BOC

MKT CAP $380.5MP/E —DIV YIELD —FCF YIELD -1.22%REV TTM $108.9M +3.7%NET INCOME −$13.2M −1830.2%NET DEBT $10.1M52W 11.06 – 15.09SEC XBRL · TTM TO Invalid Date

How BOC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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As of December 31, 2025, we operate approximately 3,900 billboards with approximately 7,500 advertising faces.
In addition, we have also acquired additional surety insurance brokerage businesses located in various regions of the United States.
As of December 31, 2025, we have approximately 49,500 broadband customers (19,900 fiber customers) and 48,300 fiber passings completed.
The purchase agreement also provides for certain payments based on performance to receive the holdback amount and certain other potential limited earnout payments.
Through December 31, 2025, we have sold 1,015,537 shares of Sky Harbour Class A common stock for gross proceeds of approximately $11.2 million.
As of December 31, 2025, we held 11,671,494 shares of Sky Harbour Class A common stock and 7,719,779 Sky Harbour warrants. ● In 2021, we established the BFR Fund subsidiary within BOAM to operate a proposed build-for-rent business, focusing on developing, building, and managing single family detached and/or townhomes for long term rentals.
Results of Operations Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 The following is a comparison of our results of operations for the year ended December 31, 2025, which we refer to as “fiscal 2025,” compared to the year ended December 31, 2024 which we refer to as “fiscal 2024.” Revenues.
For fiscal 2025 and fiscal 2024, our revenues in dollars and as a percentage of total revenues were as follows: For the Years Ended December 31, 2025 2024 2025 vs 2024 Amount As a % of Total Revenues Amount As a % of Total Revenues $ Variance Revenues: Billboard rentals, net $ 45,851,335 40.1 % $ 45,153,076 41.7 % $ 698,259 Broadband services 41,194,668 36.0 % 39,098,228 36.1 % 2,096,440 Premiums earned 23,182,446 20.3 % 19,759,540 18.2 % 3,422,906 Insurance commissions 2,057,170 1.8 % 1,962,692 1.8 % 94,478 Investment and other income 2,090,729 1.8 % 2,301,365 2.2 % (210,636 ) Total Revenues $ 114,376,348 100.0 % $ 108,274,901 100.0 % $ 6,101,447 We realized total revenues of $114,376,348 during fiscal 2025, an increase of 5.6% over revenues of $108,274,901 during fiscal 2024.
The key factors impacting revenue across each of our businesses during fiscal 2025 were as follows: ● Net billboard rentals increased by 1.5% in fiscal 2025 when compared to fiscal 2024, reflecting steady rental and occupancy rates across a number of our markets. ● Revenue from broadband services increased by 5.4% in fiscal 2025 when compared to fiscal 2024, mainly reflecting subscriber growth across a number of our markets. ● Premiums earned from our UCS insurance subsidiary increased by 17.3% in fiscal 2025 when compared to the fiscal 2024.
The increase in premiums earned was primarily due to increases in gross written premium production throughout fiscal 2025.
We recognize revenues for written premium over the life of the surety bond and, as a result, increased sales activities are not fully reflected in the quarter in which the surety bond is issued. ● Revenue from insurance commissions generated by our surety brokerage operations increased by 4.8% in fiscal 2025 when compared to fiscal 2024, mainly due to increased production through outside insurance carriers. ● Investment and other income at UCS and BOAM decreased by 9.2% from $2,301,365 in fiscal 2024 to $2,090,729 in fiscal 2025, mainly due to winding down BOAM's operations.
