Commitments and Contingencies

6 Months Ended

Jun. 30, 2025

Commitments and Contingencies

Commitments and Contingencies

14. Commitments and Contingencies

As previously disclosed, Mr. Christian passed away on August 19, 2022. As a result of his passing the Company was required to make several payments to his estate as outlined in his employment agreement, as described in our annual report on Form 10-K for the year ended December 31, 2022. In accordance with ASC 712-10-25, Nonretirement Postemployment Benefits, we accrued all necessary expenses as of September 30, 2022. Under the agreement, the Company is responsible to pay the estate’s income tax obligation relating to the payout of the life insurance policy and as such, recorded $480,000 in the fourth quarter of 2024 when the transfer of the policy occurred. The payment was made to the estate on July 31, 2025.

As previously disclosed, the Radio Music Licensing Committee (“RMLC”), of which we are a represented participant entered into an Interim License Agreement with Broadcast Music, Inc. (“BMI”) that was effective January 1, 2022 and will remain in effect until the date on which the parties reach agreement as to, or there is court determination of, new interim or final fees, terms and conditions of a new license for the five year period commencing on January 1, 2022 and concluding on December 31, 2026. We anticipate that an agreement will be finalized in the 3^rd or 4^th quarter of 2025. We may incur additional expenses related to that agreement. It is too early to tell the financial impact of the new agreement.