Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | Jun. 21, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36827 | ||
Entity Registrant Name | Anterix Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 33-0745043 | ||
Entity Address, Address Line One | 3 Garret Mountain Plaza | ||
Entity Address, Address Line Two | Suite 401 | ||
Entity Address, City or Town | Woodland Park, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07424 | ||
City Area Code | 973 | ||
Local Phone Number | 771-0300 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | ATEX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 410,855,335 | ||
Entity Common Stock, Shares Outstanding | 18,569,297 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2024 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K where indicated. Such definitive proxy statement will be filed with the Securities and Exchange Commission no later than 120 days following the end of the registrant’s fiscal year ended March 31, 2024. | ||
Document Fiscal Year Focus | 2024 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001304492 |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2024 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 248 |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 60,578 | $ 43,182 |
Spectrum receivable costs | 8,521 | 13,834 |
Prepaid expenses and other current assets | 3,912 | 2,443 |
Total current assets | 73,011 | 59,459 |
Escrow deposits | 7,546 | 0 |
Property and equipment, net | 2,062 | 3,606 |
Right of use assets, net | 4,432 | 3,371 |
Intangible assets | 216,743 | 202,044 |
Deferred broadband costs | 19,772 | 8,853 |
Other assets | 1,328 | 1,225 |
Total assets | 324,894 | 278,558 |
Current liabilities | ||
Accounts payable and accrued expenses | 8,631 | 6,624 |
Due to related parties | 0 | 533 |
Operating lease liabilities | 1,850 | 1,725 |
Contingent liability | 1,000 | 20,249 |
Deferred revenue | 6,470 | 2,769 |
Total current liabilities | 17,951 | 31,900 |
Operating lease liabilities | 3,446 | 2,922 |
Contingent liability | 15,000 | 0 |
Deferred revenue | 115,742 | 57,990 |
Deferred gain on sale of intangible assets | 4,911 | 0 |
Deferred income tax | 6,281 | 5,440 |
Other liabilities | 531 | 513 |
Total liabilities | 163,862 | 98,765 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at March 31, 2024 and March 31, 2023 | 0 | 0 |
Common stock, $0.0001 par value per share, 100,000,000 shares authorized and 18,452,892 shares issued and outstanding at March 31, 2024 and 18,921,999 shares issued and outstanding at March 31, 2023 | 2 | 2 |
Additional paid-in capital | 533,203 | 518,160 |
Accumulated deficit | (372,173) | (338,369) |
Total stockholders’ equity | 161,032 | 179,793 |
Total liabilities and stockholders’ equity | $ 324,894 | $ 278,558 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 18,452,892 | 18,921,999 |
Common stock, shares outstanding (in shares) | 18,452,892 | 18,921,999 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Spectrum revenue | $ 4,191 | $ 1,919 |
Operating expenses | ||
General and administrative | 44,423 | 45,177 |
Sales and support | 5,693 | 5,733 |
Product development | 5,697 | 4,439 |
Depreciation and amortization | 844 | 1,420 |
Operating expenses | 56,657 | 56,769 |
Gain from disposal of intangible assets, net | (35,024) | (38,399) |
Gain on sale of intangible assets, net | (7,364) | 0 |
Loss from disposal of long-lived assets, net | 44 | 10 |
Loss from operations | (10,122) | (16,461) |
Interest income | 2,374 | 1,140 |
Other income | 233 | 266 |
Loss before income taxes | (7,515) | (15,055) |
Income tax expense | 1,613 | 1,262 |
Net loss | $ (9,128) | $ (16,317) |
Net loss per common share basic (in dollars per share) | $ (0.49) | $ (0.87) |
Net loss per common share diluted (in dollars per share) | $ (0.49) | $ (0.87) |
Weighted-average common shares used to compute basic net loss per share (in shares) | 18,765,190 | 18,841,049 |
Weighted-average common shares used to compute diluted net loss per share (in shares) | 18,765,190 | 18,841,049 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance (in shares) at Mar. 31, 2022 | 18,378,000 | |||
Beginning balance at Mar. 31, 2022 | $ 186,298 | $ 2 | $ 500,125 | $ (313,829) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Equity based compensation | 17,874 | 17,874 | ||
Restricted shares issued (in shares) | 219,000 | |||
Stock option exercises (in shares) | 77,000 | |||
Stock option exercises | 1,726 | 1,726 | ||
Motorola Shares (in shares) | 500,000 | |||
Shares withheld for taxes (in shares) | (36,000) | |||
Shares withheld for taxes | (1,565) | (1,565) | ||
Retirement of common stock (in shares) | (216,000) | |||
Retirement of common stock | (8,223) | (8,223) | ||
Net loss | (16,317) | (16,317) | ||
Ending balance (in shares) at Mar. 31, 2023 | 18,922,000 | |||
Ending balance at Mar. 31, 2023 | 179,793 | $ 2 | 518,160 | (338,369) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Equity based compensation | 15,507 | 15,507 | ||
Restricted shares issued (in shares) | 247,000 | |||
Stock option exercises (in shares) | 59,000 | |||
Stock option exercises | 777 | 777 | ||
Shares withheld for taxes (in shares) | (39,000) | |||
Shares withheld for taxes | (1,241) | (1,241) | ||
Retirement of common stock (in shares) | (736,000) | |||
Retirement of common stock | (24,676) | (24,676) | ||
Net loss | (9,128) | (9,128) | ||
Ending balance (in shares) at Mar. 31, 2024 | 18,453,000 | |||
Ending balance at Mar. 31, 2024 | $ 161,032 | $ 2 | $ 533,203 | $ (372,173) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (9,128) | $ (16,317) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 844 | 1,420 |
Stock compensation expense | 15,507 | 17,874 |
Deferred income taxes | 841 | 1,248 |
Right of use assets | 1,512 | 676 |
Gain from disposal of intangible assets, net | (35,024) | (38,399) |
Gain on sale of intangible assets, net | (7,364) | 0 |
Loss from disposal of long-lived assets, net | 44 | 10 |
Changes in operating assets and liabilities | ||
Prepaid expenses and other assets | (1,171) | 464 |
Accounts payable and accrued expenses | 1,936 | 101 |
Due to related parties | (533) | 413 |
Operating lease liabilities | (1,924) | (1,042) |
Contingent liability | 15,000 | 249 |
Deferred revenue | 61,453 | 6,081 |
Other liabilities | 0 | (28) |
Net cash provided by (used in) operating activities | 41,993 | (27,250) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of intangible assets, including refundable deposits, retuning costs and swaps | (17,031) | (25,004) |
Proceeds from sale of spectrum | 25,427 | 0 |
Purchases of equipment | (307) | (2,126) |
Net cash provided by (used in) investing activities | 8,089 | (27,130) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from stock option exercises | 777 | 1,726 |
Repurchase of common stock | (24,676) | (8,223) |
Payments of withholding tax on net issuance of restricted stock | (1,241) | (1,565) |
Net cash used in financing activities | (25,140) | (8,062) |
Net change in cash and cash equivalents and restricted cash | 24,942 | (62,442) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents and restricted cash at beginning of the year | 43,182 | 105,624 |
Cash and cash equivalents and restricted cash at end of the year | 68,124 | 43,182 |
Reconciliation of Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 60,578 | 43,182 |
Escrow deposits | 7,546 | 0 |
Total cash and cash equivalents and restricted cash | $ 68,124 | $ 43,182 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Anterix Inc ( the “Company”) is the utility industry’s partner, empowering enhanced visibility, control and security for a modern grid. The Company’s vision is to deliver secure, scalable solutions enabled by private wireless broadband connectivity, for the benefit of utilities and the communities that they serve. As the largest holder of licensed spectrum in the 900 MHz band (896-901/935-940 MHz) throughout the contiguous United States, plus Hawaii, Alaska and Puerto Rico, the Company is uniquely positioned to deliver solutions that support secure, resilient and customer-controlled operations. The Company is focused on commercializing its spectrum assets and expanding the benefits and solutions it offers to enable the Company’s targeted utility and critical infrastructure customers to deploy private broadband networks. The Company was originally incorporated in California in 1997 and reincorporated in Delaware in 2014. In November 2015, the Company changed its name from Pacific DataVision, Inc. to pdvWireless, Inc. In August 2019, the Company changed its name from pdvWireless, Inc. to Anterix Inc. The Company maintains offices in Woodland Park, New Jersey, McLean, Virginia and Abilene, Texas. Business Developments TECO Agreement In November 2023, the Company entered into an agreement with Tampa Electric Company (“TECO”) to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida (the “TECO Agreement”). The TECO Agreement also provides TECO an option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network providing critical broadband communications capabilities in support of its initiatives. The scheduled prepayments for the 20-year initial term of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. See Note 3 Revenue for further discussion on the TECO Agreement. LCRA Agreement In April 2023, the Company entered into an agreement with Lower Colorado River Authority (“LCRA”) to sell 900 MHz Broadband Spectrum covering 68 counties and more than 30 cities in LCRA’s wholesale electric, transmission, and water service area (the “LCRA Agreement”) for total payments of $30.0 million plus the contribution of select LCRA 900 MHz narrowband spectrum. Total consideration of $30.0 million is to be paid through fiscal year 2026 pursuant to the terms of the LCRA Agreement. During the year ended March 31, 2024, the Company received an initial $15.0 million payment, of which $7.5 million was deposited in an escrow account (refer to Note 4 Escrow Deposits for further discussion). See Note 13 Contingencies and Guaranty for further discussion on the LCRA Agreement. Xcel Energy Agreement In October 2022, the Company entered into an agreement with Xcel Energy Services Inc. (“Xcel Energy”) providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states (the “Xcel Energy Agreement”) for a total of $80.0 million, of which $8.0 million was received by the Company in December 2022. In July 2023 and November 2023, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband leases and received milestone payments of $21.2 million in each period. During the year ended March 31, 2024, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband leases and received a milestone payment of $16.8 million in January 2024. The revenue recognized for the year ended March 31, 2024, was approximately $1.9 million. SDG&E Agreement In February 2021, the Company entered into an agreement with San Diego Gas & Electric Company, a subsidiary of Sempra Energy (“SDG&E”), to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, including San Diego and Imperial Counties and portions of Orange County (the “SDG&E Agreement”) for a total payment of $50.0 million. The total payment of $50.0 million is comprised of an initial payment of $20.0 million received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. In September 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. In December 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. See Note 6 Intangible Assets for further discussion. 2023 Stock Plan On August 8, 2023, the Company adopted a new equity-based compensation plan known as the Anterix Inc. 2023 Stock Plan (the “2023 Stock Plan”). The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. See Note 11 Stock Compensation for further discussion. 2023 Share Repurchase Program On September 21, 2023, the Board of Directors (the “Board”) authorized a new share repurchase program (the “2023 Share Repurchase Program”) pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. See Note 11 Stock Compensation for further discussion. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to estimated useful lives of depreciable assets, asset retirement obligations, valuation allowance on the Company’s deferred tax assets and recoverability of intangible assets. The Company is also required to make certain estimates with regard to the valuation of awards and forfeiture rates for its share-based award programs. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, including PDV Spectrum Holding Company, LLC formed in April 2014. All significant intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents and Restricted Cash All highly liquid investments with maturities of three months or less at the time of purchase are considered cash equivalents. Cash equivalents are stated at cost, which approximates the quoted market value and includes amounts held in money market funds. Restricted cash includes amounts classified as escrow deposits. Concentration of Credit Risk and Significant Customers Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with financial institutions for which credit loss is not anticipated. As of March 31, 2024 and 2023, substantially all of the Company’s cash balance exceeded the federally insured limits. During the year ended March 31, 2024 and 2023, each of the Company’s customers accounted for greater than 10% of total revenue. As of March 31, 2024 and March 31, 2023, the Company does not have an outstanding accounts receivable balance. Allowance for Credit Losses An allowance for credit losses is estimated, as required, based on a combination of write-off history, aging analysis and forecasts on the collectability of accounts receivable. The Company reviews its allowance for credit losses on a quarterly basis. Past due balances meeting specific criteria are reviewed individually for collectability. Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the applicable lease term. The carrying amount at the balance sheet date of long-lived assets under construction in process includes assets purchased, constructed, or being developed internally that are not yet in service. Depreciation commences when the assets are placed in service. Depreciation rates for assets are updated periodically to account for changes, if any, in the estimated useful lives of the assets, lease terms, management’s strategic objectives, estimated residual values or obsolescence. Changes in estimates will result in adjustments to depreciation expense prospectively. Accounting for Asset Retirement Obligations An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost at the time the underlying asset is acquired and put into service. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation, if any. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. The Company entered into long-term leasing arrangements primarily for tower site locations. The Company constructed assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. Upon settlement of the obligation, any difference between the cost to retire the asset and the recorded liability is recognized on the Company’s Consolidated Statements of Operations. As of March 31, 2024, the Company did not settle any of its obligations to restore the leased premises to its original condition and increased its asset retirement obligations accrual by $0.1 million based on estimated future cash flows. As of March 31, 2023, the Company settled approximately $0.1 million of its obligation to restore the leased premises to its original condition and decreased its asset retirement obligations accrual by $6 thousand based on estimated future cash flows. Changes in the liability for the asset retirement obligations for the years ended March 31, 2024 and 2023 are summarized below (in thousands): 2024 2023 Balance at beginning of the year $ 543 $ 626 Liabilities settled — (79) Revision of estimate 85 (6) Accretion expense 4 2 Balance at end of the year 632 543 Less amount classified as current - included in accounts payable and accrued expenses 101 30 Noncurrent liabilities - included in other liabilities $ 531 $ 513 Intangible Assets Intangible assets are wireless licenses that are used to provide the Company with the exclusive right to utilize designated radio frequency spectrum to provide wireless communication services. While licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the FCC. License renewals have occurred routinely and at nominal cost in the past. There are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful life of the Company’s wireless licenses. As a result, the Company has determined that the wireless licenses should be treated as an indefinite-lived intangible asset. The Company will evaluate the useful life determination for its wireless licenses each year to determine whether events and circumstances continue to support their treatment as an indefinite useful life asset. Evaluation of Indefinite-Lived Intangible Assets for Impairment The Company determined that its unit of accounting should be based on geographic markets and deal markets. Unit of accounting of wireless licenses not associated with closed deals is based on geographic markets. Unit of accounting of wireless licenses associated with closed deals is based on the deal markets. The Company’s wireless licenses not associated with closed deals are tested for impairment based on the geographic markets, as the Company will be utilizing the existing wireless narrowband licenses, or broadband licenses if applicable, as part of facilitating broadband spectrum networks at a geographic market level. The Company’s wireless licenses associated with closed deals are tested for impairment based at the deal market level. The Company may elect to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of an intangible asset is less than its carrying value. If the Company does not perform the qualitative assessment, or if the qualitative assessment indicates it is more likely than not that the fair value of the intangible asset is less than its carrying amount, the Company will calculate the estimated fair value of the intangible asset. If the estimated fair value of the spectrum licenses is lower than their carrying amount, an impairment loss is recognized. The Company will use a market-based approach to estimate fair value for impairment testing purposes except for deals that were realized as of the valuation date, for which a transaction specific market approach will be used. The valuation approach used to estimate fair value for the purpose of impairment testing requires management to use complex assumptions and estimates such as population, discount rates, industry and market considerations, long-term market equity risk, as well as other factors. These assumptions and estimates depend on the Company’s ability to accurately predict forward looking assumptions including successfully applying for broadband licenses, commercializing the Company’s 900 MHz Broadband Spectrum and properly estimating favorable deal terms over the life of the contract. For impairment testing, estimated fair value is determined using a market-based approach primarily using the 600 MHz auction price. The FCC will use the spectrum price based on the average price