For fiscal 2025 and fiscal 2024, our expenses in dollars and as a percentage of total revenues were as follows: For the Years Ended December 31, 2025 2024 2025 vs 2024 Amount As a % of Total Revenues Amount As a % of Total Revenues $ Variance Costs and Expenses: Cost of billboard revenues $ 14,931,320 13.0 % $ 15,496,805 14.3 % $ (565,485 ) Cost of broadband revenues 9,701,996 8.5 % 9,444,030 8.7 % 257,966 Cost of insurance revenues 14,432,722 12.6 % 9,400,691 8.7 % 5,032,031 Employee costs 34,284,576 29.9 % 38,146,193 35.2 % (3,861,617 ) Professional fees 4,117,922 3.6 % 4,898,144 4.5 % (780,222 ) General and administrative 15,882,612 13.9 % 16,237,654 15.0 % (355,042 ) Depreciation 17,020,257 14.9 % 14,495,747 13.4 % 2,524,510 Amortization 7,751,053 6.8 % 7,683,952 7.1 % 67,101 Accretion 217,876 0.2 % 218,472 0.2 % (596 ) (Gain) loss on disposition of assets (35,839 ) (0.0 %) 720,691 0.7 % (756,530 ) Total Costs and Expenses $ 118,304,495 103.4 % $ 116,742,379 107.8 % $ 1,562,116 During fiscal 2025, we had total costs and expenses of $118,304,495, as compared to total costs and expenses of $116,742,379 in fiscal 2024.
Total costs and expenses as a percentage of revenues decreased from 107.8% in fiscal 2024 to 103.4% in fiscal 2025.
The key factors impacting costs and expenses across each of our businesses during fiscal 2025 were as follows: ● Cost of billboard revenues decreased as a percentage of billboard revenues from 34.3% in fiscal 2024 to 32.6% in fiscal 2025.
The decrease was mainly driven by lower commissions paid and other billboard cost of revenues. ● Cost of broadband revenues decreased as a percentage of broadband revenues from 24.2% in fiscal 2024 to 23.6% in fiscal 2025.
The decrease was mainly driven by lower other broadband cost of revenues and software costs as well as organic revenue growth within our broadband businesses. ● Cost of insurance revenues increased as a percentage of insurance revenues from 39.4% in fiscal 2024 to 53.0% in fiscal 2025.
The increase was mainly driven by an increase in commissions paid as well as higher loss and loss adjustment expense mainly due to an increase in claim payments.
Losses and loss adjustment expenses are primarily reserved monthly based on a percentage of earned premiums. ● Employee costs in fiscal 2025 were $34,284,576, or 30.0% of total revenues, as compared to $38,146,193, or 35.2% in fiscal 2024.
The decrease was mainly driven by one-time severance and bonus payments to our former Co-CEO as a part of his separation and stock repurchase agreement during the second quarter of fiscal 2024.
Excluding the one-time severance and bonus payments, employee costs would have been 32.1% of total revenues in fiscal 2024. ● Professional fees in fiscal 2025 were $4,117,922, or 3.6% of total revenues, as compared to $4,898,144, or 4.5% of total revenues, in fiscal 2024.
The decrease was mainly driving by the one-time legal fees associated with our former Co-CEO's separation and stock repurchase agreement during the second quarter of fiscal 2024. ● General and administrative expenses in fiscal 2025 were $15,882,612, or 13.9% of total revenues, as compared to $16,237,654, or 15.0% of total revenues, in fiscal 2024.
The decrease was mainly driven by expense reductions within our asset management and broadband businesses.
The decrease was partially offset by an increase in expenses within our insurance business and at Boston Omaha's parent company. ● Non-cash expenses in fiscal 2025 included $17,020,257 in depreciation expense, $7,751,053 in amortization expense, and $217,876 in accretion expense mainly related to asset retirement obligations for certain billboard assets.
Net loss from operations in fiscal 2025 was $3,928,147, or 3.4% of total revenues, as compared to a net loss from operations of $8,467,478, or 7.8% of total revenues, in fiscal 2024.
The decrease in net loss from operations was primarily due to one-time costs associated with our former Co-CEO's separation and stock repurchase agreement during the second quarter of fiscal 2024, improved operations within our broadband and billboard businesses, and lower expenses within our asset management business, which were partially offset by higher commissions paid and loss and loss adjustment expense within our insurance business.
Our net loss from operations included $24,989,186 from non-cash amortization, depreciation and accretion expenses in fiscal 2025, as compared to $22,398,171 in fiscal 2024.
