XML 29 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Leases

9 Months Ended

Sep. 30, 2025

NOTE 12. LEASES

We enter into operating lease contracts primarily for land and office space. Agreements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases include land lease contracts and contracts for the use of office space.

Right of use assets, which we refer to as “ROU assets,” represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term.

Certain of our operating lease agreements include rental payments based on a percentage of revenue and others include rental payments adjusted periodically for inflationary changes. Percentage rent contracts, in which lease expense is calculated as a percentage of advertising revenue, and payments due to changes in inflationary adjustments are included within variable rent expense, which is accounted for separately from periodic straight-line lease expense.

Many of our leases entered into in connection with land provide options to extend the terms of the agreements. Generally, renewal periods are included in minimum lease payments when calculating the lease liabilities as, for most leases, we consider exercise of such options to be reasonably certain. As a result, optional terms and payments are included within the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The implicit rate within our lease agreements is generally not determinable. As such, we use the incremental borrowing rate, which we refer to as “IBR,” to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is “the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.”

Operating Lease Cost

Operating lease cost is as follows:

	*For the Three Months Ended*				*For the Nine Months Ended*
	*September 30,*				*September 30,*
	*2025*		*2024*		*2025*		*2024*		*Statement of Operations Classification*

Lease cost	$	2,224,742	$	2,033,677	$	6,651,853	$	6,337,150	Cost of billboard revenues and general and administrative
Variable and short-term lease cost		765,019		969,289		2,332,358		2,400,527	Cost of billboard revenues and general and administrative

Total Lease Cost	$	2,989,761	$	3,002,966	$	8,984,211	$	8,737,677

Supplemental cash flow information related to operating leases is as follows:

	*For the Three Months Ended*				*For the Nine Months Ended*
	*September 30,*				*September 30,*
	*2025*		*2024*		*2025*		*2024*

Cash payments for operating leases	$	2,093,641	$	1,973,480	$	6,705,884	$	6,400,612
New operating lease assets obtained in exchange for operating lease liabilities	$	242,770	$	2,959,601	$	2,895,860	$	4,669,742

Operating Lease Assets and Liabilities

	*September 30, 2025*		*December 31, 2024*		*Balance Sheet Classification*

Lease assets	$	59,038,370	$	59,742,166	Other Assets: Right of use assets

Current lease liabilities	$	5,264,241	$	5,333,611	Current Liabilities: Lease liabilities
Noncurrent lease liabilities		54,566,767		54,994,879	Long-term Liabilities: Lease liabilities

Total Lease Liabilities	$	59,831,008	$	60,328,490

Maturity of Operating Lease Liabilities

	*September 30, 2025*

2026	$	8,280,686
2027		7,868,155
2028		7,533,897
2029		6,941,200
2030		6,241,162
Thereafter		53,676,676

Total lease payments		90,541,776
Less imputed interest		(30,710,768	)

Present Value of Lease Liabilities	$	59,831,008

As of September 30, 2025, our operating leases have a weighted-average remaining lease term of 15.80 years and a weighted-average discount rate of 5.30%.