paid in the FCC’s 600 MHz auction to calculate the Anti-Windfall Payments, a payment to the U.S. Treasury from a 900 MHz broadband applicant, if the applicant relinquishes less than 6 MHz (or 240 channels) of spectrum for any full or fractional MHz less than 6 MHz. The estimated fair value of realized deals is determined using a transaction specific market approach based on the deal specific terms and adjusted for the Company’s required rate of return and present value taking into consideration the timing of payments. During the years ended March 31, 2024 and 2023, the Company performed a step one quantitative approach impairment test as of January 1, 2024 and January 1, 2023, respectively, to determine if the fair value of the combined licenses by the associated geographical or deal market exceeds the carrying value for each geographical or deal market. During March 31, 2023 (“Fiscal 2023”), the Company shifted from a probability analysis approach to a more detailed approach with measurable qualitative metrics. The new approach, Demonstrated Intent (“DI”), determines how likely a deal is to close based on certain qualitative factors, like applying for an experimental license, entering into a request for proposal, joining certain utility board or publicly backing 900 MHz Broadband Spectrum and its application. As a result, the Company will continue to utilize the DI scores on a go-forward basis for the Company’s impairment analysis. Based on the results of the impairment test, there were no impairment charges recorded during the year ended March 31, 2024 and 2023. Exchanges of Intangible Assets At times, the Company enters into agreements to exchange or cancel spectrum licenses. Upon entering into the arrangement, if the transaction has been deemed to have commercial substance, spectrum licenses are reviewed for impairment. The licenses are exchanged or cancelled at their carrying value and adjusted for any gain or loss recognized. Upon receipt of FCC approval, the spectrum licenses acquired as part of an exchange of nonmonetary assets are recorded at their fair value as of the exchange date. The difference between the fair value of the spectrum licenses obtained, carrying value of the spectrum licenses transferred and cash paid, if any, is recognized as a gain or loss on disposal of spectrum licenses reported separately on the Company’s Consolidated Statements of Operations. For the purpose of the valuation of broadband licenses received in connection with nonmonetary exchanges, the Company utilizes the 600 MHz Auction price per MHzPop, which represents level two of the fair value hierarchy. If the transaction lacks commercial substance or the fair value of the acquired asset cannot be determined, the acquired spectrum licenses are recorded at the carrying value of the spectrum assets transferred, cancelled or exchanged. See Note 6 Intangible Assets for a discussion on the Company’s spectrum exchanges during the years ended March 31, 2024 and 2023. Spectrum Receivable Costs and Deferred Broadband Costs Spectrum receivable costs represent prepayments made to acquire, retune or swap narrowband wireless licenses for cash consideration. The initial deposits to incumbents are recorded as spectrum receivable costs on the Company’s Consolidated Balance Sheets and are refundable if the FCC does not approve the sale, retuning or swap of the spectrum. Upon closing the associated deal, the costs are transferred to intangible assets on the Company’s Consolidated Balance Sheets for purchases of licenses and to deferred broadband costs on the Company’s Consolidated Balance Sheets for deals related to swap or retuning of narrowband licenses. In fiscal year 2024, the total cost transferred from spectrum receivable costs to intangible assets and deferred broadband costs amounted to $9.1 million and $10.9 million, respectively. The Company will review the assets on a periodic basis to determine if an impairment exists. If it is determined that there is an impairment, the Company will expense the assets to the extent of the potential loss. Upon exchanging the Company’s narrowband licenses for broadband licenses, the Company will transfer the deferred broadband costs to intangible assets. Long-Lived Assets and Right of Use Assets Impairment The Company evaluates long-lived assets and right of use assets, other than intangible assets with indefinite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Asset groups are determined at the lowest level for which identifiable cash flows are largely independent of cash flows of other groups of assets and liabilities. When the carrying amount of the asset groups are not recoverable and exceeds its fair value, an impairment loss is recognized equal to the excess of the asset group’s carrying value over the estimated fair value. There were no impairment charges during the years ended March 31, 2024 and 2023. Fair Value Measurement A Level 1, Level 2 or Level 3 fair value hierarchy is used to categorize fair value amounts depending on the quality of inputs used to measure the fair value. Level 1 fair value derived inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 fair value derived inputs are based on quoted prices for similar assets and liabilities in active markets or based on inputs other than quoted prices for the assets or liability that are either directly or indirectly observable. Level 3 fair value derived inputs are unobservable for the asset or liability as a result of little, if any, market activity for the asset or liability. The Company uses appropriate valuation techniques for the fair values of the applicable assets or liabilities based on the available inputs. When available, the Company measures fair value using Level 1 inputs as they generally provide the most reliable evidence of fair value. The inputs may fall into different levels within the hierarchy in some valuations. In these cases, the fair value hierarchy of the asset or liability level is based on the lowest level of input that is significant to the fair value measurements. Financial Instruments The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, escrow deposit, accounts payable, accrued expenses and contingent liability approximate their fair values. Leases Leases in which the Company is the lessee are comprised of corporate office space and tower space. Substantially all of the leases are classified as operating leases. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029, which includes lease extensions ranging from three In accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, Leases (“ASC 842”), the Company recognized right of use (“ROU”) assets and corresponding lease liabilities on the Company’s Consolidated Balance Sheets for its operating lease agreements with contractual terms greater than 12 months. Lease liabilities are based on the present value of remaining lease payments over the lease term. As the discount rate implied in the Company’s leases is not readily determinable, the present value is calculated using the Company’s incremental borrowing rate, which is estimated to approximate the interest rate on a collateralized basis with similar terms. Revenue Recognition Revenues are recognized when a contract with a customer exists and control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Accounting Standards Codification, Revenue from Contracts with Customers (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied, which typically occurs when the services are rendered. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. It generally determines standalone selling prices based on the prices charged to customers under contracts involving only the relevant performance obligation. Judgment may be used to determine the standalone selling prices for items that are not sold separately, including services provided at no additional charge. For the Company’s customer agreements, most of the performance obligations involve delivering leased spectrum on a county-by-county basis and are generally satisfied over time as services are provided. The nature of the licenses provide the benefit of the leased spectrum regardless of whether the customer uses the spectrum or not. As a result, revenue will be recognized ratably as the Company delivers cleared 900 MHz Broadband Spectrum and the associated broadband leases to the customer on a county-by-county basis over the contractual term. Since a contract has payment terms that differ from the timing of revenue recognition, the Company will assess whether the transaction price for those contracts include a significant financing component. The Company expects that the period between the transfer of a promised good or service to a customer and the customer payment for that good or service will not constitute a significant financing component. Most of the Company’s spectrum agreements have milestone payments, which align the payment schedule with the clearing and delivery of broadband spectrum. The Company may be entitled to receive an initial deposit, which is not considered a significant financing component because it is used to obtain exclusive rights to the spectrum upon clearing and delivery. As a result, the prepayment structure does not result in a financing component as it mitigates the risk for both parties and secures the exclusive use of the Company’s 900 MHz Broadband Spectrum. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company determined that certain sales commissions met the requirements to be capitalized and were recorded as an asset upon the Company’s adoption of ASC 606. For the years ended March 31, 2024 and 2023, the Company capitalized commission costs required to obtain long-term 900 MHz Broadband Spectrum lease agreements which will be amortized over the contractual term. Contract Assets and Liabilities The Company records a contract asset when the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration. Contract assets are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company will review the contract asset on a periodic basis to determine if an impairment exists as a result of a potential credit loss exposure. If it is determined that there is an impairment, the Company will expense the contract asset to the extent of the potential credit loss. Contract liabilities primarily relate to advance consideration received from customers for spectrum services, for which the control of these services has not been transferred to the customer. These contract liabilities are recorded as deferred revenue on the balance sheet. Product Development Costs The Company charges all product and development costs to expense as incurred. Types of expense incurred in product and development costs include employee compensation, consulting, travel, equipment and technology costs. Advertising and Promotional Expense The Company expenses advertising and promotional costs as incurred. Advertising and promotional expense was approximately $62,000 and $92,000 for the years ended March 31, 2024 and 2023, respectively. Stock Compensation The Company accounts for stock options in accordance with U.S. GAAP, which requires the measurement and recognition of compensation expense, based on the estimated fair value of awards granted to consultants, employees and directors. The Company estimates the fair value of share-based awards on the date of grant using an option-valuation model. The value of the portion of the award that is ultimately expected to vest is recognized as expense in the Company’s statements of operations over the requisite service periods. In the event the participant’s employment by or engagement with (as a director or otherwise) the Company terminates before exercise of the options granted, the stock options granted to the participant shall immediately expire and all rights to purchase shares thereunder shall immediately cease and expire and be of no further force or effect, other than applicable exercise rights for vested shares that may extend past the termination date as provided for in the participant’s applicable option award agreement. Additionally, the Company’s Compensation Committee (the “Compensation Committee”) adopted an Executive Severance Plan (the “Severance Plan”) in February 2015, which was amended in February 2019, and the Company subsequently entered into Severance Plan Participation Agreements with its executive officers. In addition to providing participants with severance payments, the Severance Plan provides for accelerated vesting and extends the exercise period for outstanding equity awards if the Company terminates a participant’s service for reasons other than cause, death or disability or the participant terminates his or her service for good reason, whether before or after a change of control (each of such terms as defined in the Severance Plan). In addition to the Severance Plan, the equity awards issued to the Company’s President and Chief Executive Officer provide for accelerated vesting upon termination of service for reasons other than cause or a resignation for good reason; involuntary termination in connection with a change in control; or a change in control with a purchase price at or above $100 per share (each of such terms defined in the equity award agreements). To calculate option-based compensation, the Company uses the Black-Scholes option valuation model. The compensation cost for the stock options with a graded vesting schedule is recognized using an accelerated method over the explicit vesting period. Stock options have a maximum term of ten years from the date they are granted, and vest over a requisite service period of three years, or four years for grants prior to November 2020, subject to acceleration in certain circumstances. The Company’s determination of fair value of option-based awards on the date of grant using the Black-Scholes model is affected by assumptions regarding a number of subjective variables. These variables include the expected volatility of the Company’s stock price, which is based on the weighted-average historical volatility of its stock, expected term, which is based on option history with adjustments for vesting schedule and contractual terms, risk-free interest rate, which is based on the treasury zero-coupon yield appropriate for the term of the option-based award as of the grant date; and expected dividends as applicable, which is zero, as the Company has never paid any cash dividends. Any future determination to pay dividends will be at the discretion of the Board and will depend on the Company’s financial condition, results of operations, capital requirements, restrictions contained in any financing instruments and such other factors as the Board deems relevant in its sole discretion. Therefore, the Company uses an expected dividend yield of zero in the option-pricing model. The fair value of restricted stock, restricted stock units and performance units without market conditions are measured based upon the quoted closing market price for the stock on the date of grant. The compensation cost for the restricted stock and restricted stock units is recognized on a straight-line basis over the explicit vesting period. Restricted stock granted to the Company employees vest over a requisite services period of four years, subject to acceleration in certain circumstances. Vested restricted stock units are settled and issuable upon the earlier of the date the employee ceases to be an employee of the Company or a date certain in the future. The compensation cost for the performance units without market conditions is recognized ratably over the service period if it is probable that the performance condition will be met. The Company uses a Monte Carlo simulation model to determine the fair value of performance units with market condition at grant date. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company’s stock and the target composite index. The use of the Monte Carlo simulation model requires the input of a number of assumptions including expected volatility of the Company’s stock price, which is based on the weighted-average historical volatility of its stock; correlation between changes in the Company’s stock price and changes in the target composite index, which is based on the historical relationship between the Company’s stock price and the target composite index average; risk-free interest rate, which is based on the treasury zero-coupon yield appropriate for the term of the performance unit as of the grant date; and expected dividends as applicable, which is zero, as the Company has never paid any cash dividends. Any future determination to pay dividends will be at the discretion of the Board and will depend on the Company’s financial condition, results of operations, capital requirements, restrictions contained in any financing instruments and such other factors as the Board deems relevant in its sole discretion. Therefore, the Company has used an expected dividend yield of zero in the Monte Carlo simulation model. The compensation cost for the performance units with market condition is recognized ratably over the service period. No tax benefits have been attributed to the share-based compensation expense because the Company maintains a full valuation allowance for all net deferred tax assets. All excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, are recognized as income tax expense or benefit in the income statement, eliminating the notion of the additional paid-in capital (“APIC”) pool. The excess tax benefits are classified as operating activities along with other income tax cash flows rather than financing activities in the statement of cash flows. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements are presented as a financing activity in the statement of cash flows. Retirement of common stock From time to time, the Company may acquire its common stock through share repurchases or option exercise swaps and return these shares to authorized and unissued. If the Company elects to retire these shares, the Company’s policy is to allocate a portion of the repurchase price to par value of common stock with the excess over par value allocated to accumulated deficit. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities as well as from net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is established when it is estimated that it is more likely than not that the tax benefit of a deferred tax asset will not be realized. Changes in valuation allowance for the years ended March 31, 2024 and 2023 are summarized below (in thousands): 2024 2023 Balance at beginning of the year $ 85,984 $ 79,998 Charged to costs and expenses 842 1,218 Changes in net loss carryforward and other 2,916 4,768 Balance at end of the year $ 89,742 $ 85,984 Accounting for Uncertainty in Income Taxes The Company recognizes the effect of tax positions only when they are more likely than not to be sustained. Management has determined that the Company had no uncertain tax positions that would require financial statement recognition or disclosure. The Company is no longer subject to U.S. federal, state or local income tax examinations for periods prior to 2019. When applicable, the Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Net Loss Per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes payable-affiliated entities, stock options, restricted stock and warrants are considered to be potentially dilutive securities. Diluted earnings per share is computed using the treasury stock method. Because the Company has reported a net loss for the years ended March 31, 2024 and 2023 diluted net loss per common share is the same as basic net loss per common share for those periods. Common stock equivalents resulting from potentially dilutive securities approximated 241,629 and 352,216 and at March 31, 2024 and 2023 respectively, and have not been included in the dilutive weighted average shares of common stock outstanding, as their effects are anti-dilutive. Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the years ended March 31, 2024 and 2023 (in thousands): 2024 2023 Spectrum revenues 900 MHz Broadband Spectrum Revenue Ameren Corporation $ 609 $ 609 Evergy 966 581 Xcel Energy (1) 1,887 — Narrowband Spectrum Revenue Motorola 729 729 Total spectrum revenue (2) $ 4,191 $ 1,919 1. The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband leases to Xcel Energy in September 2023. 2. Revenue recognized during the years ended March 31, 2024 and 2023 was included in deferred revenue at the beginning of the respective periods. 900 MHz Broadband Spectrum Revenue In December 2020, the Company entered into its first long-term lease agreements of 900 MHz Broadband Spectrum with Ameren. The Ameren Agreements will enable Ameren to deploy a PLTE network in its service territories in Missouri and Illinois, covering approximately 7.5 million people. Each Ameren Agreement is for an initial term of 30 years with a 10-year renewal option for an additional payment. The scheduled prepayments for the 30-year initial terms of the Ameren Agreements total $47.7 million, of which $0.3 million was received by the Company in February 2021, $5.4 million in September 2021 and $17.2 million in October 2021. The prepayments received to date encompass the initial upfront payment(s) due upon signing of the Ameren Agreements and payments for delivery of the relevant 1.4 x 1.4 MHz cleared spectrum in several metropolitan counties throughout Missouri and Illinois, in accordance with the terms of the Ameren Agreements. The remaining prepayments for the 30-year initial term are due by mid-2026, per the terms of the Ameren Agreements and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband leases. The Company is working with the remaining incumbents to clear the 900 MHz Broadband Spectrum allocation in Ameren’s service territory. In August 2021, the FCC granted the first 900 MHz broadband leases to the Company for several counties in Ameren’s service territory, for which the Ameren Agreements were also subsequently approved by the FCC. In accordance with ASC 606, the payments of prepaid fees under the Ameren Agreements will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue is recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband leases are delivered by respective county, over the contractual term of 30-years. In September 2021, the Company entered into a long-term lease agreement of 900 MHz Broadband Spectrum with Evergy. The Evergy service territories covered by the Evergy Agreement are in Kansas and Missouri, with a population of approximately 3.9 million people. The Evergy Agreement is for an initial term of 20 years with two 10-year renewal options for additional payments. Prepayment in full of the $30.2 million for the 20-year initial term, which was due and payable within thirty (30) days after execution of the Evergy Agreement, was received by the Company in October 2021. During the year ended March 31, 2024, the Company cleared the 900 MHz Broadband Spectrum allocation covered by the Evergy Agreement. In accordance with ASC 606, the payments of prepaid fees under the Evergy Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue is recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband leases are delivered by respective county, over the contractual term of 20-years. In October 2022, the Company entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states including Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. The Xcel Energy Agreement also provides Xcel Energy an option to extend the agreement for two 10-year terms for additional payments. The Xcel Energy Agreement allows Xcel Energy to deploy a PLTE network to support its grid modernization initiatives for the benefit of its approximately 3.7 million electricity customers and 2.1 million natural gas customers. The scheduled prepayments for the 20-year initial term of the Xcel Energy Agreement total $80.0 million, of which $8.0 million was received by the Company in December 2022. In July 2023 and November 2023, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband leases and received milestone payments of $21.2 million in each period. During the year ended March 31, 2024, the Company delivered the cleared 900 MHz Broadband Spectrum and the associated broadband leases and received a milestone payment of $16.8 million in January 2024. The remaining prepayments for the 20-year initial term are due by mid-2028, per the terms of the Xcel Energy Agreement and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband leases. The Company is working with the remaining incumbents to clear the 900 MHz Broadband Spectrum allocation in Xcel Energy service territories. In accordance with ASC 606, the payments of prepaid fees under the Xcel Energy Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue will be recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband leases are delivered by respective county, over the contractual term of approximately 20-years. In November 2023, the Company entered into an agreement with TECO to provide TECO the use of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout TECO’s service territory in West Central Florida the TECO Agreement. The TECO Agreement also provides TECO an option to extend the agreement for two 10-year terms for additional payments. The TECO Agreement, which covers an approximately 2,000-square-mile service territory in West Central Florida, is expected to enable TECO to deploy a PLTE network. The scheduled prepayments for the 20-year initial terms of the TECO Agreement total $34.5 million, of which $6.9 million was received by the Company in December 2023. The remaining prepayments for the 20-year initial term are due by fiscal year 2026, per the terms of the TECO Agreement and as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband leases. The Company is working with incumbents to clear the 900 MHz Broadband Spectrum allocation in TECO service territories. The payments of prepaid fees under the TECO Agreement will be accounted for as deferred revenue on the Company’s Consolidated Balance Sheets. Revenue will be recognized over time as the performance obligations of clearing the 900 MHz Broadband Spectrum and the associated broadband leases are delivered by respective county, over the contractual term of approximately 20 years. Narrowband Spectrum Revenue In September 2014, Motorola paid the Company an upfront, fully-paid fee of $7.5 million in order to use a portion of the Company’s narrowband spectrum licenses. The payment of the fee is accounted for as deferred revenue on the Company’s Consolidated Balance Sheets and is recognized ratably as the service is provided over the contractual term of approximately ten years. Capitalized Contract Costs The Company capitalizes incremental costs associated with obtaining a contract with a customer, which generally includes sales commissions. The Company’s capitalized contract costs consisted of the following activity (in thousands): 2024 2023 Balance at the beginning of the year $ 870 $ 638 Additions 199 249 Amortization (42) (17) Balance at the end of the year 1,027 870 Less amount classified as current assets (1) (580) (418) Noncurrent assets (1) $ 447 $ 452 1. Current assets are recorded as prepaid expenses and other current assets and noncurrent assets are recorded as other assets on the Company’s Consolidated Balance Sheets. Contract Liabilities Contract liabilities primarily relate to advanced consideration received from customers for spectrum services, for which revenue is recognized over time, as the services are performed. The Company’s contract liabilities consisted of the following activity (in thousands): 2024 2023 Balance at the beginning of the year $ 60,759 $ 54,678 Net additions (1) 65,644 8,000 Revenue recognized (4,191) (1,919) Balance at the end of the year 122,212 60,759 Less amount classified as current liabilities (2) (6,470) (2,769) Noncurrent liabilities (2) $ 115,742 $ 57,990 1. Represents milestone payments received from customer contracts pursuant to the terms of the associated spectrum lease agreements, net of delivery delay adjustments. 2. Current liabilities and noncurrent liabilities are recorded as deferred revenue on the Company’s Consolidated Balance Sheets. Remaining Performance Obligations Revenue allocated to remaining performance obligations of the Company’s contracts represent contracted revenue that will be recognized in future periods. Total performance obligations include deferred revenue (i.e., contract liabilities) as well as amounts that will be invoiced and recognized in future periods. Revenue allocated to remaining performance obligations was $187.0 million as of March 31, 2024, which will be recognized over the remaining contract terms up to 30 years. |
Escrow Deposits
Escrow Deposits | 12 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Escrow Deposits | Escrow Deposits Escrow deposits are considered restricted cash as the deposits are restricted from use until the terms of the escrow agreement are met. Escrow deposits are classified as noncurrent assets on the Company’s Consolidated Balance Sheets. In connection with the LCRA Agreement, the Company and LCRA entered into an escrow agreement. Pursuant to the escrow agreement, the escrow funds shall be held and invested in a money market deposit account. All interest and other income earned shall be allocated to the Company, payable with the final distribution of the escrow funds. The escrow funds shall be distributed upon written request by both the Company and LCRA pursuant to the terms within the LCRA Agreement. During the year ended March 31, 2024, the Company received $15.0 million, of which $7.5 million was deposited in an escrow account. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following at March 31, 2024 and 2023 (in thousands): Estimated 2024 2023 Network sites and equipment 5-10 years $ 11,287 $ 12,292 Computer software 1-7 years 863 847 Computer equipment 5-7 years 318 279 Furniture and fixture and other equipment 2-5 years 480 450 Leasehold improvements Shorter of the lease term or 10 years 819 819 13,767 14,687 Less accumulated depreciation 11,705 11,628 2,062 3,059 Construction in process — 547 Property and equipment, net $ 2,062 $ 3,606 Depreciation expense for the years ended March 31, 2024 and 2023 amounted to approximately $0.8 million and $1.4 million respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Wireless licenses are considered indefinite-lived intangible assets. Indefinite-lived intangible assets are not subject to amortization but instead are tested for impairment annually, or more frequently if an event indicates that the asset might be impaired. There were no impairment charges related to the Company’s indefinite-lived intangible assets during the years ended March 31, 2024 and 2023. Intangible assets consist of the following at March 31, 2024 and 2023 (in thousands): 2024 2023 Balance at the beginning of the year $ 202,044 $ 151,169 Acquisitions and transfers 12,077 12,476 Sale of intangible assets (32,402) — Exchanges - licenses received 43,700 46,174 Exchanges - licenses surrendered (8,676) (7,775) Balance at the end of the year $ 216,743 $ 202,044 Purchases of intangible assets, including refundable deposits, retuning costs and swaps During the years ended March 31, 2024 and 2023, the Company entered into agreements with several third parties in multiple U.S. markets to acquire, retune or swap wireless licenses for cash consideration (“deals”) and made Anti-Windfall Payments to the US Treasury Department. The initial deposits to incumbents are recorded as prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets and are refundable if the FCC does not approve the sale, retuning or swap of the spectrum. The initial deposits are transferred to other assets or intangible assets in the Company’s Consolidated Balance Sheets, as applicable, upon meeting the relevant deal milestones. The final payments related to closed retuning or swap deals are recorded as deferred broadband costs on the Company’s Consolidated Balance Sheets. The final payments for license purchases or Anti-Windfall Payments are recorded as intangible assets on the Company’s Consolidated Balance Sheets. Broadband License Exchanges During the year ended March 31, 2024, the Company was granted by the FCC, broadband licenses for 28 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $43.7 million. In connection with receiving the broadband licenses, the Company disposed of $8.7 million related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 28 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $35.0 million, for the year ended March 31, 2024. During the year ended March 31, 2023, the Company was granted by the FCC, broadband licenses for 84 counties. The Company recorded the new broadband licenses at their estimated accounting cost basis of approximately $46.2 million. In connection with receiving the broadband licenses, the Company disposed of $7.8 million related to the value ascribed to the narrowband licenses it relinquished to the FCC for the same 84 counties. The total carrying value of narrowband licenses included the cost to acquire the original narrowband licenses, Anti-Windfall Payments paid to cover the shortfall in each county and the clearing costs. As a result of the exchange of narrowband licenses for broadband licenses, the Company recorded a gain on disposal of intangible assets of $38.4 million, for the year ended March 31, 2023. Broadband License Sale During the quarter ended September 30, 2023, the Company transferred to SDG&E the San Diego County broadband license for total cumulative payments of $44.0 million net of delivery delay adjustments of $1.1 million. As a result, the Company recognized a reduction in intangible assets of $31.8 million and recorded a $7.3 million gain on sale of intangible assets on the Company’s Consolidated Statements of Operations. During the quarter ended December 31, 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license to Imperial County for total cumulative payments of $0.7 million. As a result, the Company recognized a reduction in intangible assets of $0.6 million and recorded a $32 thousand gain on sale of intangible assets on the Company’s Consolidated Statements of Operations. As part of the SDG&E Agreement, SDG&E has an option to pursue additional spectrum with the Company. In accordance with ASC 606, the Company recorded a $4.9 million deferred gain on sale of intangible assets on the Company’s Consolidated Balance Sheets as of March 31, 2024, related to this option, which expires in September 2028. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses The table below provides additional information related to the Company’s accounts payable and accrued expenses at March 31, 2024 and 2023 (in thousands): 2024 2023 Accounts payable $ 696 $ 755 Accrued employee related expenses 5,017 4,271 Accrued expenses 1,747 1,267 Accrued taxes 948 — Other 223 331 Total accounts payable and accrued expenses $ 8,631 $ 6,624 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In connection with the transfer of its TeamConnect business and support for its pdvConnect business, the Company entered into a memorandum of understanding (“MOU”) with the principals of Goosetown on December 31, 2018. Under the MOU, the Company agreed to assign the intellectual property rights to its pdvConnect application to TeamConnect LLC (“LLC”), a new entity formed by the principals of Goosetown, in exchange for a 19.5% ownership interest in the LLC, effective April 30, 2019. The Company was obligated to pay the LLC a monthly service fee for a 24-month period ending on January 7, 2021 for its assumption of the Company’s support obligations under the A BEEP and Goosetown Agreements. The Company was also obligated to pay the LLC a certain portion of the billed revenue received by the Company from pdvConnect customers for a 48-month period. On February 22, 2023, the Company amended the LLC agreement to withdraw as a member of the LLC for no consideration. For the year ended March 31, 2024, the Company did not incur payments to the LLC. For the year ended March 31, 2023, the Company incurred payments of $55,000 to the parties associated with the transferred business. As of March 31, 2024 and 2023, the Company did not have outstanding liabilities to the related parties associated with the services transfer. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases All the leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029, which includes lease extensions for its corporate headquarters ranging from three Substantially all of the Company’s leases are classified as operating leases. Operating lease agreements are required to be recognized on the Company’s Consolidated Balance Sheets as right of use (“ROU”) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows: 2024 2023 Weighted average term - operating lease liabilities 3.59 years 2.87 years Weighted average incremental borrowing rate - operating lease liabilities 9 % 12 % Total lease cost amounted to approximately $1.9 million and $1.8 million, respectively, for the years ended March 31, 2024 and 2023. Total lease cost is included in general and administrative expenses on the Company’s Consolidated Statements of Operations. For the years ended March 31, 2024 and 2023, the following table presents total lease cost (in thousands): 2024 2023 Lease cost Operating lease cost $ 1,945 $ 1,817 Short term lease cost — 7 Total lease cost $ 1,945 $ 1,824 The following table presents supplemental balance sheet information as of March 31, 2024 and 2023 (in thousands): 2024 2023 Non-current assets - right of use assets, net $ 4,432 $ 3,371 Current liabilities - operating lease liabilities $ 1,850 $ 1,725 Non-current liabilities - operating lease liabilities $ 3,446 $ 2,922 Future minimum payments under existing non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the year ended March 31, 2024 are as follows (in thousands): Fiscal Year Operating 2025 $ 2,230 2026 1,492 2027 1,079 2028 734 2029 471 After 2029 54 Total future minimum lease payments 6,060 Amount representing interest (764) Present value of net future minimum lease payments $ 5,296 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the year ended March 31, 2024, the Company had federal and state NOL carryforwards of approximately $307.3 million and $212.0 million respectively. Of these federal and state NOLs, approximately $66.2 million and $169.1 million, respectively, are expiring in various amounts from 2024 through 2037. The remaining federal and state NOLs of approximately $241.1 million and $42.9 million, respectively, have an indefinite life but the federal NOLs may only offset 80% of taxable income when used. For the year ended March 31, 2023, the Company incurred federal and state operating losses of approximately $327.8 million and $216.7 million, respectively, to offset future taxable income, of which $237.5 million federal NOL and $63.7 million of state NOLs can be carried forward indefinitely but can only offset 80% of taxable income when used. The Company has net deferred tax assets, before applying the valuation allowance, of approximately $83.5 million and $80.5 million relating principally to the NOLs as of March 31, 2024 and 2023, respectively. Federal NOL carryforwards may be subject to limitations as a result of the change in ownership that occurred in the year ended March 31, 2015, as defined under Internal Revenue Code Section 382. State NOL carryforwards are subject to limitations which differ from federal law in that they may not allow the carryback of net operating losses and have shorter carryforward periods. Accounting Standards Codification Topic 740, Income Taxes, requires that a valuation allowance be recorded to reduce deferred tax assets when it is more likely than not that the tax benefit of the deferred tax assets will not be realized. The evaluation includes the consideration of all available evidence, both positive and negative, regarding historical operating results including recent years with reported losses, the estimated timing of future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. In situations where a three-year cumulative loss condition exists, accounting standards limit the ability to consider projections of future results as positive evidence to assess the realizability of deferred tax assets. Since inception, the Company has mainly incurred tax losses which represents significant negative evidence toward the realizability of its deferred tax assets. Therefore, the Company continues to apply a full valuation allowance against its deferred tax assets as of March 31, 2024 and 2023, with the exception of the net deferred tax liability of approximately $6.3 million and $5.4 million, respectively, regarding indefinite-lived intangibles. For Fiscal 2024, analysis of the state NOL carryforwards revealed that most of them are not indefinite. The Company recorded $0.4 million of state deferred tax expense during the year March 31, 2024 and increased the state deferred tax liability by the same amount from the inability to use the state NOL carryforwards against the indefinite-lived intangible. For Fiscal 2023, the Company recorded $0.8 million of state deferred tax benefit during the year March 31, 2023 and decreased the state deferred tax liability by the same amount from the inability to use the state NOL carryforwards against the indefinite-lived intangible. This valuation allowance has no effect on the Company’s ability to utilize the deferred tax assets to offset future taxable income, if generated. As required by U.S. GAAP, the Company will continue to assess the likelihood that the deferred tax assets will be realizable in the future and the valuation allowance will be adjusted accordingly. The tax benefits relating to any reversal of the valuation allowance on the net deferred tax assets in a future period will be recognized as a reduction of future income tax expense in that period. Net deferred tax assets and liabilities consist of the following as of March 31, 2024 and 2023 (in thousands): 2024 2023 Deferred tax asset Property and equipment $ 503 $ 724 Accrued expenses 1,080 209 Deferred revenue 12,828 6,131 Asset retirement obligations 14 13 Net operating loss carryforward 77,308 81,908 Operating lease liabilities 1,437 1,312 Charitable contributions carryforward 3 64 Stock compensation expense 8,034 6,744 Total deferred tax asset 101,207 97,105 Deferred tax liability Right of use assets (1,189) (821) Indefinite-lived intangible assets (16,557) (15,740) Total deferred tax liability (17,746) (16,561) Total deferred tax assets and liabilities 83,461 80,544 Valuation allowance (89,742) (85,984) Net deferred tax assets and liabilities $ (6,281) $ (5,440) The components of the income tax expense for the years ended March 31, 2024 and 2023 are as follows (in thousands): 2024 2023 Current: Federal $ — $ — State 772 44 Total current 772 44 Deferred: Federal 432 442 State 409 776 Total deferred 841 1,218 Total income tax expense $ 1,613 $ 1,262 The differences between the United States federal statutory tax rate and the Company’s effective tax rate for the years ended March 31, 2024 and 2023 are as follows (in thousands): 2024 2023 Statutory federal tax $ (1,578) 21 % $ (3,162) 21 % State income taxes, net of federal benefit 1,023 -14 % 814 -23 % Incentive stock option expense (46) 1 % (27) 0 % Other permanent differences (11) 0 % (62) 0 % 162M executive compensation limit 78 -1 % 316 -2 % Change in valuation allowance - Federal 1,866 -25 % 3,314 -22 % Prior-year adjustments 281 -3 % 69 0 % $ 1,613 -21 % $ 1,262 -26 % |
Stock Compensation
Stock Compensation | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation | Stock Compensation On August 8, 2023 (the “Effective Date”), the Company adopted a new equity-based compensation plan known as the 2023 Stock Plan. The 2023 Stock Plan permits the Company to grant equity compensation awards to employees, consultants and non-employee directors of the Company. As of the Effective Date, no additional awards may be granted under the Anterix Inc. 2014 Stock Plan (the “2014 Stock Plan”). The 2023 Stock Plan authorizes 250,000 shares of common stock of the Company (“Shares”) for grant. Additionally, 388,151 Shares remaining for grant under the 2014 Stock Plan immediately prior to the Effective Date, Shares subject to outstanding stock awards granted under the 2014 Stock Plan that, following the Effective Date, expire or are terminated or cancelled without having been exercised or settled in full, and Shares acquired pursuant to an award subject to forfeiture or repurchase that are forfeited or repurchased by the Company for an amount not greater than the recipient’s purchase price, are issuable under the 2023 Stock Plan. As of March 31, 2024, 200,651 shares are available for future issuance and up to 181,887 shares which may be granted upon meeting certain performance levels above 100% for performance stock unit awards. Restricted Stock and Restricted Stock Units A summary of non-vested restricted stock activity for the year ended March 31, 2024 is as follows: Restricted Weighted Non-vested restricted stock outstanding at March 31, 2023 568,662 $ 47.93 Granted 183,789 33.45 Vested (232,823) 46.89 Forfeited (17,054) 45.38 Non-vested restricted stock outstanding at March 31, 2024 502,574 $ 43.19 The following table reflects activity related to the Company’s restricted stock for the years ended March 31, 2024 and 2023: 2024 2023 Weighted-average grant-date fair value per unit granted $ 33.45 $ 47.85 Fair value of restricted stock units vested (in thousands) $ 10,918 $ 12,245 Stock compensation expense related to restricted stock was approximately $9.9 million for the year ended March 31, 2024, which included $9.1 million in general and administrative expenses, $0.4 million in product development and the remainder of approximately $0.4 million included in sales and support reported on the Company’s Consolidated Statements of Operations. Stock compensation expense related to restricted stock was approximately $10.9 million for the year ended March 31, 2023, which included $9.8 million in general and administrative expenses, $0.6 million in product development and the remainder of approximately $0.5 million included in sales and support reported on the Company’s Consolidated Statements of Operations. As of March 31, 2024 and 2023, there was $14.4 million and $18.5 million, respectively, of unvested compensation expense for the restricted stock, which is expected to be recognized over a weighted average period of 1.92 years and 2.31 years, respectively. Performance-Based Restricted Stock Units A summary of the performance-based restricted stock unit activity for the year ended March 31, 2024 is as follows: Performance Stock Weighted Performance stock outstanding at March 31, 2023 75,049 $ 58.65 Granted 78,683 30.89 Vested — — Forfeited/cancelled — — Performance stock outstanding at March 31, 2024 153,732 $ 44.44 The following table reflects activity related to the Company’s performance-based restricted stock units for the years ended March 31, 2024 and 2023: 2024 2023 Weighted-average grant-date fair value per unit granted $ 30.89 $ — Fair value of Performance stock units vested (in thousands) $ — $ — Outstanding performance stock units included in the table above are shown at target. Share payout can range from 0% to 200% for performance units based on the Cumulative Spectrum Proceeds Monetized (“CSPM”) metric and 25% to 350% for performance units based on the Total Stockholders Return (“TSR Performance Units”) metrics. Cumulative Spectrum Proceeds Monetized The performance-based restricted units will vest on a determination date of June 24, 2024 (“Determination Date”) (unless sooner triggered by an earlier involuntary termination), based on CSPM metric over a four-year measurement period commencing on June 24, 2020, with 15,025 units vesting if the minimum CSPM level is achieved, 30,049 units vesting if the target CSPM metric is achieved and up to 60,098 vesting if the maximum CSPM metric is achieved. Total Stockholder Return The performance-based restricted units will vest upon continued service and achievement of certain stock price levels calculated using a four-year compound annual growth rate and based on the average closing bid price per share of the Company’s common stock measured over a sixty The following assumptions were used to calculate the grant date fair value of performance-based restricted units with market price condition using the Monte Carlo simulation model: February 1, 2021 Risk-free interest rate 0.29% Dividend yield —% Volatility 56.09% Simulation term 4 years Forfeiture rate —% The Company recorded approximately $0.8 million and $1.3 million of stock compensation expense relating to performance-based restricted stock units that are probable to vest for the years ended March 31, 2024 and 2023 respectively, included in general and administrative expenses reported on the Company’s Consolidated Statements of Operations. As of March 31, 2024 and 2023, there was approximately $0.3 million and $2.5 million, respectively, of unvested compensation expense for the outstanding performance-based restricted stock units, which is expected to be recognized over a weighted average period of 1.23 years and 1.71 years, respectively. Stock Options A summary of Stock Option activity for the year ended March 31, 2024 is as follows: Options Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding at March 31, 2023 1,402,949 $ 39.12 Options granted 306,187 36.10 Options exercised (91,250) 21.93 Options forfeited/expired — — Options outstanding at March 31, 2024 1,617,886 $ 39.52 6.33 $ 4,400,717 Exercisable at March 31, 2024 851,854 $ 34.94 4.10 $ 4,400,717 Total vested or expected to vest at March 31, 2024 1,616,910 $ 39.51 6.33 $ 4,400,717 In addition, as of March 31, 2024, the Company has 85,000 outstanding options excluded from the table above as these options are considered contingently issued. The stock options will vest and become exercisable if the grantee is employed by the Company on March 27, 2027, unless exercisable sooner in accordance with the terms of the award agreement. These options may not be exercised until the Company’s stockholders approve an authorization of minimum number of shares of common stock sufficient to exercise this award. The intrinsic value of stock options exercised was approximately $1.3 million and $1.2 million for the years ended March 31, 2024 and 2023 respectively. The following assumptions were used to calculate the fair value of stock options: Year Ended Year Ended March 31, 2024 March 31, 2023 Risk-free interest rate 3.90% to 4.22% 2.95% to 3.62% Dividend yield —% —% Volatility 49.23% to 49.54% 50.80% to 51.60% Expected term 5.39 years to 5.72 years 5.43 years Forfeiture rate —% to 3% —% to 3% Weighted-average grant-date fair value per option granted $ 36.10 $ 49.39 Stock compensation expense related to the amortization of the fair value of service-based stock options issued was approximately $4.8 million and $5.6 million respectively, for the years ended March 31, 2024 and 2023 which was included in general and administrative reported on the Company’s Consolidated Statements of Operations. The weighted average fair value for the stock option awards granted for the year ended March 31, 2024 was $36.10 per share. As of March 31, 2024 and 2023, there was approximately $8.2 million and $7.4 million, respectively, of unrecognized compensation cost related to non-vested stock options granted under the Company’s stock option plans which is expected to be recognized over a weighted-average period of 1.44 years and 1.68 years, respectively. Performance-Based Stock Options A summary of the Performance-Based Stock Options for the year ended March 31, 2024 is as follows: Performance Options Weighted Average Exercise Price Performance Options outstanding at March 31, 2023 33,782 $ 46.85 Performance Options granted — — Performance Options exercised — — Performance Options forfeited/expired — — Performance Options outstanding at March 31, 2024 33,782 $ 46.85 For the years ended March 31, 2024 and 2023, there was no stock compensation expense recognized for the 33,782 performance-based stock options. As of March 31, 2024 and 2023, there was no unvested compensation expense relating to the outstanding performance-based stock options. Share Repurchase Program In September 2021, the Board authorized a share repurchase program (the “2021 Share Repurchase Program”) pursuant to which the Company may repurchase up to $50.0 million of the Company’s common stock on or before September 29, 2023. The Company repurchased and subsequently retired a total of $33.9 million of the Company’s common stock under the 2021 Share Repurchase Program, including $10.7 million during fiscal year 2024. On September 21, 2023, the Board authorized the new 2023 Share Repurchase Program pursuant to which the Company may repurchase up to $250.0 million of the Company’s common stock on or before September 21, 2026. The Company repurchased and subsequently retired a total of $13.9 million of the Company’s common stock under the 2023 Share Repurchase Program during fiscal year 2024. The Company may repurchase shares of its common stock via the open market and/or privately negotiated transactions. Repurchases will be made in accordance with applicable securities laws and may be effected pursuant to Rule 10b5-1 trading plans. The manner, timing and amount of any share repurchases will be determined by the Company based on a variety of factors, including proceeds from customer contracts, the timing of which is unpredictable, as well as general business and market conditions, the Company’s capital position, and other strategic considerations. The 2023 Share Repurchase Program does not obligate the Company to repurchase any particular amount of its common stock. The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Excise tax accrued for the year ended March 31, 2024 was approximately $0.2 million. The following table presents the share repurchase activity for Fiscal 2024 and Fiscal 2023 (in thousands, except per share data): For the years ended March 31, 2024 2023 Number of shares repurchased and retired 736 216 Average price paid per share* $ 33.72 $ 47.05 Total cost to repurchase $ 24,676 $ 8,223 * Average price paid per share includes costs associated with the repurchases. As of March 31, 2024, $236.1 million is remaining under the share repurchase program. Motorola Investment On September 15, 2014, Motorola invested $10.0 million to purchase 500,000 Class B Units of the Company’s subsidiary, PDV Spectrum Holding Company, LLC (at a price equal to $20.00 per unit). The Company owns 100% of the Class A Units in the Subsidiary. Motorola had the right at any time to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock and in May 2022, Motorola exercised such right to convert its 500,000 Class B Units into 500,000 shares of the Company’s common stock. In June 2022, the Company filed a Registration Statement on Form S-3 to register the 500,000 shares of the Company’s Common Stock held by Motorola for the resale or other disposition of such shares by Motorola (the “Resale Registration Statement”). The Resale Registration Statement was declared effective by the SEC on July 15, 2022. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information The following table summarizes the Company’s supplemental cash flow information: For the years ended March 31, (in thousands) 2024 2023 Cash paid during the period: Taxes paid $ 70 $ 14 Operating lease 2,316 2,217 Non-cash investing activity: Capitalized change in estimated asset retirement obligations $ 89 $ (6) Network equipment provided in exchange for wireless licenses 616 36 Deferred gain on sale of intangible assets 4,911 — Derecognition of contingent liability related to sale of intangible assets 19,249 — Rights of use asset for new leases 645 165 Rights of use asset for modifications and renewals 1,928 — During the year ended March 31, 2024, the Company was granted by the FCC, broadband licenses for 28 counties and relinquished to the FCC its narrowband licenses for the same 28 counties. This transaction resulted in a non-cash increase to intangibles of $35.0 million, which has been recorded as a non-cash gain on disposal of intangible assets of $35.0 million, for the year ended March 31, 2024. See Note 6 Intangible Assets for further discussion on the license exchanges. During the year ended March 31, 2023, the Company was granted by the FCC, broadband licenses for 84 counties and relinquished to the FCC its narrowband licenses for the same 84 counties. This transaction resulted in a non-cash increase to intangibles of $38.4 million, which has been recorded as a non-cash gain on disposal of intangible assets of $38.4 million, for the year ended March 31, 2023. See Note 6 Intangible Assets for further discussion on the license exchanges. |
Contingencies and Guaranty