During fiscal 2025, we had net other expense of $14,456,549.
Net other expense included (i) other investment losses of $19,874,269 mainly driven by a $17,554,005 unrealized loss on the Sky Harbour warrants held by Boston Omaha as these warrants are valued based on a mark-to-market reporting method and losses of $6,920,718 within BOAM primarily related to changes in the fair value of the underlying assets within the 24th Street and BFR Funds, which were partially offset by $4,134,847 in realized gains on the sale of 730,095 shares of Sky Harbour Class A common stock, and (ii) interest expense of $2,330,043 mainly incurred under Link's term loan and revolver and BOB's credit facility.
These items were partially offset by income of $6,544,671 from unconsolidated affiliates mainly related to our equity method position in Sky Harbour and interest and dividend income of $1,203,092.
Net other income included $29,059,717 in other investment income mainly driven by a $16,983,514 unrealized gain on the Sky Harbour warrants held by Boston Omaha, other investment income of $7,815,912 primarily related to the sale of real estate and changes in the fair value of remaining assets within the 24th Street Funds and BFR Fund, $1,957,056 in non-cash gains associated with the transfer of Sky Harbour Class A common stock to our former Co-CEO as a part of his separation and stock repurchase agreement, $1,137,684 in realized gains on the sale of 285,442 shares of Sky Harbour Class A common stock, and interest and dividend income of $1,385,884.
Due to the size of our percentage ownership interest in Sky Harbour's Class A common stock and our right to elect one of the seven members of Sky Harbour's Board of Directors, our investment is recorded under the equity method and, in contrast to our mark-to-market quarterly valuation of our Sky Harbour warrants, we do not include any unrealized gains or losses related to the change in Sky Harbour's Class A common stock price in our reported earnings.
Additionally, we have evaluated our investment in Sky Harbour as of December 31, 2025, and determined that there was not an other-than-temporary impairment.
If Sky Harbour's stock price drops below our carrying value of $6.36 per share for a sustained period of time, it will likely result in an impairment of our investment.
We had a net loss attributable to common stockholders in the amount of $12,427,540 in fiscal 2025, or a loss per share of $0.40, based on 31,413,667 diluted weighted average shares outstanding.
This is compared to a net loss attributable to common stockholders of $1,292,450 in fiscal 2024, or a loss per share of $0.04, based on 31,496,857 diluted weighted average shares outstanding.
The following tables report results for the following four segments in which we operate: billboards, broadband, insurance and asset management for fiscal 2025 and fiscal 2024: Results of Billboard Operations For the Years Ended December 31, 2025 2024 Amount As a % of Segment Operating Revenues Amount As a % of Segment Operating Revenues Operating Revenues Billboard rentals, net $ 45,851,335 100.0 % $ 45,153,076 100.0 % Cost of Revenues Ground rents 8,468,658 18.5 % 8,241,212 18.3 % Utilities 1,884,017 4.1 % 1,846,056 4.1 % Commissions paid 2,857,484 6.2 % 3,543,865 7.8 % Other costs of revenues 1,721,161 3.8 % 1,865,672 4.1 % Total cost of revenues 14,931,320 32.6 % 15,496,805 34.3 % Gross margin 30,920,015 67.4 % 29,656,271 65.7 % Other Operating Expenses Employee costs 8,621,513 18.8 % 7,812,497 17.3 % Professional fees 290,820 0.6 % 223,165 0.5 % General and administrative 4,042,182 8.8 % 4,033,121 8.9 % Depreciation 5,311,586 11.6 % 5,151,286 11.4 % Amortization 3,885,881 8.5 % 3,902,738 8.7 % Accretion 204,101 0.5 % 204,659 0.5 % (Gain) loss on disposition of assets (76,985 ) (0.2 %) 63,455 0.1 % Total expenses 22,279,098 48.6 % 21,390,921 47.4 % Segment Income from Operations 8,640,917 18.8 % 8,265,350 18.3 % Interest expense, net (1,467,443 ) (3.2 %) (1,410,216 ) (3.1 %) Net Income Attributable to Common Stockholders $ 7,173,474 15.6 % $ 6,855,134 15.2 % Comparison of Fiscal 2025 to Fiscal 2024.
