Core Viewpoint - Boston Omaha Corporation presents a strong buying opportunity due to revenue growth across all business segments, significant insider buying, a new CEO focused on segment improvement, and a $20 million share buyback program [1][17][18] Business Overview - Boston Omaha operates in four segments: outdoor advertising, broadband services, insurance operations, and asset management [2][3] Revenue Performance - Total revenue for Q1 2024 was $25.55 million, a 12% year-over-year increase from $22.82 million [5] - Revenue growth was observed in all business segments, with billboard rentals generating $10.70 million and broadband services $9.68 million in Q1 2024 [4][5] Financial Indicators - Positive operating cash flow of $2.42 million in Q1 2024, up 77% from $1.37 million in Q1 2023 [6] - Total assets decreased slightly to $757.34 million, a 1.4% decline from Q4 2023 [6] - Book value per share remained stable at $17.10 compared to $17.19 at the end of December 2023 [6] Net Loss Analysis - Net loss attributable to common shareholders was $2.81 million in Q1 2024, an improvement from a $3.32 million loss in Q1 2023 [7] - Increased depreciation and amortization costs by 18% year-over-year, totaling $5.34 million [7] - Employee expenses reached $8.63 million, accounting for 33.8% of total revenues [7] Strategic Initiatives - Focus on expanding broadband services in Arizona, Nevada, Utah, and entering Florida [10] - Plans to enhance the insurance segment by servicing small contractors and businesses [10] - Exploration of digital display technologies in the outdoor advertising segment to improve margins [10] Insider Activity and Share Buyback - Insider buying activity totaled approximately $2.5 million between May and June 2023 [14] - A $20 million share buyback program is set to commence around August 15, 2024, and run through September 30, 2025 [14][18] Conclusion - Boston Omaha is viewed as a compelling buying opportunity due to its diversified operations, revenue growth, and strategic initiatives under new leadership [17][18]

Core Insights - Boston Omaha Corporation has been compared to an early-stage Berkshire Hathaway, but its performance has not matched the achievements of Warren Buffett's team after 10 years in business [2] Company Performance - The company has shown significant red flags in its business operations, raising concerns about its future prospects [1][2] - Recent developments have prompted discussions about whether the stock represents a good value or if the risks outweigh the potential benefits [2]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Image Source/DigitalVision via Getty Images Broadband services refers to "a rural broadband internet provider that serves over 8,000 customers in communities in southern Arizona with a high-speed fixed wireless internet service and is building an all fiber-to-the-home network in select Arizona markets". For 2023, it made up 36.7% of total sales and came in at $35 million. Investment Thesis Surety insurance refers to "an insurance subsidiary, GIG, designed to own and operate insurance businesses generally ha ...

Consolidated Statements of Cash Flows (Continued) Unaudited 10 For the Three Months Ended March 31, 2024 and 2023 On April 20, 2016, we completed an acquisition of a surety bond brokerage business. On December 7, 2016, we acquired a fidelity and surety bond insurance company. From 2017 through 2022, we completed four additional acquisitions of surety brokerage businesses. Table of Contents NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We determine whether an entity is a VIE and, if so, whether it shoul ...

Half of the CEO tandem is stepping down.The "Boston" half of the CEO tandem that has run Boston Omaha (BOC -2.90%) for nearly a decade is stepping aside. Investors were taken by surprise, sending shares of Boston Omaha down as much as 9% at the open before recovering to be down 4% as of 11 a.m. ET.End of an eraBoston Omaha has always been a bit of an oddity. It is the holding company for four majority-owned businesses in the billboard, broadband, insurance, and asset management industries run by co-CEOs Ale ...

