid expenses and other current assets | (162) | 576 |
Other assets | 0 | 0 |
Accounts payable and accrued liabilities | (1,526) | 1,062 |
Deferred revenue | (268) | (472) |
Operating lease liabilities | (238) | (2,319) |
Income taxes | (3,129) | 0 |
Other liabilities | (219) | 678 |
Net cash (used in) provided by continuing operating activities | (5,570) | 2,320 |
Net cash provided by (used in) discontinued operating activities | 255 | (122) |
Net cash (used in) provided by operating activities | (5,315) | 2,198 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (1,069) | (76) |
Purchases of internally-created software | (597) | (1,293) |
Proceeds from sale of discontinued operations | 0 | 78,982 |
Net cash (used in) provided by continuing investing activities | (1,666) | 77,613 |
Net cash used in discontinued investing activities | 0 | (422) |
Net cash (used in) provided by investing activities | (1,666) | 77,191 |
FINANCING ACTIVITIES: | ||
Payments on long-term debt | 0 | (68,573) |
Repurchases of class A common stock | (771) | (222) |
Settlement of tax withholding obligations | (440) | (1,343) |
Net cash used in continuing financing activities | (1,211) | (70,138) |
Net cash used in discontinued financing activities | (38) | (71) |
Net cash used in financing activities | (1,249) | (70,209) |
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (8,230) | 9,180 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 15,301 | 6,121 |
End of period | 7,071 | 15,301 |
Cash paid for: | ||
Interest | 0 | 6,308 |
Income taxes - Federal | 2,290 | 0 |
Income taxes - State | $ 752 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization MediaCo Holding Inc. (“MediaCo” or the “Company”) is an owned and operated multi-media company formed in Indiana in 2019, focused on radio and digital advertising, premium programming and events. Our assets consist of two radio stations, WQHT(FM) and WBLS(FM) (the “Stations”), which serve the New York City demographic market area that primarily targets Black, Hispanic, and multi-cultural consumers. We derive our revenues primarily from radio and digital advertising sales, but we also generate revenues from events, including sponsorships and ticket sales, licensing, and syndication. On December 9, 2022, Fairway Outdoor LLC, FMG Kentucky, LLC and FMG Valdosta, LLC (collectively, “Fairway”), all of which are wholly owned direct and indirect subsidiaries of MediaCo, entered into an Asset Purchase Agreement (the “Purchase Agreement”), with The Lamar Company, L.L.C., a Louisiana limited liability company (the “Purchaser”), pursuant to which we sold our Fairway outdoor advertising business to the Purchaser. The transactions contemplated by the Purchase Agreement closed as of the date of the Purchase Agreement. We have classified the related assets and liabilities associated with our Fairway business as discontinued operations in our consolidated balance sheets and the results of our Fairway business have been presented as discontinued operations in our consolidated statements of income for all periods presented as the sale represented a strategic shift in our business that had a major effect on our operations and financial results. Unless otherwise noted, discussion in the notes to consolidated financial statements refers to the Company's continuing operations. See Note 2 — Discontinued Operations for additional information. Unless the context otherwise requires, references to “we”, “us” and “our” refer to MediaCo and its subsidiaries. Basis of Presentation and Consolidation Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring adjustments) have been included. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Pursuant to ASC Topic 205-40, “Going Concern,” the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern within one year of the date of the filing of these financial statements (April 1, 2024). Management considered the Company’s ability to forecast future cash flows, current financial condition, sources of liquidity and debt service obligations due on or before April 1, 2025. The Company has experienced downturns in revenues and profitability and expects these to continue for an undetermined period of time. Management has considered these circumstances in assessing the Company’s liquidity over the next year. Liquidity is a measure of an entity’s ability to meet potential cash requirements, maintain its assets, fund its operations, and meet the other general cash needs of its business. The Company’s liquidity is impacted by general economic, financial, competitive, and other factors beyond its control. The Company’s liquidity requirements consist primarily of funds necessary to pay its expenses, principally debt service and operational expenses, such as labor costs, and other related expenditures. The Company generally satisfies its liquidity needs through cash provided by operations. In addition, the Company has taken steps to enhance its ability to fund its operational expenses by reducing various costs and is prepared to take additional steps as necessary. The Company has debt service obligations of approximately $7.1 million due under its Emmis Convertible Promissory Note (as defined in Note 13) from April 1, 2024 (the date of issuance of these financial statements) through April 1, 2025. As a result of this debt service obligation to Emmis, management anticipates the Company will be unable to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand and projected cash flows from operations. As a result, there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Management is prepared to implement additional cost cutting measures, as necessary, and intends to seek additional borrowings to meet its debt service obligations, if needed. While the Company has been successful in obtaining additional liquidity in the past, no assurances can be made that the Company will receive such liquidity in the future. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Revenue Recognition The Company generates revenue from the sale of services including, but not limited to: (i) on-air commercial broadcast time, (ii) non-traditional revenues including event-related revenues and event sponsorship revenues, and (iii) digital advertising. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue. Substantially all deferred revenue is recognized within twelve months of the payment date. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues. Allowance for Doubtful Accounts An allowance for doubtful accounts is recorded based on management’s judgment of the collectability of receivables. When assessing the collectability of receivables, management considers, among other things, historical loss experience and existing economic conditions. Amounts are written off after all normal collection efforts have been exhausted. The activity in the allowance for doubtful accounts for the years ended December 31, 2023, and 2022, was as follows:
Cash and Cash Equivalents MediaCo considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted cash at December 31, 2023 and 2022 represents $1.3 million and $2.5 million, respectively, held in escrow related to the Company's disposition of the Fairway business and $1.9 million and $1.8 million, respectively, held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices and included in the line item Deposits and Other in the consolidated balance sheets. Property and Equipment Property and equipment are recorded at cost. Depreciation is generally computed using the straight-line method over the estimated useful lives of the related assets, which are 30 to 39 years for buildings, the shorter of economic life or expected lease term for leasehold improvements, to seven years for broadcasting equipment, five years for automobiles, office equipment and computer equipment, and to five years for software. Maintenance, repairs and minor renewals are expensed as incurred; improvements are capitalized. On a continuing basis, the Company reviews the carrying value of property and equipment for impairment. If events or changes in circumstances were to indicate that an asset carrying value may not be recoverable, a write-down of the asset would be recorded through a charge to operations. See below for more discussion of impairment policies related to our property and equipment. Depreciation expense for the years ended December 31, 2023, and 2022, was $0.3 million and $0.6 million, respectively. Intangible Assets Indefinite-lived Intangibles In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” radio broadcasting licenses are not amortized, but are tested at least annually for impairment at the reporting unit level and unit of accounting level, respectively. We test for impairment annually, on October 1 of each year, or more frequently when events or changes in circumstances or other conditions suggest impairment may have occurred. Impairment exists when the asset carrying values exceed their respective fair values, and the excess is then recorded to operations as an impairment charge. See Note 10 — Intangible Assets, for more discussion of our annual impairment tests performed during the years ended December 31, 2023, and 2022. Definite-lived Intangibles The Company’s definite-lived intangible assets consist of software developed internally and programming agreements related to our radio business. These are amortized over the period of time the intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows. Advertising Costs Advertising costs are expensed when incurred. Advertising expenses were $0.5 million and $0.6 million for the years ended December 31, 2023, and 2022, respectively. Deferred Revenue and Barter Transactions Deferred revenue includes deferred barter and other transactions in which payments are received prior to the performance of services (e.g., cash-in-advance advertising). Barter transactions are recorded at the estimated fair value of the product or service received. Revenue from barter transactions is recognized when commercials are broadcast. The appropriate expense or asset is recognized when merchandise or services are used or received. Barter revenues were $0.8 million for the years ended December 31, 2023, and 2022. Barter expenses were $0.8 million for the years ended December 31, 2023, and 2022. Earnings Per Share Our basic and diluted net income (loss) per share is computed using the two-class method. The two-class method is an earnings allocation that determines net income (loss) per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses. Shares of Series A preferred stock include rights to participate in dividends and distributions to common stockholders on an if-converted basis, and accordingly are considered participating securities. During periods of undistributed losses however, no effect is given to our participating securities since they are not contractually obligated to share in the losses. We have elected to determine the earnings allocation based on income (loss) from continuing operations. As there is a loss from continuing operations, all potentially dilutive items were anti-dilutive and thus basic and diluted weighted-average shares are the same. The following is a reconciliation of basic and diluted net income (loss) per share attributable to Class A and Class B common shareholders:
The following convertible equity shares and restricted stock awards were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive.
Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the year in which the underlying transactions are reflected in the consolidated statements of operations. Deferred taxes are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and amounts recorded for income tax purposes. After determining the total amount of deferred tax assets, the Company determines whether it is more likely than not that some portion of the deferred tax assets will not be realized. If the Company determines that a deferred tax asset is not likely to be realized, a valuation allowance will be established against that asset to record it at its expected realizable value. Definite-Lived Long-Lived Tangible Assets The Company periodically considers whether indicators of impairment of definite-lived long-lived tangible assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets in question is less than their carrying value. If less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals and other methods. If the assets determined to be impaired are to be held and used, the Company recognizes an impairment charge to the extent the asset’s carrying value is greater than the fair value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates or amortizes over the remaining estimated useful life of the asset. Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Reclassifications Certain amounts have been reclassified to conform to the current year presentation. Recent Accounting Pronouncements Implemented In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses, which introduces new guidance for an approach based on using expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. Instruments in scope include loans, held-to-maturity debt securities and net investments in leases as well as reinsurance and trade receivables. We adopted this standard on January 1, 2023. The adoption of the new standard did not have a significant impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Implemented In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity’s operations and related tax risks and its tax planning and operation opportunities affect its tax rate and prospects for future cash flows. This guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact this standard will have on our consolidated financial statements, including, but not limited to, our income taxes footnote disclosure.