In fiscal 2025, there was a 1.5% increase in net billboard revenues from fiscal 2024, reflecting steady rental and occupancy rates across a number of our markets.
This growth was achieved despite the headwind of last year's political spend, which did not repeat in fiscal 2025.
The key factors affecting our billboard operations results during fiscal 2025 were as follows: ● Ground rent expense as a percentage of total segment operating revenues increased from 18.3% in fiscal 2024 to 18.5% in fiscal 2025. ● Commissions paid as a percentage of total segment operating revenues decreased from 7.8% in fiscal 2024 to 6.2% in fiscal 2025.
The decrease is mainly due to the change in Link's management compensation structure to align with strategic goals whereby certain commissions were replaced by other compensation reported under employee costs, as stated below. ● Employee costs as a percentage of total segment operating revenues increased from 17.3% in fiscal 2024 to 18.8% in fiscal 2025.

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As of December 31, 2024, we operate approximately 4,000 billboards with approximately 7,600 advertising faces.
In addition, over the last several years, we have also acquired additional surety insurance brokerage businesses located in various regions of the United States.
As of December 31, 2024, we have approximately 46,900 broadband customers (15,600 fiber customers) and 39,800 fiber passings completed.
The purchase agreement also provides for certain payments based on performance to receive the holdback amount and certain other potential earnout payments.
During fiscal 2024, we sold 285,442 shares of Sky Harbour Class A common stock for gross proceeds of approximately $2.9 million.
As of December 31, 2024, we held 12,401,589 shares of Sky Harbour Class A common stock and 7,719,779 Sky Harbour warrants. ● In 2021, we established the BFR Fund subsidiary within BOAM to operate a proposed build-for-rent business, focusing on developing, building, and managing single family detached and/or townhomes for long term rentals.
Results of Operations Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 The following is a comparison of our results of operations for the year ended December 31, 2024, which we refer to as “fiscal 2024,” compared to the year ended December 31, 2023 which we refer to as “fiscal 2023.” Revenues.
For fiscal 2024 and fiscal 2023, our revenues in dollars and as a percentage of total revenues were as follows: For the Years Ended December 31, 2024 2023 2024 vs 2023 Amount As a % of Total Revenues Amount As a % of Total Revenues $ Variance Revenues: Billboard rentals, net $ 45,153,076 41.7 % $ 42,940,369 44.6 % $ 2,212,707 Broadband services 39,098,228 36.1 % 35,340,502 36.7 % 3,757,726 Premiums earned 19,759,540 18.2 % 13,932,659 14.5 % 5,826,881 Insurance commissions 1,962,692 1.8 % 1,884,007 2.0 % 78,685 Investment and other income 2,301,365 2.2 % 2,156,199 2.2 % 145,166 Total Revenues $ 108,274,901 100.0 % $ 96,253,736 100.0 % $ 12,021,165 We realized total revenues of $108,274,901 during fiscal 2024, an increase of 12.5% over revenues of $96,253,736 during fiscal 2023.
The key factors impacting revenue across each of our businesses during fiscal 2024 were as follows: ● Net billboard rentals increased by 5.2% in fiscal 2024 when compared to fiscal 2023, reflecting an improvement in rental and occupancy rates across a number of our markets. ● Revenue from broadband services increased by 10.6% in fiscal 2024 when compared to fiscal 2023, mainly reflecting subscriber growth across a number of our markets. ● Premiums earned from our UCS insurance subsidiary increased by 41.8% in fiscal 2024 when compared to the fiscal 2023.
The increase in premiums earned was primarily due to increases in gross written premium production throughout fiscal 2024.
