nmax-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


o			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 001-42575

NEWSMAX INC.

(Exact name of registrant as specified in its charter)


Florida			99-2600308
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

750 Park of Commerce Drive, Suite 100, Boca Raton, Florida			33487
(Address of Principal Executive Offices)			(Zip Code)

(561) 686-1165

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock, par value $0.001 per share	NMAX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

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 x No o

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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes o No x

As of May 8, 2026, a total of 39,239,297 shares of Class A common stock, par value $0.001 per share, and 89,921,348 shares of Class B common stock, par value $0.001 per share were issued and outstanding.

TABLE OF CONTENTS


			Page

Part I - Financial Information			1
Item 1. Financial Statements			2
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures About Market Risk			25
Item 4. Controls and Procedures			25

Part II - Other Information			28
Item 1. Legal Proceedings			28
Item 1A. Risk Factors			29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			29
Item 3. Defaults Upon Senior Securities			29
Item 4. Mine Safety Disclosures			29
Item 5. Other Information			29
Item 6. Exhibit and Financial Statement Schedules			30
Signatures			31

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA

This Quarterly Report on Form 10-Q contains certain forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any statements in this Quarterly Report on Form 10-Q about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “believes,” “will,” “expects,” “anticipates,” “estimates,” “predicts,” “potential,” “continues” “intends,” “plans” and “would” or the negative of these terms or other comparable terminology. For example, statements concerning financial condition, possible or assumed future results of operations, growth opportunities, and plans are all forward-looking statements. Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our company, are not guarantees of future results or performance and involve substantial risks and uncertainty. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. We may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the risks and uncertainties inherent in our statements regarding:

•current or future financial performance;

•management’s plans and objectives for future operations;

•uncertainties associated with product research and development;

•uncertainties associated with dependence upon the actions of government regulatory agencies;

•product plans and performance;

•management’s assessment of market factors; and statements regarding our strategy and plans.

All of our forward-looking statements are as of the date of this Quarterly Report on Form 10-Q only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this Quarterly Report on Form 10-Q or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”) could materially and adversely affect our business, prospects, financial condition and results of operations. Except as required by law, we do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections or other circumstances affecting such forward-looking statements occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. Any public statements or disclosures by us following this Quarterly Report on Form 10-Q that modify or impact any of the forward-looking statements contained in this Quarterly Report on Form 10-Q will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

This Quarterly Report on Form 10-Q may include market data and certain industry data and forecasts, which we may obtain from internal company surveys, market research, consultant surveys, publicly available information, reports of governmental agencies and industry publications, articles and surveys. Industry surveys, publications, consultant surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy and completeness of such information is not guaranteed. While we believe that such studies and publications are reliable, we have not independently verified market and industry data from third-party sources.

Part I - Financial Information

Item 1. Financial Statements

NEWSMAX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	17,198,760	$	20,433,021
Funds held in escrow	20,000,000		20,000,000
Investments	111,896,268		110,895,693
Accounts receivable, net	38,293,087		33,414,435
Inventories, net	2,010,130		2,027,168
Prepaid expenses and other current assets	10,704,282		8,690,490
Total current assets	200,102,527		195,460,807
Property and equipment, net	6,902,752		6,264,885
Right of use assets	7,893,359		8,823,716
Other assets	11,359,217		9,293,670
Funds held in escrow	-		20,000,000
Total assets	$	226,257,855	$	239,843,078
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	16,277,687	$	16,770,777
Accrued expenses	20,008,943		14,894,949
Deferred revenue	13,480,873		12,599,119
Lease liability	3,643,566		4,062,971
Settlement liability	26,250,513		26,487,028
Share repurchase liability	6,461,320		6,461,320
Total current liabilities	86,122,902		81,276,164
Long-term liabilities:
Deferred revenue, net of current portion	2,522,836		3,148,945
Lease liability, net of current portion	4,681,137		5,292,095
Other long-term liabilities	3,879,167		925,000
Settlement liability, net of current portion	22,027,017		43,152,322
Total liabilities	119,233,059		133,794,526
Commitments and contingencies (Note 9)
Stockholders’ equity
Class A common stock, 0.001 par value; 50,000,000 shares authorized; 39,239,297 shares issued and outstanding at par as of March 31, 2026 and December 31, 2025; Class B common stock, 0.001 par value; 940,000,000 shares authorized 89,899,158 and 89,889,822 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively.	129,138		129,129
Additional paid-in capital	436,731,324		433,325,830
Accumulated other comprehensive income	223,316		464,365
Accumulated deficit	(330,058,982)		(327,870,772)
Total stockholders’ equity	107,024,796		106,048,552
Total liabilities and stockholders’ equity	$	226,257,855	$	239,843,078