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DISCONTINUED OPERATIONS |
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DISCONTINUED OPERATIONS | 2. DISCONTINUED OPERATIONS On December 9, 2022, Fairway entered into the Purchase Agreement with the Purchaser. The transactions contemplated by the Purchase Agreement closed as of the date of the Purchase Agreement. The purchase price was $78.6 million, subject to certain customary adjustments, paid at closing in cash. The sale resulted in a pre-tax gain of $46.9 million in the fourth quarter of 2022. In accordance with ASC 205-20-S99-3, Allocation of Interest to Discontinued Operations, the Company elected to allocate interest expense to discontinued operations where the debt is not directly attributed to the Fairway business. Interest expense was allocated based on a ratio of net assets discontinued to the sum of consolidated net assets plus consolidated debt. In addition, upon closing we entered into a transition service agreement with the Purchaser to support the operations after the divestiture for immaterial fees. This agreement commenced with the close of the transaction and was terminated at the end of the initial term in February 2023. The financial results of Fairway are presented as income from discontinued operations on our consolidated statements of income. The following table presents the financial results of Fairway:
(a) Includes Fairway financial results through the transaction close on December 9, 2022 and the related gain on sale. The following table presents the aggregate carrying amounts of assets and liabilities of discontinued operations for Fairway in the consolidated balance sheets:
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COMMON STOCK |
12 Months Ended |
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Dec. 31, 2023 | |
Equity [Abstract] | |
COMMON STOCK | 3. COMMON STOCK MediaCo has authorized Class A common stock, Class B common stock, and Class C common stock. The rights of these three classes are essentially identical except that each share of Class A common stock has one vote with respect to substantially all matters, each share of Class B common stock has 10 votes with respect to substantially all matters, and each share of Class C common stock has no voting rights with respect to substantially all matters. All Class B common stock outstanding is owned by SG Broadcasting. At December 31, 2023 and December 31, 2022, no shares of Class C common stock were issued or outstanding. On December 16, 2022, our Board approved a stock repurchase plan (the “Repurchase Plan”), to repurchase from time to time, in the open market or through privately negotiated transactions, shares, up to $2.0 million in the aggregate of shares of our Class A common stock. The timing of purchases and the exact number of shares to be purchased depends on market conditions. The Repurchase Plan does not include specific price targets or timetables and may be suspended or terminated at any time. During the years ended December 31, 2023 and 2022, we repurchased under the Repurchase Plan 629,880 and 187,078 shares of Class A common stock for an aggregate of $0.8 million and $0.2 million, respectively. Subsequent to December 31, 2023 through March 21, 2024 we repurchased under the Repurchase Plan an additional 11,304 shares of Class A common stock for an immaterial amount. On August 20, 2021, MediaCo Holding Inc. entered into an At Market Issuance Sales Agreement with B. Riley Securities, Inc.(“B. Riley”), pursuant to which the Company may offer and sell, from time to time through or to B. Riley, as agent or principal, shares of the Company’s Class A Common Stock, $0.01 par value per share, having an aggregate offering price of up to $12.5 million. During the years ended December 31, 2023 and 2022, no stock was sold under this agreement.
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CONVERTIBLE PREFERRED STOCK |
12 Months Ended |
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Dec. 31, 2023 | |
Equity [Abstract] | |
CONVERTIBLE PREFERRED STOCK | 4. CONVERTIBLE PREFERRED STOCK The Company issued to SG Broadcasting 220,000 shares of MediaCo Series A Convertible Preferred Stock, par value $0.01 (the “MediaCo Series A Preferred Shares”) in exchange for a cash contribution of $22.0 million (the “SG Broadcasting Contribution”). This issuance of shares was issued in reliance upon an exemption from registration pursuant to Section 4(a)(2) under the Securities Act of 1933, as amended. This issuance was not a “public offering” because no more than 35 non-accredited investors received securities of the Company, the Company did not engage in general solicitation or advertising with regard to the issuance and sale of shares of MediaCo Series A Preferred Shares and the Company did not make a public offering in connection with the sale of shares of MediaCo Series A Preferred Shares. MediaCo Series A Preferred Shares rank senior in preference to the MediaCo Class A common stock, MediaCo Class B common stock, and the MediaCo Class C common stock. Pursuant to the Articles of Amendment, the ability of the Company to make distributions with respect to, or make a liquidation payment on, any other class of capital stock in the Company designated to be junior to, or on parity with, the MediaCo Series A Preferred Shares, will be subject to certain restrictions, including that (i) the MediaCo Series A Preferred Shares shall be entitled to receive the amount of dividends per share that would be payable on the number of whole common shares of the Company into which each share of MediaCo Series A Preferred Share could be converted, and (ii) the MediaCo Series A Preferred Shares, upon any liquidation, dissolution or winding up of the Company, shall be entitled to a preference on the assets of the Company. Issued and outstanding shares of MediaCo Series A Preferred Shares shall accrue cumulative dividends, payable in kind, at an annual rate equal to the interest rate on any senior debt of the Company (see Note 7), or if no senior debt is outstanding, 6%, plus additional increases of 1% on December 12, 2020 and each anniversary thereof. On December 13, 2023 and 2022, dividends of $2.4 million and $3.4 million, respectively, were paid in kind. The payment in-kind (“PIK”) increased the accrued value of the preferred stock 26,031 and 80,000 additional shares, respectively, were issued as part of these payments. MediaCo Series A Preferred Shares are redeemable for cash at the option of SG Broadcasting at any time on or after June 12, 2025, and so the shares are classified outside of permanent equity. The Series A Preferred Shares are also convertible into shares of Class A common stock at the option of SG Broadcasting at any time after May 25, 2020, with the number of shares of common stock determined by dividing the original contribution, plus accrued dividends, by the 30-day volume weighted average share price of Class A common shares. On and after May 25, 2020, when the conversion option became effective, the Series A Preferred Shares became participating securities and we began calculating earnings per share using the two-class method. There were 300,000 shares designated as MediaCo Series A Preferred shares available to be issued as of December 31, 2022. On March 23, 2023, the Company filed Articles of Amendment to its Articles of Amendment of Amended & Restated Articles of Incorporation to increase the number of designated shares of MediaCo Series A Preferred Shares from 300,000 to 500,000. The additional shares will only be issued in payment of the PIK dividends payable on outstanding shares of the Convertible Preferred Stock. On December 28, 2022, SG Broadcasting exercised its right to partially convert $4.0 million of the outstanding balance on the MediaCo Series A Preferred Shares, for 3.3 million shares of the Company's Class A common stock.
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SHARE BASED PAYMENTS |
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SHARE BASED PAYMENTS | 5. SHARE BASED PAYMENTS The amounts recorded as share based compensation expense consist of restricted stock awards issued to officers and employees that have vesting periods up to three years. Awards are typically made pursuant to employment agreements. Restricted stock awards are granted out of the Company’s 2020 and 2021 Equity Compensation Plans. We determine the fair value of restricted stock awards based on the closing price of our stock on the date of grant. We generally recognize compensation expense related to restricted stock awards on a straight-line basis over the period during which the restriction lapses. Forfeitures are recognized in the period in which they occur. The following table presents a summary of the Company’s restricted stock grants outstanding at December 31, 2023, and restricted stock activity during the year ended December 31, 2023 (“Price” reflects the weighted average share price at the date of grant):
Recognized Non-Cash Compensation Expense The following table summarizes stock-based compensation expense recognized by the Company for the years ended December 31, 2023 and 2022. Tax expense related to stock compensation for the year ended December 31, 2023 was $0.2 million and was not material for the year ended December 31, 2022.
As of December 31, 2023, there was $0.7 million of unrecognized compensation cost related to nonvested stock-based compensation arrangements. The cost is expected to be recognized over a weighted average period of approximately 1.2 years.