We recognize revenues for written premium over the life of the surety bond and, as a result, increased sales activities are not fully reflected in the quarter in which the surety bond is issued. ● Revenue from insurance commissions generated by our surety brokerage operations increased by 4.2% in fiscal 2024 when compared to fiscal 2023, mainly due to increased production through outside insurance carriers. ● Investment and other income at UCS and BOAM increased by 6.7% from $2,156,199 in fiscal 2023 to $2,301,365 in fiscal 2024.
For fiscal 2024 and fiscal 2023, our expenses in dollars and as a percentage of total revenues were as follows: For the Years Ended December 31, 2024 2023 2024 vs 2023 Amount As a % of Total Revenues Amount As a % of Total Revenues $ Variance Costs and Expenses: Cost of billboard revenues $ 15,496,805 14.3 % $ 15,136,817 15.7 % $ 359,988 Cost of broadband revenues 9,444,030 8.7 % 9,955,518 10.3 % (511,488 ) Cost of insurance revenues 9,400,691 8.7 % 6,808,167 7.1 % 2,592,524 Employee costs 38,146,193 35.2 % 32,561,929 33.8 % 5,584,264 Professional fees 4,898,144 4.5 % 4,665,515 4.9 % 232,629 General and administrative 16,237,654 15.0 % 16,112,243 16.8 % 125,411 Depreciation 14,495,747 13.4 % 12,155,096 12.6 % 2,340,651 Amortization 7,683,952 7.1 % 7,409,939 7.7 % 274,013 Accretion 218,472 0.2 % 216,501 0.2 % 1,971 Loss on disposition of assets 720,691 0.7 % 84,414 0.1 % 636,277 Total Costs and Expenses $ 116,742,379 107.8 % $ 105,106,139 109.2 % $ 11,636,240 During fiscal 2024, we had total costs and expenses of $116,742,379, as compared to total costs and expenses of $105,106,139 in fiscal 2023.
Total costs and expenses as a percentage of revenues decreased from 109.2% in fiscal 2023 to 107.8% in fiscal 2024.
The key factors impacting costs and expenses across each of our businesses during fiscal 2024 were as follows: ● Cost of billboard revenues decreased as a percentage of billboard revenues from 35.2% in fiscal 2023 to 34.3% in fiscal 2024.
The decrease was mainly related to lower ground rent expense and other costs of revenues as a percentage of billboard revenues. ● Cost of broadband revenues decreased as a percentage of broadband revenues from 28.2% in fiscal 2023 to 24.2% in fiscal 2024.
The decrease was mainly driven by lower commissions paid within other broadband costs of revenues as well as reduced maintenance costs and cell site rent related to our fixed wireless networks as a percentage of broadband revenues. ● Cost of insurance revenues increased as a percentage of insurance revenues from 38.5% in fiscal 2023 to 39.4% in fiscal 2024.
The increase was mainly due to higher loss and loss adjustment expense as a percentage of insurance revenues, which was partially offset by lower commissions paid as a percentage of insurance revenues. ● Employee costs in fiscal 2024 were $38,146,193, or 35.2% of total revenues, as compared to $32,561,929, or 33.8% in fiscal 2023.
The increase as a percentage of total revenues was mainly driven by one-time severance and bonus payments to our former Co-CEO as a part of his separation and stock repurchase agreement.
Excluding the one-time severance and bonus payments, employee costs would have decreased to 32.1% of total revenues in fiscal 2024. ● Professional fees in fiscal 2024 were $4,898,144, or 4.5% of total revenues, as compared to $4,665,515, or 4.9% of total revenues, in fiscal 2023.
Excluding the one-time professional fees associated with our former Co-CEO's separation and stock repurchase agreement, professional fees would have decreased to 3.8% of total revenues in fiscal 2024. ● General and administrative expenses in fiscal 2024 were $16,237,654, or 15.0% of total revenues, as compared to $16,112,243, or 16.8% of total revenues, in fiscal 2023.