The accompanying notes are an integral part of these condensed consolidated financial statements.

NEWSMAX INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)


	For the three months ended
	March 31,
	2026		2025
Revenues:
Service revenue	$	50,146,781	$	43,735,340
Product revenue	1,511,710		1,566,367
Total revenues	51,658,491		45,301,707

Cost of services	30,761,471		24,648,465
Cost of products sold	968,292		1,191,106
Gross profit	19,928,728		19,462,136

General and administrative expenses:
Personnel costs	9,048,634		8,013,416
Advertising costs	5,361,998		4,418,454


Depreciation	566,819		736,875
Other corporate matters	—		9,667,603
Other	9,420,361		8,198,568
Total general and administrative expenses	24,397,812		31,034,916

Loss from operations	(4,469,084)		(11,572,780)

Other income (expense), net
Interest and dividend income	1,343,812		1,054,286
Interest expense	(2,950)		(6,055)
Unrealized gain on marketable securities	978,911		1,585,580
Other, net	(38,899)		(8,288,556)
Total other income (expense), net	2,280,874		(5,654,745)

Net loss before income taxes	(2,188,210)		(17,227,525)

Income tax expense	—		5,000
Net loss	$	(2,188,210)	$	(17,232,525)

Other comprehensive income:
Unrealized (loss) gain on available for sale debt investments, net of income tax	(241,049)		482,391
Comprehensive loss	$	(2,429,259)	$	(16,750,134)

Weighted average common stock outstanding, basic and diluted	128,491,597		44,895,546
Net loss per share attributable to common stockholders, basic and diluted	$	(0.02)	$	(0.49)

The accompanying notes are an integral part of these condensed consolidated financial statements.

NEWSMAX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE AND REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(Unaudited)


	2026		2025
Convertible and redeemable Series A Preferred Stock
Beginning balances	$	—	$	128,576,901
Dividends accretion	—		608,238
Recapitalization and conversion of preferred stock	—		(129,185,139)
Ending balances	$	—	$	—

Total stockholders' equity (deficit), beginning balances	$	106,048,552	$	(137,643,729)

Common stock and addition paid-in capital:
Beginning balances	$	433,454,959	$	18,056,712
Issuance of common stock, net of offering cost and expenses	—		66,083,411
Recapitalization and conversion of preferred stock	—		329,432,829
Exercise of stock options, net of tax withholding	50,134		—
Warrant liability conversion	—		8,324,000
Dividends	—		(915,069)
Stock-based compensation expense	3,355,369		1,577,109
Ending balances	$	436,860,462	$	422,558,993

Convertible and redeemable Series B Preferred Stock
Beginning balances	$	—	$	86,742,045
Preferred stock Series B sale	—		51,982,894
Issuance of equity-classified warrants	—		1,144,976
Recapitalization and conversion of preferred stock	—		(139,869,915)
Ending balances	$	—	$	—

Treasury stock:
Beginning balances	$	—	$	(14,622,222)
Recapitalization and conversion of preferred stock	—		14,622,222
Ending balances	$	—	$	—

Accumulated other comprehensive income (loss):
Beginning balances	$	464,365	$	(52,849)
Other comprehensive income (loss)	(241,049)		482,391
Ending balances	$	223,316	$	429,542

Retained earnings:
Beginning balances	$	(327,870,772)	$	(227,767,415)
Dividends accretion	—		(608,238)
Net loss	(2,188,210)		(17,232,525)
Ending balances	$	(330,058,982)	$	(245,608,178)

Total stockholders' equity, ending balances	$	107,024,796	$	177,380,357

The accompanying notes are an integral part of these condensed consolidated financial statements.

