Financial Analysis

The following table provides information regarding the Companys revenue for each of the services it provides pursuant to its spectrum revenue agreements for the years ended March 31, 2026 and 2025 (in thousands): 2026 2025 Spectrum revenue 900 MHz Broadband Spectrum Revenue Ameren Corporation $ 824 $ 737 Evergy 1,541 1,542 Xcel Energy 3,524 3,205 TECO (1) 612 Narrowband Spectrum Revenue Motorola (2) 547 Total spectrum revenue $ 6,501 $ 6,031 1. The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to TECO in June 2025. 2. As of December 31, 2024, the Company recognized all the revenue associated with the 2014 Motorola spectrum agreement. …

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Income Taxes For the year ended March 31, 2026, the Company had federal and state NOL carryforwards of approximately $194.2 million and $195.1 million, respectively. Of these state NOLs, approximately $162.2 million, are expiring in various amounts from 2026 through 2045. The remaining federal and state NOLs of approximately $194.2 million and $32.9 million, respectively, have an indefinite life but the federal NOLs may only offset 80% of taxable income when used. For the year ended March 31, 2025, the Company incurred federal and state operating losses of approximately $275.1 million and $207.0 million, respectively, to offset future taxable income of which $241.1 million federal NOL and $40.3 million of state NOLs can be carried forward indefinitely but can only offset 80% of taxable income when used. The Company has net deferred tax assets, before applying the valuation allowance, of approximately $64.8 million and $83.6 million relating principally to the NOLs as of March 31, 2026 and 2025, respectively. Federal NOL carryforwards may be subject to limitations as a result of the change in ownership that occurred in the year ended March 31, 2015, as defined under Internal Revenue Code Section 382. State NOL carryforwards are subject to limitations which differ from federal law in that they may not allow the carryback of net operating losses and have shorter carryforward periods. Accounting Standards Codification Topic 740, Income Taxes (ASC 740), requires that a valuation a …

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Leases All the leases in which the Company is the lessee are comprised of corporate office space and tower space. The Company is obligated under certain lease agreements for office space with lease terms expiring on various dates from June 30, 2027 through January 31, 2029, which includes lease extensions for its corporate offices ranging from three to ten-years. The Company entered into multiple lease agreements for tower space. The lease expiration dates range from April 8, 2026 to February 28, 2033. All of the Companys leases are classified as operating leases. Operating lease agreements are required to be recognized on the Companys Consolidated Balance Sheets as right of use (ROU) assets and corresponding lease liabilities. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Weighted-average remaining lease term and incremental borrowing rate for the Companys operating leases are as follows: 2026 2025 Weighted average term - operating lease liabilities 3.71 years 3.71 years Weighted average incremental borrowing rate - operating lease liabilities 8 % 8 % The following table presents total lease cost for the years ended March 31, 2026 and 2025 (in thousands): 2026 2025 Total …

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Recently Issued Accounting Pronouncements In October 2023, the FASB issued Accounting Standards Updates (ASU) 2023-06, Disclosure Improvements: Codification Amendment in Response to the SECs Disclosure Update and Simplification Initiative. The ASU incorporates several disclosure and presentation requirements currently residing in the SEC Regulations S-X and S-K. The amendments will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to the SEC requirements, this ASU is not expected to have a material impact on its consolidated financial statements or related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures and subsequently amended with ASU 2025-01, which was issued in January 2025. This update requires public business entities to disclose, on an annual and interim basis, disaggregated information about certain income statement expense line items in the notes to the financial statements. This update is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. Early adoption is permitted and should be applied either prospectively or retroactively. The Company is currently evaluating the impact of the new standard on the Compan …

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Related Party Transactions On December 30, 2024, in connection with Morgan OBriens retirement as Executive Chairman of the Board, the Company entered into a consulting agreement with Mr. OBrien under which he has agreed to provide consulting services to the Company for a minimum of six months and receive cash compensation of $30 thousand per month beginning on January 1, 2025 through June 30, 2025 (the minimum term), and continuing thereafter on a month-to month basis until terminated by either party (the Consulting Agreement). For the years ended March 31, 2026 and 2025, the Company incurred $0.1 million and $0.1 million, respectively, in consulting fees to Mr. OBrien included in general and administrative expenses on the Companys Consolidated Statements of Operations. As of March 31, 2026 and 2025, the Company had zero and $30 thousand, respectively, in outstanding liabilities to Mr. OBrien included in due to related parties on the Companys Consolidated Balance Sheets. Mr. OBriens consulting agreement was terminated as of June 30, 2025. …

