Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Sep. 04, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39029 | |
Entity Registrant Name | MEDIACO HOLDING INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 84-2427771 | |
Entity Address, Address Line One | 48 West 25th Street | |
Entity Address, Address Line Two | Third Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10010 | |
City Area Code | 212 | |
Local Phone Number | 229-9797 | |
Title of 12(b) Security | Class A common stock, $0.01 par value | |
Trading Symbol | MDIA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001784254 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 41,289,461 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,413,197 | |
Class C Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
NET REVENUES | $ 26,202 | $ 12,080 | $ 32,908 | $ 19,415 |
OPERATING EXPENSES: | ||||
Operating expenses excluding depreciation and amortization expense | 34,647 | 11,046 | 41,297 | 18,283 |
Corporate expenses | 3,445 | 1,002 | 6,835 | 2,886 |
Depreciation and amortization | 1,431 | 148 | 1,564 | 307 |
Loss (gain) on disposal of assets | 5 | 0 | 5 | (39) |
Total operating expenses | 39,528 | 12,196 | 49,701 | 21,437 |
OPERATING LOSS | (13,326) | (116) | (16,793) | (2,022) |
OTHER INCOME (EXPENSE): | ||||
Interest expense, net | (3,782) | (116) | (3,918) | (219) |
Change in fair value of warrant shares liability | (31,027) | 0 | (31,027) | 0 |
Other income (expense) | 10 | (123) | 20 | 6 |
Total other expense | (34,799) | (239) | (34,925) | (213) |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (48,125) | (355) | (51,718) | (2,235) |
PROVISION FOR INCOME TAXES | 182 | 75 | 266 | 150 |
NET LOSS FROM CONTINUING OPERATIONS | (48,307) | (430) | (51,984) | (2,385) |
DISCONTINUED OPERATIONS: | ||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | 0 | 9 | 0 | (143) |
CONSOLIDATED NET LOSS | (48,307) | (421) | (51,984) | (2,528) |
Net income attributable to noncontrolling interest | 828 | 0 | 828 | 0 |
PREFERRED STOCK DIVIDENDS | 128 | 596 | 851 | 1,186 |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS, DILUTED | (49,263) | (1,017) | (53,663) | (3,714) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (49,263) | $ (1,017) | $ (53,663) | $ (3,714) |
Net loss per share attributable to common shareholders - basic and diluted: | ||||
Continuing operations - basic (in dollars per share) | $ (0.75) | $ (0.04) | $ (1.19) | $ (0.14) |
Continuing operations - diluted (in dollars per share) | (0.75) | (0.04) | (1.19) | (0.14) |
Discontinued operations - basic (in dollars per share) | 0 | 0 | 0 | (0.01) |
Discontinued operations - diluted (in dollars per share) | 0 | 0 | 0 | (0.01) |
Net loss per share attributable to common shares, basic (in dollars per share) | (0.75) | (0.04) | (1.19) | (0.15) |
Net loss per share attributable to common shareholders, diluted (in dollars per share) | $ (0.75) | $ (0.04) | $ (1.19) | $ (0.15) |
Weighted average common shares outstanding: | ||||
Basic weighted average number of common shares outstanding (in shares) | 65,415 | 24,947 | 45,166 | 24,927 |
Diluted weighted average number of common shares outstanding (in shares) | 65,415 | 24,947 | 45,166 | 24,927 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 9,918 | $ 3,817 |
Restricted cash | 0 | 1,337 |
Accounts receivable, net of allowance for credit losses of $679 and $353, respectively | 27,676 | 6,675 |
Prepaid expenses | 1,716 | 891 |
Current programming rights | 3,306 | 0 |
Other current assets | 1,283 | 1,188 |
Total current assets | 43,899 | 13,908 |
PROPERTY AND EQUIPMENT, NET | 18,902 | 1,380 |
GOODWILL | 14,878 | 0 |
OTHER INTANGIBLE ASSETS, NET | 204,688 | 64,593 |
OTHER ASSETS: | ||
Lease right of use assets | 47,205 | 13,614 |
Noncurrent programming rights | 6,240 | 0 |
Deposits and other | 2,833 | 1,996 |
Total other assets | 56,278 | 15,610 |
Total assets | 338,645 | 95,491 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 27,245 | 2,625 |
Current maturities of long-term debt | 6,458 | 6,458 |
Accrued salaries and commissions | 739 | 539 |
Deferred revenue | 10,582 | 557 |
Operating lease liabilities | 6,160 | 1,444 |
Finance lease liabilities | 699 | 0 |
Income taxes payable | 2,030 | 65 |
Other current liabilities | 1,123 | 29 |
Total current liabilities | 55,036 | 11,717 |
LONG TERM DEBT, NET OF CURRENT | 64,015 | 0 |
WARRANT SHARES | 101,542 | 0 |
SERIES B PREFERRED STOCK | 33,547 | 0 |
OPERATING LEASE LIABILITIES, NET OF CURRENT | 40,863 | 14,333 |
FINANCE LEASE LIABILITIES, NET OF CURRENT | 2,276 | 0 |
DEFERRED INCOME TAXES | 3,022 | 2,775 |
NONCURRENT PROGRAM RIGHTS PAYABLE | 5,596 | 0 |
OTHER NONCURRENT LIABILITIES | 638 | 502 |
Total liabilities | 306,535 | 29,327 |
COMMITMENTS AND CONTINGENCIES | ||
SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK, $0.01 PAR VALUE, 10,000,000 SHARES AUTHORIZED; 0 AND 286,031 SHARES ISSUED AND OUTSTANDING AT JUNE 30, 2024 AND DECEMBER 31, 2023, RESPECTIVELY | 0 | 28,754 |
EQUITY: | ||
Additional paid-in capital | 89,997 | 60,294 |
Accumulated deficit | (76,811) | (23,148) |
Total equity | 13,653 | 37,410 |
Noncontrolling interests | 18,457 | 0 |
Total equity and noncontrolling interests | 32,110 | 37,410 |
Total liabilities and equity and noncontrolling interests | 338,645 | 95,491 |
Class A common stock | ||
EQUITY: | ||
Common stock | 413 | 210 |
Class B common stock | ||
EQUITY: | ||
Common stock | 54 | 54 |
Class C Common Stock | ||
EQUITY: | ||
Common stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Allowance for doubtful accounts | $ 679 | $ 353 |
Convertible participating preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible participating preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Convertible participating preferred stock, issued (in shares) | 0 | 286,031 |
Convertible participating preferred stock, outstanding (in shares) | 0 | 286,031 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 41,278,034 | 20,741,865 |
Common stock, shares outstanding (in shares) | 41,278,034 | 20,741,865 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 5,413,197 | 5,413,197 |
Common stock, shares outstanding (in shares) | 5,413,197 | 5,413,197 |
Class C Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND NONCONTROLLING INTERESTS - USD ($) $ in Thousands | Total | Class A common stock | Class B common stock | Common Stock Class A common stock | Common Stock Class B common stock | APIC | Accumulated Deficit | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 20,443,138 | 5,413,197 | ||||||
Beginning balance at Dec. 31, 2022 | $ 46,976 | $ 207 | $ 54 | $ 59,817 | $ (13,102) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (2,107) | (2,107) | ||||||
Issuance of class A to employees, officers and directors, net (in shares) | 564,548 | |||||||
Issuance of class A to employees, officers and directors, net | 369 | $ 6 | 363 | |||||
Repurchase of class A common shares (in shares) | (395,813) | |||||||
Repurchase of class A common shares | (571) | $ (6) | (565) | |||||
Preferred stock dividends | (590) | (590) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 20,611,873 | 5,413,197 | ||||||
Ending balance at Mar. 31, 2023 | 44,077 | $ 207 | $ 54 | 59,615 | (15,799) | 0 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 20,443,138 | 5,413,197 | ||||||
Beginning balance at Dec. 31, 2022 | 46,976 | $ 207 | $ 54 | 59,817 | (13,102) | 0 | ||
Ending balance (in shares) at Jun. 30, 2023 | 20,405,357 | 5,413,197 | ||||||
Ending balance at Jun. 30, 2023 | 43,256 | $ 204 | $ 54 | 59,814 | (16,816) | 0 | ||
Beginning balance (in shares) at Mar. 31, 2023 | 20,611,873 | 5,413,197 | ||||||
Beginning balance at Mar. 31, 2023 | 44,077 | $ 207 | $ 54 | 59,615 | (15,799) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (421) | (421) | ||||||
Issuance of class A to employees, officers and directors, net (in shares) | (150,485) | |||||||
Issuance of class A to employees, officers and directors, net | 264 | $ (2) | 266 | |||||
Repurchase of class A common shares (in shares) | (56,031) | |||||||
Repurchase of class A common shares | (68) | $ (1) | (67) | |||||
Preferred stock dividends | (596) | (596) | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 20,405,357 | 5,413,197 | ||||||
Ending balance at Jun. 30, 2023 | 43,256 | $ 204 | $ 54 | 59,814 | (16,816) | 0 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 20,741,865 | 5,413,197 | 20,741,865 | 5,413,197 | ||||
Beginning balance at Dec. 31, 2023 | 37,410 | $ 210 | $ 54 | 60,294 | (23,148) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (3,677) | (3,677) | ||||||
Issuance of class A to employees, officers and directors, net (in shares) | (151,993) | |||||||
Issuance of class A to employees, officers and directors, net | 287 | $ (4) | 291 | |||||
Repurchase of class A common shares (in shares) | (11,304) | |||||||
Repurchase of class A common shares | (7) | (7) | ||||||
Preferred stock dividends | (723) | (723) | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 20,578,568 | 5,413,197 | ||||||
Ending balance at Mar. 31, 2024 | 33,290 | $ 206 | $ 54 | 60,578 | (27,548) | 0 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 20,741,865 | 5,413,197 | 20,741,865 | 5,413,197 | ||||
Beginning balance at Dec. 31, 2023 | 37,410 | $ 210 | $ 54 | 60,294 | (23,148) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase of class A common shares (in shares) | (11,304) | |||||||
Ending balance (in shares) at Jun. 30, 2024 | 41,278,034 | 5,413,197 | 41,278,034 | 5,413,197 | ||||
Ending balance at Jun. 30, 2024 | 32,110 | $ 413 | $ 54 | 89,997 | (76,811) | 18,457 | ||
Beginning balance (in shares) at Mar. 31, 2024 | 20,578,568 | 5,413,197 | ||||||
Beginning balance at Mar. 31, 2024 | 33,290 | $ 206 | $ 54 | 60,578 | (27,548) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (48,307) | (49,135) | 828 | |||||
Issuance of class A to employees, officers and directors, net (in shares) | (34,403) | |||||||
Issuance of class A to employees, officers and directors, net | 22 | 22 | ||||||
Conversion of preferred series A shares (in shares) | 20,733,869 | |||||||
Conversion of preferred series A shares | 29,604 | $ 207 | 29,397 | |||||
Noncontrolling interest resulting from Estrella transaction | 17,629 | 17,629 | ||||||
Preferred stock dividends | (128) | (128) | ||||||
Ending balance (in shares) at Jun. 30, 2024 | 41,278,034 | 5,413,197 | 41,278,034 | 5,413,197 | ||||
Ending balance at Jun. 30, 2024 | $ 32,110 | $ 413 | $ 54 | $ 89,997 | $ (76,811) | $ 18,457 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Consolidated net loss | $ (51,984) | $ (2,528) |
Less: Loss from discontinued operations, net of tax | 0 | 143 |
Adjustments to reconcile net loss to net cash used in operating activities - | ||
Depreciation and amortization | 1,564 | 307 |
Amortization of deferred financing costs, including original issue discount | 129 | 0 |
Amortization of fair value adjustment of Preferred Series B Shares and 2nd Lien Term Loan | 977 | 0 |
Change in fair value of warrant shares liability | 31,027 | 0 |
Noncash interest expense | 965 | 0 |
Noncash lease expense | 731 | 1,283 |
Allowance for credit losses | 79 | (20) |
Provision for deferred income taxes | 247 | 150 |
Noncash compensation | 473 | 979 |
Other noncash items | 790 | 429 |
Changes in assets and liabilities | ||
Accounts receivable | (4,669) | 156 |
Prepaid expenses and other current assets | 1,502 | (703) |
Other assets | (544) | (172) |
Accounts payable and accrued liabilities | (7,569) | (996) |
Deferred revenue | 816 | 738 |
Operating lease liabilities | 137 | (666) |
Income taxes | (32) | (3,021) |
Other liabilities | 650 | 250 |
Net cash used in continuing operating activities | (24,711) | (3,671) |
Net cash provided by discontinued operating activities | 0 | 390 |
Net cash used in operating activities | (24,711) | (3,281) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (93) | (624) |
Purchases of internally-created software | (146) | (296) |
Cash paid in acquisitions, net of cash acquired | (6,847) | 0 |
Other investing | 100 | 0 |
Net cash used in continuing investing activities | (6,986) | (920) |
Net cash used in discontinued investing activities | 0 | 0 |
Net cash used in investing activities | (6,986) | (920) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt | 38,800 | 0 |
Payments for debt-related costs | (1,618) | 0 |
Repurchases of class A common stock | (7) | (639) |
Settlement of tax withholding obligations | (163) | (329) |
Net cash provided by (used in) continuing financing activities | 37,012 | (968) |
Net cash used in discontinued financing activities | 0 | (38) |
Net cash provided by (used in) financing activities | 37,012 | (1,006) |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 5,315 | (5,207) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | ||
Beginning of period | 7,071 | 15,301 |
End of period | 12,386 | 10,094 |
Less: Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | 12,386 | 10,094 |
Cash paid for interest | 739 | 0 |
Cash paid for income taxes | $ 0 | $ 3,021 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization MediaCo Holding Inc., its subsidiaries, and a variable interest entity (“VIE”) (collectively, “MediaCo” or the “Company”) is an owned and operated multi-media company formed in Indiana in 2019, focused on television, radio and digital advertising, premium programming and events. On April 17, 2024, MediaCo Holding Inc. and its wholly-owned subsidiary MediaCo Operations LLC, a Delaware limited liability company (“Purchaser”), entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Estrella Broadcasting, Inc., a Delaware corporation (“Estrella”), and SLF LBI Aggregator, LLC, a Delaware limited liability company (“Aggregator”) and affiliate of HPS Investment Partners, LLC (“HPS”), pursuant to which Purchaser purchased substantially all of the assets of Estrella and its subsidiaries (other than certain broadcast assets owned by Estrella and its subsidiaries (the “Estrella Broadcast Assets”)) (the “Purchased Assets”), and assumed substantially all of the liabilities (the “Assumed Liabilities”) of Estrella and its subsidiaries (such transactions, collectively, the “Estrella Acquisition”). MediaCo Operations LLC operates the Purchased Assets under the trade name Estrella MediaCo. Our assets consist of two radio stations located in New York City, WQHT(FM) and WBLS(FM) (the “Stations”), which serve the New York City demographic market area that primarily target Black, Hispanic, and multi-cultural consumers, and as a result of the Estrella Acquisition, Estrella’s network, content, digital, and commercial operations, including network affiliation and program supply agreements with Estrella for its 11 radio stations serving Los Angeles, CA, Houston, TX, and Dallas, TX and nine television stations serving Los Angeles, CA, Houston, TX, Denver, CO, and Miami, FL. Among the Estrella brands that joined MediaCo are the EstrellaTV network, its influential linear and digital video content business, Estrella’s expansive digital channels, including its four FAST channels - EstrellaTV, Estrella News, Cine EstrellaTV, and Estrella Games, and the EstrellaTV app. See Note 3 for additional information. We derive our revenues primarily from radio, television and digital advertising sales, but we also generate revenues from events, including sponsorships and ticket sales, licensing, and syndication. Unless the context otherwise requires, references to “we”, “us” and “our” refer to MediaCo, its subsidiaries and the Estrella VIE (as defined below), collectively. Basis of Presentation and Consolidation Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring adjustments) have been included. The Company determined that the Estrella entities holding the Estrella Broadcast Assets (the “Estrella VIE”) are a VIE in which the Company holds a controlling financial interest. Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) paragraph 810-10-25-38A and paragraph 810-10-25-38B, a reporting entity (in this case, the Company) is deemed to have a controlling financial interest in a VIE if it has both of the following characteristics: a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determined that since the major factors in the economic performance of the Estrella VIE are the popularity of the programming provided by the Company to the Estrella VIE and the Company’s sale of advertising in that programming, the Company is the primary beneficiary of the VIE, and the remaining assets and liabilities of the Estrella VIE should be consolidated in the Company’s consolidated financial statements as of April 17, 2024. The Company accounts for noncontrolling interest in accordance with ASC 810, which requires companies with noncontrolling interests to disclose such interests as a portion of equity but separate from the Parent’s equity. The noncontrolling interests’ portion of net income (loss) is presented on the condensed consolidated statement of operations. Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Pursuant to ASC Topic 205-40, Going Concern , the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern within one year of the date of issuance of these financial statements (September 18, 2024). In conducting this analysis, management considered the Company’s current projections of future cash flows, current financial condition, sources of liquidity and debt service obligations due on or before September 18, 2025. The Company has experienced diminished revenues and profitability, driven in part by weaker sales for our annual Summer Jam concert, and expects these conditions to continue for an undetermined period of time. Management has considered these circumstances in assessing the Company’s liquidity over the next year. Liquidity is a measure of an entity’s ability to meet potential cash requirements, maintain its assets, fund its operations, and meet the other general cash needs of its business. The Company’s liquidity is impacted by general economic, financial, competitive, and other factors beyond its control. The Company’s liquidity requirements consist primarily of funds necessary to pay its expenses, principally debt service and operational expenses, such as labor costs, and other related expenditures. The Company generally satisfies its liquidity needs through cash provided by operations. In addition, the Company has taken steps to enhance its ability to fund its operational expenses by reducing various costs and is prepared to take additional steps as necessary. At June 30, 2024, we had $6.5 million outstanding to Emmis under the Emmis Convertible Promissory Note (as defined in Note 10), all of which is classified as current and has debt service obligations of approximately $7.3 million due under its Emmis Convertible Promissory Note from September 18, 2024 (the date of issuance of these financial statements) through September 18, 2025. In September 2024, the Company entered into the First Amendment of the First Lien Credit Agreement, with White Hawk Capital Partners, LP, which provides for $7.5 million of additional Delayed Draw Term Loan Commitments for Delayed Draw Term Loans, and waives the requirement for mandatory prepayment of any net proceeds received as a result of any equity issuances, up to $7.3 million. Each Delayed Draw Term Loan will mature on the date that is two years after the drawing of such Delayed Draw Term Loan. As a result of this amendment, management anticipates the Company will be able to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand, additional draws on its First Lien Term Loan, and projected cash flows from operations. Therefore, substantial doubt has been alleviated about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“fiscal year 2023”). As a result of the Estrella Acquisition, certain policies have been added or adjusted to reflect our combined business. Programming Rights MediaCo has elected to record programming right assets and liabilities acquired from third parties at the gross amount at inception. These programming rights are amortized, on a straight-line basis, over the license term, beginning in the period in which the license period begins and program becomes available for broadcast in accordance with ASC Topic 920, Entertainment - Broadcasters. Program rights expected to be amortized to expense in the following 12 month period are classified as current assets and program rights payable within the following 12 month period are classified as current liabilities. All program rights payable are included in accounts payable and accrued expenses except for $5.6 million which is included in other noncurrent liabilities. Amortization expense for the three and six months ended June 30, 2024 was $0.8 million which is included in operating expenses excluding depreciation and amortization. These programming rights are primarily related to one agreement which ends in February 2028. Cash, Cash Equivalents and Restricted Cash MediaCo considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted cash at December 31, 2023 consisted of $1.3 million held in escrow related to the Company's disposition of the Fairway business, classified in current assets and the restrictions were released in June 2024. Additionally, restricted cash of $1.9 million as of June 30, 2024 and December 31, 2023 was held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices, which expires in October 2039, and restricted cash of $0.5 million as of June 30, 2024 was held for a collateral account related to merchant banking for the Company’s purchase card program and for an office lease security deposit, all included in the line item Deposits and Other in the condensed consolidated balance sheets. Fair Value Measurements Fair value is the exchange price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Company uses market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. (see Note 4 for more discussion). The Company’s Warrant Shares (as defined in Note 3) are classified as a liability for which the fair value is measured on a recurring basis using Level 2 inputs (see Note 6 for more discussion). We have no assets or liabilities for which fair value is measured on a recurring basis using Level 3 inputs. The Company has certain assets that are measured at fair value on a non-recurring basis including those described in Note 4, Intangible Assets, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 4 for more discussion). The Company’s long-term debt is not actively traded and is considered a Level 3 measurement. The Company believes the current carrying value of its long-term debt approximates its fair value as it is variable rate debt. Allowance for Credit Losses An allowance for credit losses is recorded based on management’s judgment of the collectability of trade receivables. When assessing the collectability of receivables, management considers, among other things, customer type (agency versus non-agency), historical loss experience, existing and expected future economic conditions and aging category. Amounts are written off after all normal collection efforts have been exhausted. The activity in the allowance for credit losses for the three-month and six-month periods ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning Balance $ 378 $ 102 $ 353 $ 122 Additions related to Estrella Acquisition 496 — 496 — Change in Provision 54 — 79 (20) Write Offs (249) — (249) — Ending Balance $ 679 $ 102 $ 679 $ 102 Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. Earnings Per Share Our basic and diluted net loss per share is computed using the two-class method. The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses. Shares of our Series A Convertible Preferred Stock, $0.01 par value (the “Series A preferred stock” or the “Series A preferred shares”) included rights to participate in dividends and distributions to common stockholders on an if-converted basis, and accordingly were considered participating securities until April 2024, when all outstanding shares of Series A preferred stock were converted in accordance with their terms into 20.7 million shares of MediaCo’s Class A common stock, par value $0.01 per share (the “Class A common stock”). During periods of undistributed losses, however, no effect was given to our participating securities since they are not contractually obligated to share in the losses. We have elected to determine the earnings allocation based on income (loss) from continuing operations. For periods with a loss from continuing operations, all potentially dilutive items were anti-dilutive and thus basic and diluted weighted-average shares are the same. The following is a reconciliation of basic and diluted net loss per share attributable to Class A and Class B common shareholders: Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Loss from continuing operations $ (48,307) $ (430) $ (51,984) $ (2,385) Less: Net income attributable to noncontrolling interests (828) — (828) — Less: Preferred stock dividends (128) (596) (851) (1,186) Loss from continuing operations available to common shareholders (49,263) (1,026) (53,663) (3,571) Income (loss) from discontinued operations, net of income taxes — 9 — (143) Net loss attributable to common shareholders $ (49,263) $ (1,017) $ (53,663) $ (3,714) Denominator: Weighted-average shares of common stock outstanding — basic and diluted 65,415 24,947 45,166 24,927 Earnings per share of common stock attributable to common shareholders: Net loss per share attributable to common shareholders - basic and diluted: Continuing operations $ (0.75) $ (0.04) $ (1.19) $ (0.14) Discontinued operations — — — (0.01) Net loss per share attributable to common shareholders - basic and diluted: $ (0.75) $ (0.04) $ (1.19) $ (0.15) On August 20, 2021, MediaCo Holding Inc. entered into an At Market Issuance Sales Agreement with B. Riley Securities, Inc. (“B. Riley”), pursuant to which the Company may offer and sell, from time to time through or to B. Riley, as agent or principal, shares of the Company’s Class A common stock, having an aggregate offering price of up to $12.5 million. No shares were sold during the six-month periods ended June 30, 2024 or 2023. For the six-month period ended June 30, 2024, we repurchased under a share repurchase plan 11,304 shares of Class A common stock for an immaterial amount. The following convertible equity shares and restricted stock awards were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive. Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Convertible Emmis promissory note 8,596 5,563 9,561 4,795 Option agreement shares 5,734 — 2,867 — Series A convertible preferred stock 6,569 24,549 24,479 21,162 Restricted stock awards 590 248 575 230 Total anti-dilutive shares 21,489 30,360 37,482 26,187 Recent Accounting Pronouncements Not Yet Implemented In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity’s operations and related tax risks and its tax planning and operation opportunities affect its tax rate and prospects for future cash flows. This guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact this standard will have on our condensed consolidated financial statements, including, but not limited to, our income taxes footnote disclosure. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective beginning with the Company’s 2024 fiscal year annual reporting period, with early adoption permitted. We are currently assessing the impact this standard will have on our condensed consolidated financial statements. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 2. DISCONTINUED OPERATIONS On December 9, 2022, Fairway Outdoor LLC, FMG Kentucky, LLC and FMG Valdosta, LLC (collectively, “Fairway”), all of which were wholly owned direct and indirect subsidiaries of MediaCo, entered into an Asset Purchase Agreement (the “Purchase Agreement”), with The Lamar Company, L.L.C., a Louisiana limited liability company (the “Purchaser”), pursuant to which we sold our Fairway outdoor advertising business to the Purchaser. The transactions contemplated by the Purchase Agreement closed as of the date of the Purchase Agreement. The purchase price was $78.6 million, subject to certain customary adjustments, paid at closing in cash. The sale resulted in a pre-tax gain of $46.9 million in the fourth quarter of 2022. In accordance with ASC 205-20-S99-3, Allocation of Interest to Discontinued Operations , the Company elected to allocate interest expense to discontinued operations where the debt is not directly attributed to the Fairway business. Interest expense was allocated based on a ratio of net assets discontinued to the sum of consolidated net assets plus consolidated debt. In addition, upon closing we entered into a transition service agreement with the Purchaser to support the operations after the divestiture for immaterial fees. This agreement commenced with the close of the transaction and was terminated at the end of the initial term in February 2023. The financial results of Fairway are presented as income from discontinued operations on our condensed consolidated statements of operations. The following table presents the financial results of Fairway: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ — $ — $ — $ — OPERATING EXPENSES Operating expenses excluding depreciation and amortization expense — (9) — 143 Total operating expenses — (9) — 143 Income (loss) from operations of discontinued operations — 9 — (143) Interest and other, net — — — — Income (loss) from discontinued operations, before income taxes — 9 — (143) Income tax benefit (expense) — — — — Income (loss) from discontinued operations, net of income taxes $ — $ 9 $ — $ (143) |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS The Company accounts for acquisitions in accordance with guidance found in ASC 805, Business Combinations . The guidance requires consideration given, including contingent consideration, assets acquired, and liabilities assumed to be valued at their fair values at the acquisition date. The guidance further provides that: (1) acquisition costs will generally be expensed as incurred, (2) restructuring costs associated with a business combination will generally be expensed subsequent to the acquisition date; and (3) changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally will affect income tax expense. ASC 805 requires that any excess of purchase price over fair value of assets acquired, including identifiable intangibles and liabilities assumed, be recognized as goodwill. Estrella Acquisition On April 17, 2024, MediaCo consummated the Estrella Acquisition, pursuant to which it purchased substantially all of the assets of Estrella, other than the Estrella Broadcast Assets, and assumed substantially all of the liabilities of Estrella and its subsidiaries. MediaCo provided the following consideration for the Estrella Acquisition (the “Transaction Consideration”): a A warrant (the “Warrant”) to purchase up to 28,206,152 shares of MediaCo’s Class A common stock; b 60,000 shares of a newly designated series of MediaCo’s preferred stock designated as “Series B Preferred Stock” (the “Series B Preferred Stock”), c A term loan in the principal amount of $30.0 million under the Second Lien Credit Agreement (as defined below) (the “Second Lien Term Loan”); and d An aggregate cash payment in the amount of approximately $25.5 million to be used, in part, for the repayment of certain indebtedness of Estrella and payment of certain Estrella transaction expenses, financed through the First Lien Credit Agreement (as defined below). Option Agreement On April 17, 2024, in connection with the Estrella Acquisition, MediaCo and Estrella entered into an Option Agreement (the “Option Agreement” and, together with the Estrella Acquisition and the transactions contemplated by the Network Affiliation Agreement and the Network Program Supply Agreement described below, collectively, the “Estrella Transactions”) with Estrella and certain subsidiaries of Estrella pursuant to which (i) MediaCo was granted the option to purchase 100% of the equity interests of certain subsidiaries of Estrella holding the Estrella Broadcast Assets (the “Option Subsidiaries Equity”) in exchange for 7,051,538 shares of Class A common stock, and (ii) Estrella was granted the right to put the Option Subsidiaries Equity to MediaCo for the same consideration during a period beginning six months after the date of the closing of the Estrella Transactions (the “Closing Date”) and ending after seven years, which will automatically extend for a renewal term of seven years unless both parties mutually agree otherwise. Voting and Support Agreement The Asset Purchase Agreement provides that MediaCo will prepare and file with the Securities and Exchange Commission (the “SEC”) a proxy statement to be sent to MediaCo stockholders relating to a special meeting of MediaCo stockholders (the “Stockholders Meeting”) to be held to consider approval of the issuance of shares of Class A Common Stock upon exercise of the Warrant and the issuance of shares of Class A Common Stock pursuant to the Option Agreement (the “Proposal”). On April 17, 2024, in connection with the Estrella Acquisition, SG Broadcasting LLC (“SG Broadcasting”), the holder of shares of Class A common stock and Class B common stock, par value $0.01 per share (“Class B common stock”) representing a majority of the voting power of the shares of MediaCo, entered into a Voting and Support Agreement with MediaCo and Estrella (the “Voting and Support Agreement”), pursuant to which SG Broadcasting agreed to, among other things, and subject to the terms and conditions set forth therein, at any meeting of MediaCo stockholders (including the Stockholders Meeting), or at any adjournment or postponement thereof, vote in favor of the Proposal and against any action or proposal that would reasonably be expected to prevent or materially delay consummation of the Proposal. The Voting Agreement also includes certain customary restrictions on SG Broadcasting’s ability to transfer its shares of MediaCo stock. The Voting Agreement will automatically terminate upon the date on which the Proposal is approved. Warrant On April 17, 2024, in connection with the Estrella Acquisition, MediaCo issued the Warrant, which provides for the purchase of up to 28,206,152 shares of Class A common stock (the “Warrant Shares”), subject to customary adjustments as set forth in the Warrant, at an exercise price per share of $0.00001. Subject to certain limitations, the Warrant also provides that the Warrant holder has the right to participate in distributions on Class A common stock on an as-exercised basis. The Warrant further provides that in no event shall the aggregate number of Warrant Shares issuable to the Warrant holder upon exercise of the Warrant exceed 19.9% of the aggregate number of shares of common stock of MediaCo outstanding, or the voting power of such outstanding shares of common stock, on the business day immediately preceding the issue date for such Warrant Shares, calculated in accordance with the applicable rules of the Nasdaq Capital Market (“Nasdaq”), unless and until the Proposal has been approved. The shares of Class A common stock issuable upon the exercise of the Warrant and the shares of Class A common stock issuable upon the exercise of the Option Agreement represent approximately 43% of the outstanding shares of Class A common stock on a fully diluted basis (assuming the full exercise of the Warrant and the Option Agreement). First Lien Term Loan In order to finance the Estrella Acquisition, MediaCo entered into a maximum $45.0 million first lien term loan credit facility, dated April 17, 2024 (the “First Lien Credit Agreement”), with White Hawk Capital Partners, LP, as term agent thereunder, and the lenders party thereto. Under the terms of the First Lien Credit Agreement, MediaCo received an initial term loan of $35.0 million on April 17, 2024 (the “Initial Loan”) and was provided with a subsequent delayed draw facility of up to $10.0 million that may be provided for additional working capital purposes under certain conditions (the “Delayed Draw” and the loans thereunder, the “Delayed Draw Term Loans”; the financing contemplated by the First Lien Term Loan, together with Estrella Transaction and the payment of the Transaction Consideration, the “Transactions”). The Initial Loan and Delayed Draw Term Loans are collectively referred to as the “First Lien Term Loans.” The proceeds of the Initial Loan were used to finance the Estrella Acquisition, pay off certain existing Estrella indebtedness in connection therewith and pay related fees and transaction costs. The Initial Loan will mature on April 17, 2029, and each Delayed Draw Term Loan will mature on the date that is two years after the drawing of such Delayed Draw Term Loan. The first of such Delayed Draw Term Loan of $5.0 million was made on May 2, 2024. First Lien Term Loans will be subject to monthly interest payments at a rate of SOFR + 6.00%. Beginning May 2027, monthly amortization payments are required equal to 0.8333% of the initial principal amount of the First Lien Term Loans. The First Lien Term Loans are subject to a borrowing base in accordance with the terms of the First Lien Credit Agreement. Second Lien Term Loan In addition, MediaCo