NEWSMAX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31,

(Unaudited)


	2026		2025
Cash flows from operating activities:
Net loss	$	(2,188,210)	$	(17,232,525)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,523,571		1,540,440
Stock-based compensation	3,355,369		1,577,109
Change in fair value of warrant liability	-		1,824,179
Change in fair value of derivative liability	-		6,104,230
Provision for (recovery of) credit losses	331,760		(118,266)
Unrealized gain on investments	(890,275)		(1,585,580)
Lease expense	930,357		889,411
Changes in operating assets and liabilities:
Accounts receivable	(5,210,412)		(540,358)
Inventory	17,038		(90,331)
Prepaid expenses and other current assets	(2,013,792)		(758,633)
Funds released from escrow	20,000,000		-
Other asset	(3,022,299)		(472,398)

Accounts payable	(1,407,567)		577,173
Accrued expenses	5,113,994		4,006,055
Lease liabilities	(1,030,363)		(1,005,711)
Settlement liability	(21,361,820)		(10,322,243)
Other long-term liabilities	2,954,167		-
Deferred revenue	255,645		(118,511)
Net cash used in operating activities	(2,642,837)		(15,725,959)

Cash flows from investing activities:
Purchase of investments	(351,349)		(36,672,837)
Proceeds from maturity of investments	-		7,250,000

Purchase of property and equipment	(242,854)		(40,786)
Net cash used in investing activities	(594,203)		(29,463,622)

Cash flows from financing activities:
Proceeds from issuance of convertible preferred stock, net	-		80,742,222
Proceeds from issuance of common stock IPO, net	-		67,469,857
Proceeds from exercise of stock options	50,134		-

Payment of dividend	-		(304,930)
Principal payment under finance lease obligation	(47,355)		(51,761)
Net cash provided by financing activities	2,779		147,855,388
Net change in cash	(3,234,261)		102,665,806
Cash and cash equivalents – beginning	20,433,021		24,052,887
Cash and cash equivalents – ending	$	17,198,760	$	126,718,693

The accompanying notes are an integral part of these condensed consolidated financial statements.

NEWSMAX INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE THREE MONTHS ENDED MARCH 31,

(Unaudited)


	2026		2025
Supplemental disclosures of cash flow information:
Operating lease assets obtained in exchange for operating lease liabilities	$	-	$	28,391
Interest paid	$	-	$	586

Non-cash transactions:
Property and equipment acquired through accounts payable	$	914,477	$	195,722
Non-cash financing activities:
Common stock issuance costs acquired through accounts payable	$	-	$	(337,458)
Common stock issuance costs reclassified from prepaid expenses	$	-	$	(1,798,989)
Issuance of warrants in connection with the issuance of convertible stock	$	-	$	1,144,976
Preferred stock cancellations to be refunded	$	-	$	(115,000)
Accrued dividends payable	$	-	$	610,139
IPO funds receivable in escrow	$	-	$	750,000

The accompanying notes are an integral part of these condensed consolidated financial statements.

NEWSMAX INC.

Notes to Condensed Consolidated Financial Statements

(unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements.

Operating results for the three months ended March 31, 2026 are not indicative of the results that may be expected for the fiscal year ending December 31, 2026. The balance sheet at December 31, 2025 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements should be read together with the annual audited consolidated financial statements and related notes for the fiscal year ended December 31, 2025.