Contingencies and Guaranty | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Guaranty | Contingencies and Guaranty Contingent Liabilities In February 2021, the Company entered into an agreement with SDG&E to sell 900 MHz Broadband Spectrum throughout SDG&E’s California service territory, including San Diego and Imperial Counties and portions of Orange County (the “SDG&E Agreement”), for a total payment of $50.0 million. The SDG&E Agreement will support SDG&E’s deployment of a PLTE network for its California service territory, with a population of approximately 3.6 million people. Delivery of the relevant 900 MHz Broadband Spectrum and the associated broadband licenses by county to SDG&E commenced in Fiscal 2023 and is scheduled for completion before the end of fiscal year 2024. The total payment of $50.0 million is comprised of an initial payment of $20.0 million, received in February 2021 and the remaining payments which are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to SDG&E. As the Company is required to refund payments it has received from SDG&E in the event of termination or non-delivery of the specific county’s full 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to SDG&E. In September 2022, the Company transferred to SDG&E 1.4 x 1.4 MHz cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. In September 2023, the Company transferred to SDG&E the San Diego County broadband license and received a milestone payment of $25.2 million net of delivery delay adjustments of $1.1 million. In December 2023, the Company transferred to SDG&E the remainder of the cleared 900 MHz Broadband Spectrum and the associated broadband license related to Imperial County and received a milestone payment of $0.2 million. This resulted in the recognition of a gain on the sale of spectrum and derecognition of the contingent liability associated with San Diego County and Imperial County of $19.2 million. See Note 6 Intangible Assets for further discussion on the sale of intangible assets. Subsequent to the derecognition of the contingent liability related to the delivery of San Diego County and Imperial County licenses, the remaining contingent liability related to SDG&E of $1.0 million for Orange County was classified as a short-term liability due to the expected timing of delivery. LCRA Refund Obligation In April 2023, the Company entered into the LCRA Agreement for a total payment of $30.0 million, to be paid through fiscal year 2026 pursuant to the terms of the agreement. During the quarter ended December 31, 2023, the Company received $15.0 million in milestone payments, of which $7.5 million was deposited in an escrow account. The remaining payments are due as the Company delivers the relevant cleared 900 MHz Broadband Spectrum and the associated broadband licenses to LCRA. As the Company is required to refund the deposit it has received from LCRA in the event of termination or non-delivery of the specific county’s full cleared 900 MHz Broadband Spectrum, it recorded the payments as contingent liability on the Company’s Consolidated Balance Sheets. A reduction in the contingent liability and a gain or loss on the sale of spectrum will be recognized for each county once the Company delivers the full cleared 900 MHz Broadband Spectrum and the associated broadband license(s) to LCRA. See Note 5 Escrow Deposits for further discussion on the escrow deposit. Xcel Energy Guaranty In October 2022, the Company entered into an agreement with Xcel Energy providing Xcel Energy dedicated long-term usage of the Company’s 900 MHz Broadband Spectrum for a term of 20 years throughout Xcel Energy’s service territory in eight states the Xcel Energy Agreement. In connection with Xcel Energy Agreement, the Company entered into a guaranty agreement, under which the Company guaranteed the delivery of the relevant 900 MHz Broadband Spectrum and the associated broadband licenses in Xcel Energy’s service territory in eight states along with other commercial obligations. In the event of default or non-delivery of the specific territory’s 900 MHz Broadband Spectrum, the Company is required to refund payments it has received. In addition, to the extent Anterix has performed any obligations, the Company’s liability and remaining obligations under the Xcel Energy Agreement will extend only to the remaining unperformed obligations. The Company recorded $67.1 million in deferred revenue in connection with the prepayments received as of March 31, 2024. The Company commenced delivery of the relevant cleared 900 MHz Broadband Spectrum and the associated broadband leases in the first quarter of fiscal year 2024 and will continue through 2029. As of March 31, 2024, the maximum potential liability of future undiscounted payments under this agreement is approximately $65.2 million. Litigation In addition to commitments and obligations in the ordinary course of business as reflected in the lease footnote above, the Company may be subject, from time to time, to various claims and pending and potential legal actions arising out of the normal conduct of its business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its financial statements. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing litigation contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against it may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of its potential liability. The Company regularly reviews contingencies to determine the adequacy of its accruals and related disclosures. During the period presented, the Company has not recorded any accrual for loss contingencies associated with any claims or legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. However, the outcome of legal proceedings and claims brought against the Company is subject to significant uncertainty. Therefore, although management considers the likelihood of a material adverse outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period, the Company’s consolidated financial statements for that reporting period could be materially adversely affected. Pandemic and Macroeconomic Conditions Recent macroeconomic events, inflation, and geopolitical matters, have increased operating costs or resulted in delays in customer contracting or impacted the availability of equipment necessary for the deployment of the Company’s target customers’ planned PLTE projects. The Company continues to closely monitor these risks. Although difficult to quantify, the Company believes the current macroeconomic environment, including inflation, may have an adverse effect on the Company’s target customers’ businesses, which may harm the Company’s commercialization efforts and negatively impact the Company’s revenues and liquidity. If the Company is not able to control its operating costs or if the Company’s commercialization efforts are slowed or negatively impacted, continued periods of high inflation could have a material adverse effect on the Company’s business, operating results and financial condition. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Oncor Agreement |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (9,128) | $ (16,317) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to estimated useful lives of depreciable assets, asset retirement obligations, valuation allowance on the Company’s deferred tax assets and recoverability of intangible assets. The Company is also required to make certain estimates with regard to the valuation of awards and forfeiture rates for its share-based award programs. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, including PDV Spectrum Holding Company, LLC formed in April 2014. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash All highly liquid investments with maturities of three months or less at the time of purchase are considered cash equivalents. Cash equivalents are stated at cost, which approximates the quoted market value and includes amounts held in money market funds. Restricted cash includes amounts classified as escrow deposits. |
Concentrations of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments which potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with financial institutions for which credit loss is not anticipated. As of March 31, 2024 and 2023, substantially all of the Company’s cash balance exceeded the federally insured limits. During the year ended March 31, 2024 and 2023, each of the Company’s customers accounted for greater than 10% of total revenue. |
Allowance for Credit Losses | Allowance for Credit Losses An allowance for credit losses is estimated, as required, based on a combination of write-off history, aging analysis and forecasts on the collectability of accounts receivable. The Company reviews its allowance for credit losses on a quarterly basis. Past due balances meeting specific criteria are reviewed individually for collectability. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the applicable lease term. The carrying amount at the balance sheet date of long-lived assets under construction in process includes assets purchased, constructed, or being developed internally that are not yet in service. Depreciation commences when the assets are placed in service. Depreciation rates for assets are updated periodically to account for changes, if any, in the estimated useful lives of the assets, lease terms, management’s strategic objectives, estimated residual values or obsolescence. Changes in estimates will result in adjustments to depreciation expense prospectively. |
Accounting for Asset Retirement Obligations | Accounting for Asset Retirement Obligations An asset retirement obligation is evaluated and recorded as appropriate on assets for which the Company has a legal obligation to retire. The Company records a liability for an asset retirement obligation and the associated asset retirement cost at the time the underlying asset is acquired and put into service. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation, if any. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. The Company entered into long-term leasing arrangements primarily for tower site locations. The Company constructed assets at these locations and, in accordance with the terms of many of these agreements, the Company is obligated to restore the premises to their original condition at the conclusion of the agreements, generally at the demand of the other party to these agreements. The Company recognizes the fair value of a liability for an asset retirement obligation and capitalizes that cost as part of the cost basis of the related asset, depreciating it over the useful life of the related asset. Upon settlement of the obligation, any difference between the cost to retire the asset and the recorded liability is recognized on the Company’s Consolidated Statements of Operations. |
Intangible Assets | Intangible Assets Intangible assets are wireless licenses that are used to provide the Company with the exclusive right to utilize designated radio frequency spectrum to provide wireless communication services. While licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the FCC. License renewals have occurred routinely and at nominal cost in the past. There are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful life of the Company’s wireless licenses. As a result, the Company has determined that the wireless licenses should be treated as an indefinite-lived intangible asset. The Company will evaluate the useful life determination for its wireless licenses each year to determine whether events and circumstances continue to support their treatment as an indefinite useful life asset. Evaluation of Indefinite-Lived Intangible Assets for Impairment The Company determined that its unit of accounting should be based on geographic markets and deal markets. Unit of accounting of wireless licenses not associated with closed deals is based on geographic markets. Unit of accounting of wireless licenses associated with closed deals is based on the deal markets. The Company’s wireless licenses not associated with closed deals are tested for impairment based on the geographic markets, as the Company will be utilizing the existing wireless narrowband licenses, or broadband licenses if applicable, as part of facilitating broadband spectrum networks at a geographic market level. The Company’s wireless licenses associated with closed deals are tested for impairment based at the deal market level. The Company may elect to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of an intangible asset is less than its carrying value. If the Company does not perform the qualitative assessment, or if the qualitative assessment indicates it is more likely than not that the fair value of the intangible asset is less than its carrying amount, the Company will calculate the estimated fair value of the intangible asset. If the estimated fair value of the spectrum licenses is lower than their carrying amount, an impairment loss is recognized. The Company will use a market-based approach to estimate fair value for impairment testing purposes except for deals that were realized as of the valuation date, for which a transaction specific market approach will be used. The valuation approach used to estimate fair value for the purpose of impairment testing requires management to use complex assumptions and estimates such as population, discount rates, industry and market considerations, long-term market equity risk, as well as other factors. These assumptions and estimates depend on the Company’s ability to accurately predict forward looking assumptions including successfully applying for broadband licenses, commercializing the Company’s 900 MHz Broadband Spectrum and properly estimating favorable deal terms over the life of the contract. For impairment testing, estimated fair value is determined using a market-based approach primarily using the 600 MHz auction price. The FCC will use the spectrum price based on the average price paid in the FCC’s 600 MHz auction to calculate the Anti-Windfall Payments, a payment to the U.S. Treasury from a 900 MHz broadband applicant, if the applicant relinquishes less than 6 MHz (or 240 channels) of spectrum for any full or fractional MHz less than 6 MHz. The estimated fair value of realized deals is determined using a transaction specific market approach based on the deal specific terms and adjusted for the Company’s required rate of return and present value taking into consideration the timing of payments. During the years ended March 31, 2024 and 2023, the Company performed a step one quantitative approach impairment test as of January 1, 2024 and January 1, 2023, respectively, to determine if the fair value of the combined licenses by the associated geographical or deal market exceeds the carrying value for each geographical or deal market. During March 31, 2023 (“Fiscal 2023”), the Company shifted from a probability analysis approach to a more detailed approach with measurable qualitative metrics. The new approach, Demonstrated Intent (“DI”), determines how likely a deal is to close based on certain qualitative factors, like applying for an experimental license, entering into a request for proposal, joining certain utility board or publicly backing 900 MHz Broadband Spectrum and its application. As a result, the Company will continue to utilize the DI scores on a go-forward basis for the Company’s impairment analysis. Based on the results of the impairment test, there were no impairment charges recorded during the year ended March 31, 2024 and 2023. Exchanges of Intangible Assets At times, the Company enters into agreements to exchange or cancel spectrum licenses. Upon entering into the arrangement, if the transaction has been deemed to have commercial substance, spectrum licenses are reviewed for impairment. The licenses are exchanged or cancelled at their carrying value and adjusted for any gain or loss recognized. Upon receipt of FCC approval, the spectrum licenses acquired as part of an exchange of nonmonetary assets are recorded at their fair value as of the exchange date. The difference between the fair value of the spectrum licenses obtained, carrying value of the spectrum licenses transferred and cash paid, if any, is recognized as a gain or loss on disposal of spectrum licenses reported separately on the Company’s Consolidated Statements of Operations. For the purpose of the valuation of broadband licenses received in connection with nonmonetary exchanges, the Company utilizes the 600 MHz Auction price per MHzPop, which represents level two of the fair value hierarchy. If the transaction lacks commercial substance or the fair value of the acquired asset cannot be determined, the acquired spectrum licenses are recorded at the carrying value of the spectrum assets transferred, cancelled or exchanged. |
Spectrum Receivable Costs and Deferred Broadband Costs | Spectrum Receivable Costs and Deferred Broadband Costs |
Long-Lived Assets and Right of Use Assets Impairment | Long-Lived Assets and Right of Use Assets Impairment |
Fair Value Measurement of Financial Instruments | Fair Value Measurement A Level 1, Level 2 or Level 3 fair value hierarchy is used to categorize fair value amounts depending on the quality of inputs used to measure the fair value. Level 1 fair value derived inputs utilize quoted prices in active markets for identical assets or liabilities. Level 2 fair value derived inputs are based on quoted prices for similar assets and liabilities in active markets or based on inputs other than quoted prices for the assets or liability that are either directly or indirectly observable. Level 3 fair value derived inputs are unobservable for the asset or liability as a result of little, if any, market activity for the asset or liability. The Company uses appropriate valuation techniques for the fair values of the applicable assets or liabilities based on the available inputs. When available, the Company measures fair value using Level 1 inputs as they generally provide the most reliable evidence of fair value. The inputs may fall into different levels within the hierarchy in some valuations. In these cases, the fair value hierarchy of the asset or liability level is based on the lowest level of input that is significant to the fair value measurements. Financial Instruments |
Leases | Leases Leases in which the Company is the lessee are comprised of corporate office space and tower space. Substantially all of the leases are classified as operating leases. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from October 31, 2024 through January 31, 2029, which includes lease extensions ranging from three In accordance with Financial Accounting Standards Board, (“FASB”) Accounting Standards Codification, Leases (“ASC 842”), the Company recognized right of use (“ROU”) assets and corresponding lease liabilities on the Company’s Consolidated Balance Sheets for its operating lease agreements with contractual terms greater than 12 months. Lease liabilities are based on the present value of remaining lease payments over the lease term. As the discount rate implied in the Company’s leases is not readily determinable, the present value is calculated using the Company’s incremental borrowing rate, which is estimated to approximate the interest rate on a collateralized basis with similar terms. |