Stock and Equity - As of March 22, 2024, there were approximately 30,299,408 shares of Class A common stock outstanding[14] - The company sold all 4,801,099 shares of Dream Finders Homes Class A common stock for gross proceeds of approximately $81 million since its IPO[20] - From January through April 2023, the company raised gross proceeds of approximately $37.5 million by selling 1,532,065 shares of Class A common stock through its ATM Program[39] - The company has the potential to raise up to $500 million in equity securities through its 2022 Shelf Registration Statement[39] - As of December 31, 2023, Sky Harbour's Class A common stock closed at $9.66 per share, with the company holding 13,118,474 shares and warrants for 7,719,779 shares at an exercise price of $11.50 per share[48] - The company owns approximately 20% of Sky Harbour's common stock, which is recorded under the equity method, and any drop below this ownership percentage may lead to mark-to-market accounting, affecting reported earnings[49] - Total investment in Sky Harbour amounts to $107.8 million, with significant purchases including $55 million for Class B Preferred Units and $45 million for additional Class A common stock[53] Financial Performance and Capital Needs - The company may need significant additional capital in the future to continue planned acquisitions, which could lead to substantial dilution for existing shareholders[38] - The company has incurred losses from operations since inception and anticipates continuing to do so for the foreseeable future[103] - The net loss from operations for the fiscal years ended December 31, 2023 and 2022 was approximately $8.9 million and $5.2 million, respectively[210] - The company expects its current cash to be sufficient to fund existing operations for at least the next 12 months[203] - As of December 31, 2023, the company had approximately $22 million in unrestricted cash and $18 million in short-term treasury securities[203] - The company may need to rely on Link for funds necessary to meet financial obligations, which could be affected by Link's debt servicing requirements[68] Business Operations and Strategy - The company generated revenues primarily through billboard advertising, surety insurance, and broadband services[32] - The company plans to expand its broadband services in Arizona, Florida, Nevada, and Utah, and continue to grow its billboard advertising business through acquisitions[31] - The company has expanded the licensing of its surety insurance business to all 50 states and the District of Columbia[31] - The company has made significant investments, including $5,016,494 for 100% membership interests in 24th Street and $19 million in CB&T Holding Corporation, representing 15.6% of its outstanding common stock[97][99] - The company acquired substantially all business assets of multiple broadband providers, including FibAire and Utah Broadband, enhancing its service offerings in rural areas[95] - The company is exploring further acquisitions in sectors with potential for durable profitability, including broadband services and surety insurance[123] - The company has made six acquisitions in the surety insurance sector, paying a combined purchase price of approximately $21.7 million and contributing $16.3 million in statutory capital to UCS[124] Market Conditions and Competition - The billboard advertising market is characterized by high regulatory barriers and low maintenance costs, providing a favorable environment for growth[92] - The company operates in a competitive outdoor advertising market dominated by three major players, which account for over 50% of total industry revenues[160] - The broadband services aim to provide high-speed internet to underserved communities, facing potential competition from major cable operators and new technologies like 5G[161] - The surety market is estimated at $8.6 billion based on 2022 industry reports, indicating a significant opportunity for the company in this sector[153] Management and Operational Challenges - The executive management team has limited experience in day-to-day operations in certain industries, which may impact operational efficiency and overall business performance[55] - Increased operating expenses from business expansion may negatively impact operating income, particularly through acquisitions, geographic expansion, and capital expenditures[51] - The company’s acquisitions are subject to risks and uncertainties regarding the realization of anticipated benefits and cost savings[179] Future Outlook and Growth - The company anticipates continued growth in demand for broadband services, driven by the rising need for higher bandwidth and faster connections[132] - The company has a strategy focused on acquiring additional billboard assets when opportunities arise at attractive prices relative to other investments[108] - The company is focusing on expanding its rural broadband business, targeting underserved communities in Arizona, Nevada, and Utah, where demand for higher speed internet is increasing[184] - The company plans to wind down its asset management operations and focus on self-funding and bank debt for its fiber business due to high costs and risks associated with fund financing[111] Employee and Organizational Structure - As of March 1, 2024, the company employed 463 individuals, with 304 in broadband operations, 88 in billboard operations, and 56 in insurance services[187] - The company controls approximately 42% of the aggregate voting power through its major shareholders, which may influence corporate transactions and policies[120] Investment and Financing - The company has entered contracts with home builders to expand fiber-to-the-home services in large residential developments[184] - The Term Loan has a fixed interest rate of 4.00% per annum and is payable in full on December 6, 2028[200] - The company may prepay up to 10% of the loan principal in each of the first three years without penalty[200] - The company is open to leveraging attractive terms for future borrowings to acquire assets or for general corporate purposes[204]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the d ...