and its direct and indirect subsidiaries entered into a $30.0 million second lien term loan credit facility, dated April 17, 2024 (the “Second Lien Credit Agreement”), with HPS as term agent, and the lenders party thereto. Under the terms of the Second Lien Credit Agreement, MediaCo was deemed to receive the Second Lien Term Loan of $30.0 million on April 17, 2024 in connection with the consummation of the Estrella Acquisition. The Second Lien Term Loan will mature on April 17, 2029 and will be subject to monthly interest payments at a rate of SOFR + 6.00%. The Second Lien Term Loans are subject to a borrowing base in accordance with the terms of the Second Lien Credit Agreement. Series B Preferred Stock In addition, MediaCo issued 60,000 shares of Series B Preferred Stock with an aggregate initial liquidation value of $60.0 million, which Series B Preferred Stock rank senior and in priority of payment to all other equity securities of MediaCo, including with respect to any repayment, redemption, distributions, bankruptcy, insolvency, liquidation, dissolution or winding-up. Pursuant to the Series B Articles of Amendment, the ability of MediaCo to make distributions with respect to, or make a liquidation payment on, any other class of capital stock in the Company designated to be junior to, or on parity with, the Series B Preferred Stock, will be subject to certain restrictions. Issued and outstanding shares of Series B Preferred Stock will accrue dividends, payable in kind, at an annual rate equal to 6.00% of the liquidation value thereof, subject to increase upon the occurrence of certain trigger events set forth in the Series B Articles of Amendment. The Series B Preferred Stock is mandatorily redeemable after seven years and is not convertible into any other equity securities of the Company. As such, it is classified as a long term liability on the condensed consolidated balance sheet and accrued dividends are classified in Interest expense, net on the condensed consolidated statements of operations. Network Affiliation and Supply Agreements On April 17, 2024, in connection with the Estrella Acquisition, MediaCo entered into a Network Program Supply Agreement (the “Network Program Supply Agreement”) with certain subsidiaries of Estrella that operate radio broadcast stations (the “Radio Stations”). Pursuant to the Network Program Supply Agreement, MediaCo has agreed to license certain programs and other material to the Radio Stations for distribution on the Radio Stations’ broadcast channels. On April 17, 2024, in connection with the Estrella Acquisition, MediaCo entered into a Network Affiliation Agreement (the “Network Affiliation Agreement”) with certain subsidiaries of Estrella that operate television broadcast stations (the “TV Stations”). Pursuant to the Network Affiliation Agreement, MediaCo has agreed to license certain programs and other material to the TV Stations for distribution on the TV Stations’ broadcast channels. Preliminary Purchase Price Allocation The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2024. The purchase price allocation is preliminary and subject to change, including the valuation of noncash consideration transferred, property and equipment, intangible assets, income taxes, and goodwill, among other items. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after the acquisition date. Finalization of the valuation during the measurement period could result in a change in the amounts recorded for the acquisition date fair value. The preliminary allocation presented below is based upon management’s estimate of the fair values using valuation techniques including income, cost, and market approaches. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. The Estrella Acquisition comprises the new Estrella MediaCo Video & Digital and Estrella MediaCo Audio, Digital & Events segments. The following tables summarize the preliminary fair value of cash and noncash consideration transferred, assets acquired, and liabilities assumed as of the acquisition date: Preliminary Valuation as of April 17, 2024 Cash Consideration 25,499 Noncash Consideration: Warrants (1) 70,515 Series B Preferred Stock (2) 31,975 Second Lien Term Loan (2) 26,534 Total Noncash Consideration 129,024 Total Consideration 154,523 (1) Represents the fair value of warrants to purchase 28,206,152 shares of Class A common stock issued in the Estrella Transactions valued at the close price on the day prior to close of $2.50. (2) Represents the fair value of the Series B Preferred Stock and Second Lien Term Loan using a required yield of 15.23% and 14.14%, respectively. Preliminary Valuation and Allocation as of April 17, 2024 Cash and cash equivalents 18,124 Accounts receivable, net of allowance for doubtful accounts of $496 16,412 Prepaid expenses 1,838 Current programming rights 3,635 Other current assets 555 Property and equipment, net 17,897 Intangible assets, net 140,877 Right of use assets 34,322 Goodwill 14,878 Noncurrent programming rights 6,607 Deposits and other 688 Assets acquired 255,833 Accounts payable and accrued expenses 32,033 Deferred revenue 9,209 Operating lease liabilities 31,109 Finance lease liabilities 3,029 Other Liabilities 8,301 Liabilities assumed 83,681 Fair value of noncontrolling interests (1) 17,629 Net assets acquired 154,523 (1) Fair value of noncontrolling interests based on 7,051,538 warrants issued in Option Agreement valued at the close price on the day prior to close of $2.50. Property and equipment is primarily composed of broadcasting equipment and leasehold improvements. The fair value of property and equipment is based on preliminary assumptions that are subject to change as we complete our valuation procedures. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives. The amount allocated to definite-lived intangible assets represents the estimated fair values of customer relationships of $15.6 million, favorable leasehold interests of $13.0 million, and programming rights of $10.2 million and will be amortized over the estimated remaining useful lives of 15 years, 35 years and 4 years, respectively. The amount allocated to indefinite-lived intangible assets represents the estimated fair values of the FCC licenses of $112.2 million and goodwill of $14.9 million. Goodwill, which is derived from the expanded client base and our ability to provide broader advertising solutions through a comprehensive portfolio, is recorded based on the amount by which the purchase price exceeds the fair value of the net assets acquired and we expect it will be deductible for tax purposes. Goodwill of $4.5 million and $10.4 million from this transaction is allocated to our Estrella MediaCo Video & Digital and Estrella MediaCo Audio, Digital & Events segments, respectively. As part of the acquisition, we incurred costs of $5.5 million and $9.0 million for the three and six months ended June 30, 2024, respectively, primarily related to transaction bonuses and professional services, which are included in the operating expenses excluding depreciation and amortization and corporate expenses line items in the condensed consolidated statement of operations. Additionally, there were $1.8 million of deferred financing costs and $1.1 million of original issue discount related to the issuance of the First Lien Credit Agreement included in the line item long term debt, net of current. Variable Interest Entity As discussed in Note 1, the Company determined that the Estrella entities holding the Estrella Broadcast Assets represented a VIE in which the Company holds a controlling financial interest, as MediaCo is the primary beneficiary of the VIE. Estrella VIE’s assets can be used only to settle obligations of the Estrella VIE. The carrying amounts of the VIE’s consolidated assets and liabilities included in the condensed consolidated balance sheet are as follows: June 30, Cash and cash equivalents $ 6,540 Accounts receivable, net of allowance for doubtful accounts of $38 6,207 Prepaid expenses 564 Other current assets 440 Total current assets 13,751 PROPERTY AND EQUIPMENT, NET 8,106 OTHER INTANGIBLE ASSETS, NET 112,210 OTHER ASSETS: Lease right of use assets 2,818 Deposits and other 576 Total other assets 3,394 Total assets $ 137,461 CURRENT LIABILITIES: Accounts payable and accrued expenses $ 4,426 Deferred revenue 65 Operating lease liabilities 362 Income taxes payable 2,029 Total current liabilities 6,882 OPERATING LEASE LIABILITIES, NET OF CURRENT 2,466 OTHER NONCURRENT LIABILITIES 3,404 Total liabilities 12,752 Net assets 124,709 The summarized operating results of the VIE are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ 3,174 $ — $ 3,174 $ — Operating income 827 — 827 — Net income 828 — 828 — Pro Forma Financial Information The following table presents the estimated unaudited pro forma combined results of MediaCo and Estrella for the three and six months ended June 30, 2024 and 2023 as if the acquisition had occurred on January 1, 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ 28,722 $ 35,175 $ 54,649 $ 62,092 Loss from continuing operations before income taxes (57,721) (13,535) (67,110) (35,188) The supplemental pro forma financial information has been prepared using the acquisition method of accounting and is based on the historical financial information of MediaCo and Estrella. The supplemental pro forma financial information does not necessarily represent what the combined companies’ revenue or results of operations would have been had the Estrella Acquisition been completed on January 1, 2023, nor is it intended to be a projection of future operating results of the combined company. It also does not reflect any operating efficiencies or potential cost savings that might be achieved from synergies of combining MediaCo and Estrella. The unaudited supplemental pro forma financial information reflects primarily pro forma adjustments related to fair value estimates for intangibles, property and equipment, debt, preferred stock, interest expense and amortization of deferred financing costs for the debt and preferred stock issuances to finance the Estrella Acquisition. The unaudited supplemental pro forma financial information includes transaction charges associated with the Estrella Acquisition. There are no material, nonrecurring pro forma adjustments directly attributable to the Estrella Acquisition included in the reported pro forma revenue and loss from continuing operations before income taxes. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 4. INTANGIBLE ASSETS As of June 30, 2024 and December 31, 2023, intangible assets consisted of the following: June 30, 2024 December 31, 2023 Indefinite-lived intangible assets FCC licenses $ 175,476 $ 63,266 Goodwill 14,878 — Definite-lived intangible assets Customer relationships 14,895 — Favorable leasehold interests 12,962 — Software 1,311 1,327 Other 44 — Total definite-lived intangible assets $ 29,212 $ 1,327 Total noncurrent other intangible assets, net and goodwill $ 219,566 $ 64,593 Valuation of Indefinite-lived Broadcasting Licenses In accordance with ASC Topic 350, Intangibles—Goodwill and Other, the Company’s FCC licenses are considered indefinite-lived intangibles; therefore, they are not subject to amortization, but are tested for impairment at least annually as discussed below. The carrying amounts of the Company’s FCC licenses were $175.5 million and $63.3 million as of June 30, 2024 and December 31, 2023, respectively. Pursuant to our accounting policy and the provisions of ASC350-30, which states that separately recorded indefinite-lived intangible assets should be combined into a single unit of accounting for purposes of testing for impairment if they are operated as a single asset, we aggregate FCC licenses for impairment testing if their signals are simulcast and are operating as one revenue producing asset. The stations perform an annual impairment test of indefinite-lived intangibles as of October 1 of each year. When indicators of impairment are present, we will perform an interim impairment test. There have been no indicators of impairment since we performed our annual impairment assessment as of October 1, 2023 and therefore there has been no need to perform an interim impairment assessment. The FCC licenses consolidated with the Estrella VIE were recorded at fair value as part of the Estrella Acquisition. Future impairment tests may result in additional impairment charges in subsequent periods. Fair value of our FCC licenses is estimated to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine the fair value of our FCC licenses, the Company considers both income and market valuation methods when it performs its impairment tests. Under the income method, the Company projects cash flows that would be generated by its unit of accounting assuming the unit of accounting was commencing operations in its market at the beginning of the valuation period. This cash flow stream is discounted to arrive at a value for the FCC licenses. The Company assumes the competitive situation that exists in its market remains unchanged, with the exception that its unit of accounting commenced operations at the beginning of the valuation period. In doing so, the Company extracts the value of going concern and any other assets acquired, and strictly values the FCC licenses. Major assumptions involved in this analysis include market revenue, market revenue growth rates, unit of accounting audience share, unit of accounting revenue share and discount rate. Each of these assumptions may change in the future based upon changes in general economic conditions, audience behavior, consummated transactions, and numerous other variables that may be beyond our control. The projections incorporated into our license valuations take into consideration then current economic conditions. Under the market method, the Company uses recent sales of comparable radio or television stations for which the sales value appeared to be concentrated entirely in the value of the license, to arrive at an indication of fair value. When evaluating our radio and television broadcasting licenses for impairment, the testing is performed at the unit of accounting level as determined by ASC Topic 350-30-35. In our case, radio stations in a geographic market cluster are considered a single unit of accounting. Valuation of Goodwill As a result of the Estrella Acquisition, the Company recorded $14.9 million of goodwill, which accounts for all goodwill on the condensed consolidated balance sheet as of June 30, 2024, and of which $4.5 million is allocated to our Estrella MediaCo Video & Digital segment and $10.4 million is allocated to our Estrella MediaCo Audio, Digital & Events segment. ASC Topic 350-20-35 requires the Company to test goodwill for impairment at least annually. Under ASC 350 we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform an annual quantitative goodwill impairment test. We will perform this assessment annually as of October 1, unless indicators of impairment exist at an interim period. There were no indicators of impairment for the current period. When performing a quantitative assessment for impairment, the Company intends to use a market approach to determine the fair value of each reporting unit by multiplying the cash flows of the reporting unit by an estimated market multiple. We believe this methodology for valuing our reporting units is a common approach and the multiples we intend to use will be based on our peer comparisons, analyst reports, and market transactions. To corroborate the fair values determined using the market approach, we intend to also use an income approach, which is a discounted cash flow method to determine the fair value of each reporting unit. If the carrying value of a reporting unit’s goodwill exceeds its fair value, the Company will recognize an impairment charge equal to the difference in the statement of operations. Definite-lived intangibles The following table presents the weighted-average useful life at June 30, 2024, and the gross carrying amount and accumulated amortization at June 30, 2024 and December 31, 2023, for our definite-lived intangible assets: June 30, 2024 December 31, 2023 Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 3.8 $ 15,572 $ 677 $ 14,895 $ — $ — $ — Favorable leasehold interests 34.8 13,039 77 12,962 — — — Software 3.9 1,733 422 1,311 1,583 256 1,327 Other 0.8 56 12 44 — — — Total $ 30,400 $ 1,188 $ 29,212 $ 1,583 $ 256 $ 1,327 The software was developed internally by our radio operations and represents our updated website and mobile application, which offer increased functionality and opportunities to grow and interact with our audience. This software cost $1.7 million to develop and useful lives of five years and seven years were assigned to the application and website, respectively. The customer relationships, favorable leasehold interests, and a time brokerage agreement were acquired as part of the Estrella Acquisition. Total amortization expense from definite-lived intangible assets for each of the three and six months ended June 30, 2024 and 2023 and included in the depreciation and amortization line item in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Amortization expense $ 852 $ 67 $ 932 $ 135 The Company estimates amortization expense each of the next five years as follows: Year ending December 31, Amortization Expense 2024 (from July 1) $ 2,013 2025 3,679 2026 3,093 2027 2,524 2028 1,943 After 2028 15,960 Total $ 29,212 |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 5. REVENUE The Company generates revenue from the sale of services including, but not limited to: (i) on-air commercial broadcast time, (ii) non-traditional revenues including event-related revenues and event sponsorship revenues, and (iii) digital advertising. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue. Certain network sales contracts include a guaranteed number of impressions. If the guarantee is not met the Company is obligated to provide additional spots at no charge until the guaranteed number of impressions is met, referred to as a makegood liability. The liability for each contract is calculated by determining the cost per guarantee per the original contract, multiplied by the number of under-delivered impressions. As of June 30, 2024, the makegood liability assumed in the Estrella Acquisition was $8.5 million and is presented in Deferred revenue on the condensed consolidated balance sheets as is expected to be recognized over four years. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Advertising revenues presented in the condensed consolidated financial statements are reflected on a net basis, after the deduction of advertising agency fees, usually at a rate of 15% of gr oss revenues. Spot Advertising On-air spot broadcast revenue is recognized when or as performance obligations under the terms of a contract with a customer are satisfied. This typically occurs over the period of time that advertisements are provided, or as an event occurs. On-air spot broadcast advertising rates are fixed based on each medium’s ability to attract audiences in demographic groups targeted by advertisers and rates can vary based on the time of day and ratings of the programming airing in that day part. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the condensed consolidated balance sheets. Digital Digital revenue relates to revenue generated from the sale of digital marketing services (including display advertisements and video pre-roll and sponsorships) to advertisers on Company-owned websites and applications as well as through third party publishers either through direct relationships with the publishers or through digital advertising exchanges. Digital revenues are generally recognized as the digital advertising is delivered. Syndication Syndication revenue relates to revenue generated from the sale of rights to broadcast shows we produce as well as revenues from syndicated shows we broadcast for a fee. Syndication revenues are generally recognized ratably over the term of the contract. Events and Sponsorships Events and Sponsorships revenue principally consists of ticket sales and sponsorship of events our stations conduct in their local market. These revenues are recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related event. Other Other revenue includes trade revenue, network revenue, talent fee revenue and other revenue. The Company provides advertising broadcast time in exchange for certain products and services, including on-air radio and television programming. These trade arrangements generally allow the Company to preempt such bartered broadcast time in favor of advertisers who purchase time for cash consideration. These trade arrangements are valued based upon the Company’s estimate of the fair value of the products and services received. Revenue is recognized on trade arrangements when we broadcast the advertisements. Advertisements delivered under trade arrangements are typically aired during the same period in which the products and services are consumed. The Company also sells certain remnant advertising inventory to third-parties for cash, and we refer to this as network revenue. The third-parties aggregate our remnant inventory with other broadcasters’ remnant inventory for sale to third parties, generally to large national advertisers. This network revenue is recognized as we broadcast the advertisements. Talent fee revenue are fees earned for appearances by our on-air talent, which is recognized when our performance obligations are fulfilled, which generally coincides with the occurrence of the related appearance. Other revenue is comprised of brand integrations, custom on-air shows, or other amounts earned that do not fit in any other category and are recognized when our performance obligations are fulfilled. Disaggregation of revenue Due to the Estrella Acquisition, the Company now reports its results in three reportable segments: Estrella MediaCo Video & Digital (“EM-VD”), Estrella MediaCo Audio, Digital & Events (“EM-ADE”), and NY Audio, Digital & Events (“NY-ADE”). The following table presents the Company’s revenues disaggregated by revenue source and segment. Three Months Ended June 30, Six Months Ended June 30, 2024 % of Total 2023 % of Total 2024 % of Total 2023 % of Total Revenue by Source: EM-VD $ 5,800 22.1 % $ — — % $ 5,800 17.6 % $ — — % EM-ADE 6,951 26.5 % — — % 6,951 21.1 % — — % NY-ADE 4,961 18.9 % 4,912 40.7 % 9,309 28.3 % 9,681 49.9 % Spot Advertising 17,712 67.5 % 4,912 40.7 % 22,060 67.0 % 9,681 49.9 % EM-VD 2,496 9.5 % — — % 2,496 7.6 % — — % EM-ADE 149 0.6 % — — % 149 0.5 % — — % NY-ADE 764 2.9 % 1,471 12.2 % 1,626 4.9 % 2,445 12.6 % Digital 3,409 13.0 % 1,471 12.2 % 4,271 13.0 % 2,445 12.6 % EM-ADE 95 0.4 % — — % 95 0.3 % — — % NY-ADE 593 2.3 % 605 5.0 % 1,191 3.6 % 1,210 6.2 % Syndication 688 2.7 % 605 5.0 % 1,286 3.9 % 1,210 6.2 % EM-VD 63 0.2 % — — % 63 0.2 % — — % EM-ADE 485 1.9 % — — % 485 1.5 % — — % NY-ADE 1,566 6.0 % 4,472 37.0 % 1,687 5.1 % 4,628 23.8 % Events and Sponsorships 2,114 8.1 % 4,472 37.0 % 2,235 6.8 % 4,628 23.8 % EM-VD 630 2.4 % — — % 630 1.9 % — — % EM-ADE 792 3.0 % — — % 792 2.4 % — — % NY-ADE 857 3.3 % 620 5.1 % 1,634 5.0 % 1,451 7.5 % Other 2,279 8.7 % 620 5.1 % 3,056 9.3 % 1,451 7.5 % Total net revenues $ 26,202 100 % $ 12,080 100 % $ 32,908 100 % $ 19,415 100 % |
LONG-TERM DEBT, WARRANTS, AND S
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK | 6. LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK Long-term debt, Warrant shares, and Series B Preferred Stock was comprised of the following at June 30, 2024 and December 31, 2023. The Emmis Convertible Promissory Note (as defined below) was classified as current at June 30, 2024 and December 31, 2023 as the note matures within the next 12 months. June 30, 2024 December 31, 2023 Emmis Convertible Promissory Note $ 6,458 $ 6,458 First Lien Term Loans 40,000 — Second Lien Term Loan 26,904 — Less: Current maturities (6,458) (6,458) Less: Unamortized original issue discount and deferred financing costs (2,889) — Total long-term debt, net of current portion $ 64,015 $ — Warrant Shares $ 101,542 $ — Series B Preferred Stock $ 33,547 $ — Emmis Convertible Promissory Note The Emmis Convertible Promissory Note carries interest at a base rate equal to the interest on any senior credit facility, including any applicable paid in kind rate, or if no senior credit facility is outstanding, of 6.00%, plus an additional 1.00% on any payment of interest in kind and, without regard to whether the Company pays such interest in kind, an additional increase of 1.00% following the second anniversary of the date of issuance and additional increases of 1.00% following each successive anniversary thereafter. The Company has been accruing interest since inception using the rate applicable if the interest will be paid in kind. The Emmis Convertible Promissory Note is convertible, in whole or in part, into MediaCo Class A common stock at the option of Emmis and at a strike price equal to the thirty-day volume weighted average price of the MediaCo Class A common stock on the date of conversion. The Emmis Convertible Promissory Note matures on November 25, 2024. As of June 30, 2024, the principal balance outstanding under the Emmis Convertible Promissory Note was $6.5 million. First Lien Term Loans MediaCo and its direct and indirect subsidiaries entered into a maximum $45.0 million First Lien Credit Agreement, with White Hawk Capital Partners, LP, as term agent thereunder, and the lenders party thereto. Under the terms of the First Lien Credit Agreement, MediaCo received an Initial Loan of $35.0 million on April 17, 2024 and was provided with a subsequent delayed draw facility of up to $10.0 million that may be provided for additional working capital purposes under certain conditions. A delayed draw of $5.0 million was made on May 2, 2024. The proceeds of the Initial Loan were used to finance the Estrella Acquisition, pay off certain existing Estrella indebtedness in connection therewith and pay related fees and transaction costs. The Initial Loan will mature on April 17, 2029, and each Delayed Draw Term Loan will mature on the date that is two years after the drawing of such Delayed Draw Term Loan. First Lien Term Loans will be subject to monthly interest payments at a rate of SOFR + 6.00%. Beginning May 2027, monthly amortization payments are required equal to 0.8333% of the initial principal amount of the First Lien Term Loans. The First Lien Term Loans are subject to a borrowing base in accordance with the terms of the First Lien Credit Agreement. Second Lien Term Loan MediaCo and its direct and indirect subsidiaries entered into a $30.0 million second lien term loan credit facility, dated April 17, 2024, with HPS as term agent, and the lenders party thereto. Under the terms of the Second Lien Credit Agreement, MediaCo was deemed to receive the Second Lien Term Loan of $30.0 million on April 17, 2024 in connection with the consummation of the Estrella Acquisition and was recorded at its fair value at that time of $26.5 million. This amount will be accreted up to the principal balance over the term of the loan. The Second Lien Term Loan will mature on April 17, 2029 and will be subject to monthly interest payments at a rate of SOFR + 6.00%, of which the 6.00% may be paid in-kind (“PIK”) at the Company’s election. During the second quarter of 2024, the Company elected to PIK the 6.00% spread monthly. The Second Lien Term Loans are subject to a borrowing base in accordance with the terms of the Second Lien Credit Agreement. Series B Preferred Stock On April 17, 2024, MediaCo issued 60,000 shares of Series B Preferred Stock with an aggregate initial liquidation value of $60.0 million, recorded at its fair value at that time of $32.0 million, which will be accreted up to the redemption value balance over the term. The Series B Preferred Stock rank senior and in priority of payment to all other equity securities of MediaCo, including with respect to any repayment, redemption, distributions, bankruptcy, insolvency, liquidation, dissolution or winding-up. Pursuant to the Series B Articles of Amendment, the ability of MediaCo to make distributions with respect to, or make a liquidation payment on, any other class of capital stock in the Company designated to be junior to, or on parity with, the Series B Preferred Stock, will be subject to certain restrictions. Issued and outstanding shares of Series B Preferred Stock will accrue dividends, payable in kind, at an annual rate equal to 6.00% of the liquidation value thereof, subject to increase upon the occurrence of certain trigger events set forth in the Series B Articles of Amendment. The Series B Preferred Stock is not convertible into any other equity securities of the Company. As the Series B Preferred Stock is mandatorily redeemable after seven years and does not contain an equity conversion option, it is classified as a long-term liability. Warrant Shares On April 17, 2024, in connection with the Estrella Acquisition, MediaCo issued the Warrant, which provides for the purchase of up to 28,206,152 shares of Class A common stock, subject to customary adjustments as set forth in the Warrant, at an exercise price per share of $0.00001. Subject to certain limitations, the Warrant also provides that the Warrant holder has the right to participate in distributions on Class A common stock on an as-exercised basis. The Warrant further provides that in no event shall the aggregate number of Warrant Shares issuable to the Warrant holder upon exercise of the Warrant exceed 19.9% of the aggregate number of shares of common stock of MediaCo outstanding (the “Share Cap”), or the voting power of such outstanding shares of common stock, on the business day immediately preceding the issue date for such Warrant Shares, calculated in accordance with the applicable rules of the Nasdaq, unless and until shareholder approval. As such, all Warrant Shares are classified as a liability at their fair value based on the closing price of MediaCo Class A common stock unless and until shareholder approval is obtained. Changes in fair value are recorded in change in fair value of warrant shares liability in the condensed consolidated statements of operations. The Warrant terminates six-months from the date shareholder approval is obtained, at which point, to the extent not fully exercised, the Warrant shall be deemed automatically exercised. Based on amounts outstanding at June 30, 2024, mandatory principal payments of long-term debt and preferred stock for the next five years and thereafter are summarized below: Year ended December 31, Emmis Note First Lien Term Loans Second Lien Term Loan Series B Preferred Stock Total Payments Remainder of 2024 (from July 1) $ 6,458 $ — $ — $ — $ 6,458 2025 — — — — — 2026 — 5,000 — — 5,000 2027 — 2,333 — — 2,333 2028 — 3,500 — — 3,500 After 2028 — 29,167 30,000 60,000 119,167 Total $ 6,458 $ 40,000 $ 30,000 $ 60,000 $ 136,458 |
REGULATORY, LEGAL AND OTHER MAT
REGULATORY, LEGAL AND OTHER MATTERS | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
REGULATORY, LEGAL AND OTHER MATTERS | 7. REGULATORY, LEGAL AND OTHER MATTERS From time to time, our stations are parties to various legal proceedings arising in the ordinary course of business. In the opinion of management of the Company, however, there are no legal proceedings pending against the Company that we believe are likely to have a material adverse effect on the Company. On September 15, 2023, the Company received a notification letter from the Nasdaq Listing Qualifications Department (the “Staff”) notifying the Company that, because the closing bid price for the Company's Class A common stock was below $1.00 for 30 consecutive business days, the Company no longer met the minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2), requiring a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A)(ii), the Company was given 180 calendar days, or until March 13, 2024, to regain compliance with the Minimum Bid Price Requirement. The Company did not achieve compliance during that period. On March 14, 2024, the Company received a notification letter from the Staff notifying the Company that that it had been granted an additional 180 days, or until September 9, 2024, to regain compliance with the Minimum Bid Price Requirement, based on meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period. On April 17, 2024, the Company received a notification letter from the Staff indicating that the Company has regained compliance with Nasdaq’s Minimum Bid Price Requirement and the matter is closed. On August 20, 2024, the Company received a notification letter from the Staff of the Nasdaq notifying the Company that it was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 (the “Q2 2024 Form 10-Q”), as described more fully in the Company’s Form 12b-25 Notification of Late Filing (the “Form 12b-25”) filed with the Securities and Exchange Commission (the “SEC”) on August 14, 2024. The Listing Rule requires Nasdaq-listed companies to timely file all required periodic reports with the SEC. The Notice indicates that the Company has until October 21, 2024 to submit a plan to regain compliance with the Listing Rule with respect to the delinquent filing, and indicates that any additional Nasdaq Staff exception to allow the Company to regain compliance with the delinquent filing will be limited to a maximum of 180 calendar days from the due date of the Q2 2024 Form 10-Q (as extended pursuant to Rule 12b-25 under the Securities Exchange Act of 1934, as amended), or February 17, 2025. The Company intends to submit a compliance plan to Nasdaq and take the necessary steps to regain compliance with the Listing Rule as soon as practicable. As described in the Form 12b-25, the filing of the Q2 2024 Form 10-Q was delayed due to delays in finalizing financial statements for the quarter ended June 30, 2024 related to the inclusion in the results for such period of the operations of the business acquired in the Estrella Acquisition, which delay could not be eliminated without unreasonable effort or expense. Receipt of the Notice has no immediate effect on the listing of MediaCo’s Class A common stock, which will continue to trade on The Nasdaq Capital Market under the symbol “MDIA” at this time. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES The effective tax rate for the six months ended June 30, 2024 and 2023 was 1% and 7%, respectively. Our effective tax rate for the six months ended June 30, 2024 differs from the statutory tax rate primarily due to the recognition of additional valuation allowance. ASC paragraph 740-10 clarified the accounting for uncertainty in income taxes by prescribing a recognition threshold and measurement attribute of the financial statement recognition and measurement of a tax position taken or expected to be taken within a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest benefit that reaches greater than 50% likelihood of being realized upon ultimate settlement. In 2023, we recorded approximately $390 thousand of gross tax liability for uncertain tax positions related to federal and state income tax returns filed. Additionally, we recognize accrued interest and penalties related to unrecognized tax benefits as components of our income tax provision. As of June 30, 2024, the amount of interest accrued was approximately $43 thousand, which did not include the federal tax benefit of interest deductions. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | 9. LEASES We determine if an arrangement is a lease at inception. We have operating leases for office space and tower space expiring at various dates through December 2047 and finance leases for broadcast tower space expiring in March 2029. Some leases have options to extend and some have options to terminate. Operating leases are included in lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities in our condensed consolidated balance sheets. Finance leases are included in lease right-of-use assets, current finance lease liabilities, and noncurrent finance lease liabilities in our condensed consolidated balance sheets. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Our lease terms may include options to extend or terminate the lease, which we treat as exercised when it is reasonably certain and there is a significant economic incentive to exercise that option. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. Finance lease expense is composed of the depreciation of the lease asset and accretion of the lease liability and presented as part of Depreciation and amortization expense and Interest expense, respectively, in the condensed consolidated statements of operations. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. None of our leases contain variable lease payments. We elected not to apply the recognition requirements of ASC 842, Leases , to short-term leases, which are deemed to be leases with a lease term of twelve months or less. Instead, we recognized lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term and variable payments in the period in which the obligation for these payments was incurred. We elected this policy for all classes of underlying assets. Short-term lease expense recognized in the three and six months ended June 30, 2024 and 2023 was not material. On November 18, 2022, the Company entered into a lease agreement in New York City for our radio operations and corporate offices with a lease commencement date of February 1, 2023 and a noncancellable lease term through October 2039. This resulted in a right of use asset of $10.4 million and an operating lease liability of $10.4 million when recorded at lease commencement. The impact of operating leases to our condensed consolidated financial statements was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Operating lease cost $ 1,773 $ 1,107 $ 2,407 $ 2,059 Operating cash flows from operating leases 1,263 938 1,543 1,688 Right-of-use assets obtained in exchange for new operating lease liabilities — — — 10,391 June 30, 2024 December 31, 2023 Weighted average remaining lease term - operating leases (in years) 13.1 14.0 Weighted average discount rate - operating leases 11.6 % 11.4 % The impact of finance leases to our condensed consolidated financial statements was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Finance lease cost $ 199 $ — $ 199 $ — Cash flows from finance leases 124 — 124 — June 30, 2024 December 31, 2023 Weighted average remaining lease term - finance leases (in years) 4.8 0.0 Weighted average discount rate - finance leases 11.3 % — % As of June 30, 2024, the annual minimum lease payments of our operating lease liabilities were as follows: Year ending December 31, 2024 (from July 1) $ 3,331 2025 6,975 2026 7,501 2027 7,071 2028 7,027 After 2028 67,671 Total lease payments 99,576 Less imputed interest (52,553) Total recorded operating lease liabilities $ 47,023 As of June 30, 2024, the annual minimum lease payments of our finance lease liabilities were as follows: Year ending December 31, 2024 (from July 1) $ 373 2025 768 2026 799 2027 831 2028 864 After 2028 218 Total lease payments 3,853 Less imputed interest (878) Total recorded finance lease liabilities $ 2,975 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS Transaction Agreement with Emmis and SG Broadcasting On June 28, 2019, MediaCo entered into a Contribution and Distribution Agreement with Emmis Communications Corporation (“Emmis”) and SG Broadcasting, pursuant to which (i) Emmis contributed the assets of its radio stations WQHT-FM and WBLS-FM, in exchange for $91.5 million in cash, a $5.0 million note and 23.72% of the common stock of MediaCo, (ii) Standard General purchased 76.28% of the common stock of MediaCo, and (iii) the common stock of MediaCo received by Emmis was distributed pro rata in a taxable dividend to Emmis’ shareholders on January 17, 2020. The common stock of MediaCo acquired by Standard General is entitled to ten votes per share and the common stock acquired by Emmis and distributed to Emmis’ shareholders is entitled to one vote per share. Convertible Promissory Notes As a result of the transaction described above, on November 25, 2019, we issued a convertible promissory note to Emmis (such note, the “Emmis Convertible Promissory Note”) in the amount of $5.0 million. Through December 31, 2022, there were annual interest amounts paid in kind on the Emmis Convertible Promissory Note such that the principal balances outstanding as of December 31, 2022 was $6.0 million. For the year ended December 31, 2023, interest of $0.5 million was paid-in-kind and added to the principal balance outstanding. Consequently, the principal amount outstanding as of December 31, 2023 and June 30, 2024 under the Emmis Convertible Promissory Note was $6.5 million. The Company recognized interest expense of $0.4 million and $0.3 million related to the Emmis Convertible Promissory Note for the six months ended June 30, 2024 and 2023, respectively. The terms of the Emmis Convertible Promissory Note are described in Note 6. Convertible Preferred Stock On December 13, 2019, in connection with the purchase of our Outdoor Advertising segment, the Company issued to SG Broadcasting 220,000 shares of MediaCo Series A preferred stock. In April 2024, all outstanding shares of Series A preferred stock were converted in accordance with their terms into 20.7 million shares of MediaCo Class A common stock. Prior to being converted, the MediaCo Series A preferred stock ranked senior in preference to the MediaCo Class A common stock, MediaCo Class B common stock, and the MediaCo Class C common stock. Pursuant to the Articles of Amendment that established the terms of the Series A preferred stock, issued and outstanding shares of MediaCo Series A preferred stock accrued cumulative dividends, payable in kind, at an annual rate equal to the interest rate on any senior debt of the Company (see Note 6), or if no senior debt is outstanding, 6%, plus additional increases of 1% on December 12, 2020 and each anniversary thereof. On December 13, 2022, dividends of $3.4 million were paid in kind. The payment in kind increased the accrued value of the preferred stock and 80,000 additional shares were issued as part of this payment. Dividends on Series A Convertible Preferred Stock held by SG Broadcasting were $0.9 million and $1.2 million, respectively, for the six months ended June 30, 2024 and 2023. As December 31, 2023, unpaid cumulative dividends were $0.2 million and included in the balance of preferred stock in the accompanying condensed consolidated balance sheets. Consulting Agreements & Other Activity In October 2023, we entered into agreements with five consultants that are currently employed by affiliates of Standard General. One of the agreements had a term that expired on February 1, 2024 and was billed at an hourly rate of $125 per hour. One of the agreements, billed at a rate of $8,400 per month expired on May 31, 2024. Two of the agreements billed at rates of $6,000 and $12,000 per month were extended through September 30, 2024. One agreement may be terminated at any time by either party and is billed at $18,000 per month, plus expenses. For the six months ended June 30, 2024, $0.3 million of fees were incurred related to these agreements. In March 2024, we made payments of $15,000 to the National Association of Investment Companies, of which a member of our board of directors is the President & CEO. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION Due to the Estrella Acquisition, the Company now reports its results in three reportable segments: Estrella MediaCo Video & Digital (“EM-VD”), Estrella MediaCo Audio, Digital & Events (“EM-ADE”), and NY Audio, Digital & Events (“NY-ADE”). The results of the EstrellaTV network and all of the Estrella MediaCo television operations, including digital, are included in our EM-VD segment. The Estrella MediaCo radio, digital and events operations are included in our EM-ADE segment. The operations of our two New York radio stations are included in our NY-ADE segment. These business segments are consistent with the Company’s management of these businesses and its financial reporting structure in development after the acquisition. In addition to the reportable segments above, the Company has a Corporate and Other category that includes expenses not directly attributable to a specific reportable segment. These unallocated expenses primarily consist of broad corporate functions, including executive management, legal, human resources, corporate accounting and finance, and technology. Revenue and operating income (loss) by reportable segment, and corporate and other, and the reconciliation to consolidated income (loss) from continuing operations before income taxes were as follows for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ 8,989 $ 8,472 $ 8,741 $ — $ 26,202 Operating expenses excluding depreciation and amortization expense 15,570 9,398 9,679 — 34,647 Corporate expenses — — — 3,445 3,445 Depreciation and amortization 1,014 279 138 — 1,431 Loss on disposal of assets — 5 — — 5 Operating (loss) income $ (7,595) $ (1,210) $ (1,076) $ (3,445) $ (13,326) Three Months Ended June 30, 2023 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ — $ — $ 12,080 $ — $ 12,080 Operating expenses excluding depreciation and amortization expense — — 11,046 — 11,046 Corporate expenses — — — 1,002 1,002 Depreciation and amortization — — 148 — 148 Operating income (loss) $ — $ — $ 886 $ (1,002) $ (116) Six Months Ended June 30, 2024 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ 8,989 $ 8,472 $ 15,447 $ — $ 32,908 Operating expenses excluding depreciation and amortization expense 15,570 9,398 16,329 — 41,297 Corporate expenses — — — 6,835 6,835 Depreciation and amortization 1,014 279 271 — 1,564 Loss on disposal of assets — 5 — — 5 Operating (loss) income $ (7,595) $ (1,210) $ (1,153) $ (6,835) $ (16,793) Six Months Ended June 30, 2023 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ — $ — $ 19,415 $ — $ 19,415 Operating expenses excluding depreciation and amortization expense — — 18,283 — 18,283 Corporate expenses — — — 2,886 2,886 Depreciation and amortization — — 307 — 307 Gain on disposal of assets — — (39) — (39) Operating income (loss) $ — $ — $ 864 $ (2,886) $ (2,022) Assets by reportable segment were as follows: June 30, December 31, Assets EM-VD $ 80,094 $ — EM-ADE 163,897 — NY-ADE 94,654 95,491 Total $ 338,645 $ 95,491 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS In July 2024, the Company drew $5.0 million of the Delayed Draw Term Loan, making the facility fully utilized. In September 2024, the Company entered into the First Amendment of the First Lien Credit Agreement, with White Hawk Capital Partners, LP, which provides for $7.5 million of additional Delayed Draw Term Loan Commitments for Delayed Draw Term Loans, and waives the requirement for mandatory prepayment of any net proceeds received as a result of any equity issuances, up to $7.3 million. There were no other subsequent events other than the Nasdaq notice received in August 2024 as discussed in Note 7. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ (48,307) | $ (3,677) | $ (421) | $ (2,107) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Organization | Organization MediaCo Holding Inc., its subsidiaries, and a variable interest entity (“VIE”) (collectively, “MediaCo” or the “Company”) is an owned and operated multi-media company formed in Indiana in 2019, focused on television, radio and digital advertising, premium programming and events. On April 17, 2024, MediaCo Holding Inc. and its wholly-owned subsidiary MediaCo Operations LLC, a Delaware limited liability company (“Purchaser”), entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Estrella Broadcasting, Inc., a Delaware corporation (“Estrella”), and SLF LBI Aggregator, LLC, a Delaware limited liability company (“Aggregator”) and affiliate of HPS Investment Partners, LLC (“HPS”), pursuant to which Purchaser purchased substantially all of the assets of Estrella and its subsidiaries (other than certain broadcast assets owned by Estrella and its subsidiaries (the “Estrella Broadcast Assets”)) (the “Purchased Assets”), and assumed substantially all of the liabilities (the “Assumed Liabilities”) of Estrella and its subsidiaries (such transactions, collectively, the “Estrella Acquisition”). MediaCo Operations LLC operates the Purchased Assets under the trade name Estrella MediaCo. Our assets consist of two radio stations located in New York City, WQHT(FM) and WBLS(FM) (the “Stations”), which serve the New York City demographic market area that primarily target Black, Hispanic, and multi-cultural consumers, and as a result of the Estrella Acquisition, Estrella’s network, content, digital, and commercial operations, including network affiliation and program supply agreements with Estrella for its 11 radio stations serving Los Angeles, CA, Houston, TX, and Dallas, TX and nine television stations serving Los Angeles, CA, Houston, TX, Denver, CO, and Miami, FL. Among the Estrella brands that joined MediaCo are the EstrellaTV network, its influential linear and digital video content business, Estrella’s expansive digital channels, including its four FAST channels - EstrellaTV, Estrella News, Cine EstrellaTV, and Estrella Games, and the EstrellaTV app. See Note 3 for additional information. We derive our revenues primarily from radio, television and digital advertising sales, but we also generate revenues from events, including sponsorships and ticket sales, licensing, and syndication. Unless the context otherwise requires, references to “we”, “us” and “our” refer to MediaCo, its subsidiaries and the Estrella VIE (as defined below), collectively. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Our condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring adjustments) have been included. The Company determined that the Estrella entities holding the Estrella Broadcast Assets (the “Estrella VIE”) are a VIE in which the Company holds a controlling financial interest. Pursuant to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) paragraph 810-10-25-38A and paragraph 810-10-25-38B, a reporting entity (in this case, the Company) is deemed to have a controlling financial interest in a VIE if it has both of the following characteristics: a. The power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and b. The obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determined that since the major factors in the economic performance of the Estrella VIE are the popularity of the programming provided by the Company to the Estrella VIE and the Company’s sale of advertising in that programming, the Company is the primary beneficiary of the VIE, and the remaining assets and liabilities of the Estrella VIE should be consolidated in the Company’s consolidated financial statements as of April 17, 2024. The Company accounts for noncontrolling interest in accordance with ASC 810, which requires companies with noncontrolling interests to disclose such interests as a portion of equity but separate from the Parent’s equity. The noncontrolling interests’ portion of net income (loss) is presented on the condensed consolidated statement of operations. |
Going Concern | Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Pursuant to ASC Topic 205-40, Going Concern , the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern within one year of the date of issuance of these financial statements (September 18, 2024). In conducting this analysis, management considered the Company’s current projections of future cash flows, current financial condition, sources of liquidity and debt service obligations due on or before September 18, 2025. The Company has experienced diminished revenues and profitability, driven in part by weaker sales for our annual Summer Jam concert, and expects these conditions to continue for an undetermined period of time. Management has considered these circumstances in assessing the Company’s liquidity over the next year. Liquidity is a measure of an entity’s ability to meet potential cash requirements, maintain its assets, fund its operations, and meet the other general cash needs of its business. The Company’s liquidity is impacted by general economic, financial, competitive, and other factors beyond its control. The Company’s liquidity requirements consist primarily of funds necessary to pay its expenses, principally debt service and operational expenses, such as labor costs, and other related expenditures. The Company generally satisfies its liquidity needs through cash provided by operations. In addition, the Company has taken steps to enhance its ability to fund its operational expenses by reducing various costs and is prepared to take additional steps as necessary. At June 30, 2024, we had $6.5 million outstanding to Emmis under the Emmis Convertible Promissory Note (as defined in Note 10), all of which is classified as current and has debt service obligations of approximately $7.3 million due under its Emmis Convertible Promissory Note from September 18, 2024 (the date of issuance of these financial statements) through September 18, 2025. In September 2024, the Company entered into the First Amendment of the First Lien Credit Agreement, with White Hawk Capital Partners, LP, which provides for $7.5 million of additional Delayed Draw Term Loan Commitments for Delayed Draw Term Loans, and waives the requirement for mandatory prepayment of any net proceeds received as a result of any equity issuances, up to $7.3 million. Each Delayed Draw Term Loan will mature on the date that is two years after the drawing of such Delayed Draw Term Loan. As a result of this amendment, management anticipates the Company will be able to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand, additional draws on its First Lien Term Loan, and projected cash flows from operations. Therefore, substantial doubt has been alleviated about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. |
Programming Rights | Programming Rights MediaCo has elected to record programming right assets and liabilities acquired from third parties at the gross amount at inception. These programming rights are amortized, on a straight-line basis, over the license term, beginning in the period in which the license period begins and program becomes available for broadcast in accordance with ASC Topic 920, Entertainment - Broadcasters. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash MediaCo considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted cash at December 31, 2023 consisted of $1.3 million held in escrow related to the Company's disposition of the Fairway business, classified in current assets and the restrictions were released in June 2024. Additionally, restricted cash of $1.9 million as of June 30, 2024 and December 31, 2023 was held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices, which expires in October 2039, and restricted cash of $0.5 million as of June 30, 2024 was held for a collateral account related to merchant banking for the Company’s purchase card program and for an office lease security deposit, all included in the line item Deposits and Other in the condensed consolidated balance sheets. |
