Conference Call Details - Anterix (NASDAQ: ATEX) will release its third quarter fiscal 2021 financial results after the market closes on Monday, February 8, 2021[1] - An investor conference call will be held at 4:15 p.m ET that afternoon, interested parties can participate in the call by dialing 888-267-2845 and using the conference code 515024[1] - A replay of the call will be accessible on the Investor Relations section of Anterix's website at https://www.anterix.com/events/[1] Company Overview - Anterix is focused on delivering transformative private broadband that enables the modernization of critical infrastructure for the energy, transportation, logistics and other sectors[1] - Anterix is the largest holder of licensed spectrum in the 900 MHz band, with nationwide coverage throughout the contiguous United States, Hawaii, Alaska and Puerto Rico[1] - Anterix is uniquely positioned to enable the private LTE solutions that support secure, resilient and customer-controlled operations[1]

Financial Data and Key Metrics Changes - The company is experiencing strong macro demand and regulatory tailwinds, which are positively impacting its market position [7] - The recent C-band auction results indicate that spectrum values are increasing, supporting the company's spectrum negotiations [13] Business Line Data and Key Metrics Changes - The company has secured its first long-term customer contract, demonstrating the value of its nationwide spectrum asset to utilities [7] - The sales funnel is developing strongly, with expectations to sign 1 to 2 more customer agreements before the fiscal year ends on March 31 [8][12] Market Data and Key Metrics Changes - Utilities are increasingly committing to net zero carbon emission goals, planning to invest billions in modernizing the grid, which aligns with the company's offerings [14][17] - The company is seeing a movement towards private LTE adoption across the utility sector, driven by legislative and regulatory support [15][16] Company Strategy and Development Direction - The company is focused on expanding its customer pipeline and fostering industry awareness of the importance of private LTE for modernizing the electric grid [9][18] - The company aims to put 50% of its spectrum to work by 2024, with a focus on achieving its customer goals [33] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong customer interest and the potential for prepaid agreements to enhance cash flow [22][24] - The company acknowledges the challenges of predicting contract timing but remains confident in the positive trend line of future transactions [12][31] Other Important Information - The company is planning a virtual Investor Day to discuss the impacts of prepaid agreements and other aspects of its business model [25] - The company is becoming recognized as a foundational part of the clean energy ecosystem, which is critical for achieving grid modernization [43] Q&A Session Summary Question: Can you provide more detail on the funnel and prospects for upcoming deals? - Management confirmed continued progress in the sales funnel and expressed confidence in signing additional agreements soon [19][20] Question: Can you elaborate on customer interest in prepaying? - Management noted a growing preference for prepaid agreements, which would positively impact cash flow and funding needs [21][22] Question: What is the status of the Ameren contract? - The Ameren contract is awaiting Board approval, but management is confident in the positive momentum and commitment from Ameren [27][28] Question: Are you reiterating financial goals for 2022? - Management confirmed that financial goals remain intact, with adjustments expected based on the impact of prepaid agreements [32][33] Question: How do experimental licenses affect commercial licenses? - Management indicated that experimental licenses do not impair the ability to create commercial licenses [36][39] Question: What channels are most effective in reaching utility customers? - Management highlighted a multi-pronged approach, emphasizing the importance of engaging with the C-suite and industry events [40][41] Question: How does the Nashville incident affect utility interest in private networks? - Management noted that incidents like Nashville highlight the importance of private networks for utilities [58][60] Question: Are there potential revenue-sharing arrangements with vendors? - Management expressed optimism about exploring economic opportunities with vendors like Motorola [62][64]

Anterix Inc. (NASDAQ:ATEX) Q2 2021 Earnings Conference Call November 17, 2020 4:45 PM ET Corporate Participants Natasha Vecchiarelli - Investor Relations Morgan O'Brien - Executive Chairman Rob Schwartz - President and Chief Executive Officer Ryan Gerbrandt - Chief Operating Officer Tim Gray - Chief Financial Office Chris Guttman-McCabe - Chief Regulatory and Communications Officer ConferenceCall Participants Mike Crawford - B. Riley Securities James Ratcliffe - Evercore ISI Simon Flannery - Morgan Stanley ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ FORM 10-Q ____________________________________ (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36827 _________________________ ...