There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Newsmax Inc. and its wholly owned subsidiaries Newsmax Media Inc, Medix Health, LLC (“Medix”), Crown Atlantic Insurance, LLC (“Crown”), Newsmax Broadcasting, LLC (“Broadcasting”), Humanix Publishing, LLC (“Humanix”), ROI Media Strategies (“ROI”), Newsmax Radio LLC (“Radio”) and Newsmax Markets, LLC. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions made by management are used for, but not limited to, the allowance for credit losses, carrying value of other assets, and realizability of deferred income taxes.

Revenue Recognition

In accordance with Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers,” the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to be entitled in exchange for those goods are services. The Company records taxes collected from customers and remitted to governmental authorities on a net basis.

Service Revenue

Service revenue is primarily derived from the Company’s original news and lifestyle content, using a mixed-revenue multi-platform model that derives income from linear and over the top ("OTT") news channels, digital, licensing, websites, proprietary database, publishing and video subscription services. The Company uses original news, syndicated services and editorial content to draw consumers to its media outlets in order to sell advertising, license fees and video, print and online information services. The Company earns revenue through contractual allocations of fees based on impressions received or subscriber counts.

Service revenue is comprised of the following for the three months ended:


	March 31, 2026		December 31, 2025
Advertising	$	27,217,224	$	28,887,194
Affiliate fee	13,010,893		7,428,423
Subscription	6,431,365		6,982,160
Licensing	3,487,299		437,563
Total	$	50,146,781	$	43,735,340

Advertising

Advertising revenue is derived from the sale of advertising on the Company’s cable television, email database, magazine and related publications, and website. Revenue related to the sale of advertising in the broadcasting segment is recognized at the time the commercials are aired. Revenue related to the Company's digital segment is recognized when display or other digital advertisement records are placed on various digital media. Revenue related to magazine and related publications is recognized when the ad is displayed in the printed document. Each advertisement is determined to be a distinct performance obligation that is satisfied at the point in time when such advertisements are published or aired. Advertising contracts, which are generally short-term, are billed monthly for the services provided during the month, with payments due shortly thereafter. Cash payments received prior to services rendered are recorded as deferred revenue, which is then recognized as revenue when the advertising time or space is provided.

The Company enters into agreements with OTT distribution platforms to distribute the Company’s news channel. Pursuant to certain distribution agreements, advertising revenues are earned based on an allocation of the fee determined by the number of impressions received. These contracts represent a single performance obligation recognized over the contract period. Revenue is recognized upon delivery of the content over the course of an over-the-top distribution agreement term based on time elapsed, as this best depicts the simultaneous consumption and delivery of the services. The Company bills OTT customers monthly over the contract term. The Company has an unconditional right to receive payment of the amount billed, generally within 30 days from the invoice date. The invoiced amount to be received is recorded in accounts receivable on the condensed consolidated balance sheets.

Subscription

The Company sells magazines to consumers through subscriptions. Each subscription is determined to be a distinct performance obligation that is satisfied over the term of the contract, normally one (1) to five (5) years. Subscription payments received from customers in advance of the publication are recorded as deferred revenue and recognized as revenue on a straight line basis over the contract term.

Newsmax+ provides the Company’s content directly to consumers either monthly or annually. Monthly subscriptions are recognized as revenue in the month it was earned. Annual subscriptions are recorded as deferred revenue and recognized as revenue ratably over the term.

Deferred subscription revenue balances along with the corresponding revenue recognized from the preceding three-month period:


	March 31, 2026		December 31, 2025
Deferred subscription revenue, current portion	$	12,588,692	$	12,278,556
Deferred subscription revenue, net of current portion	2,522,836		3,148,945
Total deferred subscription revenue	$	15,111,528	$	15,427,501

Deferred subscription revenue recognized in revenue for the three months ended March 31, 2026 was $4.8 million, and for the three months ended March 31, 2025 was $3.6 million.

Affiliate Fee

The Company generates affiliate fee revenue from agreements with MVPDs for cable networks. It is recognized over time as programming is made available to the customer over the term of the agreement using the output method. For contracts with affiliate fees based on the number of the affiliate’s subscribers, revenues are recognized based on the contractual rate multiplied by the estimated number of subscribers each period. Consideration payable to a customer is treated as a cost of sale when distinct. If a distinct service is not received, such costs are recorded as a reduction to revenues. Affiliate fee contracts are generally multi-year contracts billed monthly with payments due shortly thereafter.

