Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 20, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BBGI | |
Entity Registrant Name | BEASLEY BROADCAST GROUP, INC. | |
Entity Central Index Key | 0001099160 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Address, State or Province | FL | |
Entity Tax Identification Number | 65-0960915 | |
Entity Address, Address Line One | 3033 Riviera Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Naples | |
Entity Address, Postal Zip Code | 34103 | |
City Area Code | 239 | |
Local Phone Number | 263-5000 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Entity File Number | 000-29253 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,183,354 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,662,743 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 35,894,663 | $ 39,534,653 |
Accounts receivable, less allowance for credit losses of $1,876,751 in 2022 and $1,740,162 in 2023 | 47,487,802 | 56,683,526 |
Prepaid expenses | 5,344,980 | 5,078,231 |
Other current assets | 3,380,589 | 4,364,120 |
Total current assets | 92,108,034 | 105,660,530 |
Property and equipment, net | 54,605,751 | 55,807,047 |
Operating lease right-of-use assets | 36,623,847 | 38,478,756 |
Finance lease right-of-use assets | 303,333 | 306,667 |
FCC licenses | 487,249,798 | 487,249,798 |
Goodwill | 13,265,460 | 13,265,460 |
Other intangibles, net | 7,977,918 | 8,219,939 |
Other assets | 5,994,261 | 5,955,158 |
Total assets | 698,128,402 | 714,943,355 |
Current liabilities: | ||
Accounts payable | 15,631,581 | 19,344,621 |
Operating lease liabilities | 8,140,640 | 8,166,394 |
Other current liabilities | 27,249,726 | 29,183,630 |
Total current liabilities | 51,021,947 | 56,694,645 |
Due to related parties | 78,053 | 85,731 |
Long-term debt, net of unamortized debt issuance costs | 285,839,233 | 285,472,107 |
Operating lease liabilities | 35,538,596 | 37,485,602 |
Deferred tax liabilities | 95,904,862 | 98,068,981 |
Other long-term liabilities | 9,644,746 | 13,647,481 |
Total liabilities | 478,027,437 | 491,454,547 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued | ||
Additional paid-in capital | 152,122,495 | 151,948,310 |
Treasury stock, Class A common stock; 3,649,568 shares in 2022; 3,677,092 shares in 2023 | (29,180,845) | (29,155,300) |
Retained earnings | 96,626,498 | 100,163,064 |
Accumulated other comprehensive income | 499,311 | 499,311 |
Total stockholders' equity | 220,100,965 | 223,488,808 |
Total liabilities and stockholders' equity | 698,128,402 | 714,943,355 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 16,844 | 16,761 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 16,662 | $ 16,662 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 1,740,162 | $ 1,876,751 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 16,846,376 | 16,763,227 |
Common stock, shares outstanding | 13,169,284 | 13,113,659 |
Treasury stock, Class A common stock shares | 3,677,092 | 3,649,568 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 16,662,743 | 16,662,743 |
Common stock, shares outstanding | 16,662,743 | 16,662,743 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenue | $ 57,779,120 | $ 55,720,268 |
Operating expenses: | ||
Operating expenses (including stock-based compensation of $78,223 in 2022 and $32,804 in 2023 and excluding depreciation and amortization shown separately below) | 50,653,655 | 49,830,436 |
Corporate expenses (including stock-based compensation of $149,027 in 2022 and $141,464 in 2023) | 4,483,095 | 4,233,460 |
Depreciation and amortization | 2,229,325 | 2,515,900 |
Impairment loss | 1,857,226 | |
Total operating expenses | 57,366,075 | 58,437,022 |
Operating income (loss) | 413,045 | (2,716,754) |
Non-operating income (expense): | ||
Interest expense | (6,593,852) | (6,849,037) |
Other income, net | 540,515 | 872 |
Loss before income taxes | (5,640,292) | (9,564,919) |
Income tax benefit | (2,163,983) | (5,849,318) |
Loss before equity in earnings of unconsolidated affiliates | (3,476,309) | (3,715,601) |
Equity in earnings of unconsolidated affiliates, net of tax | (60,257) | (23,344) |
Net loss | $ (3,536,566) | $ (3,738,945) |
Net loss per Class A and Class B common share: | ||
Basic | $ (0.12) | $ (0.13) |
Diluted | $ (0.12) | $ (0.13) |
Weighted average shares outstanding: | ||
Basic | 29,785,759 | 29,370,789 |
Diluted | 29,785,759 | 29,370,789 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation | $ 174,268 | $ 227,250 |
Station Operating Expenses [Member] | ||
Stock-based compensation | 32,804 | 78,223 |
Corporate General and Administrative Expenses [Member] | ||