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited financials show total assets grew to **$773.2M** by June 2023, with a **$1.8M** net loss for six months despite **26.5%** revenue growth, driven by higher operating expenses [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$773.2M** by June 2023, driven by property, investments, and U.S. Treasury securities, while equity grew to **$600.5M** from stock issuance Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $158,280,191 | $113,961,243 | | **Total Assets** | $773,195,572 | $687,802,899 | | **Total Liabilities** | $156,981,811 | $158,059,668 | | **Total Stockholders' Equity** | $600,546,059 | $514,030,210 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2023 revenues rose **15.9%** to **$24.2M**, leading to a **$1.5M** net income due to other income, while six-month revenues grew **26.5%** to **$47.0M** but resulted in a **$1.8M** net loss Key Operating Results (Unaudited) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $24,216,394 | $20,895,016 | $47,032,179 | $37,187,963 | | **Net Loss from Operations** | ($1,642,904) | ($716,982) | ($4,619,696) | ($3,166,718) | | **Net Income (Loss) Attributable to Common Stockholders** | $1,541,612 | ($11,496,339) | ($1,779,542) | $4,806,254 | | **Diluted Net Income (Loss) per Share** | $0.05 | ($0.39) | ($0.06) | $0.16 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$4.4M** for six months ended June 2023, with **$39.1M** used in investing and **$39.7M** provided by financing, resulting in a **$4.9M** net cash increase Summary of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash Provided by (Used in) Operating Activities** | $4,363,708 | ($14,679,836) | | **Net Cash (Used in) Provided by Investing Activities** | ($39,149,019) | $110,796,471 | | **Net Cash Provided by (Used in) Financing Activities** | $39,696,268 | ($116,124,168) | | **Net Increase (Decrease) in Cash** | $4,910,957 | ($20,007,533) | [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, recent acquisitions like 24th Street Asset Management, four operating segments, capital stock, long-term debt, and a material weakness in internal controls over unconsolidated entities - The company operates in four main segments: outdoor advertising (Link Media), surety insurance (General Indemnity Group), broadband services (Boston Omaha Broadband), and asset management (Boston Omaha Asset Management)[123](index=123&type=chunk) - On May 1, 2023, the company acquired 100% of 24th Street Asset Management for cash and stock valued at **$5.0 million**, resulting in a non-cash gain of approximately **$4.6 million** from the remeasurement of its previously-held interest[285](index=285&type=chunk)[376](index=376&type=chunk)[377](index=377&type=chunk) - The company sold **1,532,065 shares** of Class A common stock under its ATM Program for gross proceeds of **$37.5 million** from January 1, 2023, through June 30, 2023[11](index=11&type=chunk) - As of June 30, 2023, the company's subsidiary Link Media had **$27.7 million** in term loan borrowings outstanding under its credit facility, and was in compliance with all financial covenants[24](index=24&type=chunk)[25](index=25&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes **26.5%** revenue growth to broadband acquisitions and segment improvements, with net loss driven by higher operating costs, while maintaining strong liquidity via cash, treasuries, and an active ATM program [Overview](index=48&type=section&id=Overview) The company operates in outdoor advertising, broadband, surety insurance, and asset management, holding minority investments in real estate, auto lending, and aviation infrastructure, focusing on acquiring assets with sustainable earnings - As of June 30, 2023, the company operated approximately **4,000 billboards** with **7,600 advertising faces**[67](index=67&type=chunk) - The broadband business has expanded through acquisitions, including FibAire, UBB, InfoWest, and Go Fiber, serving customers in Arizona, Florida, Nevada, and Utah[69](index=69&type=chunk) - The company holds significant minority investments, including a **15.6% stake** in CB&T Holding Corporation (parent of Crescent Bank & Trust) and a substantial equity position in Sky Harbour Group Corporation[73](index=73&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Q2 2023 revenues grew **15.9%** to **$24.2M** with a **$1.5M** net income due to investment remeasurement, while six-month revenues increased **26.5%** to **$47.0M** but resulted in a **$1.8M** net loss due to higher costs Revenue by Source - Q2 Comparison (2023 vs 2022) | Revenue Source | Q2 2023 Amount | Q2 2022 Amount | YoY Change | | :--- | :--- | :--- | :--- | | Billboard rentals, net | $10,835,524 | $9,825,164 | +10.3% | | Broadband services | $8,695,235 | $8,078,580 | +7.6% | | Premiums earned | $3,458,627 | $2,407,523 | +43.7% | | **Total Revenues** | **$24,216,394** | **$20,895,016** | **+15.9%** | Revenue by Source - Six Months Comparison (2023 vs 2022) | Revenue Source | Six Months 2023 | Six Months 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Billboard rentals, net | $21,137,747 | $18,963,313 | +11.5% | | Broadband services | $17,235,141 | $12,155,526 | +41.8% | | Premiums earned | $6,565,900 | $4,695,972 | +39.8% | | **Total Revenues** | **$47,032,179** | **$37,187,963** | **+26.5%** | - The increase in net loss from operations for both Q2 and the first six months of 2023 was primarily due to higher depreciation from the InfoWest and Go Fiber acquisitions and increased employee costs to support growth[240](index=240&type=chunk)[259](index=259&type=chunk) - Other income in Q2 2023 included a significant **$5.35 million** in equity income from unconsolidated affiliates, mainly from a non-cash gain on the remeasurement of the company's interest in 24th Street Asset Management[241](index=241&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$32M** cash and **$44M** short-term treasuries, funding capital through operations, debt, and **$37.5M** from its ATM program, supported by a **$500M** shelf registration for future growth - As of June 30, 2023, the company had approximately **$32 million** in unrestricted cash and **$44 million** in short-term treasury securities (excluding funds held by consolidated BOAM funds)[276](index=276&type=chunk)[318](index=318&type=chunk) - The company has a **$500 million** shelf registration statement effective May 2022 for issuing Class A common stock, preferred stock, debt, and warrants to fund general corporate purposes and acquisitions[280](index=280&type=chunk) - During the first six months of 2023, the company raised approximately **$37.5 million** in gross proceeds through its "at the market" (ATM) equity offering program[301](index=301&type=chunk) - The billboard subsidiary, Link, has a credit facility with **$27.7 million** in term loan borrowings outstanding as of June 30, 2023, with a fixed interest rate of **4.00%**[306](index=306&type=chunk)[307](index=307&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is not applicable as the company is a "smaller reporting company," holding no significant derivative instruments or foreign currency risk as of June 30, 2023 - The company is a "smaller reporting company" and is therefore not required to provide these disclosures[345](index=345&type=chunk) - As of June 30, 2023, the company had no significant derivative instruments or exposure to foreign currency risk[340](index=340&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls were ineffective as of June 30, 2023, due to a material weakness in accounting for unconsolidated entities, with a remediation plan underway - Management concluded that disclosure controls and procedures were not effective as of June 30, 2023[348](index=348&type=chunk) - A material weakness was identified related to the failure to design and implement effective controls for the complex accounting associated with investment companies, specifically the investment in the 24th Street Funds[348](index=348&type=chunk)[362](index=362&type=chunk) - A remediation plan is being implemented, which includes assessing risks, evaluating responsibilities, and providing additional training to address the material weakness[351](index=351&type=chunk) [Part II – Other Information](index=79&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in routine litigation, but management believes no pending legal matters will materially affect its financial condition or results of operations - The company states that none of its pending litigation is expected to have a material adverse effect on its financial condition, cash flows, or results of operations[359](index=359&type=chunk) [Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors.) A material weakness in internal control over financial reporting related to 24th Street Funds accounting was identified, potentially impacting accurate financial reporting, investor confidence, and stock price - A material weakness was identified in internal controls over financial reporting related to the accounting for the 24th Street Funds investment[362](index=362&type=chunk)[384](index=384&type=chunk) - The company warns that ineffective internal controls could lead to inaccurate financial statements, loss of investor confidence, a negative effect on the stock price, and potential regulatory sanctions[363](index=363&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) During H1 2023, the company issued **69,504** unregistered Class A common shares for compensation and as partial consideration for the 24th Street Asset Management acquisition, under Section 4(2) exemption - In Q1 2023, the company issued a total of **23,883 shares** of restricted Class A common stock for officer/director compensation and services rendered[387](index=387&type=chunk)[388](index=388&type=chunk) - On May 1, 2023, **45,644 shares** of Class A common stock were issued as partial consideration for the acquisition of the remaining interests in 24th Street Asset Management[389](index=389&type=chunk)