The decrease as a percentage of total revenues was mainly driven by higher organic revenue growth within our billboard, broadband and insurance businesses as well as lower general and administrative expenses at Boston Omaha's parent company. ● Non-cash expenses in fiscal 2024 included $14,495,747 in depreciation expense, $7,683,952 in amortization expense, and $218,472 in accretion expense related to asset retirement obligations for certain billboard and broadband assets.
Net loss from operations in fiscal 2024 was $8,467,478, or 7.8% of total revenues, as compared to a net loss from operations of $8,852,403, or 9.2% of total revenues, in fiscal 2023.
The decrease in net loss from operations was primarily due to improved operations within our billboard, broadband and insurance businesses, which were partially offset by one-time costs associated with our former Co-CEO's separation agreement and an increase in depreciation expense related to continued capital investments within our broadband businesses.
Our net loss from operations included $22,398,171 from non-cash amortization, depreciation and accretion expenses in fiscal 2024, as compared to $19,781,536 in fiscal 2023.
Net other income included $29,059,717 in other investment income mainly driven by a $16,983,514 unrealized gain on the Sky Harbour warrants held by Boston Omaha, other investment income of $7,815,912 primarily related to the sale of real estate properties and changes in the fair value of remaining assets within the 24th Street Funds and BFR Fund, $1,957,056 in non-cash gains associated with the transfer of Sky Harbour Class A common stock to our former Co-CEO as a part of his separation and stock repurchase agreement, $1,137,684 in realized gains on the sale of 285,442 shares of Sky Harbour Class A common stock, and interest and dividend income of $1,385,884.
During fiscal 2023, we had net other expense of $294,060.
Net other expense included a loss of $7,888,765 from unconsolidated affiliates mainly related to $13,149,861 in non-cash losses from our equity method position in Sky Harbour, which was partially offset by $4,630,610 in non-cash gains recognized in May 2023 due to our purchase of the membership interests in 24th Street held by third parties resulting in the remeasurement of our previously-held interest in 24th Street, and interest expense of $1,147,234 mainly incurred under Link's term loan.
These items were partially offset by $6,132,791 in other investment income mainly related to public securities held by Boston Omaha and UCS and interest and dividend income of $2,609,148.
Due to the size of our percentage ownership interest in Sky Harbour's Class A common stock and our right to elect one of the seven members of Sky Harbour's Board of Directors, our investment is recorded under the equity method and we do not include any unrealized gains or losses related to the change in Sky Harbour's stock price in our reported earnings.
Additionally, we have evaluated our investment in Sky Harbour as of December 31, 2024, and determined that there was not an other-than-temporary impairment.
If Sky Harbour's stock price drops below our carrying value of $5.80 per share for a sustained period of time, it will likely result in an impairment of our investment.
We had a net loss attributable to common stockholders in the amount of $1,292,450 in fiscal 2024, or a loss per share of $0.04, based on 31,496,857 diluted weighted average shares outstanding.
This is compared to a net loss attributable to common stockholders of $7,004,009 in fiscal 2023, or a loss per share of $0.23, based on 31,092,850 diluted weighted average shares outstanding.
The following tables report results for the following four segments in which we operate: billboards, broadband, insurance and asset management for fiscal 2024 and fiscal 2023: Results of Billboard Operations For the Years Ended December 31, 2024 2023 Amount As a % of Segment Operating Revenues Amount As a % of Segment Operating Revenues Operating Revenues Billboard rentals, net $ 45,153,076 100.0 % $ 42,940,369 100.0 % Cost of Revenues Ground rents 8,241,212 18.3 % 7,981,107 18.6 % Utilities 1,846,056 4.1 % 1,790,349 4.2 % Commissions paid 3,543,865 7.8 % 3,409,923 7.9 % Other costs of revenues 1,865,672 4.1 % 1,955,438 4.5 % Total cost of revenues 15,496,805 34.3 % 15,136,817 35.2 % Gross margin 29,656,271 65.7 % 27,803,552 64.8 % Other Operating Expenses Employee costs 7,812,497 17.3 % 7,072,960 16.5 % Professional fees 223,165 0.5 % 804,203 1.9 % General and administrative 4,033,121 8.9 % 3,902,279 9.1 % Depreciation 5,151,286 11.4 % 5,075,358 11.8 % Amortization 3,902,738 8.7 % 3,933,290 9.1 % Accretion 204,659 0.5 % 199,211 0.5 % Loss on disposition of assets 63,455 0.1 % 206,832 0.5 % Total expenses 21,390,921 47.4 % 21,194,133 49.4 % Segment Income from Operations 8,265,350 18.3 % 6,609,419 15.4 % Interest expense, net (1,410,216 ) (3.1 %) (956,251 ) (2.2 %) Net Income Attributable to Common Stockholders $ 6,855,134 15.2 % $ 5,653,168 13.2 % Comparison of Fiscal 2024 to Fiscal 2023.