Revenue Recognition | Revenue Recognition Revenues are recognized when a contract with a customer exists and control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Accounting Standards Codification, Revenue from Contracts with Customers (“ASC 606”). A contract’s transaction price is allocated to each distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied, which typically occurs when the services are rendered. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. It generally determines standalone selling prices based on the prices charged to customers under contracts involving only the relevant performance obligation. Judgment may be used to determine the standalone selling prices for items that are not sold separately, including services provided at no additional charge. For the Company’s customer agreements, most of the performance obligations involve delivering leased spectrum on a county-by-county basis and are generally satisfied over time as services are provided. The nature of the licenses provide the benefit of the leased spectrum regardless of whether the customer uses the spectrum or not. As a result, revenue will be recognized ratably as the Company delivers cleared 900 MHz Broadband Spectrum and the associated broadband leases to the customer on a county-by-county basis over the contractual term. Since a contract has payment terms that differ from the timing of revenue recognition, the Company will assess whether the transaction price for those contracts include a significant financing component. The Company expects that the period between the transfer of a promised good or service to a customer and the customer payment for that good or service will not constitute a significant financing component. Most of the Company’s spectrum agreements have milestone payments, which align the payment schedule with the clearing and delivery of broadband spectrum. The Company may be entitled to receive an initial deposit, which is not considered a significant financing component because it is used to obtain exclusive rights to the spectrum upon clearing and delivery. As a result, the prepayment structure does not result in a financing component as it mitigates the risk for both parties and secures the exclusive use of the Company’s 900 MHz Broadband Spectrum. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company determined that certain sales commissions met the requirements to be capitalized and were recorded as an asset upon the Company’s adoption of ASC 606. For the years ended March 31, 2024 and 2023, the Company capitalized commission costs required to obtain long-term 900 MHz Broadband Spectrum lease agreements which will be amortized over the contractual term. |
Contract Assets and Liabilities | Contract Assets and Liabilities The Company records a contract asset when the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration. Contract assets are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company will review the contract asset on a periodic basis to determine if an impairment exists as a result of a potential credit loss exposure. If it is determined that there is an impairment, the Company will expense the contract asset to the extent of the potential credit loss. Contract liabilities primarily relate to advance consideration received from customers for spectrum services, for which the control of these services has not been transferred to the customer. These contract liabilities are recorded as deferred revenue on the balance sheet. |
Product Development Costs | Product Development Costs The Company charges all product and development costs to expense as incurred. Types of expense incurred in product and development costs include employee compensation, consulting, travel, equipment and technology costs. |
Advertising and Promotional Expense | Advertising and Promotional Expense |
Stock Compensation | Stock Compensation The Company accounts for stock options in accordance with U.S. GAAP, which requires the measurement and recognition of compensation expense, based on the estimated fair value of awards granted to consultants, employees and directors. The Company estimates the fair value of share-based awards on the date of grant using an option-valuation model. The value of the portion of the award that is ultimately expected to vest is recognized as expense in the Company’s statements of operations over the requisite service periods. In the event the participant’s employment by or engagement with (as a director or otherwise) the Company terminates before exercise of the options granted, the stock options granted to the participant shall immediately expire and all rights to purchase shares thereunder shall immediately cease and expire and be of no further force or effect, other than applicable exercise rights for vested shares that may extend past the termination date as provided for in the participant’s applicable option award agreement. Additionally, the Company’s Compensation Committee (the “Compensation Committee”) adopted an Executive Severance Plan (the “Severance Plan”) in February 2015, which was amended in February 2019, and the Company subsequently entered into Severance Plan Participation Agreements with its executive officers. In addition to providing participants with severance payments, the Severance Plan provides for accelerated vesting and extends the exercise period for outstanding equity awards if the Company terminates a participant’s service for reasons other than cause, death or disability or the participant terminates his or her service for good reason, whether before or after a change of control (each of such terms as defined in the Severance Plan). In addition to the Severance Plan, the equity awards issued to the Company’s President and Chief Executive Officer provide for accelerated vesting upon termination of service for reasons other than cause or a resignation for good reason; involuntary termination in connection with a change in control; or a change in control with a purchase price at or above $100 per share (each of such terms defined in the equity award agreements). To calculate option-based compensation, the Company uses the Black-Scholes option valuation model. The compensation cost for the stock options with a graded vesting schedule is recognized using an accelerated method over the explicit vesting period. Stock options have a maximum term of ten years from the date they are granted, and vest over a requisite service period of three years, or four years for grants prior to November 2020, subject to acceleration in certain circumstances. The Company’s determination of fair value of option-based awards on the date of grant using the Black-Scholes model is affected by assumptions regarding a number of subjective variables. These variables include the expected volatility of the Company’s stock price, which is based on the weighted-average historical volatility of its stock, expected term, which is based on option history with adjustments for vesting schedule and contractual terms, risk-free interest rate, which is based on the treasury zero-coupon yield appropriate for the term of the option-based award as of the grant date; and expected dividends as applicable, which is zero, as the Company has never paid any cash dividends. Any future determination to pay dividends will be at the discretion of the Board and will depend on the Company’s financial condition, results of operations, capital requirements, restrictions contained in any financing instruments and such other factors as the Board deems relevant in its sole discretion. Therefore, the Company uses an expected dividend yield of zero in the option-pricing model. The fair value of restricted stock, restricted stock units and performance units without market conditions are measured based upon the quoted closing market price for the stock on the date of grant. The compensation cost for the restricted stock and restricted stock units is recognized on a straight-line basis over the explicit vesting period. Restricted stock granted to the Company employees vest over a requisite services period of four years, subject to acceleration in certain circumstances. Vested restricted stock units are settled and issuable upon the earlier of the date the employee ceases to be an employee of the Company or a date certain in the future. The compensation cost for the performance units without market conditions is recognized ratably over the service period if it is probable that the performance condition will be met. The Company uses a Monte Carlo simulation model to determine the fair value of performance units with market condition at grant date. The Monte Carlo simulation model is based on a discounted cash flow approach, with the simulation of a large number of possible stock price outcomes for the Company’s stock and the target composite index. The use of the Monte Carlo simulation model requires the input of a number of assumptions including expected volatility of the Company’s stock price, which is based on the weighted-average historical volatility of its stock; correlation between changes in the Company’s stock price and changes in the target composite index, which is based on the historical relationship between the Company’s stock price and the target composite index average; risk-free interest rate, which is based on the treasury zero-coupon yield appropriate for the term of the performance unit as of the grant date; and expected dividends as applicable, which is zero, as the Company has never paid any cash dividends. Any future determination to pay dividends will be at the discretion of the Board and will depend on the Company’s financial condition, results of operations, capital requirements, restrictions contained in any financing instruments and such other factors as the Board deems relevant in its sole discretion. Therefore, the Company has used an expected dividend yield of zero in the Monte Carlo simulation model. The compensation cost for the performance units with market condition is recognized ratably over the service period. No tax benefits have been attributed to the share-based compensation expense because the Company maintains a full valuation allowance for all net deferred tax assets. All excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, are recognized as income tax expense or benefit in the income statement, eliminating the notion of the additional paid-in capital (“APIC”) pool. The excess tax benefits are classified as operating activities along with other income tax cash flows rather than financing activities in the statement of cash flows. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements are presented as a financing activity in the statement of cash flows. Retirement of common stock From time to time, the Company may acquire its common stock through share repurchases or option exercise swaps and return these shares to authorized and unissued. If the Company elects to retire these shares, the Company’s policy is to allocate a portion of the repurchase price to par value of common stock with the excess over par value allocated to accumulated deficit. |
Income Taxes | Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities as well as from net operating loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. A valuation allowance is established when it is estimated that it is more likely than not that the tax benefit of a deferred tax asset will not be realized. |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes The Company recognizes the effect of tax positions only when they are more likely than not to be sustained. Management has determined that the Company had no uncertain tax positions that would require financial statement recognition or disclosure. The Company is no longer subject to U.S. federal, state or local income tax examinations for periods prior to 2019. When applicable, the Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. For purposes of the diluted net loss per share calculation, preferred stock, convertible notes payable-affiliated |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates (“ASU”) 2023-06, Disclosure Improvements: Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. This update is effective for annual periods beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Early adoption is permitted. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid and to improve the effectiveness of income tax disclosures. This update is effective for annual periods beginning after December 15, 2024. The Company has not yet determined the impact of this pronouncement on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-02, Codification Improvements: this Codification amendment was issued to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. The amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities and are not expected to have a material impact on the Company’s consolidated financial statements or related disclosures. This update is effective for annual periods beginning after December 15, 2024. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Changes in Liability For Asset Retirement Obligations | Changes in the liability for the asset retirement obligations for the years ended March 31, 2024 and 2023 are summarized below (in thousands): 2024 2023 Balance at beginning of the year $ 543 $ 626 Liabilities settled — (79) Revision of estimate 85 (6) Accretion expense 4 2 Balance at end of the year 632 543 Less amount classified as current - included in accounts payable and accrued expenses 101 30 Noncurrent liabilities - included in other liabilities $ 531 $ 513 |
Valuation Allowance | Changes in valuation allowance for the years ended March 31, 2024 and 2023 are summarized below (in thousands): 2024 2023 Balance at beginning of the year $ 85,984 $ 79,998 Charged to costs and expenses 842 1,218 Changes in net loss carryforward and other 2,916 4,768 Balance at end of the year $ 89,742 $ 85,984 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information regarding the Company’s revenue for each of the services it provides pursuant to its spectrum revenue agreements for the years ended March 31, 2024 and 2023 (in thousands): 2024 2023 Spectrum revenues 900 MHz Broadband Spectrum Revenue Ameren Corporation $ 609 $ 609 Evergy 966 581 Xcel Energy (1) 1,887 — Narrowband Spectrum Revenue Motorola 729 729 Total spectrum revenue (2) $ 4,191 $ 1,919 1. The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband leases to Xcel Energy in September 2023. 2. |
Schedule of Contract Assets | The Company capitalizes incremental costs associated with obtaining a contract with a customer, which generally includes sales commissions. The Company’s capitalized contract costs consisted of the following activity (in thousands): 2024 2023 Balance at the beginning of the year $ 870 $ 638 Additions 199 249 Amortization (42) (17) Balance at the end of the year 1,027 870 Less amount classified as current assets (1) (580) (418) Noncurrent assets (1) $ 447 $ 452 1. Current assets are recorded as prepaid expenses and other current assets and noncurrent assets are recorded as other assets on the Company’s Consolidated Balance Sheets. |
Schedule of Contract Liabilities | Contract liabilities primarily relate to advanced consideration received from customers for spectrum services, for which revenue is recognized over time, as the services are performed. The Company’s contract liabilities consisted of the following activity (in thousands): 2024 2023 Balance at the beginning of the year $ 60,759 $ 54,678 Net additions (1) 65,644 8,000 Revenue recognized (4,191) (1,919) Balance at the end of the year 122,212 60,759 Less amount classified as current liabilities (2) (6,470) (2,769) Noncurrent liabilities (2) $ 115,742 $ 57,990 1. Represents milestone payments received from customer contracts pursuant to the terms of the associated spectrum lease agreements, net of delivery delay adjustments. 2. Current liabilities and noncurrent liabilities are recorded as deferred revenue on the Company’s Consolidated Balance Sheets. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consists of the following at March 31, 2024 and 2023 (in thousands): Estimated 2024 2023 Network sites and equipment 5-10 years $ 11,287 $ 12,292 Computer software 1-7 years 863 847 Computer equipment 5-7 years 318 279 Furniture and fixture and other equipment 2-5 years 480 450 Leasehold improvements Shorter of the lease term or 10 years 819 819 13,767 14,687 Less accumulated depreciation 11,705 11,628 2,062 3,059 Construction in process — 547 Property and equipment, net $ 2,062 $ 3,606 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following at March 31, 2024 and 2023 (in thousands): 2024 2023 Balance at the beginning of the year $ 202,044 $ 151,169 Acquisitions and transfers 12,077 12,476 Sale of intangible assets (32,402) — Exchanges - licenses received 43,700 46,174 Exchanges - licenses surrendered (8,676) (7,775) Balance at the end of the year $ 216,743 $ 202,044 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | The table below provides additional information related to the Company’s accounts payable and accrued expenses at March 31, 2024 and 2023 (in thousands): 2024 2023 Accounts payable $ 696 $ 755 Accrued employee related expenses 5,017 4,271 Accrued expenses 1,747 1,267 Accrued taxes 948 — Other 223 331 Total accounts payable and accrued expenses $ 8,631 $ 6,624 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Additional Lease Cost Information | Weighted-average remaining lease term and incremental borrowing rate for the Company’s operating leases are as follows: 2024 2023 Weighted average term - operating lease liabilities 3.59 years 2.87 years Weighted average incremental borrowing rate - operating lease liabilities 9 % 12 % |
Lease Cost | For the years ended March 31, 2024 and 2023, the following table presents total lease cost (in thousands): 2024 2023 Lease cost Operating lease cost $ 1,945 $ 1,817 Short term lease cost — 7 Total lease cost $ 1,945 $ 1,824 |
Supplemental Lease Information | The following table presents supplemental balance sheet information as of March 31, 2024 and 2023 (in thousands): 2024 2023 Non-current assets - right of use assets, net $ 4,432 $ 3,371 Current liabilities - operating lease liabilities $ 1,850 $ 1,725 Non-current liabilities - operating lease liabilities $ 3,446 $ 2,922 |
Future Minimum Payments | Future minimum payments under existing non-cancelable leases for office and tower spaces (exclusive of real estate tax, utilities, maintenance and other costs borne by the Company) for the remaining terms of the leases following the year ended March 31, 2024 are as follows (in thousands): Fiscal Year Operating 2025 $ 2,230 2026 1,492 2027 1,079 2028 734 2029 471 After 2029 54 Total future minimum lease payments 6,060 Amount representing interest (764) Present value of net future minimum lease payments $ 5,296 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities consist of the following as of March 31, 2024 and 2023 (in thousands): 2024 2023 Deferred tax asset Property and equipment $ 503 $ 724 Accrued expenses 1,080 209 Deferred revenue 12,828 6,131 Asset retirement obligations 14 13 Net operating loss carryforward 77,308 81,908 Operating lease liabilities 1,437 1,312 Charitable contributions carryforward 3 64 Stock compensation expense 8,034 6,744 Total deferred tax asset 101,207 97,105 Deferred tax liability Right of use assets (1,189) (821) Indefinite-lived intangible assets (16,557) (15,740) Total deferred tax liability (17,746) (16,561) Total deferred tax assets and liabilities 83,461 80,544 Valuation allowance (89,742) (85,984) Net deferred tax assets and liabilities $ (6,281) $ (5,440) |