Licensing

The Company generates revenue from its content licensing agreements and is recognized over the term our symbolic IP is made available.

Product Revenue

Product sales are derived primarily from the sales of books, audio and video, and dietary supplements and are recognized at the point in time control transfers to the customer, which is when the product is shipped. Allowances are considered for estimated returns and refunds when revenue is recognized. As of March 31, 2026 and December 31, 2025, the refund liability was $0.5 million and $0.4 million, respectively and is classified as a reduction in accounts receivable. The Company records taxes collected from customers and remitted to governmental authorities on a net basis. Product revenue is comprised of the following for the three months ended March 31, 2026 and 2025:


	2026		2025
Supplement sales	$	1,077,016	$	1,114,940
Books, media and other product sales	629,604		658,723
Product returns and allowances	(194,910)		(207,296)
Total	$	1,511,710	$	1,566,367

Incremental Costs to Obtain a Contract

Amortization expense is included within sales and marketing on the accompanying condensed consolidated statements of operations. As of March 31, 2026, the Company had $4.9 million of unamortized capitalized costs to obtain a contract, of which $1.0 million is recorded within prepaid expenses and other current assets and $3.9 million is recorded within other assets on our unaudited condensed consolidated balance sheet. During the three months ended March 31, 2026, the Company recorded $0.2 million of amortization of capitalized costs, which is recorded within professional fees on our unaudited condensed consolidated statement of operations and comprehensive loss. During the three months ended March 31, 2025, the Company recorded $39.4 thousand of amortization of capitalized costs, which is recorded within professional fees on our unaudited condensed consolidated statement of operations and comprehensive loss.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable is presented net of an allowance for credit losses of $1.9 million and $1.7 million at March 31, 2026 and December 31, 2025, respectively. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. The Company’s allowance for credit losses is estimated based on historical loss rates, current conditions, reasonable economic forecasts that affect collectability, and known credit issues with specific customers. Provisions for (recoveries of) credit losses totaled $0.3 million and $(0.1) million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Funds Held in Escrow

In connection with the settlement agreement reached with Dominion (as defined below in Note 12), the Company established an escrow account to secure the settlement obligations. As of March 31, 2026, the balance of the escrow account totaled $20.0 million. The escrowed funds will be released in one installment of $20.0 million payable on or before January 15, 2027.

The escrow account earns interest at an annual rate of 4.02%. As of March 31, 2026, cumulative interest income of $0.8 million has been earned on the escrow balance. The interest income is recorded as a component of other income in the

accompanying condensed consolidated statements of operations and comprehensive loss. The related interest receivable is included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheet.

Net Loss Per Share

Basic and diluted loss per share is computed as net loss available to common stockholders divided by the weighted average number of shares outstanding for the period. For the three months ended March 31, 2026 and 2025, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. Potentially dilutive common shares include warrants, convertible preferred stock, and stock options.

Recently Adopted Accounting Pronouncements

In January 2026, the Company adopted ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on accounts receivable and contract assets. The Company evaluated the impact of adoption on its methodology for estimating credit losses on trade receivables and contract assets and concluded that adoption did not have a material impact on its condensed consolidated financial statements or related disclosures.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires additional disclosures of the nature of expenses included in the income statement. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027 on a prospective basis, with early adoption permitted. The Company is currently evaluating the provisions of the amendments and the impact on its disclosures.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes authoritative guidance on the recognition, measurement, presentation, and disclosure of government grants. Under ASU 2025-10, government grants are recognized when it is probable that the entity will both comply with the conditions of the grant and the grant will be received. The ASU provides specific accounting models for grants related to assets and grants related to income, including options to recognize government grants as deferred income or as a reduction of the asset’s cost basis. The ASU also requires enhanced disclosures regarding the nature of government grants, significant terms and conditions, accounting policies applied, and amounts recognized in the financial statements. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028, including interim periods within those fiscal years, with early adoption permitted. The adoption of this pronouncement will not have an impact on the Company.