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Accrued Severance and Other Related Charges During the year ended March 31, 2026, the Company undertook a broader restructuring initiative to align with its evolving marketing and product strategy. These charges consist primarily of severance and employee-related costs associated with workforce reductions, as well as retention payments provided to key employees to support continuity during the reorganization. As a result, the Company incurred $4.6 million of severance and other related charges for the year ended March 31, 2026, on the Companys Consolidated Statements of Operations. As of March 31, 2026, the Company accrued $2.8 million severance and other related charges on the Companys Consolidated Balance Sheets. During the year ended March 31, 2025, the Company successfully identified several measures to reduce its operating expense run rate. These cost reduction measures are expected to increase the Companys cash flows while maintaining operational efficiency. The reductions primarily impacted the Companys general and administrative expenses mainly through significant cuts in consulting fees. Furthermore, as of March 31, 2025, the Company also reduced its workforce by 7 employees. As a result, the Company incurred $0.3 million of severance and other related charges as of and for the year ended March 31, 2025, on the Companys Consolidated Balance Sheets and Consolidated Statements of Operations. Additionally, on November 1, 2024, Robert H. Schwartz stepped down from his ro …

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Revenue The following table provides information regarding the Companys revenue for each of the services it provides pursuant to its spectrum revenue agreements for the years ended March 31, 2026 and 2025 (in thousands): 2026 2025 Spectrum revenue 900 MHz Broadband Spectrum Revenue Ameren Corporation $ 824 $ 737 Evergy 1,541 1,542 Xcel Energy 3,524 3,205 TECO (1) 612 Narrowband Spectrum Revenue Motorola (2) 547 Total spectrum revenue $ 6,501 $ 6,031 1. The Company commenced revenue recognition in connection with the delivery of cleared 900 MHz Broadband Spectrum and the associated broadband licenses to TECO in June 2025. 2. As of December 31, 2024, the Company recognized all the revenue associated with the 2014 Motorola spectrum agreement. 900 MHz Broadband Spectrum Lease Agreements The following table provides information regarding the Companys spectrum lease agreements (as defined in the table below and collectively referred to as the Spectrum Lease Agreements) as of March 31, 2026: Spectrum Lease Agreements (1) Agreement Date Initial Term Renewal Options Total Consideration (2) Payments Received Payments Remaining Ameren Corporation (Ameren) December 2020 30 - years 10 - years $47.7 million $31.4 million $16.3 million (3) Evergy Services, Inc. (Evergy) September 2021 20 - years 2 x 10 - years $30.2 million $30.2 million $ Xcel Energy Services Inc. (Xcel Energy) October 2022 20 - years 2 x 10 - years $80.0 million $76.0 million $4.0 million (4) Tampa Electric Company (TECO) …

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Segment Reporting Accounting Standards Codification, Segment Reporting (ASC 280) defines operating segments as components of an enterprise for which separate financial information is available that is regularly evaluated by the Companys CODM in deciding how to allocate resources and assess performance. The accounting policies of the segment are the same as those described in Note 2 Summary of Significant Accounting Policies. The measure of segment profit or loss for the Companys single segment is net income (loss). Additionally, the CODM uses cash and cash equivalents as a measure of segment assets, which is included on the Companys consolidated financial statements. Cash and cash equivalents and Net income (loss) are reviewed and monitored by CODM to ensure enough capital is available for investing in purchases of intangible assets, refundable deposits, retuning costs and swaps, and the Companys share repurchase program. Segment expenses were disaggregated based on the information the CODM is provided on a quarterly basis considering both quantitative and qualitative factors. The table below summarizes significant segment expenses and other items, which represent the difference between segment revenue and segment net income (loss) (in thousands): 2026 2025 Spectrum revenue $ 6,501 $ 6,031 Significant segment expenses and other segment items Adjusted general and administrative (1) 25,721 30,654 Adjusted sales and support (2) 6,472 5,878 Adjusted product development (3) 3,982 …

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Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), which require 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the valuation of awards and forfeiture rates for its share-based award programs, the estimated useful lives of depreciable assets, lease discount rates, asset retirement obligations (the ARO), valuation allowance on the Companys deferred tax assets and the recoverability of intangible assets among other estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the financial statements in the applicable period. Accordingly, actual results could materially differ from those estimates. The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Revision to Spectrum Sale Transaction Presentation The Company generates income primarily through long-term leases and sales of spectrum assets. For spectrum lease agreements, payments …

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Subsequent Events On April 16, 2026, the Company entered into a 10 MHz 900 MHz spectrum license sale agreement with Public Utility District No. 1 of Benton County (Benton PUD) to provide 900 MHz Broadband Spectrum in the 10 MHz broadband configuration, covering Benton County, Washington, (the Benton Agreement) for a total consideration of $0.8 million. This will enable Benton PUD to deploy a private wireless broadband network that will provide the taxpayer-owned utility and the community it serves with transformative communications capabilities to support its energy leadership, cooperation, and stewardship. …

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