Schedule of Components of Income Tax Expense | The components of the income tax expense for the years ended March 31, 2024 and 2023 are as follows (in thousands): 2024 2023 Current: Federal $ — $ — State 772 44 Total current 772 44 Deferred: Federal 432 442 State 409 776 Total deferred 841 1,218 Total income tax expense $ 1,613 $ 1,262 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the United States federal statutory tax rate and the Company’s effective tax rate for the years ended March 31, 2024 and 2023 are as follows (in thousands): 2024 2023 Statutory federal tax $ (1,578) 21 % $ (3,162) 21 % State income taxes, net of federal benefit 1,023 -14 % 814 -23 % Incentive stock option expense (46) 1 % (27) 0 % Other permanent differences (11) 0 % (62) 0 % 162M executive compensation limit 78 -1 % 316 -2 % Change in valuation allowance - Federal 1,866 -25 % 3,314 -22 % Prior-year adjustments 281 -3 % 69 0 % $ 1,613 -21 % $ 1,262 -26 % |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock and Restricted Stock Units Activity | A summary of non-vested restricted stock activity for the year ended March 31, 2024 is as follows: Restricted Weighted Non-vested restricted stock outstanding at March 31, 2023 568,662 $ 47.93 Granted 183,789 33.45 Vested (232,823) 46.89 Forfeited (17,054) 45.38 Non-vested restricted stock outstanding at March 31, 2024 502,574 $ 43.19 |
Schedule of Restricted Stock Activity | The following table reflects activity related to the Company’s restricted stock for the years ended March 31, 2024 and 2023: 2024 2023 Weighted-average grant-date fair value per unit granted $ 33.45 $ 47.85 Fair value of restricted stock units vested (in thousands) $ 10,918 $ 12,245 |
Summary of Performance Stock Activity | A summary of the performance-based restricted stock unit activity for the year ended March 31, 2024 is as follows: Performance Stock Weighted Performance stock outstanding at March 31, 2023 75,049 $ 58.65 Granted 78,683 30.89 Vested — — Forfeited/cancelled — — Performance stock outstanding at March 31, 2024 153,732 $ 44.44 |
Schedule of Performance Shares Activity | The following table reflects activity related to the Company’s performance-based restricted stock units for the years ended March 31, 2024 and 2023: 2024 2023 Weighted-average grant-date fair value per unit granted $ 30.89 $ — Fair value of Performance stock units vested (in thousands) $ — $ — |
Schedule of Assumptions used to Calculate Fair Value of Performance-Based Restricted Units | The following assumptions were used to calculate the grant date fair value of performance-based restricted units with market price condition using the Monte Carlo simulation model: February 1, 2021 Risk-free interest rate 0.29% Dividend yield —% Volatility 56.09% Simulation term 4 years Forfeiture rate —% |
Summary of Stock Option Activity | A summary of Stock Option activity for the year ended March 31, 2024 is as follows: Options Weighted Average Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Options outstanding at March 31, 2023 1,402,949 $ 39.12 Options granted 306,187 36.10 Options exercised (91,250) 21.93 Options forfeited/expired — — Options outstanding at March 31, 2024 1,617,886 $ 39.52 6.33 $ 4,400,717 Exercisable at March 31, 2024 851,854 $ 34.94 4.10 $ 4,400,717 Total vested or expected to vest at March 31, 2024 1,616,910 $ 39.51 6.33 $ 4,400,717 |
Schedule of Assumptions used to Calculate Fair Value of Options | The following assumptions were used to calculate the fair value of stock options: Year Ended Year Ended March 31, 2024 March 31, 2023 Risk-free interest rate 3.90% to 4.22% 2.95% to 3.62% Dividend yield —% —% Volatility 49.23% to 49.54% 50.80% to 51.60% Expected term 5.39 years to 5.72 years 5.43 years Forfeiture rate —% to 3% —% to 3% Weighted-average grant-date fair value per option granted $ 36.10 $ 49.39 |
Summary of Performance Stock Options | A summary of the Performance-Based Stock Options for the year ended March 31, 2024 is as follows: Performance Options Weighted Average Exercise Price Performance Options outstanding at March 31, 2023 33,782 $ 46.85 Performance Options granted — — Performance Options exercised — — Performance Options forfeited/expired — — Performance Options outstanding at March 31, 2024 33,782 $ 46.85 |
Share Repurchase Activity | The following table presents the share repurchase activity for Fiscal 2024 and Fiscal 2023 (in thousands, except per share data): For the years ended March 31, 2024 2023 Number of shares repurchased and retired 736 216 Average price paid per share* $ 33.72 $ 47.05 Total cost to repurchase $ 24,676 $ 8,223 * Average price paid per share includes costs associated with the repurchases. |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table summarizes the Company’s supplemental cash flow information: For the years ended March 31, (in thousands) 2024 2023 Cash paid during the period: Taxes paid $ 70 $ 14 Operating lease 2,316 2,217 Non-cash investing activity: Capitalized change in estimated asset retirement obligations $ 89 $ (6) Network equipment provided in exchange for wireless licenses 616 36 Deferred gain on sale of intangible assets 4,911 — Derecognition of contingent liability related to sale of intangible assets 19,249 — Rights of use asset for new leases 645 165 Rights of use asset for modifications and renewals 1,928 — |
Nature of Operations (Details)
Nature of Operations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 45 Months Ended | ||||||||||||||
Jan. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Nov. 30, 2023 USD ($) mi² term | Sep. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | Apr. 30, 2023 USD ($) city county | Oct. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Feb. 28, 2021 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) county | Mar. 31, 2023 USD ($) county | Dec. 31, 2026 USD ($) | Sep. 21, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Prepayments received | $ 122,212 | $ 60,759 | $ 54,678 | |||||||||||||||
Broadband licenses granted, number of counties | county | 28 | 84 | ||||||||||||||||
Payments to acquire intangible assets | $ 17,031 | $ 25,004 | ||||||||||||||||
Increase in deposit assets | $ 7,500 | 7,500 | ||||||||||||||||
Spectrum revenue | 4,191 | 1,919 | ||||||||||||||||
Contingent liability | $ 20,000 | 15,000 | 0 | |||||||||||||||
Stock repurchase program, authorized amount | $ 250,000 | $ 50,000 | ||||||||||||||||
SDG&E | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Consideration transferred | $ 50,000 | |||||||||||||||||
Spectrum revenue | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Spectrum revenue | 4,191 | 1,919 | ||||||||||||||||
Tampa Electric Company | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Agreement term | 20 years | |||||||||||||||||
Number of agreement extension terms | term | 2 | |||||||||||||||||
Agreement extension term | 10 years | |||||||||||||||||
Service area | mi² | 2,000 | |||||||||||||||||
Total scheduled prepayments | $ 34,500 | |||||||||||||||||
Prepayments received | $ 6,900 | 6,900 | ||||||||||||||||
Lower Colorado River Authority (LCRA) | Wireless Licenses | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Broadband licenses granted, number of counties | county | 68 | |||||||||||||||||
Broadband licenses granted, minimum number of cities | city | 30 | |||||||||||||||||
Payments to acquire intangible assets | $ 30,000 | |||||||||||||||||
Lower Colorado River Authority (LCRA) | Wireless Licenses | Forecast | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Payments to acquire intangible assets | $ 30,000 | |||||||||||||||||
Lower Colorado River Authority (LCRA) | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Initial payment received | $ 15,000 | 15,000 | ||||||||||||||||
Xcel Energy | Spectrum revenue | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Spectrum revenue | 1,887 | $ 0 | ||||||||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Agreement term | 20 years | |||||||||||||||||
Agreement extension term | 10 years | |||||||||||||||||
Total scheduled prepayments | $ 80,000 | |||||||||||||||||
Prepayments received | $ 67,100 | $ 8,000 | ||||||||||||||||
Milestone payment received | $ 21,200 | $ 21,200 | ||||||||||||||||
Advance payment received | $ 16,800 | |||||||||||||||||
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||||||||
Milestone payment received | $ 200 | $ 25,200 | $ 200 | |||||||||||||||
Delivery delay adjustments | $ 1,100 | $ 1,100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Liabilities settled | $ 0 | $ 79,000 | ||
Increase (decrease) in asset retirement obligations accrual | $ 85,000 | (6,000) | ||
Wireless licenses term | 10 years | |||
Impairment charges | $ 0 | 0 | ||
Payments to acquire intangible assets | 17,031,000 | 25,004,000 | ||
Indefinite-lived intangible assets, period Increase from recognition of receivables | 9,100,000 | |||
Increase in deferred charges | 10,900,000 | |||
Impairment of long-lived assets | 0 | $ 0 | ||
Lease extension | 10 years | 10 years | ||
Tax benefits attributed to share-based compensation expense | $ 0 | |||
Potentially dilutive securities outstanding but excluded from computation of earnings per share | 241,629 | 352,216 | ||
Stock Options | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Award expiration period | 10 years | |||
Award requisite service period | 3 years | |||
Dividend yield | 0% | 0% | ||
Stock Options | Grants Prior To November 2020 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Award requisite service period | 4 years | |||
Restricted Stock | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Award requisite service period | 4 years | |||
Dividend yield | 0% | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease extension | 3 years | |||
Accelerated vesting provision, change in control, purchase price (in dollars per share) | $ 100 | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease extension | 10 years | |||
Advertising | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Advertising and promotional expense | $ 62,000 | $ 92,000 | ||
Customer Concentration Risk | Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Accounts receivable | 0 | 0 | ||
Leased Premises | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Liabilities settled | $ 0 | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Changes in Liability For Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of the year | $ 543 | $ 626 |
Liabilities settled | 0 | (79) |
Revision of estimate | 85 | (6) |
Accretion expense | 4 | 2 |
Balance at end of the year | 632 | 543 |
Asset Retirement Obligation [Abstract] | ||
Less amount classified as current - included in accounts payable and accrued expenses | 101 | 30 |
Noncurrent liabilities - included in other liabilities | $ 531 | $ 513 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Valuation Allowance [Roll Forward] | ||
Balance at beginning of the year | $ 85,984 | $ 79,998 |
Charged to costs and expenses | 842 | 1,218 |
Changes in net loss carryforward and other | 2,916 | 4,768 |
Balance at end of the year | $ 89,742 | $ 85,984 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | $ 4,191 | $ 1,919 |
Spectrum revenue | ||
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | 4,191 | 1,919 |
Ameren | Spectrum revenue | ||
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | 609 | 609 |
Evergy | Spectrum revenue | ||
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | 966 | 581 |
Xcel Energy | Spectrum revenue | ||
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | 1,887 | 0 |
Motorola | Spectrum revenue | ||
Disaggregation of Revenue [Line Items] | ||
Spectrum revenue | $ 729 | $ 729 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands, people in Millions, customer in Millions | 1 Months Ended | ||||||||||||
Jan. 31, 2024 USD ($) | Nov. 30, 2023 USD ($) mi² | Oct. 31, 2022 USD ($) term customer | Oct. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) renewalOption people | Feb. 28, 2021 USD ($) people | Dec. 31, 2020 USD ($) people | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2014 USD ($) | |
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of people covered by network | people | 3.6 | 7.5 | |||||||||||
Lease term | 30 years | ||||||||||||
Lease extension | 10 years | 10 years | |||||||||||
Scheduled prepayments | $ 47,700 | ||||||||||||
Contractual term | 30 years | ||||||||||||
Days after agreement execution, payments due | 30 days | ||||||||||||
Prepayments received | $ 122,212 | $ 60,759 | $ 54,678 | ||||||||||
Prepaid expenses and other current assets | 3,912 | $ 2,443 | |||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Remaining performance obligation, amount | $ 187,000 | ||||||||||||
Remaining performance obligation, expected timing of satisfaction, period | 30 years | ||||||||||||
Spectrum revenue | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Prepaid expenses and other current assets | $ 7,500 | ||||||||||||
Ameren | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Lease payments received | $ 17,200 | $ 5,400 | $ 300 | ||||||||||
Evergy | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of people covered by network | people | 3.9 | ||||||||||||
Lease term | 20 years | 20 years | |||||||||||
Scheduled prepayments | $ 30,200 | ||||||||||||
Number of renewal options | renewalOption | 2 | ||||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Agreement term | 20 years | ||||||||||||
Number of agreement extensions | term | 2 | ||||||||||||
Agreement extension term | 10 years | ||||||||||||
Total scheduled prepayments | $ 80,000 | ||||||||||||
Prepayments received | $ 67,100 | $ 8,000 | |||||||||||
Advance payment received | $ 16,800 | ||||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Electricity | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of customers | customer | 3.7 | ||||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Natural Gas | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Number of customers | customer | 2.1 | ||||||||||||
Tampa Electric Company | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Agreement term | 20 years | ||||||||||||
Agreement extension term | 10 years | ||||||||||||
Total scheduled prepayments | $ 34,500 | ||||||||||||
Prepayments received | $ 6,900 | ||||||||||||
Service area | mi² | 2,000 | ||||||||||||
Maximum | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Lease extension | 10 years | ||||||||||||
Contractual term | 10 years | ||||||||||||
Maximum | Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Prepayments received | $ 65,200 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Capitalized Contract Costs [Roll Forward] | ||
Beginning balance | $ 870 | $ 638 |
Additions | 199 | 249 |
Amortization | (42) | (17) |
Ending balance | 1,027 | 870 |
Capitalized Contract Cost, Net, Classified [Abstract] | ||
Balance | 1,027 | 870 |
Less amount classified as current assets | (580) | (418) |
Noncurrent assets | $ 447 | $ 452 |
Revenue - Schedule of Contrac_2
Revenue - Schedule of Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 60,759 | $ 54,678 |
Additions | 65,644 | 8,000 |
Revenue recognized | (4,191) | (1,919) |
Ending balance | 122,212 | 60,759 |
Contract with Customer, Liability [Abstract] | ||
Balance | 122,212 | 60,759 |
Less amount classified as current liabilities | (6,470) | (2,769) |
Noncurrent liabilities | $ 115,742 | $ 57,990 |
Escrow Deposits (Details)
Escrow Deposits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2024 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Increase in deposit assets | $ 7.5 | $ 7.5 |
Lower Colorado River Authority (LCRA) | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Initial payment received | $ 15 | $ 15 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 13,767 | $ 14,687 |
Less accumulated depreciation | 11,705 | 11,628 |
Property and equipment, net before construction work in progress | 2,062 | 3,059 |
Construction in process | 0 | 547 |
Property and equipment, net | 2,062 | 3,606 |
Network sites and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,287 | 12,292 |
Network sites and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Network sites and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 863 | 847 |
Computer software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 1 year | |
Computer software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 318 | 279 |
Computer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Computer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Furniture and fixture and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 480 | 450 |
Furniture and fixture and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Furniture and fixture and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Property and equipment, gross | $ 819 | $ 819 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 800 | $ 1,400 |
Impairment of long-lived assets | $ 0 | $ 0 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) county | Mar. 31, 2023 USD ($) county | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 0 | $ 0 | |||
Broadband licenses granted, number of counties | county | 28 | 84 | |||
Gain (loss) from disposal of intangible assets, net | $ 35,024,000 | $ 38,399,000 | |||
Proceeds from sale of spectrum | 25,427,000 | 0 | |||
Gain on sale of intangible assets | 7,364,000 | 0 | |||
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Delivery delay adjustments | $ 1,100,000 | $ 1,100,000 | |||
Wireless Licenses | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Licenses received | 43,700,000 | 46,174,000 | |||
Licenses exchanged | $ 8,676,000 | $ 7,775,000 | |||
Proceeds from sale of spectrum | $ 700,000 | 44,000,000 | |||
Reduction in indefinite-lived intangible assets | 600,000 | 31,800,000 | |||
Gain on sale of intangible assets | $ 32,000 | $ 7,300,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 202,044 | |
Ending balance | 216,743 | $ 202,044 |
Wireless Licenses | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 202,044 | 151,169 |
Acquisitions and transfers | 12,077 | 12,476 |
Sale of intangible assets | (32,402) | 0 |
Exchanges - licenses received | 43,700 | 46,174 |
Exchanges - licenses surrendered | (8,676) | (7,775) |
Ending balance | $ 216,743 | $ 202,044 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 696 | $ 755 |
Accrued employee related expenses | 5,017 | 4,271 |
Accrued expenses | 1,747 | 1,267 |
Accrued taxes | 948 | 0 |
Other | 223 | 331 |
Total accounts payable and accrued expenses | $ 8,631 | $ 6,624 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Apr. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Prepayments received | $ 122,212,000 | $ 60,759,000 | $ 54,678,000 | |
TeamConnect LLC | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 19.50% | |||
TeamConnect LLC | ||||
Related Party Transaction [Line Items] | ||||
Service fee term | 24 months | |||
TeamConnect LLC | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Service fee term | 48 months | |||
Prepayments received | $ 0 | 0 | ||
Goosetown And A BEEP | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Consulting fees | $ 0 | $ 55,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2021 | Dec. 31, 2020 | |
Lease [Line Items] | ||||
Lease extension | 10 years | 10 years | ||
Rent expense | $ 1.9 | $ 1.8 | ||