Stock-based compensation | $ 141,464 | $ 149,027 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (3,536,566) | $ (3,738,945) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 174,268 | 227,250 |
Provision for credit losses | 230,692 | 77,498 |
Depreciation and amortization | 2,229,325 | 2,515,900 |
Impairment loss | 1,857,226 | |
Amortization of loan fees | 367,126 | 380,211 |
Deferred income taxes | (2,163,983) | (5,849,318) |
Equity in earnings of unconsolidated affiliates | 60,257 | 23,344 |
Change in operating assets and liabilities: | ||
Accounts receivable | 8,965,032 | 11,188,519 |
Prepaid expenses | (266,749) | 213,359 |
Other assets | 1,049,212 | 570,082 |
Accounts payable | (3,713,040) | 361,375 |
Other liabilities | (6,062,782) | (7,069,648) |
Other operating activities | 222,043 | (21,479) |
Net cash provided by (used in) operating activities | (2,445,165) | 735,374 |
Cash flows from investing activities: | ||
Capital expenditures | (1,169,280) | (1,375,775) |
Net cash used in investing activities | (1,169,280) | (1,375,775) |
Cash flows from financing activities: | ||
Reduction of finance lease liabilities | (1,945) | |
Purchase of treasury stock | (25,545) | (29,599) |
Net cash used in financing activities | (25,545) | (31,544) |
Net decrease in cash and cash equivalents | (3,639,990) | (671,945) |
Cash and cash equivalents at beginning of period | 39,534,653 | 51,378,642 |
Cash and cash equivalents at end of period | 35,894,663 | 50,706,697 |
Cash paid for interest | 12,506,445 | 12,937,576 |
Cash paid for income taxes | $ 21,491 | $ 61,000 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | (1) Interim Financial Statements The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of Beasley Broadcast Group, Inc. and its subsidiaries (the “Company”) included in the Company’s Annual Report on Form 10-K 10-Q S-X. lete ations, ther year |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Use of Estimates Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Such estimates include: (i) the amount of allowance for credit losses; (ii) future cash flows used for testing recoverability of property and equipment; (iii) fair values used for testing Federal Communications Commission (“FCC”) licenses, goodwill and other intangibles for impairment; (iv) estimates used to determine the incremental borrowing rate to record lease liabilities and related right-of-use Accounts Receivable Accounts receivable consist primarily of uncollected amounts due from advertisers for the sale of advertising airtime. The amounts are net of advertising agency commissions and an allowance for credit losses. The allowance for credit losses reflects management’s estimate of expected losses in accounts receivable from local advertisers and national agencies. Management determines the allowance based on historical information, relative improvements or deteriorations in the age of the accounts receivable and changes in current economic conditions and reasonable and supportable forecasts of future economic conditions. Interest is not accrued on accounts receivable. The changes in allowance for credit losses on accounts receivable are as follows: Three months ended March 31, 2022 2023 Beginning balance $ 1,720,477 $ 1,876,751 Provision for credit losses 77,498 230,692 Deductions (287,553 ) (367,281 ) Ending balance $ 1,510,422 $ 1,740,162 Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that will require the measurement of all expected credit losses for financial assets, including accounts receivable, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance was initially effective for the Company for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. In November 2019, the FASB issued additional guidance that included a deferral of the effective date for smaller reporting companies as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, and interim periods within those years. The Company adopted the guidance on January 1, 2023 and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Disposition | (3) Disposition On April 1, 2022, the Company completed the sale of substantially all of the assets used in the operations of WWNN-AM |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (4) Long-Term Debt Long-term debt is comprised of the following: December 31, March 31, 2022 2023 Secured notes $ 290,000,000 $ 290,000,000 Less unamortized debt issuance costs (4,527,893 ) (4,160,767 ) $ 285,472,107 $ 285,839,233 On February 2, 2021, the Company issued $300.0 million aggregate principal amount of 8.625% senior secured notes due on February 