Revision of Previously Issued Consolidated Financial Statements

12 Months Ended

Dec. 31, 2024

Revision of Previously Issued Consolidated Financial Statements

Revision of Previously Issued Consolidated Financial Statements

2. Revision of Previously Issued Consolidated Financial Statements

The Company previously presented certain interactive or digital revenue net of expenses to third-party providers. After further review of the principal versus agent guidance in ASC 606, the Company determined it was acting as the principal and therefore should be presenting that digital revenue gross and including the expenses to third-party providers in station operating expense. Included in the adjustments below is the reclassification of these expenses out of net revenue and into station operating expense for the years ended December 31, 2024 and 2023 and the quarterly and year to date information for each quarter in 2023 and for the first three quarters in 2024.

In order to assess materiality with respect to the adjustments, the Company considered Staff Accounting Bulletin (“SAB”) 99, Materiality and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, and determined that the impact of the adjustments on prior period consolidated financial statements was immaterial. These reclassifications, both individually and in the aggregate, had no impact to previously reported retained earnings, operating income (loss), income (loss) before income tax expense, net income (loss), earnings (loss) per share, cash flows from operations, investing or financing activities, or the timing of cash payments for income taxes.

The impact of the adjustments on our Consolidated Statements of Income for the nine months ended September 30, 2024 and the year ended December 31, 2023 and previously reported interim periods within those periods is as follows:

	Three Months Ended March 31, 2024						Three Months Ended March 31, 2023
	(Unaudited)
	(in thousands)
	As Previously Reported on Form 10-Q		Digital Expense Reclassification		As Revised			As Previously Reported on Form 10-Q	Digital Expense Reclassification		As Revised
Net operating revenue	$	24,664	$	630	$	25,294	$	25,304	$	608	$	25,912
Station operating expenses		22,981		630		23,611		21,703		608		22,311
Corporate G&A		3,129		—		3,129		2,616		—		2,616
Other operating expense (income), net		971		—		971		80		—		80
Operating income (loss)		(2,417)		—		(2,417)		905		—		905

	Three Months Ended June 30, 2024						Three Months Ended June 30, 2023
	(Unaudited)
	(in thousands)
	As Previously Reported on Form 10-Q		Digital Expense Reclassification		As Revised			As Previously Reported on Form 10-Q	Digital Expense Reclassification		As Revised
Net operating revenue	$	28,742	$	974	$	29,716	$	29,175	$	792	$	29,967
Station operating expenses		23,544		974		24,518		22,407		792		23,199
Corporate G&A		3,049		—		3,049		2,472		—		2,472
Other operating expense (income), net		6		—		6		—		—		—
Operating income (loss)		2,143		—		2,143		4,296		—		4,296

	Six Months Ended June 30, 2024						Six Months Ended June 30, 2023
	(Unaudited)
	(in thousands)
	As Previously Reported on Form 10-Q		Digital Expense Reclassification		As Revised			As Previously Reported on Form 10-Q	Digital Expense Reclassification		As Revised
Net operating revenue	$	53,406	$	1,604	$	55,010	$	54,479	$	1,400	$	55,879
Station operating expenses		46,525		1,604		48,129		44,110		1,400		45,510
Corporate G&A		6,178		—		6,178		5,088		—		5,088
Other operating expense (income), net		977		—		977		80		—		80
Operating income (loss)		(274)		—		(274)		5,201		—		5,201

	Three Months Ended September 30, 2024						Three Months Ended September 30, 2023
	(Unaudited)
	(in thousands)
	As Previously Reported on Form 10-Q		Digital Expense Reclassification		As Revised			As Previously Reported on Form 10-Q	Digital Expense Reclassification		As Revised
Net operating revenue	$	28,118	$	576	$	28,694	$	29,149	$	707	$	29,856
Station operating expenses		23,458		576		24,034		22,760		707		23,467
Corporate G&A		2,966		—		2,966		2,852		—		2,852
Other operating expense (income), net		49		—		49		45		—		45
Operating income (loss)		1,645		—		1,645		3,492		—		3,492

	Nine Months Ended September 30, 2024						Nine Months Ended September 30, 2023
	(Unaudited)
	(in thousands)
	As Previously Reported on Form 10-Q		Digital Expense Reclassification		As Revised			As Previously Reported on Form 10-Q	Digital Expense Reclassification		As Revised
Net operating revenue	$	81,524	$	2,180	$	83,704	$	83,628	$	2,107	$	85,735
Station operating expenses		69,983		2,180		72,163		66,870		2,107		68,977
Corporate G&A		9,144		—		9,144		7,940		—		7,940
Other operating expense (income), net		1,026		—		1,026		125		—		125
Operating income (loss)		1,371		—		1,371		8,693		—		8,693

	Twelve Months Ended December 31, 2023
	(in thousands)
		As Previously Reported on Form 10-K	Digital Expense Reclassification		As Revised
Net operating revenue	$	112,773	$	2,731	$	115,504
Station operating expenses		90,199		2,731		92,930
Corporate G&A		10,966		—		10,966
Other operating expense (income), net		120		—		120
Operating income (loss)		11,488		—		11,488