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REVENUE |
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REVENUE | 6. REVENUE The Company generates revenue from the sale of services including, but not limited to: (i) on-air commercial broadcast time, (ii) non-traditional revenues including event-related revenues and event sponsorship revenues, and (iii) digital advertising. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue. Substantially all deferred revenue is recognized within twelve months of the payment date. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising revenues presented in the consolidated financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues. Spot Radio Advertising On-air broadcast revenue is recognized when or as performance obligations under the terms of a contract with a customer are satisfied. This typically occurs over the period of time that advertisements are provided, or as an event occurs. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the consolidated balance sheets. Substantially all deferred revenue is recognized within twelve months of the payment date. Digital Digital revenue relates to revenue generated from the sale of digital marketing services (including display advertisements and video pre-roll and sponsorships) to advertisers on Company-owned websites and from revenue generated from content distributed across other digital platforms. Digital revenues are generally recognized as the digital advertising is delivered. Syndication Syndication revenue relates to revenue generated from the sale of rights to broadcast shows we produce as well as revenues from syndicated shows we broadcast for a fee. Syndication revenues are generally recognized ratably over the term of the contract. Events and Sponsorships Events and Sponsorships revenues principally consist of ticket sales and sponsorship of events our stations conduct in their local market. These revenues are recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related event. Other Other revenue includes barter revenue, network revenue, talent fee revenue and other revenue. The Company provides advertising broadcast time in exchange for certain products and services, including on-air radio programming. These barter arrangements generally allow the Company to preempt such bartered broadcast time in favor of advertisers who purchase time for cash consideration. These barter arrangements are valued based upon the Company’s estimate of the fair value of the products and services received. Revenue is recognized on barter arrangements when we broadcast the advertisements. Advertisements delivered under barter arrangements are typically aired during the same period in which the products and services are consumed. The Company also sells certain remnant advertising inventory to third-parties for cash, and we refer to this as network revenue. The third-parties aggregate our remnant inventory with other broadcasters’ remnant inventory for sale to third parties, generally to large national advertisers. This network revenue is recognized as we broadcast the advertisements. Talent fee revenue are fees earned for appearances by our talent, which is recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related appearance. Other revenue is comprised of brand integrations, custom on-air shows, or other amounts earned that do not fit in any other category and are recognized when our performance obligations are fulfilled. Disaggregation of revenue The following table presents the Company's revenues disaggregated by revenue source:
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LONG-TERM DEBT |
12 Months Ended |
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Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 7. LONG-TERM DEBT Long-term debt was comprised of the note payable to Emmis of $6.5 million and $6.0 million at December 31, 2023 and 2022, respectively, and was classified as current at December 31, 2023 as the note matures within the next 12 months. Emmis Convertible Promissory Note The Emmis Convertible Promissory Note (as defined in Note 13) carries interest at a base rate equal to the interest on any senior credit facility, including any applicable paid in kind rate, or if no senior credit facility is outstanding, of 6.0%, plus an additional 1.0% on any payment of interest in kind and, without regard to whether the Company pays such interest in kind, an additional increase of 1.0% following the second anniversary of the date of issuance and additional increases of 1.0% following each successive anniversary thereafter. The Company has been accruing interest since inception using the rate applicable if the interest will be paid in kind. The Emmis Convertible Promissory Note is convertible, in whole or in part, into MediaCo Class A common stock at the option of Emmis and at a strike price equal to the thirty-day volume weighted average price of the MediaCo Class A common stock on the date of conversion. The Emmis Convertible Promissory Note matures on November 25, 2024. On December 21, 2022, Emmis exercised its right to partially convert the outstanding principal and accrued but unpaid interest on the Emmis Convertible Promissory Note of $0.9 million and $0.1 million, respectively, for 0.8 million of the Company's Class A common stock. For the year ended December 31, 2023, interest of $0.5 million was paid-in-kind and added to the principal balance outstanding which was $6.5 million at December 31, 2023. The Company has debt service obligations of approximately $7.1 million due under its Emmis Convertible Promissory Note from April 1, 2024 (the date of issuance of these financial statements) through April 1, 2025. As a result of this debt service obligation to Emmis, management anticipates the Company will be unable to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand and projected cash flows from operations. See Note 1 for additional information. Senior secured term loan agreement Until December 9, 2022, the Company had a five-year senior secured term loan agreement (the “Senior Credit Facility”) with GACP Finance Co., LLC, (“GACP”) a Delaware limited liability company, as administrative agent and collateral agent. On December 9, 2022, following the consummation of the transactions contemplated by the Purchase Agreement, the Company repaid in full, without penalty, all of its obligations under the Senior Credit Facility, which was terminated at that time. SG Broadcasting Promissory Notes On July 28, 2022, SG Broadcasting exercised its right to convert the outstanding principal and accrued but unpaid interest on the SG Broadcasting Promissory Notes (as defined in Note 13) of $28.0 million and $1.9 million, respectively, for 12.9 million shares of the Company’s Class A common stock. The SG Broadcasting Promissory Notes were terminated at that time, except for one such promissory note issued on May 19, 2021 (the “May 2021 SG Broadcasting Promissory Note”), which expired on June 30, 2023, with no amounts outstanding thereunder as of its expiration or as of December 31, 2022.
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FAIR VALUE MEASUREMENTS |
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Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS Fair value is the exchange price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Company uses market data or assumptions market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Recurring Fair Value Measurements The Company has no financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2023 or 2022. Non-Recurring Fair Value Measurements The Company has certain assets that are measured at fair value on a non-recurring basis including those described in Note 10 —Intangible Assets, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 10 for more discussion). Fair Value of Other Financial Instruments Certain nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts. The following methods and assumptions were used to estimate the fair value of financial instruments: •Cash and cash equivalents: The carrying amount of these assets approximates fair value because of the short maturity of these instruments. •Other long-term debt: The Emmis Convertible Promissory Note is not actively traded and is considered a Level 3 instrument. The Company believes the current carrying value of this debt approximates its fair value.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | 9. LEASES We determine if an arrangement is a lease at inception. We have operating leases for office space and tower space, expiring at various dates through October 2039. Some leases have options to extend and some have options to terminate. Operating leases are included in operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities in our consolidated balance sheets. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Our lease terms may include options to extend or terminate the lease, which we treat as exercised when it is reasonably certain and there is a significant economic incentive to exercise that option. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. None of our leases contain variable lease payments. We elected not to apply the recognition requirements of ASC 842, “Leases”, to short-term leases, which are deemed to be leases with a lease term of twelve months or less. Instead, we recognized lease payments in the consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. Short-term lease expense for the year ended December 31, 2023 was $0.1 million and was not material for the year ended December 31, 2022. On November 18, 2022, the Company entered into a lease agreement in New York City for our radio operations and corporate offices with a lease commencement date of February 1, 2023 and a noncancellable lease term through October 2039. This resulted in a right of use asset of $10.4 million and an operating lease liability of $10.4 million when recorded at lease commencement. The impact of operating leases to our consolidated financial statements was as follows:
As of December 31, 2023, the annual minimum lease payments of our operating lease liabilities were as follows:
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS As of December 31, 2023 and 2022, intangible assets, net consisted of the following:
In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company reviews intangible assets at least annually for impairment. In connection with any such review, if the recorded value of intangible assets is greater than its fair value, they are written down and charged to results of operations. Our FCC licenses were successfully renewed in 2022 through June 2030. FCC licenses are renewed every eight years at a nominal cost, and historically both of our FCC licenses have been renewed at the end of their respective eight-year periods. Since we expect that both of our FCC licenses will continue to be renewed in the future, we believe they have indefinite lives. Given that our radio stations operate in the same geographic market they are considered a single unit of accounting. Impairment Testing The Company generally performs its annual impairment review of indefinite-lived intangibles as of October 1 each year. At the time of each impairment review, if the fair value of the indefinite-lived intangible is less than its carrying value, a charge is recorded to results of operations. When indicators of impairment are present, the Company will perform an interim impairment test. We will perform additional interim impairment assessments whenever triggering events suggest such testing for the recoverability of these assets is warranted. During the years ended December 31, 2023, and 2022, the Company did not record any impairment losses. Valuation of Indefinite-lived Broadcasting Licenses Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company considers both income and market valuation methods when it performs its impairment tests. Under the income method, the Company projects cash flows that would be generated by its unit of accounting assuming the unit of accounting was commencing operations in its market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC license. The Company assumes the competitive situation that exists in its market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC license. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. The projections incorporated into our license valuations take into consideration the current economic conditions. Under the market method, the Company uses recent sales of comparable radio stations for which the sales value appeared to be concentrated entirely in the value of the license, to arrive at an indication of fair value. When evaluating our radio broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by ASC Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting. Below are some of the key assumptions used in our income method annual impairment assessments. The long-term growth rates in the New York market in which we operate are based on recent industry trends and our expectations for the market going forward.
As of both December 31, 2023 and 2022, the carrying amount of the Company’s FCC licenses was $63.3 million. Definite-lived Intangibles The following table presents the weighted-average remaining useful life at December 31, 2023 and gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at December 31, 2023 and 2022:
The software was developed internally by our radio operations and represents our updated websites and mobile applications, which offer increased functionality and opportunities to grow and interact with our audience. They cost $1.6 million to develop and useful lives of five years and seven years were assigned to the application and website, respectively. Assets related to our websites placed in service during 2022 were disposed in the current year resulting in a loss of $0.3 million, included in Loss on disposal of assets in the consolidated statements of operations. Total amortization expense from definite-lived intangibles for the years ended December 31, 2023, and 2022, was $0.3 million and $0.1 million, respectively. The Company estimates amortization expense each of the next five years as follows:
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OTHER COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMMITMENTS AND CONTINGENCIES | 11. OTHER COMMITMENTS AND CONTINGENCIES Commitments The Company has various commitments under contracts that include purchase obligations and employment agreements with annual commitments at December 31, 2023 as follows:
Litigation From time to time, our stations are parties to various legal proceedings arising in the ordinary course of business. In the opinion of management of the Company, however, there are no legal proceedings pending against the Company that we believe are likely to have a material adverse effect on the Company. On April 1, 2022, the Company received a deficiency letter (the “Nasdaq Letter”) from the Nasdaq Listing Qualifications Department, notifying the Company that the Company is not in compliance with Nasdaq Listing Rule 5550(b)(3), which requires the Company to maintain net income from continuing operations of $0.5 million in the most recently completed fiscal year, or in two of the three most recently completed fiscal years (the “Minimum Net Income Requirement”), nor is it in compliance with either of the alternative listing standards, market value of listed securities or stockholders’ equity. The Company’s failure to comply with the Minimum Net Income Requirement was based on the Company’s filing of its Annual Report on Form 10-K for the year ended December 31, 2021, reporting net loss from continuing operations of $6.1 million. Pursuant to the Nasdaq Letter, the Company had 45 calendar days from the date of the Nasdaq Letter to submit a plan to regain compliance, and submitted such a plan during this period. The plan was accepted and Nasdaq granted an extension of up to 180 calendar days from the date of the Nasdaq Letter to evidence compliance. On July 28, 2022, the holder exercised its right under the SG Broadcasting Promissory Notes to convert the outstanding principal and accrued but unpaid interest of $28.0 million and $1.9 million, respectively, for 12.9 million shares of the Company's Class A common stock. The Note Conversion increased the Company’s stockholders’ equity by approximately $29.9 million. As a result, the Company regained compliance with the stockholders’ equity requirement based upon the transactions and events described above. On August 1, 2022, Nasdaq sent the Company a letter confirming conditional compliance with Listing Rule 5550(b)(1), reminding the Company that it must maintain compliance on a go forward basis (the “Nasdaq Compliance Letter”). On November 15, 2022, the Company received a second deficiency letter (the “Second Nasdaq Letter”) from the staff of the Nasdaq Listing Qualifications Department (the “Staff”) stating that because the Company had reported stockholders’ equity of $2.0 million in its Quarterly Report on Form 10-Q for the period ended September 30, 2022, the Company no longer complies with Nasdaq Listing Rule 5550(b)(1), which requires a minimum $2.5 million stockholders’ equity and thus the Company's Class A common stock (listed on The Nasdaq Capital Market) would be subject to delisting unless the Company requests a hearing before a Nasdaq Hearings Panel (the “Panel”) on or before November 22, 2022. Pursuant to the Nasdaq Letter, the Company promptly requested a hearing before the Panel, with the intention of presenting a plan to regain compliance with the Rule. On December 14, 2022, the Company received a letter (the “Third Nasdaq Letter”) from the Nasdaq Office of General Counsel stating that it had been informed by the Staff that the Company’s stockholders’ equity deficiency had been cured, and that the Company is now in compliance with all applicable listing standards. Consequently, the Third Nasdaq Letter informed the Company that the scheduled hearing to appeal the delisting proceedings had been cancelled, and the Company’s stock will continue to be listed on The Nasdaq Stock Market. On September 15, 2023, the Company received a notification letter from the Nasdaq Listing Qualifications Department (the “Staff”) notifying the Company that, because the closing bid price for the Company's Class A common stock was below $1.00 for 30 consecutive business days, the Company no longer met the minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2), requiring a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”). The Nasdaq deficiency letter has no immediate effect on the listing of the Class A common stock, and the Class A common stock will continue to trade on The Nasdaq Capital Market under the symbol “MDIA” at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A)(ii), the Company was given 180 calendar days, or until March 13, 2024, to regain compliance with the Minimum Bid Price Requirement. The Company did not achieve compliance during that period. On March 14, 2024, the Company received a notification letter from the Staff notifying the Company that that it had been granted an additional 180 days, or until September 9, 2024, to regain compliance with the Minimum Bid Price Requirement, based on meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period. If at any time before September 9, 2024, the bid price of our Class A common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Staff will provide written confirmation that we have achieved compliance. If we do not regain compliance with the Minimum Bid Price Requirement by the end of the second compliance period, the Class A common stock will become subject to delisting. In the event that the Company receives notice that the Class A common stock is being delisted, the Nasdaq listing rules permit the Company to appeal a delisting determination by the Staff to a hearings panel. The Company intends to continue to monitor the closing bid price of the Common Stock between now and September 9, 2024, and will consider available options to regain compliance with the Minimum Bid Price Requirement, including initiating a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Requirement or will otherwise be in compliance with other Nasdaq Listing Rules
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | 12. INCOME TAXES The provision for income taxes for continuing operations for the years ended December 31, 2023, and 2022, consisted of the following:
The provision for income taxes for continuing operations for the years ended December 31, 2023, and 2022, differs from that computed at the Federal statutory corporate tax rate as follows:
The final determination of our income tax liability may be materially different from our income tax provision. Significant judgment is required in determining our provision for income taxes. Our calculation of the provision for income taxes is subject to our interpretation of applicable tax laws in the jurisdictions in which we file. In addition, our income tax returns are subject to periodic examination by the Internal Revenue Service and other taxing authorities. As of December 31, 2023, the Company had no open income tax examinations. The components of deferred tax assets and deferred tax liabilities at December 31, 2023, and 2022, were as follows:
A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset (“DTA”) will not be realized. The Company has considered future taxable income and ongoing prudent and feasible tax-planning strategies in assessing the need for the valuation allowance. As of December 31, 2023, and 2022, the Company recorded a valuation allowance against its deferred tax assets, because the Company's management determined that it was more likely than not that certain assets would not be fully realized, as a result of a sharp deterioration of business activity related to the COVID-19 pandemic. The Company records certain deferred tax liabilities (“DTLs”) related to indefinite lived intangibles that are not expected to reverse during the carry-forward period. These DTLs can be considered a source of future taxable income to support realization of net operating losses (“NOLs”) that do not expire and DTAs that upon reversal would give rise to NOLs that do not expire. With this consideration, the total valuation allowance recorded at December 31, 2023 and 2022, was $16.6 million and $14.7 million, respectively, resulting in a net $2.8 million and $2.5 million DTL, respectively. As of December 31, 2023, the Company has $12.1 million of federal net operating losses (“NOLs”) and $19.9 million of state NOLs available to offset future taxable income. The federal NOLs do not expire. Certain state NOL carryforwards begin expiring in the year ending December 2039. Accounting Standards Codification paragraph 740-10 clarifies the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken within a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest benefit that is greater than 50 percent likely of being realized upon ultimate settlement. As of December 31, 2023, the estimated value of the Company's net uncertain tax positions was approximately $0.4 million all which is reported as a noncurrent liability. The following is a tabular reconciliation of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2023 and 2022:
All of the unrecognized tax benefits as of December 31, 2023 and 2022, if recognized, would reduce the Company’s provision for income taxes. Due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities that could be different from this estimate. In such case, the Company will record additional tax expense or tax benefit in the tax provision, or reclassify amounts on the accompanying consolidated balance sheets in the period in which such matter is effectively settled with the taxing authority. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the uncertain tax positions noted above, the Company accrued $25 thousand of interest and no penalties during the current year.
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS Transaction Agreement with Emmis and SG Broadcasting On June 28, 2019, MediaCo entered into a Contribution and Distribution Agreement with Emmis Communications Corporation (“Emmis”) and SG Broadcasting, pursuant to which (i) Emmis contributed the assets of its radio stations WQHT(FM) and WBLS(FM), in exchange for $91.5 million in cash, a $5.0 million note and 23.72% of the common stock of MediaCo, (ii) Standard General purchased 76.28% of the common stock of MediaCo, and (iii) the common stock of MediaCo received by Emmis was distributed pro rata in a taxable dividend to Emmis’ shareholders on January 17, 2020. The common stock of MediaCo acquired by Standard General is entitled to ten votes per share and the common stock acquired by Emmis and distributed to Emmis’ shareholders is entitled to one vote per share. Convertible Promissory Notes As a result of the transaction described above, on November 25, 2019, we issued convertible promissory notes to both Emmis (such note, the “Emmis Convertible Promissory Note”) and SG Broadcasting (such note, the “November 2019 SG Broadcasting Promissory Note”) in the amounts of $5.0 million and $6.3 million, respectively. Through December 31, 2021, there were additional borrowings from SG Broadcasting and annual interest amounts paid in kind on the Emmis Convertible Promissory Note and SG Broadcasting Promissory Notes such that the principal balances outstanding as of December 31, 2021 were $6.2 million and $27.6 million, respectively. In addition to the November 2019 SG Broadcasting Promissory Note, we issued additional promissory notes to evidence our indebtedness to SG Broadcasting (collectively with the November 2019 SG Broadcasting Promissory Note, the “SG Broadcasting Promissory Notes”). On May 19, 2022, annual interest of $0.4 million was paid in kind and added to the principal balance of the SG Broadcasting Promissory Notes. On July 28, 2022, SG Broadcasting exercised its right under the SG Broadcasting Promissory Notes to fully convert the outstanding principal and accrued but unpaid interest into the Company’s Class A common stock. The SG Broadcasting Promissory Notes were terminated at that time, except for the May 2021 SG Broadcasting Promissory Note, which expired on June 30, 2023 with no amounts outstanding thereunder as of December 31, 2023 or 2022. On August 19, 2022, Emmis exercised its right under the Emmis Convertible Promissory Note to convert $30 thousand of the outstanding principal for 11 thousand shares of the Company’s Class A common stock. On November 25, 2022, annual interest of $0.8 million was paid in kind and added to the principal balance of the Emmis Convertible Promissory Note. On December 21, 2022, Emmis exercised its right under the Emmis Convertible Promissory Note to convert $0.9 million of the outstanding principal and $0.1 million of accrued but unpaid interest for 0.8 million shares of the Company’s Class A common stock. Consequently, the principal amount outstanding as of December 31, 2022 under the Emmis Convertible Promissory Note was $6.0 million. For the year ended December 31, 2023, interest of $0.5 million was paid-in-kind and added to the principal balance outstanding which was $6.5 million at December 31, 2023 The Company recognized interest expense of $0.6 million and $0.8 million related to the Emmis Convertible Promissory Note for the years ended December 31, 2023, and 2022, respectively. The Company recognized no interest expense related to the SG Broadcasting Promissory Notes for the year ended December 31, 2023 and $1.8 million for the year ended December 31, 2022. The terms of these notes are described in Note 7. Convertible Preferred Stock On December 13, 2019, in connection with the purchase of Fairway, the Company issued to SG Broadcasting 220,000 shares of MediaCo Series A Convertible Preferred Stock. Dividends on Series A Convertible Preferred Stock held by SG Broadcasting were $2.4 million and $3.3 million for the years ended December 31, 2023, and 2022. On December 13, 2023 and 2022, $2.4 million and $3.4 million, respectively, of dividends were paid in kind. These payments in kind increased the accrued value of the preferred stock and 26,031 and 80,000 additional shares, respectively, were issued as part of this payment. As of December 31, 2023, and 2022, unpaid cumulative dividends were $0.2 million and $0.1 million, respectively, and included in the balance of preferred stock in the accompanying consolidated balance sheets. See Note 4 for a description of the Preferred Stock. On December 28, 2022, SG Broadcasting exercised its right to partially convert $4.0 million of the outstanding balance on the MediaCo Series A Preferred Shares, for 3.3 million shares of the Company's Class A common stock. Management Agreement for Billboards LLC On August 11, 2020, the board of directors of the Company unanimously authorized the entry into a certain Management Agreement (the “Billboard Agreement”) between Fairway Outdoor LLC (a subsidiary of the Company, “Fairway”) and Billboards LLC (an affiliate of Standard General, “Billboards”). Under the Billboard Agreement, Fairway managed the billboard business of Billboards in exchange for payments of $25,000 per quarter and reimbursement of all out-of-pocket expenses incurred by Fairway in the performance of its duties under the Billboard Agreement. The Billboard Agreement had an effective date of August 1, 2020, a term of three years, and customary provisions on limitation of liability and indemnification. $0.1 million of income was recognized in the year ended December 31, 2022 in relation to the Billboard Agreement, none of which was outstanding as of December 31, 2022. Additionally, Fairway incurred $0.2 million of out-of-pocket expenses for the period, substantially all of which has been reimbursed as of December 31, 2022. On December 9, 2022, in connection with the sale of the assets held by Fairway, the Billboard Agreement was terminated pursuant to mutual agreement between Fairway and Billboards. In October 2023, we entered into agreements with five consultants that are currently employed by affiliates of Standard General. Two of the agreements have a term that expired on February 1, 2024 and are billed at hourly rates of $125 and $150 per hour. Two of the agreements have a term that expires on April 1, 2024 and are billed at rates of $6,000 and $8,400 per month. One agreement may be terminated at any time by either party and is billed at $18,000 per month, plus expenses. As of December 31, 2023, $49 thousand of fees were incurred related to these agreements.
