Financial Performance - Net revenues for the year ended December 31, 2023, were $32,391,000, a decrease of 16.1% from $38,595,000 in 2022[169] - Consolidated net loss income for 2023 was $(7,631) thousand, a decrease of $(38,545) thousand or (124.7)% compared to 2022[180] - The company reported a net loss of $7,631,000 for the year ended December 31, 2023, compared to a net income of $30,914,000 in 2022[214] - The net loss available to common shareholders for 2023 was $10.0 million, compared to net income of $27.6 million in 2022[237] - The Company has experienced downturns in revenues and profitability and expects these trends to continue for an undetermined period[223] Revenue Breakdown - Spot Radio Advertising revenue decreased to $18,650,000 (57.6% of total revenues) in 2023 from $25,790,000 (66.8%) in 2022[154] - Digital revenues fell to $3,677 million (11.4% of total revenues) in 2023 from $4,713 million (12.2%) in 2022[269] - Fairway's net revenues for the year ended December 31, 2023, were $0, compared to $13,484 million in 2022, indicating a complete divestiture of operations[249] Operating Loss and Expenses - Operating (loss) income for 2023 was $(6,787,000), compared to $(1,386,000) in 2022, representing a 389.7% increase in loss[175] - Operating expenses excluding depreciation and amortization were $32,633,000 in 2023, a slight decrease of 0.7% from $32,847,000 in 2022[171] - Total operating expenses for Fairway in 2023 were $284 million, a significant decrease from $13,471 million in 2022, resulting in a loss from discontinued operations of $284 million[249] Cash Flow and Liquidity - Cash used in continuing operating activities was $(5,600) thousand in 2023, compared to cash provided of $2,300 thousand in 2022[188] - The company anticipates substantial doubt about its ability to continue as a going concern within one year after the issuance of its financial statements[184] - Management anticipates the Company will be unable to meet its liquidity needs for the next twelve months with cash and cash equivalents on hand and projected cash flows from operations[224] Assets and Liabilities - Total current assets decreased from $24,379,000 in 2022 to $13,908,000 in 2023, a decline of approximately 43%[206] - Total liabilities increased from $23,390,000 in 2022 to $29,327,000 in 2023, representing a rise of about 25%[209] - Cash and cash equivalents at December 31, 2023, were $7,100 thousand, down from $15,300 thousand at the end of 2022[186] Stock and Equity - The company repurchased $771,000 worth of Class A common stock in 2023, compared to $222,000 in 2022[214] - Total equity fell from $46,976,000 in 2022 to $37,410,000 in 2023, a decrease of about 20%[209] - MediaCo repurchased 629,880 shares of Class A common stock for $0.8 million in 2023, compared to 187,078 shares for $0.2 million in 2022[252] Debt and Obligations - The Company has debt service obligations of approximately $7.1 million due under its Emmis Convertible Promissory Note from April 1, 2024, through April 1, 2025[224] - The principal balance of the Emmis Convertible Promissory Note was $6.5 million as of December 31, 2023, with interest expense recognized of $0.6 million for the year[325] Tax and Valuation - For the year ended December 31, 2023, the provision for income taxes was $308,000, compared to $336,000 for 2022[310] - The Company recorded a valuation allowance against its deferred tax assets of $16.6 million as of December 31, 2023, due to uncertainty in realization[313] Compliance and Regulatory Issues - The Company received a notification on September 15, 2023, indicating that the closing bid price for its Class A common stock was below $1.00 for 30 consecutive business days, violating the Minimum Bid Price Requirement[304] - The Company was granted until September 9, 2024, to regain compliance with the Minimum Bid Price Requirement, with the option to initiate a reverse stock split[306] Cost-Cutting Measures - The company plans to implement additional cost-cutting measures and seek additional borrowings to meet its debt service obligations if necessary[185] - The Company has implemented cost-cutting measures and is prepared to seek additional borrowings to meet its debt service obligations if necessary[225]
MediaCo Holding(MDIA) - 2023 Q4 - Annual Report