1, 2026 (the “Notes”) under an indenture dated February 2, 2021 (the “Indenture”). Interest on the Notes accrues at the rate of 8.625% per annum and is payable semiannually in arrears on February 1 and August 1 of each year. The Notes are secured on a first-lien priority basis by substantially all assets of the Company and its majority owned subsidiaries and are guaranteed jointly and severally by the Company and its majority owned subsidiaries. The Indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, guarantee indebtedness or issue disqualified stock or, in the case of such subsidiaries, preferred stock; pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted payments; make certain investments or acquisitions; sell, transfer or otherwise convey certain assets; create liens; enter into agreements restricting certain subsidiaries’ ability to pay dividends or make other intercompany transfers; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; enter into transactions with affiliates; prepay certain kinds of indebtedness; and issue or sell stock of its subsidiaries. Prior to February 1, 2025, the Company will be subject to certain premiums, as defined in the Indenture, for optional or mandatory (upon certain contingent events) redemption of some or all of the Note s . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | (5) Stockholders’ Equity The changes in stockholders’ equity are as follows: Three months ended March 31, 2022 2023 Beginning balance $ 263,082,298 $ 223,488,808 Stock-based compensation 227,250 174,268 Purchase of treasury stock (29,599 ) (25,545 ) Net loss (3,738,945 ) (3,536,566 ) Ending balance $ 259,541,004 $ 220,100,965 |
Net Revenue
Net Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenue | (6) Net Revenue Net revenue is comprised of the following: Three months ended March 31, 2022 2023 Audio $ 47,365,145 $ 47,417,966 Digital 7,808,250 9,976,785 Other 546,873 384,369 $ 55,720,268 $ 57,779,120 The Company recognizes revenue when it satisfies a performance obligation under a contract with an advertiser. The transaction price is allocated to performance obligations based on executed contracts which represent relative standalone selling prices. Payment is generally due within 30 days, although certain advertisers are required to pay in advance. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. The Company has elected to use the practical expedient to expense sales commissions as incurred. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the balance sheet. Substantially all deferred revenue is recognized within 12 months of the payment date. December 31, March 31, 2022 2023 Deferred revenue $ 4,696,989 $ 4,890,338 Audio revenue includes revenue from the sale or trade of aired commercial spots to advertisers directly or through national advertising agencies. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired before the goods or services are received, then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired, then a trade sales payable is recorded. Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Such revenue is generally recognized when the concert, promotional event, or talent services are completed. December 31, March 31, 2022 2023 Trade sales receivable $ 1,564,054 $ 1,752,566 Trade sales payable 806,162 806,640 Three months ended March 31, 2022 2023 Trade sales revenue $ 1,372,573 $ 1,380,842 Digital revenue includes revenue from the sale of streamed commercial spots, station-owned assets and third-party products. Each streamed commercial spot, station-owned asset and third-party product is considered a performance obligation. Revenue is recognized when the commercial spots have streamed. Station-owned assets are generally scheduled over a period of time and revenue is recognized over time as the digital items are used for advertising content, except for streamed commercial spots. Third-party products are generally scheduled over a period of time with an impression target each month. Revenue from the sale of third-party products is recognized over time as the digital items are used for advertising content and impression targets are met each month. The Company assesses each digital order to determine if the Company is operating as the principal or an agent. In general, the Company operates as the principal, however, after the acquisition of Guarantee Digital, LLC in 2022, the Company determined that it is operating as an agent for one advertiser. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (7) Stock-Based Compensation The Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”) permits the Company to issue up to 7.5 million shares of Class A common stock. The 2007 Plan allows for eligible employees, directors and certain consultants of the Company to receive restricted stock units, shares of restricted stock, stock options or other stock-based awards. The restricted stock units that have been granted under the 2007 Plan generally vest over one A summary of restricted stock unit activity is presented below: Units Weighted- Grant-Date Fair Value Unvested as of January 1, 2023 1,084,818 $ 1.87 Granted 54,348 0.92 Vested (83,149 ) 2.32 Forfeited (6,667 ) 2.36 Unvested as of March 31, 2023 1,049,350 $ 1.78 As of March 31, 2023, there was $1.2 million of total unrecognized compensation cost for restricted stock units granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 2.3 years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (8) Income Taxes The Company’s effective tax rate was (61)% and (38)% for the three months ended March 31, 2022 and 2023, respectively. These rates differ from the federal statutory rate of 21% due to the effect of state income taxes, certain non-taxable |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (9) Earnings Per Share Earnings per share calculation information is as follows: Three months ended March 31, 2022 2023 Net loss $ (3,738,945 ) $ (3,536,566 ) Weighted-average shares outstanding: Basic 29,370,789 29,785,759 Effect of dilutive restricted stock units and restricted stock — — Diluted 29,370,789 29,785,759 Net loss per Class A and Class B common share – basic and diluted $ (0.13 ) $ (0.12 ) The Company excluded the effect of restrictive stock units and restricted stock under the treasury stock method when reporting a net loss as the addition of shares was anti-dilutive. The number of shares excluded was 178,625 and 123,738 for the three months ended March 31, 2022 and 2023, respectively. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | (10) Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximates fair value due to the short-term nature of these financial instruments. The estimated fair value of the Notes, based on available market information, was $174.0 million and $191.4 million as of December 31, 2022 and March 31, 2023, respectively. The Company used Level 2 measurements under the fair value measurement hierarchy to determine the estimated fair value of the Notes. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information The Company currently operates three operating segments (Audio, Digital, esports) and two reportable segments (Audio, Digital). The identification of segments is consistent with how the segments report to and are managed by the Company’s Chief Executive Officer (the Company’s Chief Operating Decision Maker). The Audio segment generates revenue primarily from the sale of commercial advertising to customers of the Company’s stations in the following markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, Tampa-Saint Petersburg, FL, and Wilmington, DE. The Digital segment generates revenue primarily from the sale of digital advertising to customers of the Company’s stations and other advertisers throughout the United States. Corporate includes general and administrative expenses and certain other income and expense items not allocated to the operating segments. Non-operating Reportable segment information for the three months ended March 31, 2023 is as follows: Audio Digital Other Corporate Total Net revenue $ 47,417,966 $ 9,976,785 $ 384,369 $ — $ 57,779,120 Operating expenses 39,899,594 9,907,597 846,464 — 50,653,655 Corporate expenses — — — 4,483,095 4,483,095 Depreciation and amortization 1,774,764 46,766 196,477 211,318 2,229,325 Operating income (loss) $ 5,743,608 $ 22,422 $ (658,572 ) $ (4,694,413 ) $ 413,045 Audio Digital Other Corporate Total Capital expenditures $ 1,138,114 $ 2,813 $ 20,122 $ 8,231 $ 1,169,280 Reportable segment information for the three months ended March 31, 2022 is as follows: Audio Digital Other Corporate Total Net revenue $ 47,365,145 $ 7,808,250 $ 546,873 $ — $ 55,720,268 Operating expenses 40,683,812 8,401,763 744,861 — 49,830,436 Corporate expenses — — — 4,233,460 4,233,460 Depreciation and amortization 1,621,827 4,464 695,348 194,261 2,515,900 Impairment loss 1,857,226 — — — 1,857,226 Operating income (loss) $ 3,202,280 $ (597,977 ) $ (893,336 ) $ (4,427,721 ) $ (2,716,754 ) Audio Digital Other Corporate Total Capital expenditures $ 1,181,994 $ 1,844 $ 60,682 $ 142,230 $ 1,386,750 Reportable segment information as of March 31, 2023 is as follows: Audio Digital Other Corporate Total Property and equipment, net $ 50,931,567 $ 108,219 $ 84,136 $ 3,481,829 $ 54,605,751 FCC licenses 487,249,798 — — — 487,249,798 Goodwill 10,582,360 922,000 1,761,100 — 13,265,460 Other intangibles, net 1,807,728 953,273 5,037,254 179,663 7,977,918 Reportable segment information as of December 31, 2022 is as follows: Audio Digital Other Corporate Total Property and equipment, net $ 51,941,687 $ 112,693 $ 67,751 $ 3,684,916 $ 55,807,047 FCC licenses 487,249,798 — — — 487,249,798 Goodwill 10,582,360 922,000 1,761,100 — 13,265,460 Other intangibles, net 1,841,001 992,752 5,206,523 179,663 8,219,939 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Such estimates include: (i) the amount of allowance for credit losses; (ii) future cash flows used for testing recoverability of property and equipment; (iii) fair values used for testing Federal Communications Commission (“FCC”) licenses, goodwill and other intangibles for impairment; (iv) estimates used to determine the incremental borrowing rate to record lease liabilities and related right-of-use |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of uncollected amounts due from advertisers for the sale of advertising airtime. The amounts are net of advertising agency commissions and an allowance for credit losses. The allowance for credit losses reflects management’s estimate of expected losses in accounts receivable from local advertisers and national agencies. Management determines the allowance based on historical information, relative improvements or deteriorations in the age of the accounts receivable and changes in current economic conditions and reasonable and supportable forecasts of future economic conditions. Interest is not accrued on accounts receivable. The changes in allowance for credit losses on accounts receivable are as follows: Three months ended March 31, 2022 2023 Beginning balance $ 1,720,477 $ 1,876,751 Provision for credit losses 77,498 230,692 Deductions (287,553 ) (367,281 ) Ending balance $ 1,510,422 $ 1,740,162 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that will require the measurement of all expected credit losses for financial assets, including accounts receivable, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance was initially effective for the Company for annual reporting periods beginning after December 15, 2019, and interim periods within those fiscal years. In November 2019, the FASB issued additional guidance that included a deferral of the effective date for smaller reporting companies as defined by the Securities and Exchange Commission to fiscal years beginning after December 15, 2022, and interim periods within those years. The Company adopted the guidance on January 1, 2023 and the adoption did not have a material impact on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Allowance for Credit Loss [Abstract] | |
Summary of credit losses on accounts receivable | The changes in allowance for credit losses on accounts receivable are as follows: Three months ended March 31, 2022 2023 Beginning balance $ 1,720,477 $ 1,876,751 Provision for credit losses 77,498 230,692 Deductions (287,553 ) (367,281 ) Ending balance $ 1,510,422 $ 1,740,162 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is comprised of the following: December 31, March 31, 2022 2023 Secured notes $ 290,000,000 $ 290,000,000 Less unamortized debt issuance costs (4,527,893 ) (4,160,767 ) $ 285,472,107 $ 285,839,233 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders Equity | The changes in stockholders’ equity are as follows: Three months ended March 31, 2022 2023 Beginning balance $ 263,082,298 $ 223,488,808 Stock-based compensation 227,250 174,268 Purchase of treasury stock (29,599 ) (25,545 ) Net loss (3,738,945 ) (3,536,566 ) Ending balance $ 259,541,004 $ 220,100,965 |
Net Revenue (Tables)
Net Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Revenue | Net revenue is comprised of the following: Three months ended March 31, 2022 2023 Audio $ 47,365,145 $ 47,417,966 Digital 7,808,250 9,976,785 Other 546,873 384,369 $ 55,720,268 $ 57,779,120 |
Deferred Revenue | December 31, March 31, 2022 2023 Deferred revenue $ 4,696,989 $ 4,890,338 |