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SUBSEQUENT EVENTS |
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Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS There were no other subsequent events other than share repurchases discussed in Note 3 and the Nasdaq letter received as discussed in Note 11.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Discontinued Operations | We have classified the related assets and liabilities associated with our Fairway business as discontinued operations in our consolidated balance sheets and the results of our Fairway business have been presented as discontinued operations in our consolidated statements of income for all periods presented as the sale represented a strategic shift in our business that had a major effect on our operations and financial results. Unless otherwise noted, discussion in the notes to consolidated financial statements refers to the Company's continuing operations. |
Basis of Presentation and Consolidation | Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. |
Basis of Presentation and Consolidation | In the opinion of management, all adjustments necessary for fair presentation (including normal recurring adjustments) have been included. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Pursuant to ASC Topic 205-40, “Going Concern,” the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern within one year of the date of the filing of these financial statements (April 1, 2024). Management considered the Company’s ability to forecast future cash flows, current financial condition, sources of liquidity and debt service obligations due on or before April 1, 2025. The Company has experienced downturns in revenues and profitability and expects these to continue for an undetermined period of time. Management has considered these circumstances in assessing the Company’s liquidity over the next year. Liquidity is a measure of an entity’s ability to meet potential cash requirements, maintain its assets, fund its operations, and meet the other general cash needs of its business. The Company’s liquidity is impacted by general economic, financial, competitive, and other factors beyond its control. The Company’s liquidity requirements consist primarily of funds necessary to pay its expenses, principally debt service and operational expenses, such as labor costs, and other related expenditures. The Company generally satisfies its liquidity needs through cash provided by operations. In addition, the Company has taken steps to enhance its ability to fund its operational expenses by reducing various costs and is prepared to take additional steps as necessary. The Company has debt service obligations of approximately $7.1 million due under its Emmis Convertible Promissory Note (as defined in Note 13) from April 1, 2024 (the date of issuance of these financial statements) through April 1, 2025. As a result of this debt service obligation to Emmis, management anticipates the Company will be unable to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand and projected cash flows from operations. As a result, there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Management is prepared to implement additional cost cutting measures, as necessary, and intends to seek additional borrowings to meet its debt service obligations, if needed. While the Company has been successful in obtaining additional liquidity in the past, no assurances can be made that the Company will receive such liquidity in the future.
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Emerging Growth Company | The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
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Revenue Recognition and Deferred Revenue and Barter Transactions | The Company generates revenue from the sale of services including, but not limited to: (i) on-air commercial broadcast time, (ii) non-traditional revenues including event-related revenues and event sponsorship revenues, and (iii) digital advertising. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue. Substantially all deferred revenue is recognized within twelve months of the payment date. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising revenues presented in the financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gross revenues. Deferred revenue includes deferred barter and other transactions in which payments are received prior to the performance of services (e.g., cash-in-advance advertising). Barter transactions are recorded at the estimated fair value of the product or service received. Revenue from barter transactions is recognized when commercials are broadcast. The appropriate expense or asset is recognized when merchandise or services are used or received.
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Allowance for Doubtful Accounts | An allowance for doubtful accounts is recorded based on management’s judgment of the collectability of receivables. When assessing the collectability of receivables, management considers, among other things, historical loss experience and existing economic conditions. Amounts are written off after all normal collection efforts have been exhausted. |
Cash and Cash Equivalents | MediaCo considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted cash at December 31, 2023 and 2022 represents $1.3 million and $2.5 million, respectively, held in escrow related to the Company's disposition of the Fairway business and $1.9 million and $1.8 million, respectively, held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices and included in the line item Deposits and Other in the consolidated balance sheets.
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Property and Equipment | Property and equipment are recorded at cost. Depreciation is generally computed using the straight-line method over the estimated useful lives of the related assets, which are 30 to 39 years for buildings, the shorter of economic life or expected lease term for leasehold improvements, to seven years for broadcasting equipment, five years for automobiles, office equipment and computer equipment, and to five years for software. Maintenance, repairs and minor renewals are expensed as incurred; improvements are capitalized. On a continuing basis, the Company reviews the carrying value of property and equipment for impairment. If events or changes in circumstances were to indicate that an asset carrying value may not be recoverable, a write-down of the asset would be recorded through a charge to operations. See below for more discussion of impairment policies related to our property and equipment. |
Intangible Assets | Indefinite-lived Intangibles In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” radio broadcasting licenses are not amortized, but are tested at least annually for impairment at the reporting unit level and unit of accounting level, respectively. We test for impairment annually, on October 1 of each year, or more frequently when events or changes in circumstances or other conditions suggest impairment may have occurred. Impairment exists when the asset carrying values exceed their respective fair values, and the excess is then recorded to operations as an impairment charge. See Note 10 — Intangible Assets, for more discussion of our annual impairment tests performed during the years ended December 31, 2023, and 2022. Definite-lived Intangibles The Company’s definite-lived intangible assets consist of software developed internally and programming agreements related to our radio business. These are amortized over the period of time the intangible assets are expected to contribute directly or indirectly to the Company’s future cash flows.
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Advertising Costs | Advertising costs are expensed when incurred. |
Earnings Per Share | Our basic and diluted net income (loss) per share is computed using the two-class method. The two-class method is an earnings allocation that determines net income (loss) per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses. Shares of Series A preferred stock include rights to participate in dividends and distributions to common stockholders on an if-converted basis, and accordingly are considered participating securities. During periods of undistributed losses however, no effect is given to our participating securities since they are not contractually obligated to share in the losses. We have elected to determine the earnings allocation based on income (loss) from continuing operations. As there is a loss from continuing operations, all potentially dilutive items were anti-dilutive and thus basic and diluted weighted-average shares are the same. |
Income Taxes | The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequence of events that have been recognized in the Company’s financial statements or income tax returns. Income taxes are recognized during the year in which the underlying transactions are reflected in the consolidated statements of operations. Deferred taxes are provided for temporary differences between amounts of assets and liabilities as recorded for financial reporting purposes and amounts recorded for income tax purposes. After determining the total amount of deferred tax assets, the Company determines whether it is more likely than not that some portion of the deferred tax assets will not be realized. If the Company determines that a deferred tax asset is not likely to be realized, a valuation allowance will be established against that asset to record it at its expected realizable value.
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Definite-Lived Long-Lived Tangible Assets | The Company periodically considers whether indicators of impairment of definite-lived long-lived tangible assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets in question is less than their carrying value. If less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals and other methods. If the assets determined to be impaired are to be held and used, the Company recognizes an impairment charge to the extent the asset’s carrying value is greater than the fair value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates or amortizes over the remaining estimated useful life of the asset.
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Estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates.
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Reclassification | Certain amounts have been reclassified to conform to the current year presentation.
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Recent Accounting Pronouncements Implemented, Recent Accounting Pronouncements Not Yet Implemented | In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses, which introduces new guidance for an approach based on using expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. Instruments in scope include loans, held-to-maturity debt securities and net investments in leases as well as reinsurance and trade receivables. We adopted this standard on January 1, 2023. The adoption of the new standard did not have a significant impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Implemented In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity’s operations and related tax risks and its tax planning and operation opportunities affect its tax rate and prospects for future cash flows. This guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact this standard will have on our consolidated financial statements, including, but not limited to, our income taxes footnote disclosure.
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Leases | We determine if an arrangement is a lease at inception. We have operating leases for office space and tower space, expiring at various dates through October 2039. Some leases have options to extend and some have options to terminate. Operating leases are included in operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities in our consolidated balance sheets. Operating lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Our lease terms may include options to extend or terminate the lease, which we treat as exercised when it is reasonably certain and there is a significant economic incentive to exercise that option. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. None of our leases contain variable lease payments. We elected not to apply the recognition requirements of ASC 842, “Leases”, to short-term leases, which are deemed to be leases with a lease term of twelve months or less. Instead, we recognized lease payments in the consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. Short-term lease expense for the year ended December 31, 2023 was $0.1 million and was not material for the year ended December 31, 2022.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Allowance for Credit Loss | The activity in the allowance for doubtful accounts for the years ended December 31, 2023, and 2022, was as follows:
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Reconciliation of Basic and Diluted Net Loss per Share Attributable to Common Shareholders | The following is a reconciliation of basic and diluted net income (loss) per share attributable to Class A and Class B common shareholders:
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Schedule of Convertible Equity Shares and Restricted Stock Awards Excluded from Calculation of Diluted Net Loss per Share | The following convertible equity shares and restricted stock awards were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive.
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DISCONTINUED OPERATIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations | The following table presents the financial results of Fairway:
(a) Includes Fairway financial results through the transaction close on December 9, 2022 and the related gain on sale. The following table presents the aggregate carrying amounts of assets and liabilities of discontinued operations for Fairway in the consolidated balance sheets:
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Share Based Payments (Tables) |
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Schedule of Restricted Stock Grants Outstanding and Restricted Stock Activity | The following table presents a summary of the Company’s restricted stock grants outstanding at December 31, 2023, and restricted stock activity during the year ended December 31, 2023 (“Price” reflects the weighted average share price at the date of grant):
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Schedule of Stock-Based Compensation Expense Recognized | The following table summarizes stock-based compensation expense recognized by the Company for the years ended December 31, 2023 and 2022. Tax expense related to stock compensation for the year ended December 31, 2023 was $0.2 million and was not material for the year ended December 31, 2022.