Anterix Inc (NASDAQ:ATEX) Q1 2021 Results Conference Call September 16, 2020 4:30 PM ET Company Participants Natasha Vecchiarelli - Investor Relations Morgan O'Brien - Executive Chairman Rob Schwartz - President & CEO Ryan Gerbrandt - COO Tim Gray - CFO Conference Call Participants George Sutton - Craig-Hallum Phil Cusick - JP Morgan Simon Flannery - Morgan Stanley Mike Crawford - B. Riley Securities James Ratcliffe - Evercore ISI Chase White - Height Analytics Operator Good afternoon, ladies and gentlem ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Anterix reported a net loss of **$15.1 million** for the quarter ended June 30, 2020, driven by a **$4.7 million** loss on intangible asset disposal and higher operating expenses [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$254.4 million** as of June 30, 2020, primarily due to a **$12.7 million** reduction in cash and cash equivalents Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 (Unaudited) | March 31, 2020 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $124,766 | $137,453 | | Intangible assets | $115,839 | $111,526 | | **Total Assets** | **$254,385** | **$267,397** | | **Liabilities & Equity** | | | | Total liabilities | $19,938 | $22,331 | | Total stockholders' equity | $234,447 | $245,066 | | **Total Liabilities and Stockholders' Equity** | **$254,385** | **$267,397** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Net loss for the three months ended June 30, 2020, increased to **$15.1 million**, primarily due to a **$4.7 million** loss from intangible asset disposal Statement of Operations Summary (in thousands, except per share data) | Metric | Three months ended June 30, 2020 | Three months ended June 30, 2019 | | :--- | :--- | :--- | | Total operating revenues | $256 | $453 | | Total operating expenses | $10,844 | $9,989 | | Loss from disposal of intangible assets | ($4,678) | $— | | Loss from operations | ($15,266) | ($9,536) | | Net loss | ($15,130) | ($9,374) | | Net loss per common share | ($0.88) | ($0.63) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by **$12.7 million** for the quarter, driven by **$9.1 million** used in investing activities and **$4.6 million** in operations Cash Flow Summary (in thousands) | Activity | Three months ended June 30, 2020 | Three months ended June 30, 2019 | | :--- | :--- | :--- | | Net cash used by operating activities | ($4,612) | ($9,030) | | Net cash used by investing activities | ($9,094) | ($247) | | Net cash provided by financing activities | $1,019 | $1,577 | | **Net change in cash and cash equivalents** | **($12,687)** | **($7,700)** | | **Cash and cash equivalents, end of period** | **$124,766** | **$69,022** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's strategic shift to commercialize its 900 MHz spectrum, including significant license acquisitions and disposals - The company's primary focus is commercializing its 900 MHz spectrum assets for private broadband networks following the FCC's Report and Order on May 13, 2020[21](index=21&type=chunk) - In the quarter, the company acquired wireless licenses for **$9.0 million** in cash[55](index=55&type=chunk) - A loss of **$4.7 million** was recorded from the disposal of intangible assets after the company cancelled licenses to enable the Association of American Railroads (AAR) to relocate its operations, a requirement under the FCC's Report and Order[57](index=57&type=chunk)[58](index=58&type=chunk) - On April 1, 2020, the company transferred its pdvConnect customers to TeamConnect LLC, which will pay Anterix a portion of recurring revenues[43](index=43&type=chunk)[46](index=46&type=chunk) - The company acknowledges that the ultimate impact of the COVID-19 pandemic on its financial performance is highly uncertain but believes it has adequate liquidity for at least the next twelve months[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift to commercialize 900 MHz spectrum, estimating **$130-160 million** in license costs and reporting a **$15.1 million** net loss [Overview and Securing Broadband Licenses](index=33&type=section&id=Overview%20and%20Securing%20Broadband%20Licenses) The company focuses on commercializing its 900 MHz spectrum for private broadband networks, with estimated costs of **$130-160 million** to secure licenses - The company's primary strategy is to commercialize its 900 MHz spectrum assets for private broadband networks for utility and critical infrastructure customers[111](index=111&type=chunk) - The FCC's Report and Order on May 13, 2020, enables the 900 MHz band to be used for broadband deployment, a key milestone for the company's strategy[111](index=111&type=chunk)[132](index=132&type=chunk) - The company anticipates the combined total costs of securing broadband licenses from the FCC, including clearing costs, spectrum acquisitions, and Anti-Windfall Payments, will range from **$130 to $160 million**, with the majority to be spent by the end of fiscal year 2024[128](index=128&type=chunk)[161](index=161&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Operating revenues decreased **43%** to **$0.3 million**, while expenses rose **9%**, resulting in a **$15.1 million** net loss Operating Results Comparison (in thousands) | Item | Q1 FY2021 (ended June 30, 2020) | Q1 FY2020 (ended June 30, 2019) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $256 | $453 | -43% | | Total