Part I – Financial Information [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2023 financials show total assets at $706.4 million, a $3.4 million net loss, and 40% revenue growth [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets grew to $706.4 million, liabilities decreased, and equity increased to $538.5 million Consolidated Balance Sheet Summary (Unaudited) | Balance Sheet Items | March 31, 2023 ($) | December 31, 2022 ($) | | :--- | :--- | :--- | | **Total Current Assets** | $138,424,670 | $113,961,243 | | **Total Assets** | **$706,356,202** | **$683,717,859** | | **Total Current Liabilities** | $50,417,493 | $52,978,740 | | **Total Liabilities** | **$152,188,736** | **$157,068,480** | | **Total Equity** | **$538,510,566** | **$510,936,358** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2023 net loss was $3.3 million ($0.11 per share) due to a non-recurring SPAC gain absence, despite 40% revenue growth Q1 2023 vs. Q1 2022 Statement of Operations (Unaudited) | Metric | Q1 2023 ($) | Q1 2022 ($) | | :--- | :--- | :--- | | **Total Revenues** | $22,815,785 | $16,292,947 | | **Net Loss from Operations** | ($2,976,792) | ($2,449,736) | | **Gain on deconsolidation of SPAC** | - | $24,977,740 | | **Net (Loss) Income Attributable to Common Stockholders** | **($3,321,154)** | **$16,302,593** | | **Diluted Net (Loss) Income per Share** | **($0.11)** | **$0.55** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 operating cash flow was $1.4 million, investing activities used $37.8 million, and financing provided $30.3 million Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $1,368,181 | ($15,677,555) | | Net Cash (Used in) Provided by Investing Activities | ($37,844,737) | $157,990,849 | | Net Cash Provided by (Used in) Financing Activities | $30,333,692 | ($121,684,048) | | **Net (Decrease) Increase in Cash** | **($6,142,864)** | **$20,629,246** | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, business segments, acquisitions, investments, and ATM stock offerings - The company's operations include outdoor advertising (Link Media), surety insurance (General Indemnity Group), broadband services (Boston Omaha Broadband), and minority investments[15](index=15&type=chunk) - No business acquisitions were completed in the first quarter of 2023. The company's 2022 acquisitions included broadband providers InfoWest & Go Fiber for **$48.6 million** and outdoor advertiser Elevation for **$14.2 million**[51](index=51&type=chunk)[72](index=72&type=chunk)[360](index=360&type=chunk) - The company's **22.95% equity investment** in Sky Harbour is accounted for under the equity method. As of March 31, 2023, management concluded no other-than-temporary impairment was necessary. If accounted for at fair value, the investment would be valued at approximately **$94.3 million**[89](index=89&type=chunk)[90](index=90&type=chunk)[115](index=115&type=chunk) - In Q1 2023, the company sold **1,097,824 shares** of Class A common stock under its ATM Program for gross proceeds of **$28.1 million**. Subsequent to quarter-end, it sold an additional **433,396 shares** for net proceeds of approximately **$9.1 million**[141](index=141&type=chunk)[204](index=204&type=chunk) - On May 1, 2023, the company's subsidiary, Boston Omaha Asset Management, LLC, acquired the remaining **52% of membership interests** in 24th Street Asset Management LLC for approximately **$5.0 million** in cash and stock[160](index=160&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses 40% revenue growth, explains net loss, and highlights strong liquidity and an acquisition strategy for billboards, insurance, and broadband [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q1 2023 total revenues grew 40% to $22.8 million, driven by broadband, billboard, and insurance, with net loss from operations widening to $3.0 million Revenue by Source (Q1 2023 vs. Q1 2022) | Revenue Source | Q1 2023 ($) | Q1 2022 ($) | % Change (%) | | :--- | :--- | :--- | :--- | | Billboard