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REVENUE (Tables) |
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Schedule of Disaggregation of Revenue | The following table presents the Company's revenues disaggregated by revenue source:
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LEASES (Tables) |
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Schedule of Impact of Operating Leases to Consolidated Financial Statements | The impact of operating leases to our consolidated financial statements was as follows:
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Schedule of Annual Minimum Lease Payments of Operating Lease Liabilities | As of December 31, 2023, the annual minimum lease payments of our operating lease liabilities were as follows:
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INTANGIBLE ASSETS (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | As of December 31, 2023 and 2022, intangible assets, net consisted of the following:
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Summary of Methodology Used in Valuation of FCC Licenses | Below are some of the key assumptions used in our income method annual impairment assessments. The long-term growth rates in the New York market in which we operate are based on recent industry trends and our expectations for the market going forward.
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Schedule of Definite-Lived Intangible Assets | The following table presents the weighted-average remaining useful life at December 31, 2023 and gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at December 31, 2023 and 2022:
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Schedule of Finite-Lived Intangible Assets Amortization Expense | The Company estimates amortization expense each of the next five years as follows:
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OTHER COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity | he Company has various commitments under contracts that include purchase obligations and employment agreements with annual commitments at December 31, 2023 as follows:
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Provision | The provision for income taxes for continuing operations for the years ended December 31, 2023, and 2022, consisted of the following:
|
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Schedule of Income Tax Provision Reconciliation | The provision for income taxes for continuing operations for the years ended December 31, 2023, and 2022, differs from that computed at the Federal statutory corporate tax rate as follows:
|
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Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities | The components of deferred tax assets and deferred tax liabilities at December 31, 2023, and 2022, were as follows:
|
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Schedule of Unrecognized Tax Benefits Roll Forward | The following is a tabular reconciliation of the total amounts of gross unrecognized tax benefits for the years ended December 31, 2023 and 2022:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023
USD ($)
RadioStation
|
Dec. 31, 2022
USD ($)
|
Apr. 01, 2024
USD ($)
|
|
Significant Accounting Policies [Line Items] | |||
Number of radio stations | RadioStation | 2 | ||
Percentage of advertising agency fees on gross revenues | 15.00% | ||
Restricted cash | $ 1,337 | $ 2,500 | |
Depreciation expense | 300 | 600 | |
Advertising expenses | 500 | 600 | |
Revenues | 32,391 | 38,595 | |
Subsequent Event | |||
Significant Accounting Policies [Line Items] | |||
Debt service obligations due within twelve months of issuance of these financial statements | $ 7,100 | ||
Asset Pledged as Collateral | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | 1,900 | 1,800 | |
Cash Held In Escrow | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | 1,300 | 2,500 | |
Barter | |||
Significant Accounting Policies [Line Items] | |||
Revenues | 800 | 800 | |
Expenses | $ 800 | $ 800 | |
Automobiles, Office Equipment and Computer Equipment | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 5 years | ||
Minimum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 30 years | ||
Minimum | Broadcasting Equipment | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 5 years | ||
Minimum | Software | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 3 years | ||
Maximum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 39 years | ||
Maximum | Broadcasting Equipment | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 7 years | ||
Maximum | Software | |||
Significant Accounting Policies [Line Items] | |||
Property plant and equipment, estimated useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance At Beginning Of Period | $ 122 | $ 186 |
Provision | 282 | 2 |
Write-Offs | (51) | (66) |
Balance At End Of Period | $ 353 | $ 122 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Basic and Diluted Net Earnings (Loss) per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Numerator: | ||
Loss from continuing operations | $ (7,421) | $ (9,795) |
Less: Preferred stock dividends | (2,415) | (3,330) |
Loss from continuing operations available to common shareholders - basic | (9,836) | (13,125) |
Loss from continuing operations available to common shareholders - diluted | (9,836) | (13,125) |
(Loss) income from discontinued operations, net of income taxes | (210) | 40,709 |
Net income (loss) available to common shareholders, basic | (10,046) | 27,584 |
Net income (loss) available to common shareholders, diluted | $ (10,046) | $ 27,584 |
Denominator: | ||
Weighted average number of shares outstanding, basic (in shares) | 24,876,000 | 13,380,000 |
Weighted average number of shares outstanding, diluted (in shares) | 24,876,000 | 13,380,000 |
Earnings per share of common stock attributable to common shareholders: | ||
Continuing operations - basic (in dollars per share) | $ (0.39) | $ (0.98) |
Continuing operations - diluted (in dollars per share) | (0.39) | (0.98) |
Discontinued operations - basic (in dollars per share) | (0.01) | 3.04 |
Discontinued operations - diluted (in dollars per share) | (0.01) | 3.04 |
Earnings per share, basic (in dollars per share) | (0.40) | 2.06 |
Earnings per share, diluted (in dollars per share) | $ (0.40) | $ 2.06 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Convertible Equity Shares and Restricted Stock Awards Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted net loss per share | 27,177 | 10,924 |
Convertible Emmis promissory note | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted net loss per share | 4,902 | 1,400 |
Convertible Standard General promissory notes | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted net loss per share | 0 | 3,088 |
Series A convertible preferred stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted net loss per share | 21,634 | 6,105 |
Restricted stock awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded from calculation of diluted net loss per share | 641 | 331 |
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 09, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations | $ 0 | $ 46,875 | ||
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of discontinued operations | $ 0 | $ 46,875 | ||
Fairway | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, including discontinued operation, consideration | $ 78,600 | |||
Gain on sale of discontinued operations | $ 46,900 |
DISCONTINUED OPERATIONS - Financial Results (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pre-tax gain on sale | $ 0 | $ 46,875 |
Income tax benefit (expense) from discontinued operations | 74 | (3,085) |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS | (210) | 40,709 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 0 | 13,484 |
Operating expenses excluding depreciation and amortization expense | 284 | 10,368 |
Depreciation and amortization | 0 | 3,035 |
Loss on disposal of assets | 0 | 68 |
Total operating expenses | 284 | 13,471 |
(Loss) income from operations of discontinued operations | (284) | 13 |
Interest and other, net | 0 | (3,094) |
Loss from discontinued operations before income taxes and gain on sale | (284) | (3,081) |
Pre-tax gain on sale | 0 | 46,875 |
Loss from discontinued operations before income taxes | (284) | 43,794 |
Income tax benefit (expense) from discontinued operations | 74 | (3,085) |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS | $ (210) | $ 40,709 |
DISCONTINUED OPERATIONS - Aggregate Carrying Amounts of Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
ASSETS | ||
Current assets of discontinued operations | $ 0 | $ 1,066 |
Liabilities: | ||
Current liabilities of discontinued operations | 0 | 659 |
Discontinued Operations, Disposed of by Sale | ||
ASSETS | ||
Accounts receivable, net | 0 | 1,026 |
Other | 0 | 40 |
Current assets of discontinued operations | 0 | 1,066 |
Liabilities: | ||
Accounts payable and accrued expenses | 0 | 659 |
Current liabilities of discontinued operations | $ 0 | $ 659 |
COMMON STOCK - Additional Information (Details) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 16, 2022
USD ($)
|
Mar. 21, 2024
shares
|
Dec. 31, 2023
USD ($)
vote
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2021
shares
|
Aug. 20, 2021
USD ($)
$ / shares
|
|
Class of Stock [Line Items] | ||||||
Repurchase of class A common shares | $ | $ 771,000 | $ 222,000 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of class A common shares | $ | $ 800,000 | $ 200,000 | ||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes per share | vote | 1 | |||||
Common stock, shares issued (in shares) | 20,741,865 | 20,443,138 | ||||
Common stock, shares outstanding (in shares) | 20,741,865 | 20,443,138 | ||||
Repurchase of class A common shares | $ | $ 2,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Class A Common Stock | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of class A common shares (in shares) | 11,304 | |||||
Class A Common Stock | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares outstanding (in shares) | 20,741,865 | 20,443,138 | 3,056,757 | |||
Repurchase of class A common shares | $ | $ 6,000 | $ 2,000 | ||||
Repurchase of class A common shares (in shares) | 629,880 | 187,078 | ||||
Class A Common Stock | At Market Issuance Sales Agreement | B. Riley Securities, Inc., | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Aggregate offering price | $ | $ 12,500,000 | |||||
Common stock sold under agreement | $ | $ 0 | $ 0 | ||||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes per share | vote | 10 | |||||
Common stock, shares issued (in shares) | 5,413,197 | 5,413,197 | ||||
Common stock, shares outstanding (in shares) | 5,413,197 | 5,413,197 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Class B Common Stock | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares outstanding (in shares) | 5,413,197 | 5,413,197 | 5,413,197 | |||