In fiscal 2024, there was a 5.2% increase in net billboard revenues from fiscal 2023, reflecting an improvement in rental and occupancy rates across a number of our markets.
The key factors affecting our billboard operations results during fiscal 2024 were as follows: ● Ground rent expense decreased as a percentage of total segment operating revenues from 18.6% in fiscal 2023 to 18.3% in fiscal 2024. ● Commissions paid decreased as a percentage of total segment operating revenues from 7.9% in fiscal 2023 to 7.8% in fiscal 2024. ● Employee costs increased as a percentage of total segment operating revenues from 16.5% in fiscal 2023 to 17.3% in fiscal 2024.
The increase is mainly due to the filling of open positions to align processes and lower operating costs in other expense categories. ● General and administrative expenses decreased as a percentage of total segment operating revenues from 9.1% fiscal 2023 to 8.9% in fiscal 2024. ● Depreciation and amortization expense as a percentage of total segment operating revenues decreased from 11.8% and 9.1% in fiscal 2023 to 11.4% and 8.7% in fiscal 2024, respectively. ● Net interest expense was $1,410,216 in fiscal 2024 compared to net interest expense of $956,251 in fiscal 2023.
The increase is mainly driven by the additional borrowings on the revolving line of credit.
Results of Broadband Operations For the Years Ended December 31, 2024 2023 Amount As a % of Segment Operating Revenues Amount As a % of Segment Operating Revenues Operating Revenues Broadband revenues $ 39,098,228 100.0 % $ 35,340,502 100.0 % Cost of Revenues Network operations and data costs 5,081,153 13.0 % 5,268,526 14.9 % Software costs 798,992 2.1 % 722,198 2.1 % Cell site rent and utilities 1,415,053 3.6 % 1,597,681 4.5 % Other costs of revenues 2,148,832 5.5 % 2,367,113 6.7 % Total cost of revenues 9,444,030 24.2 % 9,955,518 28.2 % Gross margin 29,654,198 75.8 % 25,384,984 71.8 % Other Operating Expenses Employee costs 15,541,832 39.7 % 14,527,407 41.1 % Professional fees 850,528 2.2 % 823,969 2.3 % General and administrative 7,418,184 19.0 % 7,093,277 20.1 % Depreciation 9,078,651 23.2 % 6,816,929 19.3 % Amortization 3,509,856 9.0 % 3,316,403 9.4 % Accretion 13,813 0.0 % 17,290 0.0 % Loss (gain) on disposition of assets 657,236 1.7 % (122,418 ) (0.3 %) Total expenses 37,070,100 94.8 % 32,472,857 91.9 % Segment Loss from Operations (7,415,902 ) (19.0 %) (7,087,873 ) (20.1 %) Interest (expense) income, net (32,019 ) (0.1 %) 17,664 0.1 % Noncontrolling interest in subsidiary loss - - 75,008 0.2 % Net Loss Attributable to Common Stockholders $ (7,447,921 ) (19.1 %) $ (6,995,201 ) (19.8 %) Comparison of Fiscal 2024 to Fiscal 2023.
In fiscal 2024, total operating revenues increased by 10.6% when compared to fiscal 2023 mainly reflecting subscriber growth across a number of our markets.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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