rentals, net | $10,302,223 | $9,138,149 | +12.7% | | Broadband services | $8,539,906 | $4,076,946 | +109.5% | | Premiums earned | $3,107,273 | $2,288,449 | +35.8% | | Insurance commissions | $476,126 | $697,200 | -31.7% | | **Total Revenues** | **$22,815,785** | **$16,292,947** | **+40.0%** | - The net loss attributable to common stockholders was **$3.3 million** in Q1 2023, compared to a net income of **$16.3 million** in Q1 2022. The difference is primarily due to a **$25.0 million gain** on deconsolidation of a SPAC in 2022 and a **$5.0 million equity loss** from the Sky Harbour investment in 2023[225](index=225&type=chunk)[286](index=286&type=chunk) [Results of Operations by Segment](index=50&type=section&id=Results%20of%20Operations%20by%20Segment) Billboard segment revenue grew 12.7% with increased income, Broadband revenue surged 109.5% but operating loss widened, and Insurance revenue grew 29.1% swinging to operating income Segment Performance (Q1 2023 vs. Q1 2022) | Segment | Revenue (Q1 2023) ($) | Revenue (Q1 2022) ($) | Segment Income (Loss) from Operations (Q1 2023) ($) | Segment Income (Loss) from Operations (Q1 2022) ($) | | :--- | :--- | :--- | :--- | :--- | | **Billboard (LMH)** | $10,302,223 | $9,138,149 | $1,332,110 | $1,009,980 | | **Broadband (BOB)** | $8,539,906 | $4,076,946 | ($1,699,366) | ($423,701) | | **Insurance (GIG)** | $3,973,656 | $3,077,852 | $229,721 | ($194,182) | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash, short-term investments, operating cash flow, an ATM stock program, and a credit facility - As of March 31, 2023, the company had approximately **$16 million** in unrestricted cash and **$58 million** in short-term treasury securities[415](index=415&type=chunk) - The company has an active "at the market" (ATM) offering program to sell up to **$100 million** in Class A common stock. In Q1 2023, it raised gross proceeds of approximately **$28.1 million** through this program[245](index=245&type=chunk)[271](index=271&type=chunk) - The Link subsidiary has a credit facility with a **$30 million term loan**, of which **$28.1 million** was outstanding as of March 31, 2023. The loan has a fixed interest rate of **4.00%** and is subject to financial covenants, with which the company was in compliance[247](index=247&type=chunk)[279](index=279&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a "smaller reporting company," this item is not applicable; primary market risks relate to publicly traded securities and debt interest rates - The company is a "smaller reporting company" and is not required to provide these disclosures[389](index=389&type=chunk)[410](index=410&type=chunk) - The company's main market risks stem from its portfolio of marketable equity securities and interest rate risk associated with its debt[417](index=417&type=chunk) [Item 4. Controls and Procedures.](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting - Management concluded that as of March 31, 2023, the company's disclosure controls and procedures were effective[419](index=419&type=chunk) - No material changes were made to internal controls over financial reporting during the first quarter of 2023[408](index=408&type=chunk) Part II – Other Information [Item 1. Legal Proceedings.](index=64&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in routine litigation, but no pending legal matters are expected to materially adversely affect financial condition or results - The company is subject to routine litigation from time to time, but none is expected to be materially adverse[421](index=421&type=chunk) [Item 1A. Risk Factors.](index=64&type=section&id=Item%201A.%20Risk%20Factors.) As a "smaller reporting company," this item is not applicable; the company refers to its 2022 Form 10-K for risk factors - Not applicable as the company is a "smaller reporting company." For risk factors, the company refers to its 2022 Form 10-K[410](index=410&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) In Q1 2023, the company issued restricted Class A common stock to officers and directors as compensation for services rendered - On January 3, 2023, an aggregate of **19,319 shares** of restricted Class A common stock were issued to officers and directors for services rendered[377](index=377&type=chunk) [Other Items (3, 4, 5, 6)](index=64&type=section&id=Other%20Items%20(3%2C%204%2C%205%2C%206)) No information was reported for Item 3, Item 4, or Item 5; Item 6 lists the exhibits filed with the report - No information was reported for Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), or Item 5 (Other Information)[378](index=378&type=chunk)[411](index=411&type=chunk)[422](index=422&type=chunk)