Minimum | ||||
Lease [Line Items] | ||||
Lease extension | 3 years | |||
Maximum | ||||
Lease [Line Items] | ||||
Lease extension | 10 years |
Leases - Additional Lease Cost
Leases - Additional Lease Cost Information (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Lease, Cost [Abstract] | ||
Weighted average term - operating lease liabilities | 3 years 7 months 2 days | 2 years 10 months 13 days |
Weighted average incremental borrowing rate - operating lease liabilities | 9% | 12% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 1,945 | $ 1,817 |
Short term lease cost | 0 | 7 |
Total lease cost | $ 1,945 | $ 1,824 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Non-current assets - right of use assets, net | $ 4,432 | $ 3,371 |
Current liabilities - operating lease liabilities | 1,850 | 1,725 |
Non-current liabilities - operating lease liabilities | $ 3,446 | $ 2,922 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2025 | $ 2,230 |
2026 | 1,492 |
2027 | 1,079 |
2028 | 734 |
2029 | 471 |
After 2029 | 54 |
Total future minimum lease payments | 6,060 |
Amount representing interest | (764) |
Present value of net future minimum lease payments | $ 5,296 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Line Items] | ||
Deferred tax asset | $ 83,500 | $ 80,500 |
Deferred tax liability | 17,746 | 16,561 |
Deferred federal, state and local, tax expense (benefit) | 400 | (800) |
Indefinite-lived Intangible Assets | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax liability | 6,300 | 5,400 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Net NOL carryforwards | 307,300 | 327,800 |
Net operating loss carryforwards | 66,200 | |
Net operating loss carryforwards, no expiration | 241,100 | 237,500 |
State | ||
Income Tax Disclosure [Line Items] | ||
Net NOL carryforwards | 212,000 | 216,700 |
Net operating loss carryforwards | 169,100 | |
Net operating loss carryforwards, no expiration | $ 42,900 | $ 63,700 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax asset | |||
Property and equipment | $ 503 | $ 724 | |
Accrued expenses | 1,080 | 209 | |
Deferred revenue | 12,828 | 6,131 | |
Asset retirement obligations | 14 | 13 | |
Net operating loss carryforward | 77,308 | 81,908 | |
Operating lease liabilities | 1,437 | 1,312 | |
Charitable contributions carryforward | 3 | 64 | |
Stock compensation expense | 8,034 | 6,744 | |
Total deferred tax asset | 101,207 | 97,105 | |
Deferred tax liability | |||
Right of use assets | (1,189) | (821) | |
Indefinite-lived intangible assets | (16,557) | (15,740) | |
Total deferred tax liability | (17,746) | (16,561) | |
Valuation allowance | (89,742) | (85,984) | $ (79,998) |
Net deferred tax assets and liabilities | (6,281) | (5,440) | |
Definite-Lived Intangible Assets | |||
Deferred tax liability | |||
Total deferred tax assets and liabilities | $ 83,461 | $ 80,544 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 772 | 44 |
Total current | 772 | 44 |
Deferred: | ||
Federal | 432 | 442 |
State | 409 | 776 |
Total deferred | 841 | 1,218 |
Total income tax expense | $ 1,613 | $ 1,262 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Statutory federal tax | $ (1,578) | $ (3,162) |
State income taxes, net of federal benefit | 1,023 | 814 |
Incentive stock option expense | (46) | (27) |
Other permanent differences | (11) | (62) |
162M executive compensation limit | 78 | 316 |
Change in valuation allowance - Federal | 1,866 | 3,314 |
Prior-year adjustments | 281 | 69 |
Total income tax expense | $ 1,613 | $ 1,262 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory federal tax | 21% | 21% |
State income taxes, net of federal benefit | (14.00%) | (23.00%) |
Incentive stock option expense | 1% | 0% |
Other permanent differences | 0% | 0% |
162M executive compensation limit | (1.00%) | (2.00%) |
Change in valuation allowance - Federal | (25.00%) | (22.00%) |
Prior-year adjustments | (3.00%) | 0% |
Total income tax expense, percent | (21.00%) | (26.00%) |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) | 12 Months Ended | 31 Months Ended | |||||||||
May 30, 2022 | Feb. 01, 2021 | Jun. 24, 2020 | Sep. 15, 2014 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Sep. 21, 2023 | Aug. 08, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares available (in shares) | 200,651 | 200,651 | |||||||||
General and administrative | $ 44,423,000 | $ 45,177,000 | |||||||||
Product development | 5,697,000 | 4,439,000 | |||||||||
Sales and support | 5,693,000 | 5,733,000 | |||||||||
Stock compensation expense | 15,507,000 | 17,874,000 | |||||||||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 50,000,000 | |||||||||
Retirement of common stock | 24,676,000 | 8,223,000 | $ 33,900,000 | ||||||||
Excise taxes collected | 200,000 | ||||||||||
Stock repurchase program, remaining authorized repurchase amount | 236,100,000 | 236,100,000 | |||||||||
Sale of stock (in shares) | 500,000 | ||||||||||
Common Class B Units | PDV Spectrum Holding Company, LLC | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity method investee, cumulative proceeds received on all transactions | $ 10,000,000 | ||||||||||
Sale of stock (in shares) | 500,000 | ||||||||||
Sale of stock (in dollars per share) | $ 20 | ||||||||||
Common Class A | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of units owned | 100% | ||||||||||
Shares registered for resale (in shares) | 500,000 | ||||||||||
Common Class A | PDV Spectrum Holding Company, LLC | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Subsidiary equity units for which investor has right to convert to common stock (in shares) | 500,000 | ||||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation expense | 9,900,000 | 10,900,000 | |||||||||
General and administrative | 9,100,000 | 9,800,000 | |||||||||
Product development | 400,000 | 600,000 | |||||||||
Sales and support | 400,000 | 500,000 | |||||||||
Unvested compensation expense | $ 14,400,000 | $ 18,500,000 | 14,400,000 | ||||||||
Weighted average period of recognition of unrecognized compensation cost | 1 year 11 months 1 day | 2 years 3 months 21 days | |||||||||
Performance-Based Restricted Stock Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation expense | $ 800,000 | $ 1,300,000 | |||||||||
Unvested compensation expense | $ 300,000 | $ 2,500,000 | $ 300,000 | ||||||||
Weighted average period of recognition of unrecognized compensation cost | 1 year 2 months 23 days | 1 year 8 months 15 days | |||||||||
Annual compound growth rate used to calculate stock price levels | 4 years | ||||||||||
Common stock trading day period | 60 days | ||||||||||
Performance-Based Restricted Stock Units | Cumulative Spectrum Proceeds Monetized | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Measurement period | 4 years | ||||||||||
Vesting if target metric achieved (in shares) | 30,049 | ||||||||||
Performance-Based Restricted Stock Units | Cumulative Spectrum Proceeds Monetized | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage share payout | 0% | ||||||||||
Performance-Based Restricted Stock Units | Cumulative Spectrum Proceeds Monetized | Minimum | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting if target metric achieved (in shares) | 15,025 | ||||||||||
Performance-Based Restricted Stock Units | Cumulative Spectrum Proceeds Monetized | Maximum | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage share payout | 200% | ||||||||||
Vesting if target metric achieved (in shares) | 60,098 | ||||||||||
Performance-Based Restricted Stock Units | TSR | President and Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting if target metric achieved (in shares) | 45,000 | ||||||||||
Performance-Based Restricted Stock Units | TSR | Minimum | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage share payout | 25% | ||||||||||
Performance-Based Restricted Stock Units | TSR | Minimum | President and Chief Executive Officer | First Anniversary | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of vesting for stock granted to employees | 25% | ||||||||||
Performance-Based Restricted Stock Units | TSR | Maximum | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage share payout | 350% | ||||||||||
Performance-Based Restricted Stock Units | TSR | Maximum | President and Chief Executive Officer | First Anniversary | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of vesting for stock granted to employees | 350% | ||||||||||
Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Weighted average period of recognition of unrecognized compensation cost | 1 year 5 months 8 days | 1 year 8 months 4 days | |||||||||
Options, outstanding, contingently issued (in shares) | 85,000 | 85,000 | |||||||||
Intrinsic value of options exercised | $ 1,300,000 | $ 1,200,000 | |||||||||
Weighted average grant-date fair value per option granted (in dollars per share) | $ 36.10 | $ 49.39 | |||||||||
Unrecognized compensation cost related to non-vested share options granted | $ 8,200,000 | $ 7,400,000 | $ 8,200,000 | ||||||||
Stock options outstanding | 1,617,886 | 1,402,949 | 1,617,886 | ||||||||
Service-Based Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation expense | $ 4,800,000 | $ 5,600,000 | |||||||||
Performance-Based Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unvested compensation expense | 0 | 0 | $ 0 | ||||||||
Stock compensation expense | $ 0 | $ 0 | |||||||||
Stock options outstanding | 33,782 | 33,782 | 33,782 | ||||||||
2014 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares available (in shares) | 388,151 | 388,151 | |||||||||
2014 Stock Plan | Performance-Based Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock authorized and reserved for issuance (in shares) | 181,887 | 181,887 | |||||||||
2023 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock authorized and reserved for issuance (in shares) | 250,000 | ||||||||||
Retirement of common stock | $ 13,900,000 | ||||||||||
2023 Stock Plan | Performance-Based Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Performance threshold, percentage | 100% | ||||||||||
2021 Share Repurchase Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Retirement of common stock | $ 10,700,000 |
Stock Compensation - Summary of
Stock Compensation - Summary of Restricted Stock and Restricted Stock Units Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock | ||
Beginning stock outstanding (in shares) | 568,662 | |
Granted (in shares) | 183,789 | |
Vested (in shares) | (232,823) | |
Forfeited (in shares) | (17,054) | |
Ending stock outstanding (in shares) | 502,574 | 568,662 |
Weighted Average Grant Day Fair Value | ||
Beginning outstanding (in dollars per share) | $ 47.93 | |
Granted (in dollars per share) | 33.45 | $ 47.85 |
Vested (in dollars per share) | 46.89 | |
Forfeited (in dollars per share) | 45.38 | |
Ending outstanding (in dollars per share) | $ 43.19 | $ 47.93 |
Stock Compensation - Activity o
Stock Compensation - Activity of Restricted Stock (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value per unit granted (in dollars per share) | $ 33.45 | $ 47.85 |
Fair value of restricted stock units vested (in thousands) | $ 10,918 | $ 12,245 |
Stock Compensation - Summary _2
Stock Compensation - Summary of Performance Stock Activity (Details) - Performance-Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Performance Stock | ||
Beginning stock outstanding (in shares) | 75,049 | |
Granted (in shares) | 78,683 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Ending stock outstanding (in shares) | 153,732 | 75,049 |
Weighted Average Grant Day Fair Value | ||
Beginning outstanding (in dollars per share) | $ 58.65 | |
Granted (in dollars per share) | 30.89 | $ 0 |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Ending outstanding (in dollars per share) | $ 44.44 | $ 58.65 |
Stock Compensation - Activity_2
Stock Compensation - Activity of Performance-based Restricted Stock (Details) - Performance-Based Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value per unit granted (in dollars per share) | $ 30.89 | $ 0 |
Fair value of restricted stock units vested (in thousands) | $ 0 | $ 0 |
Stock Compensation - Schedule o
Stock Compensation - Schedule of Assumptions used to Calculate Fair Value of Performance-Based Restricted Units (Details) - Performance-Based Restricted Stock Units | Feb. 01, 2021 |
Risk-free interest rate | 0.29% |
Dividend yield | 0% |
Volatility | 56.09% |
Simulation term | 4 years |
Forfeiture rate | 0% |
Stock Compensation - Summary _3
Stock Compensation - Summary of Stock Option Activity (Details) - Stock Options | 12 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Options | |
Beginning options outstanding (in shares) | shares | 1,402,949 |
Options granted (in shares) | shares | 306,187 |
Options exercised (in shares) | shares | (91,250) |
Options forfeited/expired (in shares) | shares | 0 |
Ending options outstanding (in shares) | shares | 1,617,886 |
Exercisable at period end (in shares) | shares | 851,854 |
Total vested or expected to vest at period end (in shares) | shares | 1,616,910 |
Weighted Average Exercise Price | |
Beginning outstanding (in dollars per share) | $ / shares | $ 39.12 |
Granted (in dollars per share) | $ / shares | 36.10 |
Exercised (in dollars per share) | $ / shares | 21.93 |
Forfeited/expired (in dollars per share) | $ / shares | 0 |
Ending outstanding (in dollars per share) | $ / shares | 39.52 |
Exercisable at period end (in dollars per share) | $ / shares | 34.94 |
Total vested and expected to vest (in dollars per share) | $ / shares | $ 39.51 |
Additional Disclosures [Abstract] | |
Weighted average contractual term, options outstanding | 6 years 3 months 29 days |
Weighted average contractual term, exercisable | 4 years 1 month 6 days |
Weighted average contractual term, total vested and expected to vest | 6 years 3 months 29 days |
Aggregate intrinsic value, options outstanding | $ | $ 4,400,717 |
Aggregate intrinsic value, exercisable | $ | 4,400,717 |
Aggregate intrinsic value, total vested and expected to vest | $ | $ 4,400,717 |
Stock Compensation - Schedule_2
Stock Compensation - Schedule of Assumptions used to Calculate Fair Value of Options (Details) - Stock Options - $ / shares | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividend yield | 0% | 0% |
Weighted average grant-date fair value per option granted (in dollars per share) | $ 36.10 | $ 49.39 |
Minimum | ||
Risk-free interest rate | 3.90% | 2.95% |
Volatility | 49.23% | 50.80% |
Expected term | 5 years 4 months 20 days | |
Forfeiture rate | 0% | 0% |
Maximum | ||
Risk-free interest rate | 4.22% | 3.62% |
Volatility | 49.54% | 51.60% |
Expected term | 5 years 8 months 19 days | 5 years 5 months 4 days |
Forfeiture rate | 3% | 3% |
Stock Compensation - Summary _4
Stock Compensation - Summary of Performance Stock Options (Details) - Performance-Based Stock Options | 12 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Options | |
Beginning options outstanding (in shares) | shares | 33,782 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Options forfeited/expired (in shares) | shares | 0 |
Ending options outstanding (in shares) | shares | 33,782 |
Weighted Average Exercise Price | |
Beginning outstanding (in dollars per share) | $ / shares | $ 46.85 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited/expired (in dollars per share) | $ / shares | 0 |
Ending outstanding (in dollars per share) | $ / shares | $ 46.85 |
Stock Compensation - Share Repu
Stock Compensation - Share Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of shares repurchased (in shares) | 736 | 216 |
Average price paid per share (in dollars per share) | $ 33.72 | $ 47.05 |
Total cost to repurchase | $ 24,676 | $ 8,223 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||
Taxes paid | $ 70 | $ 14 |
Operating lease | 2,316 | 2,217 |
Non-cash investing activity: | ||
Capitalized change in estimated asset retirement obligations | 89 | (6) |
Network equipment provided in exchange for wireless licenses | 616 | 36 |
Deferred gain on sale of intangible assets | 4,911 | 0 |
Derecognition of contingent liability related to sale of intangible assets | 19,249 | 0 |
Rights of use asset for new leases | 645 | 165 |
Rights of use asset for modifications and renewals | $ 1,928 | $ 0 |
Supplemental Disclosure of Ca_4
Supplemental Disclosure of Cash Flow Information - Narrative (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2024 USD ($) county | Mar. 31, 2023 USD ($) county | |
Supplemental Cash Flow Elements [Abstract] | ||
Broadband licenses granted, number of counties | county | 28 | 84 |
Gain (loss) from disposal of intangible assets, net | $ | $ 35,024 | $ 38,399 |
Contingencies and Guaranty (Det
Contingencies and Guaranty (Details) $ in Thousands, people in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 USD ($) | Nov. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jul. 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Oct. 31, 2022 | Sep. 30, 2022 USD ($) | Feb. 28, 2021 USD ($) people | Dec. 31, 2020 people | Dec. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||||||||
Number of people | people | 3.6 | 7.5 | ||||||||||||
Contingent liability | $ 20,000 | $ 15,000 | $ 0 | |||||||||||
Derecognition of contingent liability related to sale of intangible assets | 19,249 | 0 | ||||||||||||
Contingent liability | 1,000 | 20,249 | ||||||||||||
Payments to acquire intangible assets | 17,031 | 25,004 | ||||||||||||
Increase in deposit assets | $ 7,500 | 7,500 | ||||||||||||
Prepayments received | 122,212 | $ 60,759 | $ 54,678 | |||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Milestone payment received | $ 21,200 | $ 21,200 | ||||||||||||
Agreement term | 20 years | |||||||||||||
Prepayments received | 67,100 | $ 8,000 | ||||||||||||
Xcel Energy | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | Maximum | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Prepayments received | 65,200 | |||||||||||||
SDG&E | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Milestone payment received | $ 200 | $ 25,200 | $ 200 | |||||||||||
Milestone delivery delay adjustments | $ 1,100 | |||||||||||||
Lower Colorado River Authority (LCRA) | Wireless Licenses | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Payments to acquire intangible assets | $ 30,000 | |||||||||||||
Lower Colorado River Authority (LCRA) | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Initial payment received | $ 15,000 | $ 15,000 | ||||||||||||
SDG&E | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Consideration transferred | $ 50,000 |
Subsequent Events (Details)
Subsequent Events (Details) circuitMile in Thousands, home in Millions, $ in Millions | 12 Months Ended | ||
Jun. 26, 2024 USD ($) home people circuitMile | Mar. 31, 2024 county | Mar. 31, 2023 county | |
Subsequent Event [Line Items] | |||
Broadband licenses granted, number of counties | county | 28 | 84 | |
Subsequent Event | Oncor Electric Delivery Company LLC | Wireless Licenses | |||
Subsequent Event [Line Items] | |||
Broadband licenses granted, estimated consideration | $ | $ 102.5 | ||
Broadband licenses granted, number of counties | 95 | ||
Number of transmission and distribution lines | circuitMile | 143 | ||
Number of homes served | home | 4 | ||
Population served | 13,000,000 |