v3.26.1
INVESTMENT IN UNCONSOLIDATED AFFILIATES
6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENT IN UNCONSOLIDATED AFFILIATES 4. INVESTMENT IN UNCONSOLIDATED AFFILIATES
On January 1, 2026, the Company acquired an investment in Sigma (“Investee”), a limited liability company operating an audio advertising and media network. The Company accounts for the investment under the equity method of accounting as it does not control the Investee.
Under the Investee’s operating agreement, eMedia serves as manager and controls the significant operating activities of the Investee.
Pursuant to the operating agreement, the Company is committed to fund up to $1.0 million of the Investee’s operating needs during the initial funding period. Contributions are accounted for as capital contributions and included in the carrying value of the investment. As of June 30, 2026, the Company has contributed $0.6 million to the Investee. The Company has remaining funding commitments of $0.4 million, under the agreement.
Under the operating agreement, the Company is allocated 100% of the Investee’s profits and losses until recovery of its initial capital contributions, after which profits and losses are allocated 60% to the Company and 40% to eMedia.
During the three and six months ended June 30, 2026, the Company recognized losses of $0.4 million and $0.6 million, respectively, which is included in equity loss in investments in the condensed consolidated statements of operations. This has reduced the investment in the Investee balance to zero as of June 30, 2026. No cash distributions were received during the period.
Summarized financial information for equity method investees has not been presented as such information is not material to the Company’s condensed consolidated financial statements.