NOTE 2. FAIR VALUE MEASUREMENTS

The Company accounts for its investments at fair value and classifies these assets within the fair value hierarchy (Level 1, Level 2, or Level 3). Assets and liabilities subject to fair value measurements are:


	As of March 31, 2026
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents
Money market	$	7,051,469	$	—	$	—	$	7,051,469
Total cash and cash equivalents	$	7,051,469	$	—	$	—	$	7,051,469
Investments
Equity securities	$	21,584,686	$	—	$	—	$	21,584,686
U.S. Treasury securities	—		87,519,403		—		87,519,403
Certificates of deposit	—		2,501,665		—		2,501,665
Crypto assets	290,514		—		—		290,514
Total investments	$	21,875,200	$	90,021,068	$	—	$	111,896,268
Total assets	$	28,926,669	$	90,021,068	$	—	$	118,947,737


	As of December 31, 2025
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents
Money market	$	10,625,821	$	—	$	—	$	10,625,821
Total cash and cash equivalents	$	10,625,821	$	—	$	—	$	10,625,821
Investments
Equity securities	$	20,201,411	$	—	$	—	$	20,201,411
U.S. Treasury securities	—		87,808,288		—		87,808,288
Certificates of deposit	—		2,506,845		—		2,506,845
Crypto assets	379,149		—		—		379,149
Total investments	$	20,580,561	$	90,315,133	$	—	$	110,895,693
Total assets	$	31,206,382	$	90,315,133	$	—	$	121,521,514

NOTE 3. PROPERTY AND EQUIPMENT

Major classes of property and equipment are:


	Estimated Useful Lives	March 31, 2026		December 31, 2025
Furniture and fixtures	7 years	$	2,205,486	$	2,205,486
Computer, office and production equipment	3-8 years	15,890,464		14,716,627
Leasehold improvements	Lesser of Useful Life or Term of Lease	10,296,105		10,293,405
Fixed assets not yet placed in service	N/A	38,166		—
		28,430,220		27,215,518
Less: Accumulated depreciation		(21,527,468)		(20,950,633)
		$	6,902,752	$	6,264,885

Depreciation of property and equipment amounted to $0.6 million and $0.7 million for the three months ended March 31, 2026 and 2025, respectively. Included in property and equipment are finance lease assets of $0.3 million and $0.4 million as of March 31, 2026 and 2025, respectively.

NOTE 4. INVESTMENTS

Investments on the condensed consolidated balance sheets consisted of the following:


	March 31, 2026		December 31, 2025
Equity securities	$	21,584,686	$	20,201,411
U.S. Treasury securities	90,021,068		90,315,133
Crypto assets	290,514		379,149
Total investments	$	111,896,268	$	110,895,693

Available-for-Sale Securities

The major classes of the Company's available-for-sale debt securities and their respective fair values at March 31, 2026, were:


	Amortized Cost		Gross Unrealized gain		Gross Unrealized Loss		Fair Value
Certificate of deposit	$	2,500,000	$	1,665	$	—	$	2,501,665
U.S. Treasury securities	87,297,752		221,651		—		87,519,403
Total	$	89,797,752	$	223,316	$	—	$	90,021,068

The maturity distribution based on the contractual terms of the Company's available-for-sale debt securities at March 31, 2026 was:


	Amortized Cost	Fair Value
Due within 1 year	$59,934,242	$60,006,318
Due after 1 year through 5 years	29,863,509	30,014,750
Total	$89,797,752	$90,021,068

NOTE 5. LEASES

Operating lease expense is recognized on a straight-line basis over the lease term within operating expenses in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss. Finance lease expense is recognized over the lease term within interest expense and amortization in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss. The Company’s total operating and finance lease expense all relate to lease costs and amounted to $1.3 million and $1.2 million for the three months ended March 31, 2026, and 2025, respectively.