Restricted Cash | Cash, Cash Equivalents and Restricted Cash MediaCo considers time deposits, money market fund shares and all highly liquid debt investment instruments with original maturities of three months or less to be cash equivalents. At times, such deposits may be in excess of FDIC insurance limits. Restricted cash at December 31, 2023 consisted of $1.3 million held in escrow related to the Company's disposition of the Fairway business, classified in current assets and the restrictions were released in June 2024. Additionally, restricted cash of $1.9 million as of June 30, 2024 and December 31, 2023 was held as collateral for a letter of credit entered into in connection with the lease in New York City for our radio operations and corporate offices, which expires in October 2039, and restricted cash of $0.5 million as of June 30, 2024 was held for a collateral account related to merchant banking for the Company’s purchase card program and for an office lease security deposit, all included in the line item Deposits and Other in the condensed consolidated balance sheets. |
Fair Value Measurements | Fair Value Measurements Fair value is the exchange price to sell an asset or transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Company uses market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs may be readily observable, corroborated by market data, or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. (see Note 4 for more discussion). The Company’s Warrant Shares (as defined in Note 3) are classified as a liability for which the fair value is measured on a recurring basis using Level 2 inputs (see Note 6 for more discussion). We have no assets or liabilities for which fair value is measured on a recurring basis using Level 3 inputs. The Company has certain assets that are measured at fair value on a non-recurring basis including those described in Note 4, Intangible Assets, and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair value (see Note 4 for more discussion). The Company’s long-term debt is not actively traded and is considered a Level 3 measurement. The Company believes the current carrying value of its long-term debt approximates its fair value as it is variable rate debt. |
Allowance for Credit Losses | Allowance for Credit Losses |
Estimates | Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or a revision to the carrying value of its assets or liabilities. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates. |
Earnings Per Share | Earnings Per Share |
Recent Accounting Pronouncements Not Yet Implemented | Recent Accounting Pronouncements Not Yet Implemented In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which is intended to enhance the transparency and decision usefulness of income tax disclosures by enhancing information about how an entity’s operations and related tax risks and its tax planning and operation opportunities affect its tax rate and prospects for future cash flows. This guidance is effective for fiscal years beginning after December 31, 2024, with early adoption permitted. Adoption allows for prospective application, with retrospective application permitted. We are currently assessing the impact this standard will have on our condensed consolidated financial statements, including, but not limited to, our income taxes footnote disclosure. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update is effective beginning with the Company’s 2024 fiscal year annual reporting period, with early adoption permitted. We are currently assessing the impact this standard will have on our condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses for the three-month and six-month periods ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning Balance $ 378 $ 102 $ 353 $ 122 Additions related to Estrella Acquisition 496 — 496 — Change in Provision 54 — 79 (20) Write Offs (249) — (249) — Ending Balance $ 679 $ 102 $ 679 $ 102 |
Reconciliation of Basic and Diluted Net Loss per Share Attributable to Common Shareholders | The following is a reconciliation of basic and diluted net loss per share attributable to Class A and Class B common shareholders: Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Loss from continuing operations $ (48,307) $ (430) $ (51,984) $ (2,385) Less: Net income attributable to noncontrolling interests (828) — (828) — Less: Preferred stock dividends (128) (596) (851) (1,186) Loss from continuing operations available to common shareholders (49,263) (1,026) (53,663) (3,571) Income (loss) from discontinued operations, net of income taxes — 9 — (143) Net loss attributable to common shareholders $ (49,263) $ (1,017) $ (53,663) $ (3,714) Denominator: Weighted-average shares of common stock outstanding — basic and diluted 65,415 24,947 45,166 24,927 Earnings per share of common stock attributable to common shareholders: Net loss per share attributable to common shareholders - basic and diluted: Continuing operations $ (0.75) $ (0.04) $ (1.19) $ (0.14) Discontinued operations — — — (0.01) Net loss per share attributable to common shareholders - basic and diluted: $ (0.75) $ (0.04) $ (1.19) $ (0.15) |
Schedule of Convertible Equity Shares and Restricted Stock Awards Excluded from Calculation of Diluted Net Loss per Share | The following convertible equity shares and restricted stock awards were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive. Three Months Ended Six Months Ended (in thousands) 2024 2023 2024 2023 Convertible Emmis promissory note 8,596 5,563 9,561 4,795 Option agreement shares 5,734 — 2,867 — Series A convertible preferred stock 6,569 24,549 24,479 21,162 Restricted stock awards 590 248 575 230 Total anti-dilutive shares 21,489 30,360 37,482 26,187 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents the financial results of Fairway: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ — $ — $ — $ — OPERATING EXPENSES Operating expenses excluding depreciation and amortization expense — (9) — 143 Total operating expenses — (9) — 143 Income (loss) from operations of discontinued operations — 9 — (143) Interest and other, net — — — — Income (loss) from discontinued operations, before income taxes — 9 — (143) Income tax benefit (expense) — — — — Income (loss) from discontinued operations, net of income taxes $ — $ 9 $ — $ (143) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Consideration Transferred | The Estrella Acquisition comprises the new Estrella MediaCo Video & Digital and Estrella MediaCo Audio, Digital & Events segments. The following tables summarize the preliminary fair value of cash and noncash consideration transferred, assets acquired, and liabilities assumed as of the acquisition date: Preliminary Valuation as of April 17, 2024 Cash Consideration 25,499 Noncash Consideration: Warrants (1) 70,515 Series B Preferred Stock (2) 31,975 Second Lien Term Loan (2) 26,534 Total Noncash Consideration 129,024 Total Consideration 154,523 (1) Represents the fair value of warrants to purchase 28,206,152 shares of Class A common stock issued in the Estrella Transactions valued at the close price on the day prior to close of $2.50. (2) Represents the fair value of the Series B Preferred Stock and Second Lien Term Loan using a required yield of 15.23% and 14.14%, respectively. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Preliminary Valuation and Allocation as of April 17, 2024 Cash and cash equivalents 18,124 Accounts receivable, net of allowance for doubtful accounts of $496 16,412 Prepaid expenses 1,838 Current programming rights 3,635 Other current assets 555 Property and equipment, net 17,897 Intangible assets, net 140,877 Right of use assets 34,322 Goodwill 14,878 Noncurrent programming rights 6,607 Deposits and other 688 Assets acquired 255,833 Accounts payable and accrued expenses 32,033 Deferred revenue 9,209 Operating lease liabilities 31,109 Finance lease liabilities 3,029 Other Liabilities 8,301 Liabilities assumed 83,681 Fair value of noncontrolling interests (1) 17,629 Net assets acquired 154,523 (1) Fair value of noncontrolling interests based on 7,051,538 warrants issued in Option Agreement valued at the close price on the day prior to close of $2.50. |
Schedule of Variable Interest Entities | The carrying amounts of the VIE’s consolidated assets and liabilities included in the condensed consolidated balance sheet are as follows: June 30, Cash and cash equivalents $ 6,540 Accounts receivable, net of allowance for doubtful accounts of $38 6,207 Prepaid expenses 564 Other current assets 440 Total current assets 13,751 PROPERTY AND EQUIPMENT, NET 8,106 OTHER INTANGIBLE ASSETS, NET 112,210 OTHER ASSETS: Lease right of use assets 2,818 Deposits and other 576 Total other assets 3,394 Total assets $ 137,461 CURRENT LIABILITIES: Accounts payable and accrued expenses $ 4,426 Deferred revenue 65 Operating lease liabilities 362 Income taxes payable 2,029 Total current liabilities 6,882 OPERATING LEASE LIABILITIES, NET OF CURRENT 2,466 OTHER NONCURRENT LIABILITIES 3,404 Total liabilities 12,752 Net assets 124,709 The summarized operating results of the VIE are as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ 3,174 $ — $ 3,174 $ — Operating income 827 — 827 — Net income 828 — 828 — |
Business Acquisition, Pro Forma Information | The following table presents the estimated unaudited pro forma combined results of MediaCo and Estrella for the three and six months ended June 30, 2024 and 2023 as if the acquisition had occurred on January 1, 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Net revenues $ 28,722 $ 35,175 $ 54,649 $ 62,092 Loss from continuing operations before income taxes (57,721) (13,535) (67,110) (35,188) |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | As of June 30, 2024 and December 31, 2023, intangible assets consisted of the following: June 30, 2024 December 31, 2023 Indefinite-lived intangible assets FCC licenses $ 175,476 $ 63,266 Goodwill 14,878 — Definite-lived intangible assets Customer relationships 14,895 — Favorable leasehold interests 12,962 — Software 1,311 1,327 Other 44 — Total definite-lived intangible assets $ 29,212 $ 1,327 Total noncurrent other intangible assets, net and goodwill $ 219,566 $ 64,593 |
Schedule of Definite-Lived Intangible Assets | The following table presents the weighted-average useful life at June 30, 2024, and the gross carrying amount and accumulated amortization at June 30, 2024 and December 31, 2023, for our definite-lived intangible assets: June 30, 2024 December 31, 2023 Weighted Average Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 3.8 $ 15,572 $ 677 $ 14,895 $ — $ — $ — Favorable leasehold interests 34.8 13,039 77 12,962 — — — Software 3.9 1,733 422 1,311 1,583 256 1,327 Other 0.8 56 12 44 — — — Total $ 30,400 $ 1,188 $ 29,212 $ 1,583 $ 256 $ 1,327 |
Finite-Lived Intangible Assets Amortization Expense | Total amortization expense from definite-lived intangible assets for each of the three and six months ended June 30, 2024 and 2023 and included in the depreciation and amortization line item in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Amortization expense $ 852 $ 67 $ 932 $ 135 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company estimates amortization expense each of the next five years as follows: Year ending December 31, Amortization Expense 2024 (from July 1) $ 2,013 2025 3,679 2026 3,093 2027 2,524 2028 1,943 After 2028 15,960 Total $ 29,212 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Due to the Estrella Acquisition, the Company now reports its results in three reportable segments: Estrella MediaCo Video & Digital (“EM-VD”), Estrella MediaCo Audio, Digital & Events (“EM-ADE”), and NY Audio, Digital & Events (“NY-ADE”). The following table presents the Company’s revenues disaggregated by revenue source and segment. Three Months Ended June 30, Six Months Ended June 30, 2024 % of Total 2023 % of Total 2024 % of Total 2023 % of Total Revenue by Source: EM-VD $ 5,800 22.1 % $ — — % $ 5,800 17.6 % $ — — % EM-ADE 6,951 26.5 % — — % 6,951 21.1 % — — % NY-ADE 4,961 18.9 % 4,912 40.7 % 9,309 28.3 % 9,681 49.9 % Spot Advertising 17,712 67.5 % 4,912 40.7 % 22,060 67.0 % 9,681 49.9 % EM-VD 2,496 9.5 % — — % 2,496 7.6 % — — % EM-ADE 149 0.6 % — — % 149 0.5 % — — % NY-ADE 764 2.9 % 1,471 12.2 % 1,626 4.9 % 2,445 12.6 % Digital 3,409 13.0 % 1,471 12.2 % 4,271 13.0 % 2,445 12.6 % EM-ADE 95 0.4 % — — % 95 0.3 % — — % NY-ADE 593 2.3 % 605 5.0 % 1,191 3.6 % 1,210 6.2 % Syndication 688 2.7 % 605 5.0 % 1,286 3.9 % 1,210 6.2 % EM-VD 63 0.2 % — — % 63 0.2 % — — % EM-ADE 485 1.9 % — — % 485 1.5 % — — % NY-ADE 1,566 6.0 % 4,472 37.0 % 1,687 5.1 % 4,628 23.8 % Events and Sponsorships 2,114 8.1 % 4,472 37.0 % 2,235 6.8 % 4,628 23.8 % EM-VD 630 2.4 % — — % 630 1.9 % — — % EM-ADE 792 3.0 % — — % 792 2.4 % — — % NY-ADE 857 3.3 % 620 5.1 % 1,634 5.0 % 1,451 7.5 % Other 2,279 8.7 % 620 5.1 % 3,056 9.3 % 1,451 7.5 % Total net revenues $ 26,202 100 % $ 12,080 100 % $ 32,908 100 % $ 19,415 100 % |
LONG-TERM DEBT, WARRANTS, AND_2
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments, Warrants, and Preferred Stock | Long-term debt, Warrant shares, and Series B Preferred Stock was comprised of the following at June 30, 2024 and December 31, 2023. The Emmis Convertible Promissory Note (as defined below) was classified as current at June 30, 2024 and December 31, 2023 as the note matures within the next 12 months. June 30, 2024 December 31, 2023 Emmis Convertible Promissory Note $ 6,458 $ 6,458 First Lien Term Loans 40,000 — Second Lien Term Loan 26,904 — Less: Current maturities (6,458) (6,458) Less: Unamortized original issue discount and deferred financing costs (2,889) — Total long-term debt, net of current portion $ 64,015 $ — Warrant Shares $ 101,542 $ — Series B Preferred Stock $ 33,547 $ — |
Schedule Of Maturities Of Long-Term Debt And Mandatorily Redeemable Preferred Stock | Based on amounts outstanding at June 30, 2024, mandatory principal payments of long-term debt and preferred stock for the next five years and thereafter are summarized below: Year ended December 31, Emmis Note First Lien Term Loans Second Lien Term Loan Series B Preferred Stock Total Payments Remainder of 2024 (from July 1) $ 6,458 $ — $ — $ — $ 6,458 2025 — — — — — 2026 — 5,000 — — 5,000 2027 — 2,333 — — 2,333 2028 — 3,500 — — 3,500 After 2028 — 29,167 30,000 60,000 119,167 Total $ 6,458 $ 40,000 $ 30,000 $ 60,000 $ 136,458 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Impact of Operating Leases to Condensed Consolidated Financial Statements | The impact of operating leases to our condensed consolidated financial statements was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Operating lease cost $ 1,773 $ 1,107 $ 2,407 $ 2,059 Operating cash flows from operating leases 1,263 938 1,543 1,688 Right-of-use assets obtained in exchange for new operating lease liabilities — — — 10,391 June 30, 2024 December 31, 2023 Weighted average remaining lease term - operating leases (in years) 13.1 14.0 Weighted average discount rate - operating leases 11.6 % 11.4 % The impact of finance leases to our condensed consolidated financial statements was as follows: Three Months Ended Six Months Ended 2024 2023 2024 2023 Finance lease cost $ 199 $ — $ 199 $ — Cash flows from finance leases 124 — 124 — June 30, 2024 December 31, 2023 Weighted average remaining lease term - finance leases (in years) 4.8 0.0 Weighted average discount rate - finance leases 11.3 % — % |
Schedule of Annual Minimum Lease Payments of Operating Lease Liabilities | As of June 30, 2024, the annual minimum lease payments of our operating lease liabilities were as follows: Year ending December 31, 2024 (from July 1) $ 3,331 2025 6,975 2026 7,501 2027 7,071 2028 7,027 After 2028 67,671 Total lease payments 99,576 Less imputed interest (52,553) Total recorded operating lease liabilities $ 47,023 |
Finance Lease, Liability, to be Paid, Maturity | As of June 30, 2024, the annual minimum lease payments of our finance lease liabilities were as follows: Year ending December 31, 2024 (from July 1) $ 373 2025 768 2026 799 2027 831 2028 864 After 2028 218 Total lease payments 3,853 Less imputed interest (878) Total recorded finance lease liabilities $ 2,975 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Results of Operations of Business Segments | Revenue and operating income (loss) by reportable segment, and corporate and other, and the reconciliation to consolidated income (loss) from continuing operations before income taxes were as follows for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ 8,989 $ 8,472 $ 8,741 $ — $ 26,202 Operating expenses excluding depreciation and amortization expense 15,570 9,398 9,679 — 34,647 Corporate expenses — — — 3,445 3,445 Depreciation and amortization 1,014 279 138 — 1,431 Loss on disposal of assets — 5 — — 5 Operating (loss) income $ (7,595) $ (1,210) $ (1,076) $ (3,445) $ (13,326) Three Months Ended June 30, 2023 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ — $ — $ 12,080 $ — $ 12,080 Operating expenses excluding depreciation and amortization expense — — 11,046 — 11,046 Corporate expenses — — — 1,002 1,002 Depreciation and amortization — — 148 — 148 Operating income (loss) $ — $ — $ 886 $ (1,002) $ (116) Six Months Ended June 30, 2024 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ 8,989 $ 8,472 $ 15,447 $ — $ 32,908 Operating expenses excluding depreciation and amortization expense 15,570 9,398 16,329 — 41,297 Corporate expenses — — — 6,835 6,835 Depreciation and amortization 1,014 279 271 — 1,564 Loss on disposal of assets — 5 — — 5 Operating (loss) income $ (7,595) $ (1,210) $ (1,153) $ (6,835) $ (16,793) Six Months Ended June 30, 2023 EM-VD EM-ADE NY-ADE Corporate and other Consolidated Net revenues $ — $ — $ 19,415 $ — $ 19,415 Operating expenses excluding depreciation and amortization expense — — 18,283 — 18,283 Corporate expenses — — — 2,886 2,886 Depreciation and amortization — — 307 — 307 Gain on disposal of assets — — (39) — (39) Operating income (loss) $ — $ — $ 864 $ (2,886) $ (2,022) Assets by reportable segment were as follows: June 30, December 31, Assets EM-VD $ 80,094 $ — EM-ADE 163,897 — NY-ADE 94,654 95,491 Total $ 338,645 $ 95,491 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Sep. 13, 2024 USD ($) | Apr. 17, 2024 | Apr. 30, 2024 $ / shares shares | Jun. 30, 2024 USD ($) RadioStation televisionStation $ / shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) RadioStation televisionStation $ / shares shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Aug. 20, 2021 USD ($) | |
Significant Accounting Policies [Line Items] | |||||||||
Number of radio stations | RadioStation | 2 | 2 | |||||||
NONCURRENT PROGRAM RIGHTS PAYABLE | $ 5,596,000 | $ 5,596,000 | $ 0 | ||||||
Amortization expense | 852,000 | $ 67,000 | 932,000 | $ 135,000 | |||||
Restricted cash | $ 0 | $ 0 | $ 1,337,000 | ||||||
Convertible participating preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Conversion of preferred series A shares (in shares) | shares | 20,700,000 | ||||||||
Programming rights | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Amortization expense | $ 800,000 | $ 800,000 | |||||||