Trade Sale Revenue | December 31, March 31, 2022 2023 Trade sales receivable $ 1,564,054 $ 1,752,566 Trade sales payable 806,162 806,640 Three months ended March 31, 2022 2023 Trade sales revenue $ 1,372,573 $ 1,380,842 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Units | A summary of restricted stock unit activity is presented below: Units Weighted- Grant-Date Fair Value Unvested as of January 1, 2023 1,084,818 $ 1.87 Granted 54,348 0.92 Vested (83,149 ) 2.32 Forfeited (6,667 ) 2.36 Unvested as of March 31, 2023 1,049,350 $ 1.78 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share calculation information is as follows: Three months ended March 31, 2022 2023 Net loss $ (3,738,945 ) $ (3,536,566 ) Weighted-average shares outstanding: Basic 29,370,789 29,785,759 Effect of dilutive restricted stock units and restricted stock — — Diluted 29,370,789 29,785,759 Net loss per Class A and Class B common share – basic and diluted $ (0.13 ) $ (0.12 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of reportable segment information | Reportable segment information for the three months ended March 31, 2023 is as follows: Audio Digital Other Corporate Total Net revenue $ 47,417,966 $ 9,976,785 $ 384,369 $ — $ 57,779,120 Operating expenses 39,899,594 9,907,597 846,464 — 50,653,655 Corporate expenses — — — 4,483,095 4,483,095 Depreciation and amortization 1,774,764 46,766 196,477 211,318 2,229,325 Operating income (loss) $ 5,743,608 $ 22,422 $ (658,572 ) $ (4,694,413 ) $ 413,045 Audio Digital Other Corporate Total Capital expenditures $ 1,138,114 $ 2,813 $ 20,122 $ 8,231 $ 1,169,280 Reportable segment information for the three months ended March 31, 2022 is as follows: Audio Digital Other Corporate Total Net revenue $ 47,365,145 $ 7,808,250 $ 546,873 $ — $ 55,720,268 Operating expenses 40,683,812 8,401,763 744,861 — 49,830,436 Corporate expenses — — — 4,233,460 4,233,460 Depreciation and amortization 1,621,827 4,464 695,348 194,261 2,515,900 Impairment loss 1,857,226 — — — 1,857,226 Operating income (loss) $ 3,202,280 $ (597,977 ) $ (893,336 ) $ (4,427,721 ) $ (2,716,754 ) Audio Digital Other Corporate Total Capital expenditures $ 1,181,994 $ 1,844 $ 60,682 $ 142,230 $ 1,386,750 Reportable segment information as of March 31, 2023 is as follows: Audio Digital Other Corporate Total Property and equipment, net $ 50,931,567 $ 108,219 $ 84,136 $ 3,481,829 $ 54,605,751 FCC licenses 487,249,798 — — — 487,249,798 Goodwill 10,582,360 922,000 1,761,100 — 13,265,460 Other intangibles, net 1,807,728 953,273 5,037,254 179,663 7,977,918 Reportable segment information as of December 31, 2022 is as follows: Audio Digital Other Corporate Total Property and equipment, net $ 51,941,687 $ 112,693 $ 67,751 $ 3,684,916 $ 55,807,047 FCC licenses 487,249,798 — — — 487,249,798 Goodwill 10,582,360 922,000 1,761,100 — 13,265,460 Other intangibles, net 1,841,001 992,752 5,206,523 179,663 8,219,939 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Credit Losses on Accounts Receivable (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for Credit Loss [Abstract] | ||
Beginning balance | $ 1,876,751 | $ 1,720,477 |
Provision for credit losses | 230,692 | 77,498 |
Deductions | (367,281) | (287,553) |
Ending balance | $ 1,740,162 | $ 1,510,422 |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Apr. 30, 2022 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||
Impairment losses | $ 1,900 | |
West Palm Beach Boca Raton [Member] | WWNNAM [Member] | ||
Business Acquisition [Line Items] | ||
Proceeds from dispositions | $ 1,250 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Less unamortized debt issuance costs | $ (4,160,767) | $ (4,527,893) |
Long-term debt | 285,839,233 | 285,472,107 |
Secured Notes [Member] | ||
Line of Credit Facility [Line Items] | ||
Secured notes | $ 290,000,000 | $ 290,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - 8.625% senior secured notes due on February 1, 2026 $ in Millions | Feb. 02, 2021 USD ($) |
Long-Term Debt [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 8.625% |
Debt instrument face value | $ 300 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders Equity (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Beginning balance | $ 223,488,808 | $ 263,082,298 |
Stock-based compensation | 174,268 | 227,250 |
Purchase of treasury stock | (25,545) | (29,599) |
Net loss | (3,536,566) | (3,738,945) |
Ending balance | $ 220,100,965 | $ 259,541,004 |
Net Revenue - Composition of Re
Net Revenue - Composition of Revenue (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 57,779,120 | $ 55,720,268 |
Audio [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 47,417,966 | 47,365,145 |
Digital [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | 9,976,785 | 7,808,250 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue | $ 384,369 | $ 546,873 |
Net Revenue - Deferred Revenue
Net Revenue - Deferred Revenue (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue | $ 4,890,338 | $ 4,696,989 |
Net Revenue - Trade Sale Revenu
