XML 23 R12.htm IDEA: XBRL DOCUMENT

Note 6 - Business Acquisitions

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

NOTE 6. BUSINESS ACQUISITIONS

2024 Acquisitions

We did not complete any acquisitions during the first nine months of fiscal 2024.

2023 Acquisitions

24th Street Asset Management

On May 1, 2023, Boston Omaha Asset Management, LLC, our wholly-owned subsidiary, acquired 100% of the membership interests in 24th Street Asset Management LLC, from the members of 24th Street for cash and BOC Class A common stock valued at $5,016,494 in the aggregate. Prior to the transaction, BOAM indirectly owned 48% of the membership interests of 24th Street. The consideration consisted of $2,759,072 in cash paid at closing, an additional $1,254,102 in cash subject to holdback, and 45,644 shares of BOC Class A common stock. Our purchase price allocation related to 24th Street Asset Management includes carried interest and goodwill of $9,110,478 and $536,626, respectively.

Broadband Acquisitions

On June 16, 2023, our subsidiary, FIF St. George, acquired from Pro Communication and Construction Services, LLC, which we refer to as “ProComm,” broadband construction equipment and related assets for a purchase price of $2,881,000 paid in cash. The acquisition was completed for the purpose of expanding our broadband presence in the Western United States. Our final purchase price allocation related to ProComm includes property, plant and equipment, intangibles, and goodwill of $844,500, $1,046,000 and $990,500, respectively. The intangible assets primarily include customer relationships which have a useful life of fifteen years.

On October 24, 2023, our subsidiary, FIF St. George, acquired from Cable Systems, LLC, which we refer to as “Cable Systems”, substantially all of the business assets and related assets for a purchase price of $4,375,000. The consideration consisted of $3,937,500 in cash paid at closing, and an additional $437,500 in cash subject to holdback. The acquisition was completed for the purpose of expanding our broadband presence in the Western United States. Our final purchase price allocation related to Cable Systems includes property, plant and equipment, intangibles, and goodwill of $1,664,240, $1,797,000 and $913,760, respectively. The intangible assets include customer relationships which have a useful life of fifteen years.

Pro Forma Information

The following is the unaudited pro forma information assuming all business acquisitions occurred on January 1, 2023. For all of the business acquisitions, depreciation and amortization have been included in the calculation of the pro forma information provided below, based upon the actual acquisition costs. Depreciation is computed on the straight-line method over the estimated remaining economic lives of the assets, ranging from four years to twenty years. Amortization is computed on the straight-line method over the estimated useful lives of the assets ranging from five years to fifty years.

		*For the Three Months Ended*								*For the Nine Months Ended*
		*September 30,*								*September 30,*
		*2024*				*2023*				*2024*				*2023*

Revenue		$	27,700,936			$	24,622,693			$	80,341,450			$	72,883,939

Net Loss Attributable to Common Stockholders		$	(1,595,136	)		$	(1,591,579	)		$	(6,638,436	)		$	(2,867,070	)

Basic Net Loss per Share		$	(0.05	)		$	(0.05	)		$	(0.21	)		$	(0.09	)

Diluted Net Loss per Share		$	(0.05	)		$	(0.05	)		$	(0.21	)		$	(0.09	)

Basic Weighted Average Class A and Class B Common Shares Outstanding			31,432,515				31,370,760				31,539,809				31,021,126

Diluted Weighted Average Class A and Class B Common Shares Outstanding			31,432,515				31,370,760				31,539,809				31,021,126

The information included in the pro forma amounts is derived from historical information obtained from the sellers of the businesses.