Class C Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of votes per share | vote | 0 | |||||
Common stock, shares issued (in shares) | 0 | 0 | ||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
CONVERTIBLE PREFERRED STOCK (Details) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 13, 2023
USD ($)
shares
|
Dec. 28, 2022
USD ($)
shares
|
Dec. 13, 2022
USD ($)
shares
|
Dec. 31, 2023
USD ($)
Investor
$ / shares
shares
|
Mar. 23, 2023
shares
|
Dec. 31, 2022
shares
|
|
Class of Stock [Line Items] | ||||||
Senior credit facility amount | $ | $ 0 | |||||
Debt instrument interest percentage | 6.00% | |||||
Debt instrument increasing interest rate of each successive anniversary | 1.00% | |||||
Dividends paid in kind | $ | $ 2,400,000 | $ 3,400,000 | ||||
Additional shares issued due to increase in accrued value of preferred stock (in shares) | shares | 26,031 | 80,000 | 26,031 | 80,000 | ||
Conversion of convertible promissory notes and preferred shares | $ | $ 4,000,000 | |||||
Conversion of convertible promissory notes and preferred shares (in shares) | shares | 3,300,000 | |||||
Series A convertible preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | shares | 500,000 | 300,000 | ||||
Series A convertible preferred stock | Parent Company | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock shares issued (in shares) | shares | 220,000 | |||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Preferred stock issued | $ | $ 22,000,000 | |||||
Number of non-accredited investors | Investor | 35 |
SHARE BASED PAYMENTS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized tax benefits related to stock-based compensation | $ 0.2 | $ 0.0 |
Unrecognized compensation cost related to nonvested stock-based compensation | $ 0.7 | |
Unrecognized compensation cost related to nonvested stock-based compensation, weighted average period for recognition | 1 year 2 months 12 days | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years |
SHARE BASED PAYMENTS - Schedule of Restricted Stock Grants Outstanding and Restricted Stock Activity (Details) - Restricted stock awards |
12 Months Ended |
---|---|
Dec. 31, 2023
$ / shares
shares
| |
Awards | |
Grants outstanding, awards beginning of period (in shares) | shares | 856 |
Granted (in shares) | shares | 1,786 |
Vested (in shares) | shares | (1,031) |
Forfeited (in shares) | shares | (448) |
Grants outstanding, awards end of period (in shares) | shares | 1,163 |
Price | |
Grants outstanding, price beginning of period (in dollars per share) | $ / shares | $ 3.10 |
Granted (in dollars per share) | $ / shares | 0.98 |
Vested (in dollars per share) | $ / shares | 2.12 |
Forfeited (in dollars per share) | $ / shares | 2.08 |
Grants outstanding, price end of period (in dollars per share) | $ / shares | $ 1.17 |
SHARE BASED PAYMENTS - Schedule of Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,688 | $ 2,747 |
Operating expenses excluding depreciation and amortization | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 1,008 | 565 |
Corporate expenses | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 680 | 1,950 |
Loss from discontinued operations before income taxes | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 0 | $ 232 |
REVENUE - Narrative (Details) |
Dec. 31, 2023 |
---|---|
Revenue from Contract with Customer [Abstract] | |
Advertising agency fee rate based on gross revenue | 15.00% |
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 32,391 | $ 38,595 |
Spot Radio Advertising | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 18,650 | $ 25,790 |
Spot Radio Advertising | Revenue, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of revenue | 57.60% | 66.80% |
Digital | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 3,677 | $ 4,713 |
Digital | Revenue, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of revenue | 11.40% | 12.20% |
Syndication | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 2,427 | $ 1,891 |
Syndication | Revenue, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of revenue | 7.50% | 4.90% |
Events and Sponsorships | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 5,766 | $ 3,380 |
Events and Sponsorships | Revenue, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of revenue | 17.80% | 8.80% |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 1,871 | $ 2,821 |
Other | Revenue, Product and Service Benchmark | Product Concentration Risk | ||
Disaggregation Of Revenue [Line Items] | ||
Percentage of revenue | 5.70% | 7.30% |
LONG-TERM DEBT - Narrative (Details) - USD ($) shares in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 21, 2022 |
Dec. 09, 2022 |
Jul. 28, 2022 |
Nov. 25, 2019 |
Dec. 31, 2023 |
Apr. 01, 2024 |
Dec. 31, 2022 |
|
Debt Instrument, Redemption [Line Items] | |||||||
Senior credit facility amount | $ 0 | ||||||
Debt instrument interest percentage | 6.00% | ||||||
Debt instrument increasing interest rate of each successive anniversary | 1.00% | ||||||
Subsequent Event | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt service obligations due within twelve months of issuance of these financial statements | $ 7,100,000 | ||||||
Senior Credit Facility [Member] | GACP Finance Co., LLC | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Conversion of Emmis Promissory Note To Common Stock | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt conversion, original debt, amount, principal | $ 900,000 | ||||||
Debt conversion, original debt, amount, accrued interest | $ 100,000 | ||||||
Conversion of Emmis Promissory Note To Common Stock | Class A Common Stock | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt conversion, common stock (in shares) | 0.8 | ||||||
Conversion of SG Broadcasting Promissory Notes To Common Stock | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt conversion, original debt, amount, principal | $ 28,000,000 | ||||||
Debt conversion, original debt, amount, accrued interest | $ 1,900,000 | ||||||
Conversion of SG Broadcasting Promissory Notes To Common Stock | Class A Common Stock | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Debt conversion, common stock (in shares) | 12.9 | ||||||
Emmis Communications Corporation | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Notes payable | $ 6,500,000 | $ 6,000,000 | |||||
Emmis Communications Corporation | Parent Company | Convertible Standard General promissory notes | |||||||
Debt Instrument, Redemption [Line Items] | |||||||
Senior credit facility amount | $ 0 | ||||||
Debt instrument interest percentage | 6.00% | ||||||
Additional payment of interest in kind | 1.00% | ||||||
Debt instrument increasing interest rate of second anniversary | 1.00% | ||||||
Debt instrument increasing interest rate of each successive anniversary | 1.00% | ||||||
Debt instrument interest paid in kind added to principal amount | 500,000 | ||||||
Principal amount outstanding | $ 6,500,000 |
FAIR VALUE MEASUREMENTS (Details) - Recurring - USD ($) |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Liabilities fair value | $ 0 | $ 0 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Feb. 01, 2023 |
|
Leases [Abstract] | |||
Short-term lease expense | $ 100 | $ 0 | |
Operating lease right of use assets | 13,614 | $ 5,088 | $ 10,400 |
Total recorded lease liabilities | $ 15,777 | $ 10,400 |
LEASES - Schedule of Impact of Operating Leases to Consolidated Financial Statements (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Lease Cost | ||
Operating lease cost | $ 3,468 | $ 2,550 |
Other Information | ||
Operating cash flows from operating leases | $ 2,061 | $ 2,996 |
Weighted average remaining lease term - operating leases (in years) | 14 years | 7 years |
Weighted average discount rate - operating leases | 11.40% | 5.90% |
LEASES - Schedule of Annual Minimum Lease Payments of Operating Lease Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Feb. 01, 2023 |
---|---|---|
Leases [Abstract] | ||
2024 | $ 1,663 | |
2025 | 2,053 | |
2026 | 2,453 | |
2027 | 2,477 | |
2028 | 2,500 | |
After 2028 | 26,560 | |
Total lease payments | 37,706 | |
Less: imputed interest | (21,929) | |
Total recorded lease liabilities | $ 15,777 | $ 10,400 |
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Indefinite lived intangibles | $ 63,266 | $ 63,266 |
Definite-lived intangible assets: | 1,327 | |
Total intangible assets, net | 64,593 | 64,703 |
FCC Licenses | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Indefinite lived intangibles | 63,266 | 63,266 |
Software | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets: | $ 1,327 | $ 1,437 |
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Intangible Assets And Goodwill [Line Items] | ||
FCC licenses renewal term | 8 years | |
Loss on disposition of assets related to websites | $ 0.3 | |
Amortization of intangible assets | 0.3 | $ 0.1 |
FMG Valdosta, LLC and FMG Kentucky, LLC | Software Development | ||
Intangible Assets And Goodwill [Line Items] | ||
Finite-lived intangible assets acquired preliminary valuation | $ 1.6 | |
FMG Valdosta, LLC and FMG Kentucky, LLC | Website | ||
Intangible Assets And Goodwill [Line Items] | ||
Acquired finite-lived intangible assets useful life | 5 years | |
FMG Valdosta, LLC and FMG Kentucky, LLC | Mobile App | ||
Intangible Assets And Goodwill [Line Items] | ||
Acquired finite-lived intangible assets useful life | 7 years | |
FCC Licenses | ||
Intangible Assets And Goodwill [Line Items] | ||
Indefinite-lived intangible assets, carrying amount | $ 63.3 | $ 63.3 |
INTANGIBLE ASSETS - Summary of Methodology Used in Valuation of FCC Licenses (Details) |
Oct. 01, 2023 |
Oct. 01, 2022 |
---|---|---|
Discount Rate | ||
Goodwill And Other Intangibles [Line Items] | ||
FCC license valuation assumptions | 12.70% | 12.70% |
Long-term Revenue Growth Rate | ||
Goodwill And Other Intangibles [Line Items] | ||
FCC license valuation assumptions | 0.50% | 0.60% |
Mature Market Share | ||
Goodwill And Other Intangibles [Line Items] | ||
FCC license valuation assumptions | 10.80% | 9.80% |
Operating Profit Margin | Minimum | ||
Goodwill And Other Intangibles [Line Items] | ||
FCC license valuation assumptions | 22.90% | 23.50% |
Operating Profit Margin | Maximum | ||
Goodwill And Other Intangibles [Line Items] | ||
FCC license valuation assumptions | 29.00% | 29.00% |
INTANGIBLE ASSETS - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,737 | $ 3,649 |
Accumulated Amortization | 2,410 | 2,212 |
Net Carrying Amount | $ 1,327 | |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 4 years 3 months 18 days | |
Gross Carrying Amount | $ 1,583 | 1,495 |
Accumulated Amortization | 256 | 58 |
Net Carrying Amount | $ 1,327 | $ 1,437 |
INTANGIBLE ASSETS - Estimated Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 317 | |
2025 | 317 | |
2026 | 317 | |
2027 | 274 | |
2028 | 102 | |
After 2028 | 0 | |
Total | 2,410 | $ 2,212 |
Net Carrying Amount | $ 1,327 |