Net Revenue - Trade Sale Revenue (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Trade sales receivable | $ 1,752,566 | $ 1,564,054 | |
Trade sales payable | 806,640 | $ 806,162 | |
Trade sales revenue | $ 1,380,842 | $ 1,372,573 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - 2007 Plan [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost for restricted stock granted | $ | $ 1.2 |
Cost expected to be recognized over a weighted-average period | 2 years 3 months 18 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units and restricted stock awards, vest, period | 1 year |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock units and restricted stock awards, vest, period | 5 years |
Class A Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized | shares | 7,500,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Detail) - 2007 Plan [Member] - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | shares | 1,084,818 |
Granted, Shares | shares | 54,348 |
Vested, Shares | shares | (83,149) |
Forfeited, Shares | shares | (6,667) |
Unvested Shares, Ending Balance | shares | 1,049,350 |
Unvested, Weighted-Average Grant-Date Fair Value, Beginning Balance | $ / shares | $ 1.87 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 0.92 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 2.32 |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | 2.36 |
Unvested, Weighted-Average Grant-Date Fair Value, Ending Balance | $ / shares | $ 1.78 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Federal statutory rate | 21% | |
Effective tax rate | (38.00%) | (61.00%) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (3,536,566) | $ (3,738,945) |
Weighted-average shares outstanding: | ||
Basic | 29,785,759 | 29,370,789 |
Effect of dilutive restricted stock units and restricted stock | 0 | 0 |
Diluted | 29,785,759 | 29,370,789 |
Net loss per Class A and Class B common share — basic | $ (0.12) | $ (0.13) |
Net loss per Class A and Class B common share — diluted | $ (0.12) | $ (0.13) |
Earnings Per Share - Additional
Earnings Per Share - Additional information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share | 123,738 | 178,625 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Of Financial Instruments [Line Items] | ||
Long-term debt | $ 191.4 | $ 174 |
Segment Information - Summary o
Segment Information - Summary of Reportable Segment Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 57,779,120 | $ 55,720,268 | |
Operating expenses | 50,653,655 | 49,830,436 | |
Corporate expenses | 4,483,095 | 4,233,460 | |
Depreciation and amortization | 2,229,325 | 2,515,900 | |
Impairment loss | 1,857,226 | ||
Operating income (loss) | 413,045 | (2,716,754) | |
Capital expenditures | 1,169,280 | 1,386,750 | |
Property and equipment, net | 54,605,751 | $ 55,807,047 | |
FCC licenses | 487,249,798 | 487,249,798 | |
Goodwill | 13,265,460 | 13,265,460 | |
Other intangibles, net | 7,977,918 | 8,219,939 | |
Audio [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 47,417,966 | 47,365,145 | |
Operating expenses | 39,899,594 | 40,683,812 | |
Depreciation and amortization | 1,774,764 | 1,621,827 | |
Impairment loss | 1,857,226 | ||
Operating income (loss) | 5,743,608 | 3,202,280 | |
Capital expenditures | 1,138,114 | 1,181,994 | |
Property and equipment, net | 50,931,567 | 51,941,687 | |
FCC licenses | 487,249,798 | 487,249,798 | |
Goodwill | 10,582,360 | 10,582,360 | |
Other intangibles, net | 1,807,728 | 1,841,001 | |
Digital [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 9,976,785 | 7,808,250 | |
Operating expenses | 9,907,597 | 8,401,763 | |
Depreciation and amortization | 46,766 | 4,464 | |
Operating income (loss) | 22,422 | (597,977) | |
Capital expenditures | 2,813 | 1,844 | |
Property and equipment, net | 108,219 | 112,693 | |
Goodwill | 922,000 | 922,000 | |
Other intangibles, net | 953,273 | 992,752 | |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 384,369 | 546,873 | |
Operating expenses | 846,464 | 744,861 | |
Depreciation and amortization | 196,477 | 695,348 | |
Operating income (loss) | (658,572) | (893,336) | |
Capital expenditures | 20,122 | 60,682 | |
Property and equipment, net | 84,136 | 67,751 | |
Goodwill | 1,761,100 | 1,761,100 | |
Other intangibles, net | 5,037,254 | 5,206,523 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses | 4,483,095 | 4,233,460 | |
Depreciation and amortization | 211,318 | 194,261 | |
Operating income (loss) | (4,694,413) | (4,427,721) | |
Capital expenditures | 8,231 | $ 142,230 | |
Property and equipment, net | 3,481,829 | 3,684,916 | |
Other intangibles, net | $ 179,663 | $ 179,663 |