Future minimum lease payments at March 31, 2026 were:


	Operating		Finance		Total
2026	$	3,235,734	$	80,300	$	3,316,034
2027	1,804,808		4,999		1,809,807
2028	1,534,266		—		1,534,266
2029	1,345,499		—		1,345,499
2030	1,198,303		—		1,198,303
Total lease payments	9,118,609		85,299		9,203,907
Less: imputed interest	(876,480)		(2,724)		(879,204)
Present value of lease liability	$	8,242,129	$	82,575	$	8,324,703

NOTE 6. LINE OF CREDIT

In May 2025 the Company renewed an existing line of credit with an available balance of $1.0 million and a maturity date of January 4, 2026. Upon maturity, the facility automatically converted to a demand note. The Company also established a line of credit in May 2025 with an available balance of $8.0 million and a maturity date of April 26, 2026. Upon maturity, the facility automatically converted to a demand note. Both lines of credit bear interest at the greater of (i) one percent (1.000%) or (ii) the Prime Rate minus seventy five hundredths percent (-0.750%). There were no borrowings outstanding as of March 31, 2026 and December 31, 2025.

NOTE 7. INCOME TAXES

The Company’s effective income tax rate for the three months ended March 31, 2026 and 2025 was 0% for both periods. This was different than the federal income tax rate of 21% primarily due to the Company operating at a loss with a full valuation allowance.

NOTE 8. SEGMENT INFORMATION

The Company has two operating segments: (1) Broadcasting and (2) Digital, which also qualify as reportable segments. In accordance with ASC 280, “Segment Reporting,” the operating segments reflect how the chief operating decision maker, which the Company defines as the chief executive officer, assesses the performance of each operating segment and determines the appropriate allocations of resources to each segment. The Company continually reviews the operating segment classifications to align with operational changes in our business and may make changes as necessary. Due to the integrated nature of these operating segments, estimates and judgments are made in allocating certain revenues and expenses.The Company evaluates performance based upon several factors, of which the primary financial measure is Segment Adjusted EBITDA.

Segment Adjusted EBITDA is defined as revenues less cost of revenues and general and administrative expenses and does not include depreciation, interest, net, asset impairment, unrealized gain (loss) on marketable securities, stock-based compensation, other corporate matters, other, net and income tax expense. Other corporate matters represent certain litigation expenses, and related fees, for specific proceedings that the Company has determined are infrequent and unusual in terms of their magnitude. Management believes that Segment Adjusted EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources to the Company’s business. The Company does not present asset information for our segments as this information is not used to allocate resources.

The following tables set forth the Company’s Revenues and Segment Adjusted EBITDA for the three months ended March 31, 2026 and 2025:


	2026		2025
Revenues
Broadcasting	$	43,701,492	$	36,187,178
Digital	7,956,999		9,114,529
Total revenues	$	51,658,491	$	45,301,707

Segment expenses and operating performance
Broadcasting
Adjusted cost of sales (1)	$	24,622,400	$	19,962,722
Adjusted general and administrative expenses (2)	15,112,660		13,033,591
Broadcasting adjusted EBITDA	3,966,432		3,190,865
Digital
Adjusted cost of sales (1)	5,063,956		5,224,696
Adjusted general and administrative expenses (2)	7,213,811		6,632,514
Digital adjusted EBITDA	(4,320,768)		(2,742,681)
Total reportable adjusted EBITDA	$	(354,336)	$	448,184

Corporate and unallocated
Depreciation	$	(566,819)	$	(736,875)
Amortization	(192,562)		(39,375)
Interest, net	1,340,862		1,048,231
Unrealized gain on marketable securities	978,911		1,585,580
Stock-based compensation	(3,355,369)		(1,577,109)
Other corporate matters	—		(9,667,603)
Other, net	(38,899)		(8,288,556)
Loss before income tax expense	(2,188,210)		(17,227,525)
Income tax expense	—		5,000
Net loss	$	(2,188,210)	$	(17,232,525)