operating expenses | $10,844 | $9,989 | +9% | | Loss from disposal of intangible assets | ($4,678) | $— | -100% | | Net loss | ($15,130) | ($9,374) | +61% | - General and administrative expenses increased by **$0.9 million (18%)** due to higher headcount, related costs, and consulting charges for FCC initiatives[142](index=142&type=chunk) - Depreciation and amortization increased by **$0.6 million (88%)** due to a change in the useful life of network sites[145](index=145&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended the quarter with **$124.8 million** in cash, with future license costs estimated at **$130-160 million**, and maintains a **$150 million** shelf registration - The company had cash and cash equivalents of **$124.8 million** at June 30, 2020[153](index=153&type=chunk) - Net cash used in investing activities was **$9.1 million** for the quarter, mainly due to **$9.0 million** in wireless license acquisitions[154](index=154&type=chunk) - The company filed a **$150 million** shelf registration statement and established a **$50 million** at-the-market (ATM) sales agreement to provide financial flexibility, but has not yet sold any securities under these programs[159](index=159&type=chunk)[160](index=160&type=chunk) - Management believes current cash on hand is sufficient to meet financial obligations for at least the next 12 months[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate sensitivity on cash, but the impact is not material, and there is no foreign currency risk - The company's main market risk is interest income sensitivity from changes in U.S. interest rates, but the impact is not considered material[163](index=163&type=chunk) - There is no exposure to foreign currency risk as all operations and transactions are denominated in U.S. dollars[164](index=164&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[165](index=165&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that were likely to have a material effect[166](index=166&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is not involved in any material legal proceedings[169](index=169&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors since the last Annual Report on Form 10-K - No material changes have occurred in the risk factors since the last Annual Report filed on May 28, 2020[170](index=170&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) An amendment with TeamConnect, LLC finalized the transfer of pdvConnect customers, with Anterix receiving a portion of recurring revenues - On August 4, 2020, an amendment was made to the agreement with TeamConnect, LLC, finalizing the transfer of pdvConnect customers effective April 1, 2020. Anterix will receive a portion of recurring revenues in exchange[173](index=173&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate governance documents, material agreements, and CEO/CFO certifications

Part I [Business](index=5&type=section&id=Item%201.%20Business) Anterix commercializes 900 MHz spectrum for private broadband networks, leasing it long-term to utility and critical infrastructure customers following a favorable FCC order - Anterix is the **largest holder** of licensed spectrum in the 900 MHz band in the U.S. and focuses on commercializing these assets for private broadband networks for utility and critical infrastructure customers[7](index=7&type=chunk) - On **May 13, 2020**, the FCC approved a Report and Order to modernize and realign the 900 MHz band, creating a **6 MHz broadband segment**, which is foundational to Anterix's business plan[7](index=7&type=chunk)[11](index=11&type=chunk) - The primary business model is the **long-term leasing** of broadband spectrum (generally **20 years or longer**) to customers, who will be responsible for the costs of deploying and operating their private networks[24](index=24&type=chunk) - The company has identified the **electric utility industry** as its initial target market, citing the industry's grid modernization efforts and need for secure, reliable, and high-capacity communication networks[26](index=26&type=chunk) - In **December 2018**, the company transferred its historical TeamConnect and pdvConnect businesses to reduce operating costs and focus entirely on its FCC initiatives and future broadband opportunities[30](index=30&type=chunk) [Overview and Strategy](index=5&type=section&id=Item%201.%20Business%20-%20Overview%20and%20Strategy) Anterix's strategy converts 900 MHz narrowband spectrum to broadband licenses, leasing them long-term to critical infrastructure enterprises - The company's strategy focuses on converting its narrowband spectrum to broadband and leasing it to critical infrastructure enterprises nationwide[23](index=23&type=chunk) - Anterix intends to pursue licenses based on customer opportunities and will opportunistically engage in spectrum transactions to optimize clearing costs[24](index=24&type=chunk) - The company is working with federal and state agencies to gain support for utilities to include the costs of leasing spectrum and deploying private LTE networks into their rate bases[24](index=24&type=chunk) [The 900 MHz Report and Order and Licensing](index=6&type=section&id=Item%201.