Estrella Broadcasting, Inc | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Number of radio stations | RadioStation | 11 | 11 | |||||||
Number of television stations | televisionStation | 9 | 9 | |||||||
Emmis Convertible Promissory Note | Notes Payable | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Principal amount outstanding | $ 6,458,000 | $ 6,458,000 | $ 6,458,000 | ||||||
Debt service obligation | 7,300,000 | 7,300,000 | |||||||
Delayed Draw Term Loan | Line of Credit | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Debt instrument, term | 2 years | ||||||||
Delayed Draw Term Loan | Line of Credit | Subsequent Event | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Line of credit facility, additional borrowing capacity | $ 7,500,000 | ||||||||
Contractual obligation waived | $ 7,300,000 | ||||||||
Cash Held In Escrow | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Restricted cash | 1,300,000 | ||||||||
Asset Pledged As Collateral, Letter Of Credit | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Restricted cash | 1,900,000 | 1,900,000 | $ 1,900,000 | ||||||
Asset Pledged As Collateral, Merchant Banking | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Restricted cash | $ 500,000 | $ 500,000 | |||||||
Class A common stock | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Stock repurchased during period (in shares) | shares | 11,304 | ||||||||
Class A common stock | At market issuance sales agreement | B. Riley Securities, Inc., | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Aggregate offering price | $ 12,500,000 | ||||||||
Fair value measurements recurring | Level 3 | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Assets | $ 0 | $ 0 | |||||||
Liabilities | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 378 | $ 102 | $ 353 | $ 122 |
Additions related to Estrella Acquisition | 496 | 0 | 496 | 0 |
Change in Provision | 54 | 0 | 79 | (20) |
Write Offs | (249) | 0 | (249) | 0 |
Ending Balance | $ 679 | $ 102 | $ 679 | $ 102 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Basic and Diluted Net Loss per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Loss from continuing operations | $ (48,307) | $ (430) | $ (51,984) | $ (2,385) |
Net income attributable to noncontrolling interest | (828) | 0 | (828) | 0 |
Less: Preferred stock dividends | (128) | (596) | (851) | (1,186) |
Loss from continuing operations available to common shareholders | (49,263) | (1,026) | (53,663) | (3,571) |
Income (loss) from discontinued operations, net of income taxes | 0 | 9 | 0 | (143) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | (49,263) | (1,017) | (53,663) | (3,714) |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS, DILUTED | $ (49,263) | $ (1,017) | $ (53,663) | $ (3,714) |
Denominator: | ||||
Weighted-average shares of common stock outstanding, basic (in shares) | 65,415 | 24,947 | 45,166 | 24,927 |
Weighted-average shares of common stock outstanding, diluted (in shares) | 65,415 | 24,947 | 45,166 | 24,927 |
Earnings per share of common stock attributable to common shareholders: | ||||
Continuing operations - basic (in dollars per share) | $ (0.75) | $ (0.04) | $ (1.19) | $ (0.14) |
Continuing operations - diluted (in dollars per share) | (0.75) | (0.04) | (1.19) | (0.14) |
Discontinued operations - basic (in dollars per share) | 0 | 0 | 0 | (0.01) |
Discontinued operations - diluted (in dollars per share) | 0 | 0 | 0 | (0.01) |
Net loss per share attributable to common shares, basic (in dollars per share) | (0.75) | (0.04) | (1.19) | (0.15) |
Net loss per share attributable to common shareholders, diluted (in dollars per share) | $ (0.75) | $ (0.04) | $ (1.19) | $ (0.15) |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Convertible Equity Shares and Restricted Stock Awards Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted net loss per share (in shares) | 21,489 | 30,360 | 37,482 | 26,187 |
Option agreement shares | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted net loss per share (in shares) | 5,734 | 0 | 2,867 | 0 |
Restricted stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted net loss per share (in shares) | 590 | 248 | 575 | 230 |
Series A convertible preferred stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted net loss per share (in shares) | 6,569 | 24,549 | 24,479 | 21,162 |
Convertible Promissory Note | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares excluded from calculation of diluted net loss per share (in shares) | 8,596 | 5,563 | 9,561 | 4,795 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) - Fairway - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 09, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 78.6 | |
Gain on sale of discontinued operations | $ 46.9 |
DISCONTINUED OPERATIONS - Finan
DISCONTINUED OPERATIONS - Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ 0 | $ 9 | $ 0 | $ (143) |
Discontinued Operations, Disposed of by Sale | Fairway | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Operating expenses excluding depreciation and amortization expense | 0 | (9) | 0 | 143 |
Total operating expenses | 0 | (9) | 0 | 143 |
Income (loss) from operations of discontinued operations | 0 | 9 | 0 | (143) |
Interest and other, net | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, before income taxes | 0 | 9 | 0 | (143) |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS | $ 0 | $ 9 | $ 0 | $ (143) |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 02, 2024 USD ($) | Apr. 17, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares | Apr. 30, 2024 $ / shares | Dec. 31, 2023 USD ($) $ / shares | |
Business Acquisition [Line Items] | ||||||
Warrant to purchase shares (in shares) | shares | 28,206,152 | |||||
Option, equity ownership percentage | 1 | |||||
Equity purchase option agreement, extension, term | 7 years | |||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.00001 | |||||
Class of warrant or right, maximum percentage of outstanding common stock allowed | 0.199 | |||||
Definite-lived intangible assets | $ 29,212 | $ 29,212 | $ 1,327 | |||
Goodwill | 14,878 | 14,878 | 0 | |||
Mandatorily Redeemable Preferred Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued (in shares) | shares | 60,000 | |||||
Aggregate initial liquidation value | $ 60,000 | |||||
Preferred stock, dividend rate, percentage of liquidation value | 0.0600 | |||||
Preferred stock redemption term | 7 years | |||||
Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Equity purchase option agreement, term | 6 months | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Equity purchase option agreement, term | 7 years | |||||
Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $ 25,499 | |||||
Goodwill | 14,878 | |||||
Acquisition costs | 5,500 | 9,000 | ||||
EM-VD | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 4,500 | 4,500 | ||||
EM-VD | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 4,500 | |||||
EM-ADE | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 10,400 | 10,400 | ||||
EM-ADE | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 10,400 | |||||
FCC licenses | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived intangible assets | 175,476 | 175,476 | 63,266 | |||
FCC licenses | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived intangible assets | 112,200 | |||||
Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Definite-lived intangible assets | $ 14,895 | $ 14,895 | 0 | |||
Weighted Average Remaining Useful Life (in years) | 3 years 9 months 18 days | 3 years 9 months 18 days | ||||
Customer relationships | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Definite-lived intangible assets | $ 15,600 | |||||
Weighted Average Remaining Useful Life (in years) | 15 years | |||||
Favorable leasehold interests | ||||||
Business Acquisition [Line Items] | ||||||
Definite-lived intangible assets | $ 12,962 | $ 12,962 | $ 0 | |||
Weighted Average Remaining Useful Life (in years) | 34 years 9 months 18 days | 34 years 9 months 18 days | ||||
Favorable leasehold interests | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Definite-lived intangible assets | $ 13,000 | |||||
Weighted Average Remaining Useful Life (in years) | 35 years | |||||
Programming rights | Estrella Broadcasting, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Definite-lived intangible assets | $ 10,200 | |||||
Weighted Average Remaining Useful Life (in years) | 4 years | |||||
Second Lien Term Loan | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Face amount of debt | $ 30,000 | |||||
Interest rate of borrowing | 6% | |||||
First Lien Term Loans | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Face amount of debt | $ 45,000 | |||||
Interest rate of borrowing | 6% | |||||
Monthly amortization payments, rate | 0.008333 | |||||
Deferred financing costs | $ 1,800 | |||||
Credit facility, debt discount | 1,100 | |||||
Initial Loan | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Loan received | 35,000 | |||||
Delayed Draw Term Loan | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Senior credit facility amount | $ 10,000 | |||||
Debt instrument, term | 2 years | |||||
Proceeds from lines of credit | $ 5,000 | |||||
Class A common stock | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued when option is exercised (in shares) | shares | 7,051,538 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock, convertible, percentage of shares outstanding | 0.43 | |||||
Class B common stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
BUSINESS COMBINATIONS - Purchas
BUSINESS COMBINATIONS - Purchase Price Allocation (Details) $ / shares in Units, $ in Thousands | Apr. 17, 2024 USD ($) shares | Apr. 16, 2024 $ / shares shares |
Business Acquisition [Line Items] | ||
Warrant to purchase shares (in shares) | shares | 28,206,152 | |
Share price (in dollars per share) | $ / shares | $ 2.50 | |
Second Lien Term Loan | ||
Business Acquisition [Line Items] | ||
Weighted average cost of debt and preferred stock | 0.1414 | |
Estrella Transaction Warrants | ||
Business Acquisition [Line Items] | ||
Warrant to purchase shares (in shares) | shares | 28,206,152 | |
Series B Preferred Stock | ||
Business Acquisition [Line Items] | ||
Weighted average cost of debt and preferred stock | 0.1523 | |
Estrella Broadcasting, Inc | ||
Business Acquisition [Line Items] | ||
Cash Consideration | $ 25,499 | |
Second Lien Term Loan | 26,534 | |
Total Noncash Consideration | 129,024 | |
Total Consideration | 154,523 | |
Estrella Broadcasting, Inc | Option agreement shares | ||
Business Acquisition [Line Items] | ||
Equity Interests | 70,515 | |
Estrella Broadcasting, Inc | Series B Preferred Stock | Preferred Stock | ||
Business Acquisition [Line Items] | ||
Equity Interests | $ 31,975 |
BUSINESS COMBINATIONS - Net Ass
BUSINESS COMBINATIONS - Net Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2024 | Apr. 17, 2024 | Apr. 16, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Allowance for doubtful accounts | $ 679 | $ 378 | $ 353 | $ 102 | $ 102 | $ 122 | ||
Goodwill | $ 14,878 | $ 0 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Warrant to purchase shares (in shares) | 28,206,152 | |||||||
Share price (in dollars per share) | $ 2.50 | |||||||
Option Agreement | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Warrant to purchase shares (in shares) | 7,051,538 | |||||||
Estrella Broadcasting, Inc | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||||||
Cash and cash equivalents | $ 18,124 | |||||||
Allowance for doubtful accounts | 496 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $496000 | 16,412 | |||||||
Prepaid expenses | 1,838 | |||||||
Current programming rights | 3,635 | |||||||
Other current assets | 555 | |||||||
Property and equipment, net | 17,897 | |||||||
Intangible assets, net | 140,877 | |||||||
Right of use assets | 34,322 | |||||||
Goodwill | 14,878 | |||||||
Noncurrent programming rights | 6,607 | |||||||
Deposits and other | 688 | |||||||
Assets acquired | 255,833 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||||||
Accounts payable and accrued expenses | 32,033 | |||||||
Deferred revenue | 9,209 | |||||||
Operating lease liabilities | 31,109 | |||||||
Finance lease liabilities | 3,029 | |||||||
Other Liabilities | 8,301 | |||||||
Liabilities assumed | 83,681 | |||||||
Fair value of noncontrolling interests | 17,629 | |||||||
Net assets acquired | $ 154,523 |
BUSINESS COMBINATIONS - Variabl
BUSINESS COMBINATIONS - Variable Interest Entities - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Feb. 01, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ 9,918 | $ 3,817 | |||||
Accounts receivable, net of allowance for doubtful accounts of $38 | 27,676 | 6,675 | |||||
Prepaid expenses | 1,716 | 891 | |||||
Other current assets | 1,283 | 1,188 | |||||
Total current assets | 43,899 | 13,908 | |||||
PROPERTY AND EQUIPMENT, NET | 18,902 | 1,380 | |||||
OTHER INTANGIBLE ASSETS, NET | 204,688 | 64,593 | |||||
OTHER ASSETS: | |||||||
Lease right of use assets | 47,205 | 13,614 | $ 10,400 | ||||
Deposits and other | 2,833 | 1,996 | |||||
Total other assets | 56,278 | 15,610 | |||||
Total assets | 338,645 | 95,491 | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | 27,245 | 2,625 | |||||
Deferred revenue | 10,582 | 557 | |||||
Operating lease liabilities | 6,160 | 1,444 | |||||
Income taxes payable | 2,030 | 65 | |||||
Total current liabilities | 55,036 | 11,717 | |||||
OPERATING LEASE LIABILITIES, NET OF CURRENT | 40,863 | 14,333 | |||||
OTHER NONCURRENT LIABILITIES | 638 | 502 | |||||
Total liabilities | 306,535 | 29,327 | |||||
Net assets | 13,653 | 37,410 | |||||
Allowance for doubtful accounts | 679 | $ 378 | $ 353 | $ 102 | $ 102 | $ 122 | |
Variable Interest Entity, Primary Beneficiary | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 6,540 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $38 | 6,207 | ||||||
Prepaid expenses | 564 | ||||||
Other current assets | 440 | ||||||
Total current assets | 13,751 | ||||||
PROPERTY AND EQUIPMENT, NET | 8,106 | ||||||
OTHER INTANGIBLE ASSETS, NET | 112,210 | ||||||
OTHER ASSETS: | |||||||
Lease right of use assets | 2,818 | ||||||
Deposits and other | 576 | ||||||
Total other assets | 3,394 | ||||||
Total assets | 137,461 | ||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | 4,426 | ||||||
Deferred revenue | 65 | ||||||
Operating lease liabilities | 362 | ||||||
Income taxes payable | 2,029 | ||||||
Total current liabilities | 6,882 | ||||||
OPERATING LEASE LIABILITIES, NET OF CURRENT | 2,466 | ||||||
OTHER NONCURRENT LIABILITIES | 3,404 | ||||||
Total liabilities | 12,752 | ||||||
Net assets | 124,709 | ||||||
Allowance for doubtful accounts | $ 38 |
BUSINESS COMBINATIONS - Varia_2
BUSINESS COMBINATIONS - Variable Interest Entities - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||||||
Total net revenues | $ 26,202 | $ 12,080 | $ 32,908 | $ 19,415 | ||
Operating income | (13,326) | (116) | (16,793) | (2,022) | ||
Net income | (48,307) | $ (3,677) | (421) | $ (2,107) | ||
Variable Interest Entity, Primary Beneficiary | ||||||
Business Acquisition [Line Items] | ||||||
Total net revenues | 3,174 | 0 | 3,174 | 0 | ||
Operating income | 827 | 0 | 827 | 0 | ||
Net income | $ 828 | $ 0 | $ 828 | $ 0 |
BUSINESS COMBINATIONS - Pro For
BUSINESS COMBINATIONS - Pro Forma Information (Details) - Estrella Broadcasting, Inc - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||||
Net revenues | $ 28,722 | $ 35,175 | $ 54,649 | $ 62,092 |
Loss from continuing operations before income taxes | $ (57,721) | $ (13,535) | $ (67,110) | $ (35,188) |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Goodwill | $ 14,878 | $ 0 |
Definite-lived intangible assets | 29,212 | 1,327 |
Total noncurrent other intangible assets, net and goodwill | 219,566 | 64,593 |
Customer relationships | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets | 14,895 | 0 |
Favorable leasehold interests | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets | 12,962 | 0 |
Software | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets | 1,311 | 1,327 |
Other | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets | 44 | 0 |
FCC licenses | ||
Indefinite Lived And Finite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 175,476 | $ 63,266 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 14,878 | $ 0 |
EM-VD | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Goodwill | 4,500 | |
EM-ADE | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Goodwill | 10,400 | |
FMG Valdosta, LLC and FMG Kentucky, LLC | Software | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired preliminary valuation | $ 1,700 | |
FMG Valdosta, LLC and FMG Kentucky, LLC | Website | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Acquired finite-lived intangible assets useful life | 5 years | |
FMG Valdosta, LLC and FMG Kentucky, LLC | Mobile App | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Acquired finite-lived intangible assets useful life | 7 years | |
FCC licenses | ||
Indefinite-lived and Finite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, carrying amount | $ 175,500 | $ 63,300 |
INTANGIBLE ASSETS - Schedule _2
INTANGIBLE ASSETS - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 30,400 | $ 1,583 |
Accumulated Amortization | 1,188 | 256 |
Net Carrying Amount | $ 29,212 | 1,327 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 3 years 9 months 18 days | |
Gross Carrying Amount | $ 15,572 | 0 |
Accumulated Amortization | 677 | 0 |
Net Carrying Amount | $ 14,895 | 0 |
Favorable leasehold interests | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 34 years 9 months 18 days | |
Gross Carrying Amount | $ 13,039 | 0 |
Accumulated Amortization | 77 | 0 |
Net Carrying Amount | $ 12,962 | 0 |
Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 3 years 10 months 24 days | |
Gross Carrying Amount | $ 1,733 | 1,583 |
Accumulated Amortization | 422 | 256 |
Net Carrying Amount | $ 1,311 | 1,327 |
Other | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 9 months 18 days | |
Gross Carrying Amount | $ 56 | 0 |
Accumulated Amortization | 12 | 0 |
Net Carrying Amount | $ 44 | $ 0 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 852 | $ 67 | $ 932 | $ 135 |
INTANGIBLE ASSETS - Estimated A
INTANGIBLE ASSETS - Estimated Amortization Expense Over Five Years (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (from July 1) | $ 2,013 | |
2024 | 3,679 | |
2025 | 3,093 | |
2026 | 2,524 | |
2027 | 1,943 | |
After 2028 | 15,960 | |
Net Carrying Amount | $ 29,212 | $ 1,327 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) segment | |
Disaggregation Of Revenue [Line Items] | |
