Old Market Capital Corporation(OMCC) - 2026 Q1 - Quarterly Report

Revenue Growth - Total revenue for the three months ended June 30, 2025, was $3.0 million, a 520% increase from $0.5 million in the same period of 2024, primarily due to the acquisition of Amplex[162]. - Wireless internet services revenue increased by 424% to $1.7 million, while fiber internet services revenue rose by 777% to $0.9 million for the three months ended June 30, 2025[162]. Expenses - General and administrative expenses decreased by 41% to $2.2 million for the three months ended June 30, 2025, compared to $3.8 million in the same period of 2024[167]. - Depreciation and amortization expenses increased by 568% to $0.6 million for the three months ended June 30, 2025, due to the consolidation of Amplex[169]. Cash Flow - Net cash provided by operating activities was $0.9 million for the three months ended June 30, 2025, compared to a net cash used of $0.4 million in the same period of 2024[173]. Acquisitions - The Company acquired 51% of Amplex on June 15, 2024, increasing its indirect ownership to 60.9% by December 2024[158][159]. - There have been changes in critical accounting policies related to the acquisition of Amplex, which closed on June 15, 2024[184]. Tax and Income - The Company reported a decrease in emigration tax expense from $1.7 million in the three months ended June 30, 2024, to $0 million in the same period of 2025[170]. - Income from discontinued operations decreased to $38 thousand for the three months ended June 30, 2025, compared to $542 thousand in the same period of 2024[172]. Financing - Amplex entered into a secured loan agreement for up to $21.3 million to finance broadband infrastructure in rural areas[177]. - The loan has an interest rate of 2% per annum, with payments deferred for three years until October 31, 2027[178]. - Loan proceeds are restricted and held in a pledged deposit account, classified under prepaid expenses and other current assets[179]. - The loan is secured by all of Amplex's assets and includes covenants such as maintaining positive cash flow by year five[179]. Accounting Policies - The company uses the acquisition accounting method to determine the fair value of identifiable assets acquired and liabilities assumed[185]. - Goodwill and indefinite-lived intangible assets are tested for impairment annually or when triggering events occur[188]. - The company did not have any impairment charges during the periods presented[189].