OTHER COMMITMENTS AND CONTIGENCIES - Various Commitments for Material Contracts (Details) $ in Thousands |
Dec. 31, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 2,044 |
2025 | 1,360 |
2026 | 479 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 3,883 |
OTHER COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands, shares in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Jul. 28, 2022
USD ($)
shares
|
Dec. 31, 2023
USD ($)
LegalProceeding
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
|
|
Loss Contingencies [Line Items] | |||||
Number of legal proceedings pending | LegalProceeding | 0 | ||||
Commitments and contingencies, net income, minimum threshold | $ 500 | ||||
Net loss from continuing operations | 7,631 | $ (30,914) | $ 6,100 | ||
Stockholders' equity | $ 29,900 | 37,410 | $ 46,976 | $ (16,571) | $ 2,000 |
Commitments and contingencies, equity, minimum threshold | $ 2,500 | ||||
Conversion of SG Broadcasting Promissory Notes To Common Stock | |||||
Loss Contingencies [Line Items] | |||||
Debt conversion, original debt, amount, principal | 28,000 | ||||
Debt conversion, original debt, amount, accrued interest | $ 1,900 | ||||
Conversion of SG Broadcasting Promissory Notes To Common Stock | Class A Common Stock | |||||
Loss Contingencies [Line Items] | |||||
Debt conversion, common stock (in shares) | shares | 12.9 |
INCOME TAXES - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Current: | ||
Federal | $ 36 | $ 0 |
State | 0 | 0 |
Total current | 36 | 0 |
Deferred: | ||
Federal | 68 | 90 |
State | 204 | 246 |
Total deferred | 272 | 336 |
Provision for income taxes | $ 308 | $ 336 |
INCOME TAXES - Schedule of Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
Computed income tax provision at federal statutory rate | $ (1,494) | $ (1,986) |
State income tax | (268) | (652) |
State tax rate change | 0 | (278) |
Equity based compensation | 230 | 32 |
Valuation allowance | 1,822 | 3,188 |
Other | 18 | 32 |
Provision for income taxes | $ 308 | $ 336 |
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred tax assets: | ||
Intangible assets | $ 11,148 | $ 12,197 |
Lease liability | 4,891 | 1,749 |
Interest deduction carryforward | 6,137 | 5,915 |
Stock compensation | 209 | 340 |
Net operating losses | 3,912 | 450 |
Property and equipment | 61 | 812 |
Other | 383 | 112 |
Valuation allowance | (16,599) | (14,718) |
Total deferred tax assets | 10,142 | 6,857 |
Deferred tax liabilities | ||
Indefinite-lived intangible assets | (8,697) | (7,763) |
Right of use asset | (4,220) | (1,577) |
Total deferred tax liabilities | (12,917) | (9,340) |
Net deferred tax liabilities | $ (2,775) | $ (2,483) |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Deferred Tax Assets And Liabilities [Line Items] | |||
Deferred tax assets valuation allowance | $ 16,599 | $ 14,718 | |
Net deferred tax liabilities | 2,775 | 2,483 | |
Unrecognized tax positions | 390 | $ 0 | $ 0 |
Unrecognized tax benefits, interest expense | 25 | ||
Unrecognized tax benefits, penalty expense | 0 | ||
Federal | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Operating loss carryforwards | 12,100 | ||
State and Local Jurisdiction | |||
Deferred Tax Assets And Liabilities [Line Items] | |||
Operating loss carryforwards | $ 19,900 |
INCOME TAXES - Schedule of Unrecognized Tax Benefits Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross unrecognized tax benefit - opening balance | $ 0 | $ 0 |
Gross increases - tax position prior year | (390) | 0 |
Gross increases - tax position current year | 0 | 0 |
Decreases relating to settlement with taxing authorities | 0 | 0 |
Gross decreases - lapse of applicable statute of limitation | 0 | 0 |
Gross unrecognized tax benefit - ending balance | $ (390) | $ 0 |
RELATED PARTY TRANSACTIONS - Transaction Agreement with Emmis and SG Broadcasting (Details) $ in Millions |
Jun. 28, 2019
USD ($)
vote
|
---|---|
Parent Company | |
Related Party Transaction [Line Items] | |
Number of votes per share | vote | 10 |
Transaction Agreement | MediaCo | Emmis Operating Company | |
Related Party Transaction [Line Items] | |
Equity ownership interest | 23.72% |
Transaction Agreement | MediaCo | Emmis Operating Company | SG Broadcasting | |
Related Party Transaction [Line Items] | |
Equity ownership interest | 76.28% |
Related Party | Transaction Agreement With Emmis And SG Broadcasting | |
Related Party Transaction [Line Items] | |
Number of votes per share | vote | 1 |
Related Party | Transaction Agreement | |
Related Party Transaction [Line Items] | |
Purchase price for the assets of radio stations | $ | $ 91.5 |
Related Party | Transaction Agreement | Convertible Standard General promissory notes | Transaction Agreement With Emmis And SG Broadcasting | |
Related Party Transaction [Line Items] | |
Notes payable | $ | $ 5.0 |
RELATED PARTY TRANSACTIONS - Convertible Promissory Notes (Details) - USD ($) shares in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 21, 2022 |
Nov. 25, 2022 |
Aug. 19, 2022 |
May 19, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Nov. 25, 2019 |
|
Related Party Transaction [Line Items] | ||||||||
Interest expense recognized | $ 426,000 | $ 6,980,000 | ||||||
Conversion of Emmis Promissory Note To Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt conversion, original debt, amount, principal | $ 900,000 | |||||||
Debt conversion, original debt, amount, accrued interest | $ 100,000 | |||||||
Conversion of Emmis Promissory Note To Common Stock | Class A Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt conversion, common stock (in shares) | 800 | |||||||
Related Party | Emmis Communications Corporation | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount outstanding | $ 6,200,000 | |||||||
Related Party | SG Broadcasting | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount outstanding | 0 | 0 | $ 27,600,000 | |||||
Emmis Communications Corporation | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes payable | 6,500,000 | 6,000,000 | ||||||
Emmis Communications Corporation | Parent Company | Convertible Standard General promissory notes | ||||||||
Related Party Transaction [Line Items] | ||||||||
Principal amount outstanding | 6,500,000 | |||||||
Debt instrument interest paid in kind added to principal amount | 500,000 | |||||||
Emmis Communications Corporation | Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Additional interest payments | $ 800,000 | |||||||
Emmis Communications Corporation | Related Party | Emmis Communications Corporation | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt conversion, original debt, amount, principal | $ 30,000 | |||||||
Emmis Communications Corporation | Related Party | Emmis Communications Corporation | Class A Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt conversion, common stock (in shares) | 11 | |||||||
Emmis Communications Corporation | Related Party | Conversion of Emmis Promissory Note To Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Debt conversion, original debt, amount, principal | $ 900,000 | |||||||
Debt conversion, common stock (in shares) | 800 | |||||||
Debt conversion, original debt, amount, accrued interest | $ 100,000 | |||||||
Emmis Communications Corporation | Convertible Debt | Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Face amount of debt | $ 5,000,000 | |||||||
Interest expense recognized | 600,000 | 800,000 | ||||||
SG Broadcasting | Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Additional interest payments | $ 400,000 | |||||||
SG Broadcasting | Convertible Debt | Related Party | ||||||||
Related Party Transaction [Line Items] | ||||||||
Face amount of debt | $ 6,300,000 | |||||||
Interest expense recognized | $ 0 | $ 1,800,000 |
RELATED PARTY TRANSACTIONS - Convertible Preferred Stock (Details) - USD ($) $ in Millions |
Dec. 13, 2023 |
Dec. 28, 2022 |
Dec. 13, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jul. 28, 2022 |
Dec. 13, 2019 |
---|---|---|---|---|---|---|---|
Related Party Transaction [Line Items] | |||||||
Dividends paid in kind | $ 2.4 | $ 3.4 | |||||
Additional shares issued due to increase in accrued value of preferred stock (in shares) | 26,031 | 80,000 | 26,031 | 80,000 | |||
Conversion of SG Broadcasting Promissory Notes To Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Debt conversion, original debt, amount, principal | $ 28.0 | ||||||
SG Broadcasting | Related Party | Conversion of SG Broadcasting Promissory Notes To Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Debt conversion, original debt, amount, principal | $ 4.0 | ||||||
Debt conversion, common stock (in shares) | 3,300,000 | ||||||
SG Broadcasting | Related Party | Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Dividends paid in kind | $ 2.4 | $ 3.4 | |||||
Unpaid cumulative dividends | $ 0.2 | $ 0.1 | |||||
SG Broadcasting | Related Party | Series A convertible preferred stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock shares issued (in shares) | 220,000 | ||||||
Preferred stock issued | $ 2.4 | $ 3.3 |
RELATED PARTY TRANSACTIONS - Management Agreement for Billboards LLC (Details) |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Feb. 01, 2024
USD ($)
agreement
|
Oct. 31, 2023
USD ($)
agreement
consultant
|
Dec. 31, 2023
USD ($)
|
Aug. 11, 2020
USD ($)
|
Aug. 01, 2020 |
|
Billboard Agreement | Related Party | |||||
Related Party Transaction [Line Items] | |||||
Management services agreement, quarterly payments to counterparty | $ 25,000 | ||||
Management services agreement, term | 3 years | ||||
Provisions on limitation of liability and indemnification outstanding | $ 100,000 | ||||
Management agreement, amount outstanding | 0 | ||||
Management services agreement, out of pocket expenses | 200,000 | ||||
Standard General Agreement | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Number of consultants | consultant | 5 | ||||
Number of agreements | agreement | 2 | ||||
Number of agreements that can be terminated at any time | agreement | 1 | ||||
Consulting fees per month, for agreement that can be terminated at any time | $ 18,000 | ||||
Consulting fees incurred | $ 49,000 | ||||
Standard General Agreement | Affiliated Entity | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees monthly rate | 6,000 | ||||
Standard General Agreement | Affiliated Entity | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Consulting fees monthly rate | $ 8,400 | ||||
Standard General Agreement | Affiliated Entity | Subsequent Event | |||||
Related Party Transaction [Line Items] | |||||
Number of expired agreements | agreement | 2 | ||||
Standard General Agreement | Affiliated Entity | Subsequent Event | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Consulting fee, hourly rate | $ 125 | ||||
Standard General Agreement | Affiliated Entity | Subsequent Event | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Consulting fee, hourly rate | $ 150 |
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