Advertising agency fee rate based on gross revenue | 15% |
Number of reportable segments | segment | 3 |
Estrella Broadcasting, Inc | |
Disaggregation Of Revenue [Line Items] | |
Makegood liability | $ | $ 8.5 |
Makegood liability, period of recognition | 4 years |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 26,202 | $ 12,080 | $ 32,908 | $ 19,415 |
Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 100% | 100% | 100% | 100% |
Spot Advertising | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 17,712 | $ 4,912 | $ 22,060 | $ 9,681 |
Spot Advertising | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 5,800 | 0 | 5,800 | 0 |
Spot Advertising | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 6,951 | 0 | 6,951 | 0 |
Spot Advertising | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 4,961 | $ 4,912 | $ 9,309 | $ 9,681 |
Spot Advertising | Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 67.50% | 40.70% | 67% | 49.90% |
Spot Advertising | Revenue, product and service benchmark | Product concentration risk | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 22.10% | 0% | 17.60% | 0% |
Spot Advertising | Revenue, product and service benchmark | Product concentration risk | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 26.50% | 0% | 21.10% | 0% |
Spot Advertising | Revenue, product and service benchmark | Product concentration risk | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 18.90% | 40.70% | 28.30% | 49.90% |
Digital | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 3,409 | $ 1,471 | $ 4,271 | $ 2,445 |
Digital | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 2,496 | 0 | 2,496 | 0 |
Digital | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 149 | 0 | 149 | 0 |
Digital | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 764 | $ 1,471 | $ 1,626 | $ 2,445 |
Digital | Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 13% | 12.20% | 13% | 12.60% |
Digital | Revenue, product and service benchmark | Product concentration risk | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 9.50% | 0% | 7.60% | 0% |
Digital | Revenue, product and service benchmark | Product concentration risk | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 0.60% | 0% | 0.50% | 0% |
Digital | Revenue, product and service benchmark | Product concentration risk | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 2.90% | 12.20% | 4.90% | 12.60% |
Syndication | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 688 | $ 605 | $ 1,286 | $ 1,210 |
Syndication | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 95 | 0 | 95 | 0 |
Syndication | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 593 | $ 605 | $ 1,191 | $ 1,210 |
Syndication | Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 2.70% | 5% | 3.90% | 6.20% |
Syndication | Revenue, product and service benchmark | Product concentration risk | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 0.40% | 0% | 0.30% | 0% |
Syndication | Revenue, product and service benchmark | Product concentration risk | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 2.30% | 5% | 3.60% | 6.20% |
Events and Sponsorships | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 2,114 | $ 4,472 | $ 2,235 | $ 4,628 |
Events and Sponsorships | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 63 | 0 | 63 | 0 |
Events and Sponsorships | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 485 | 0 | 485 | 0 |
Events and Sponsorships | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 1,566 | $ 4,472 | $ 1,687 | $ 4,628 |
Events and Sponsorships | Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 8.10% | 37% | 6.80% | 23.80% |
Events and Sponsorships | Revenue, product and service benchmark | Product concentration risk | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 0.20% | 0% | 0.20% | 0% |
Events and Sponsorships | Revenue, product and service benchmark | Product concentration risk | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 1.90% | 0% | 1.50% | 0% |
Events and Sponsorships | Revenue, product and service benchmark | Product concentration risk | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 6% | 37% | 5.10% | 23.80% |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 2,279 | $ 620 | $ 3,056 | $ 1,451 |
Other | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 630 | 0 | 630 | 0 |
Other | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | 792 | 0 | 792 | 0 |
Other | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total net revenues | $ 857 | $ 620 | $ 1,634 | $ 1,451 |
Other | Revenue, product and service benchmark | Product concentration risk | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 8.70% | 5.10% | 9.30% | 7.50% |
Other | Revenue, product and service benchmark | Product concentration risk | EM-VD | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 2.40% | 0% | 1.90% | 0% |
Other | Revenue, product and service benchmark | Product concentration risk | EM-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 3% | 0% | 2.40% | 0% |
Other | Revenue, product and service benchmark | Product concentration risk | NY-ADE | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of revenue | 3.30% | 5.10% | 5% | 7.50% |
LONG-TERM DEBT, WARRANTS, AND_3
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Less: Current maturities | $ (6,458) | $ (6,458) |
Less: Unamortized original issue discount and deferred financing costs | (2,889) | 0 |
Total long-term debt, net of current portion | 64,015 | 0 |
Warrant Shares | 101,542 | 0 |
Series B Preferred Stock | 33,547 | 0 |
Notes Payable | Emmis Convertible Promissory Note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 6,458 | 6,458 |
Line of Credit | First Lien Term Loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 40,000 | 0 |
Line of Credit | Second Lien Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 26,904 | $ 0 |
LONG-TERM DEBT, WARRANTS, AND_4
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK - Narrative (Details) | 6 Months Ended | |||
May 02, 2024 USD ($) | Apr. 17, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Warrant to purchase shares (in shares) | shares | 28,206,152 | |||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.00001 | |||
Class of warrant or right, maximum percentage of outstanding common stock allowed | 0.199 | |||
Mandatorily Redeemable Preferred Stock | ||||
Debt Instrument [Line Items] | ||||
Number of shares issued (in shares) | shares | 60,000 | |||
Aggregate initial liquidation value | $ 60,000,000 | |||
Mandatorily redeemable stock, fair value | $ 32,000,000 | |||
Preferred stock, dividend rate, percentage of liquidation value | 0.0600 | |||
Preferred stock redemption term | 7 years | |||
First Lien Term Loans | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding | $ 40,000,000 | $ 0 | ||
Face amount of debt | $ 45,000,000 | |||
Interest rate of borrowing | 6% | |||
Monthly amortization payments, rate | 0.008333 | |||
Initial Loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Loan received | $ 35,000,000 | |||
Delayed Draw Term Loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Senior credit facility amount | $ 10,000,000 | |||
Proceeds from lines of credit | $ 5,000,000 | |||
Debt instrument, term | 2 years | |||
Second Lien Term Loan | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding | 26,904,000 | $ 0 | ||
Face amount of debt | $ 30,000,000 | |||
Interest rate of borrowing | 6% | |||
Long-term debt, fair value | $ 26,500,000 | |||
Standard General | Convertible Promissory Note | Convertible Emmis promissory note | ||||
Debt Instrument [Line Items] | ||||
Senior credit facility amount | $ 0 | |||
Debt instrument interest percentage | 6% | |||
Additional payment of interest in kind | 1% | |||
Debt instrument increasing interest rate of second anniversary | 1% | |||
Debt instrument increasing interest rate of each successive anniversary | 1% | |||
Principal amount outstanding | $ 6,500,000 |
LONG-TERM DEBT, WARRANTS, AND_5
LONG-TERM DEBT, WARRANTS, AND SERIES B PREFERRED STOCK - Schedule of Principal Payments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2024 (from July 1) | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
After 2028 | 60,000 |
Total | 60,000 |
Remainder of 2024 (from July 1) | 6,458 |
2025 | 0 |
2026 | 5,000 |
2027 | 2,333 |
2028 | 3,500 |
After 2028 | 119,167 |
Total | 136,458 |
Emmis Note | |
Debt Instrument [Line Items] | |
Remainder of 2024 (from July 1) | 6,458 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
After 2028 | 0 |
Total | 6,458 |
First Lien Term Loans | |
Debt Instrument [Line Items] | |
Remainder of 2024 (from July 1) | 0 |
2025 | 0 |
2026 | 5,000 |
2027 | 2,333 |
2028 | 3,500 |
After 2028 | 29,167 |
Total | 40,000 |
Second Lien Term Loan | |
Debt Instrument [Line Items] | |
Remainder of 2024 (from July 1) | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
After 2028 | 30,000 |
Total | $ 30,000 |
REGULATORY, LEGAL AND OTHER M_2
REGULATORY, LEGAL AND OTHER MATTERS (Details) | Jun. 30, 2024 LegalProceeding |
Commitments and Contingencies Disclosure [Abstract] | |
Number of legal proceedings pending | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate, percent | 1% | 7% | |
Gross tax liability for uncertainties | $ 390 | ||
Accrued interest related to unrecognized tax benefits | $ 43 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Feb. 01, 2023 |
Leases [Abstract] | |||
Lease right of use assets | $ 47,205 | $ 13,614 | $ 10,400 |
Total recorded operating lease liabilities | $ 47,023 | $ 10,400 |
LEASES - Schedule of Impact of
LEASES - Schedule of Impact of Operating And Finance Leases to Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||||
Operating lease cost | $ 1,773 | $ 1,107 | $ 2,407 | $ 2,059 | |
Operating cash flows from operating leases | 1,263 | 938 | 1,543 | 1,688 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | 0 | $ 0 | 10,391 | |
Weighted average remaining lease term - operating leases (in years) | 13 years 1 month 6 days | 13 years 1 month 6 days | 14 years | ||
Weighted average discount rate - operating leases | 11.60% | 11.60% | 11.40% | ||
Finance lease cost | $ 199 | 0 | $ 199 | 0 | |
Cash flows from finance leases | $ 124 | $ 0 | $ 124 | $ 0 | |
Weighted average remaining lease term - finance leases (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | 0 years | ||
Weighted average discount rate - finance leases | 11.30% | 11.30% | 0% |
LEASES - Schedule of Annual Min
LEASES - Schedule of Annual Minimum Lease Payments of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Feb. 01, 2023 |
Leases [Abstract] | ||
2024 (from July 1) | $ 3,331 | |
2025 | 6,975 | |
2026 | 7,501 | |
2027 | 7,071 | |
2028 | 7,027 | |
After 2028 | 67,671 | |
Total lease payments | 99,576 | |
Less imputed interest | (52,553) | |
Total recorded operating lease liabilities | $ 47,023 | $ 10,400 |
LEASES - Schedule of Annual M_2
LEASES - Schedule of Annual Minimum Lease Payments of Finance Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024 (from July 1) | $ 373 |
2025 | 768 |
2026 | 799 |
2027 | 831 |
2028 | 864 |
After 2028 | 218 |
Total lease payments | 3,853 |
Less imputed interest | (878) |
Total recorded finance lease liabilities | $ 2,975 |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Transaction Agreement with Emmis and SG Broadcasting (Details) - Transaction Agreement $ in Millions | Jun. 28, 2019 USD ($) vote |
Standard General | |
Related Party Transaction [Line Items] | |
Number of votes per share | vote | 10 |
Related Party | Emmis Communications Corporation | |
Related Party Transaction [Line Items] | |
Purchase price for the assets of radio stations | $ | $ 91.5 |
Number of votes per share | vote | 1 |
Related Party | Emmis Communications Corporation | Convertible Promissory Note | |
Related Party Transaction [Line Items] | |
Notes payable | $ | $ 5 |
MediaCo | Emmis Communications Company | |
Related Party Transaction [Line Items] | |
Equity ownership interest | 23.72% |
MediaCo | SG Broadcasting | |
Related Party Transaction [Line Items] | |
Equity ownership interest | 76.28% |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Convertible Promissory Notes (Details) - Related Party - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 25, 2019 | |
Convertible Standard General promissory notes | Convertible Promissory Note | |||||
Related Party Transaction [Line Items] | |||||
Paid-in-kind interest | $ 0.5 | ||||
Emmis Communications Corporation | |||||
Related Party Transaction [Line Items] | |||||
Principal amount outstanding | $ 6 | ||||
Emmis Communications Corporation | Convertible Promissory Notes | |||||
Related Party Transaction [Line Items] | |||||
Face amount of debt | $ 5 | ||||
Principal amount outstanding | $ 6.5 | $ 6.5 | |||
Interest expense recognized | $ 0.4 | $ 0.3 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Convertible Preferred Stock (Details) - USD ($) | 1 Months Ended | ||||||
Dec. 13, 2022 | Dec. 12, 2020 | Dec. 13, 2019 | Apr. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | |||||||
Conversion of preferred series A shares (in shares) | 20,700,000 | ||||||
Related Party | SG Broadcasting | |||||||
Related Party Transaction [Line Items] | |||||||
Outstanding debt | $ 0 | ||||||
Debt instrument interest percentage | 6% | ||||||
Debt instrument increasing interest rate of each successive anniversary | 1% | ||||||
Dividends paid in kind | $ 3,400,000 | ||||||
Additional shares issued due to increase in accrued value of preferred stock (in shares) | 80,000 | ||||||
Unpaid cumulative dividends | $ 200,000 | ||||||
Related Party | SG Broadcasting | Series A convertible preferred stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock issued (in shares) | 220,000 | ||||||
Preferred stock issued | $ 900,000 | $ 1,200,000 |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - Consulting Agreements And Other Activity (Details) | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2024 USD ($) | Oct. 31, 2023 USD ($) agreement consultant | Jun. 30, 2024 USD ($) | |
Consultant Agreement February 1, 2024 | |||
Related Party Transaction [Line Items] | |||
Number of agreements | agreement | 1 | ||
Consultant Agreement May 31, 2024 | |||
Related Party Transaction [Line Items] | |||
Number of agreements | agreement | 1 | ||
Consulting Agreement That Can Be Terminated At Any Time, By Any Party | |||
Related Party Transaction [Line Items] | |||
Number of agreements | agreement | 1 | ||
Affiliated Entity | Consultant Agreements | |||
Related Party Transaction [Line Items] | |||
Number of consultants | consultant | 5 | ||
Consulting fees incurred | $ 300,000 | ||
Affiliated Entity | Consultant Agreement February 1, 2024 | |||
Related Party Transaction [Line Items] | |||
Consulting fees, hourly rate | $ 125 | ||
Affiliated Entity | Consultant Agreement May 31, 2024, 1 | |||
Related Party Transaction [Line Items] | |||
Consulting fees, per month | $ 8,400 | ||
Affiliated Entity | Consultant Agreement May 31, 2024, 2 | |||
Related Party Transaction [Line Items] | |||
Number of agreements | agreement | 2 | ||
Consulting fees, per month | $ 6,000 | ||
Affiliated Entity | Consultant Agreement May 31, 2024, 3 | |||
Related Party Transaction [Line Items] | |||
Consulting fees, per month | 12,000 | ||
Affiliated Entity | Consulting Agreement That Can Be Terminated At Any Time, By Any Party | |||
Related Party Transaction [Line Items] | |||
Consulting fees, per month | $ 18,000 | ||
Related Party | National Association of Investment Companies | |||
Related Party Transaction [Line Items] | |||
Related party payments | $ 15,000 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 segment RadioStation | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 3 |
Number of radio stations | RadioStation | 2 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Results of Operations of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Total net revenues | $ 26,202 | $ 12,080 | $ 32,908 | $ 19,415 | |
Operating expenses excluding depreciation and amortization expense | 34,647 | 11,046 | 41,297 | 18,283 | |
Corporate expenses | 3,445 | 1,002 | 6,835 | 2,886 | |
Depreciation and amortization | 1,431 | 148 | 1,564 | 307 | |
Loss (gain) on disposal of assets | 5 | 0 | 5 | (39) | |
Operating (loss) income | (13,326) | (116) | (16,793) | (2,022) | |
Total Assets | 338,645 | 338,645 | $ 95,491 | ||
Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 0 | 0 | 0 | 0 | |
Operating expenses excluding depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Corporate expenses | 3,445 | 1,002 | 6,835 | 2,886 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Loss (gain) on disposal of assets | 0 | 0 | 0 | ||
Operating (loss) income | (3,445) | (1,002) | (6,835) | (2,886) | |
EM-VD | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | 80,094 | 80,094 | 0 | ||
EM-VD | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 8,989 | 0 | 8,989 | 0 | |
Operating expenses excluding depreciation and amortization expense | 15,570 | 0 | 15,570 | 0 | |
Corporate expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 1,014 | 0 | 1,014 | 0 | |
Loss (gain) on disposal of assets | 0 | 0 | 0 | ||
Operating (loss) income | (7,595) | 0 | (7,595) | 0 | |
EM-ADE | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | 163,897 | 163,897 | 0 | ||
EM-ADE | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 8,472 | 0 | 8,472 | 0 | |
Operating expenses excluding depreciation and amortization expense | 9,398 | 0 | 9,398 | 0 | |
Corporate expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 279 | 0 | 279 | 0 | |
Loss (gain) on disposal of assets | 5 | 5 | 0 | ||
Operating (loss) income | (1,210) | 0 | (1,210) | 0 | |
NY-ADE | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | 94,654 | 94,654 | $ 95,491 | ||
NY-ADE | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total net revenues | 8,741 | 12,080 | 15,447 | 19,415 | |
Operating expenses excluding depreciation and amortization expense | 9,679 | 11,046 | 16,329 | 18,283 | |
Corporate expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 138 | 148 | 271 | 307 | |
Loss (gain) on disposal of assets | 0 | 0 | (39) | ||
Operating (loss) income | $ (1,076) | $ 886 | $ (1,153) | $ 864 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Delayed Draw Term Loan - Line of Credit - USD ($) $ in Millions | 1 Months Ended | ||
Sep. 13, 2024 | May 02, 2024 | Jul. 31, 2024 | |
Subsequent Event [Line Items] | |||
Proceeds from lines of credit | $ 5 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Proceeds from lines of credit | $ 5 | ||
Line of credit facility, additional borrowing capacity | $ 7.5 | ||
Contractual obligation waived | $ 7.3 |