%20Business%20-%20The%20900%20MHz%20Report%20and%20Order%20and%20Licensing) The FCC's May 2020 order created a 6 MHz broadband segment, requiring Anterix to meet specific tests for county-level licenses - The FCC established the "county" as the base unit for obtaining a broadband license, with three main eligibility requirements[12](index=12&type=chunk) - Anterix must hold **>50%** of licensed channels in a county, control **90%** of channels in the new broadband segment, and surrender **240 channels** (or make an Anti-Windfall Payment) to the FCC[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk)[16](index=16&type=chunk) - As of the filing date, Anterix claims to satisfy the **50% Licensed Spectrum Test** in over **3,100 counties**[13](index=13&type=chunk) - Systems with **45 or more integrated sites** are deemed "Complex Systems" and are exempt from mandatory retuning, requiring voluntary agreements; most are operated by target utility customers[18](index=18&type=chunk) [Competition and Market](index=15&type=section&id=Item%201.%20Business%20-%20Competition%20and%20Market) Anterix targets electric utilities and critical infrastructure, facing competition from Tier 1 carriers and private radio operators - The initial target market is the **electric utility industry**, which is undergoing a transformation requiring advanced communication networks for grid modernization[26](index=26&type=chunk) - Competitors include **Tier 1 carriers**, private radio operators, and other technology companies with more resources, established customer relationships, and greater political influence[29](index=29&type=chunk) - A significant milestone was the execution of a non-binding Letter of Intent with **Ameren Corporation** in **April 2020** for a long-term spectrum lease, following a successful pilot program[28](index=28&type=chunk) [Regulation and Corporate Information](index=19&type=section&id=Item%201.%20Business%20-%20Regulation%20and%20Corporate%20Information) Anterix's operations are heavily regulated by the FCC, with new broadband licenses having 15-year terms and performance requirements - The company's operations are regulated by the FCC, which issues licenses and governs their use, transfer, and renewal; new broadband licenses will have **15-year terms** with build-out requirements[34](index=34&type=chunk)[35](index=35&type=chunk) - As of **March 31, 2020**, Anterix had **59 employees**[36](index=36&type=chunk) - The company relies on patents, trademarks, and confidentiality agreements to protect its intellectual property[33](index=33&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) Key risks include high costs and delays in obtaining and commercializing broadband licenses, competition, regulatory reliance, and financial uncertainties [Risks Related to Obtaining Broadband Licenses, the Retuning Process and the Use of Our Spectrum](index=25&type=section&id=Item%201A.%20Risk%20Factors%20-%20Risks%20Related%20to%20Obtaining%20Broadband%20Licenses%2C%20the%20Retuning%20Process%20and%20the%20Use%20of%20Our%20Spectrum) Risks include costly and delayed broadband license acquisition, incumbent holdouts, "Complex Systems" exemptions, and COVID-19 impacts - The ability to obtain broadband licenses on favorable and timely terms is critical; failure to do so would materially harm the business[39](index=39&type=chunk) - The mandatory retuning process may be ineffective against incumbent holdouts, and the exemption for "Complex Systems" creates a significant hurdle in counties where they operate[39](index=39&type=chunk)[40](index=40&type=chunk) - The **COVID-19 pandemic** could adversely impact the business by delaying negotiations with incumbents, hindering commercialization efforts, and disrupting interactions with governmental agencies[42](index=42&type=chunk) - Success depends on gaining support from federal and state regulators who oversee the target utility customers, as their approval may be necessary for utilities to pass on the costs of leasing spectrum[44](index=44&type=chunk) [Risks Related to Our Business](index=33&type=section&id=Item%201A.%20Risk%20Factors%20-%20Risks%20Related%20to%20Our%20Business) Business risks include lack of operating history, inaccurate expense estimates, continued net losses, and intense competition - The company may not accurately estimate operating expenses for obtaining licenses and commercializing spectrum, which could lead to cash shortfalls and the need for additional financing[47](index=47&type=chunk) - Anterix has no operating history with its proposed business plan, making it difficult to evaluate prospects and future financial results[47](index=47&type=chunk) - The company has incurred net losses each year since inception and expects to continue incurring significant net losses in the future[50](index=50&type=chunk) - Competitors, including **Tier 1 carriers**, have significantly more resources, greater pricing flexibility, and long-term relationships with targeted customers[48](index=48&type=chunk) [Risks Related to Our Organization and Common Stock](index=39&type=section&id=Item%201A.