Revenue and Growth - Total revenue for the three months ended September 30, 2024, was $3.0 million, a 100% increase compared to $0 for the same period in 2023[160] - Total revenue for the six months ended September 30, 2024, was $3.4 million, a significant increase from $0 in the same period in 2023, attributed to new services from the Amplex acquisition[168] Operating Expenses - The company incurred total operating expenses of $3.983 million for the three months ended September 30, 2024, representing a 148% increase from $1.609 million in the prior year[161] - General and administrative expenses increased by 61% to $2.553 million for the three months ended September 30, 2024, from $1.587 million in the same period in 2023[161] - Total operating expenses for the six months ended September 30, 2024, were $8.0 million, up from $3.1 million in the same period in 2023, reflecting the impact of the Amplex acquisition[169] - General and administrative expenses increased to $6.3 million for the six months ended September 30, 2024, compared to $3.1 million for the same period in 2023, primarily due to additional professional fees and restructuring expenses related to the acquisition of Amplex[173] Acquisition and Strategic Changes - The company acquired 51% of Amplex Electric, Inc., which serves over 9,100 fixed wireless broadband customers and over 3,500 fiber customers[155] - The acquisition of Amplex allowed the company to provide new services, including wireless internet, fiber internet, and VOIP telephone services[160] - The company closed the acquisition of 51% of Amplex for a total purchase consideration of $18.4 million, including cash payments and conversion of loans into equity[179] - The company's revenue and expenses are not comparable on a year-over-year basis due to the recent acquisitions and strategic changes[160] Depreciation and Amortization - Depreciation and amortization expenses surged to $501 thousand for the three months ended September 30, 2024, a 2177% increase from $22 thousand in the prior year[161] - Depreciation and amortization expenses rose to $595 thousand for the six months ended September 30, 2024, compared to $44 thousand for the same period in 2023, driven by increased property, plant, and equipment from the Amplex acquisition[174] Cash Flow - Net cash used in operating activities was $(553) thousand for the six months ended September 30, 2024, a decrease from $1.5 million provided in the same period in 2023[180] - Net cash provided by investing activities was $16.7 million for the six months ended September 30, 2024, compared to $23.9 million in the same period in 2023, primarily due to cash paid for the Amplex acquisition[181] Income and Losses - Loss on dissenting shareholders' liability was $1.1 million for the six months ended September 30, 2024, compared to $0 for the same period in 2023, reflecting changes in fair value of the liability[176] - Income from discontinued operations improved to $0.4 million for the six months ended September 30, 2024, compared to a loss of $5.8 million for the same period in 2023, due to decreased general and administrative expenses[177] - The company incurred an emigration tax expense of $1.7 million for the six months ended September 30, 2024, compared to $0 for the same period in 2023, related to its continuation and domestication to Delaware[175] Revenue Recognition - The company recognizes revenue primarily from wireless internet services, fiber internet services, and other services[210] - Revenue from wireless and fiber internet, VOIP services, and video streaming services is recognized ratably as performance obligations are satisfied[213] Accounting and Financial Reporting - The company accounts for business combinations using the acquisition accounting method, requiring fair value determination of identifiable assets and liabilities[195] - All acquisition-related costs, except for debt or equity issuance costs, are expensed in the period incurred[197] - The allowance for credit losses is determined using a loss-rate method based on an aging schedule and historical loss rates[199] - The company evaluates the adequacy of the allowance for credit losses regularly, adjusting as necessary based on current information[200] - The company records an estimated loss for contingencies when a loss is known or considered probable and can be reasonably estimated[202] - Fair value measurements are classified into three levels, with certain assets and liabilities recorded at fair value on a recurring or nonrecurring basis[207]
Old Market Capital Corporation(OMCC) - 2025 Q2 - Quarterly Report