%20Risk%20Factors%20-%20Risks%20Related%20to%20Our%20Organization%20and%20Common%20Stock) Organizational and stock risks include reliance on key personnel, managing growth, concentrated ownership, and stock price volatility - The company's success depends significantly on its executive officers and key personnel[53](index=53&type=chunk) - A significant concentration of ownership exists, with funds affiliated with **Owl Creek Asset Management** holding **~30.5%** and the top five institutional holders owning **~56.5%** of outstanding shares as of **May 15, 2020**, limiting the influence of other shareholders[59](index=59&type=chunk) - The company is a "smaller reporting company," which allows for reduced public company reporting requirements[59](index=59&type=chunk) - Anterix does not intend to pay dividends for the foreseeable future, retaining earnings to finance business development[60](index=60&type=chunk) [Unresolved Staff Comments](index=47&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[64](index=64&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) Anterix leases its corporate headquarters in New Jersey and a second office in Virginia, owning no real property - The company leases office space in **Woodland Park, NJ (19,276 sq. ft.)** and **McLean, VA (5,365 sq. ft.)**[65](index=65&type=chunk) - The company does not own any real property[65](index=65&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is not involved in any material legal proceedings at this time[66](index=66&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[67](index=67&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=49&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Anterix common stock trades on Nasdaq under 'ATEX'; the company has never paid dividends and made no equity repurchases in fiscal 2020 - The company's common stock trades on the Nasdaq Capital Market under the symbol '**ATEX**'[68](index=68&type=chunk) - The company has never paid cash dividends and does not intend to in the foreseeable future[69](index=69&type=chunk) - No equity securities were repurchased during the fiscal year ended **March 31, 2020**[72](index=72&type=chunk) [Selected Financial Data](index=49&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable as Anterix is a smaller reporting company - Not applicable to smaller reporting companies[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A covers the company's transition to 900 MHz spectrum commercialization, reporting revenue decline, reduced expenses, a net loss, and future license acquisition costs - The company anticipates the total cost of securing broadband licenses from the FCC will range from **$130 to $160 million**, with the majority to be spent by the end of fiscal year **2024**[76](index=76&type=chunk) Fiscal 2020 vs. Fiscal 2019 Results of Operations | Metric | Fiscal 2020 (in thousands) | Fiscal 2019 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $1,564 | $6,499 | -76% | | Total Operating Expenses | $38,947 | $49,238 | -21% | | Loss from Operations | $(37,383) | $(42,739) | -12.5% | | Net Loss | $(37,638) | $(41,993) | -10.4% | - As of **March 31, 2020**, the company had cash and cash equivalents of **$137.5 million**[90](index=90&type=chunk) - In **July 2019**, the company completed a follow-on offering, raising net proceeds of approximately **$94.2 million**[90](index=90&type=chunk) [Results of Operations](index=59&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) Fiscal 2020 operating revenues decreased 76% to $1.6 million due to business transfer, while total operating expenses fell 21% to $38.9 million, resulting in a $37.6 million net loss Operating Revenues (Fiscal Year Ended March 31) | Revenue Type | 2020 (in thousands) | 2019 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Service revenue | $835 | $4,774 | -83% | | Spectrum lease revenue | $729 | $729 | 0% | | Other revenue | $0 | $996 | -100% | | **Total operating revenues** | **$1,564** | **$6,499** | **-76%** | Operating Expenses (Fiscal Year Ended March 31) | Expense Category | 2020 (in thousands) | 2019 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Direct cost of revenue | $2,833 | $4,652 | -39% | | General and administrative | $19,876 | $19,617 | 1% | | Sales and support | $3,846 | $3,673 | 5% | | Product development | $2,693 | $2,286 | 18% | | Depreciation and amortization | $3,591 | $2,846 | 26% | | Stock compensation expense | $5,826 | $5,784 | 1% | | Restructuring costs | $236 | $9,598 | -98% | | Impairment of long-lived assets | $46 | $782 | -94% | | **Total operating expenses** | **$38,947** | **$49,238** | **-21%** | [Liquidity and Capital Resources](index=63&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) As of March 31, 2020, Anterix had **$137.5 million** in cash, with **$96.1 million** from financing activities, primarily a stock offering Cash Flow Summary (Fiscal Year Ended March 31) | Cash Flow Activity | 2020 (in thousands) | 2019 (in thousands) | | :--- | :--- | :--- | | Net cash used by operating activities | $(30,957) | $(23,089) | | Net cash used by investing activities | $(4,426) | $(1,666) | | Net cash provided by financing activities | $96,114 | $3,159 | - The company believes its cash on hand of **$137.5 million** is sufficient to meet financial obligations for at least the next **12 months**[90](index=90&type=chunk)[91](index=91&type=chunk) - In **April 2020**, the company filed a **$150 million** shelf registration statement to provide flexibility for future capital access[91](index=91&type=chunk) Contractual Obligations as of March 31, 2020 | Obligation Type | Total (in thousands) | Due in 2021 (in thousands) | | :--- | :--- | :--- | | Operating lease obligations | $11,963 | $2,703 | | Restructuring reserve | $636 | $636 | | Asset retirement obligations | $886 | $246 | | Monthly service fee obligations | $446 | $446 | | **Total** | **$13,931** | **$4,031** | [Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This item is not applicable for smaller reporting companies - Not applicable for smaller reporting companies[96](index=96&type=chunk) [Financial Statements and Supplementary Data](index=66&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the company's audited consolidated financial statements for fiscal years 2020 and 2019, with auditor's report and notes - The financial statements listed in Item 15 are filed as part of this report and appear on pages F-2 through F-28[96](index=96&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=66&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting or financial disclosure matters - None[96](index=96&type=chunk) [Controls and Procedures](index=66&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of March 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of **March 31, 2020**[97](index=97&type=chunk) - Management determined that the company maintained effective internal control over financial reporting as of **March 31, 2020**[97](index=97&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of fiscal **2020** that materially affected, or are reasonably likely to materially affect, internal controls[99](index=99&type=chunk) [Other Information](index=68&type=section&id=Item%209B.%20Other%20Information) On January 28, 2020, the company entered a Transition Agreement with AAR to clear 900 MHz channels, facilitating broadband segment development - The company entered into a Transition Agreement with the **Association of American Railroads (AAR)** on **January 28, 2020**, to facilitate the clearing of AAR's channels from the 900 MHz broadband segment[102](index=102&type=chunk) Part III This part of the report, covering Items 10 through 14, addresses directors, executive officers, corporate governance, executive compensation, security ownership, related transactions, and principal accountant fees [Directors, Executive Officers and Corporate Governance](index=68&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2020 proxy statement - Information is incorporated by reference from the proxy statement for the **2020** annual meeting of stockholders[103](index=103&type=chunk) [Executive Compensation](index=69&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2020 proxy statement - Information is incorporated by reference from the proxy statement for the **2020** annual meeting of stockholders[104](index=104&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=69&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the 2020 proxy statement - Information is incorporated by reference from the proxy statement for the **2020** annual meeting of stockholders[105](index=105&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=69&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2020 proxy statement - Information is incorporated by reference from the proxy statement for the **2020** annual meeting of stockholders[106](index=106&type=chunk) [Principal Accountant Fees and Services](index=69&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2020 proxy statement - Information is incorporated by reference from the proxy statement for the **2020** annual meeting of stockholders[107](index=107&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=69&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements and all exhibits filed with or incorporated by reference into the Form 10-K - This section lists the financial statements and all exhibits filed with the Annual Report[107](index=107&type=chunk)[108](index=108&type=chunk) Financial Statements [Report of Independent Registered Public Accounting Firm](index=79&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Grant Thornton LLP issued an unqualified audit opinion on Anterix Inc.'s consolidated financial statements for fiscal years 2020 and 2019 - **Grant Thornton LLP** provided an unqualified audit opinion on the company's financial statements for fiscal years **2020** and **2019**[117](index=117&type=chunk) - The report highlights the adoption of the new lease accounting standard (**ASC 842**) as of **April 1, 2019**[118](index=118&type=chunk) [Consolidated Financial Statements](index=79&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$267.4 million** and a net loss of **$37.6 million** for fiscal 2020, with increased cash from financing activities Consolidated Balance Sheet Highlights (as of March 31) | Account (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $137,453 | $76,722 | | Total current assets | $142,152 | $78,346 | | Intangible assets | $111,526 | $107,548 | | **Total assets** | **$267,397** | **$196,753** | | Total current liabilities | $8,823 | $8,839 | | **Total liabilities** | **$22,331** | **$15,989** | | **Total stockholders' equity** | **$245,066** | **$180,764** | Consolidated Statement of Operations Highlights (Year Ended March 31) | Account (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Total operating revenues | $1,564 | $6,499 | | Loss from operations | $(37,383) | $(42,739) | | **Net loss** | **$(37,638)** | **$(41,993)** | | Net loss per share | $(2.29) | $(2.88) | [Notes to Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, 900 MHz spectrum commercialization, lease accounting, business transfers, revenue recognition, intangible assets, and income tax