Condensed Combined Debtors' Financial Statements (Tables)

Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2026 and were as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2026		June 30, 2026
Allowed claims adjustments for debt obligations (1)	$	(1,049)	$	19,271
Professional fees (2)	(5,762)		(13,527)
Rejected lease contracts (3)	—		10,195
Other (4)	(769)		(1,507)
Reorganization items, net	$	(7,580)	$	14,432

(1)Adjustments to reflect estimated allowed claims as detailed in the Plan and related disclosure statement with respect to outstanding debt obligations.

(2) Professional fees relate to legal, financial advisory and other professional costs directly associated with the reorganization process.

(3) Adjustment recorded for allowed claim amounts related to rejected lease contracts.

(4) Other relates to Federal Communications Commission filing and United States Trustee fees directly associated with the reorganization process.


	June 30, 2026
Accounts payable and accrued expenses	$	69,054
Operating lease liabilities	100,503
Debt	697,120
Financing liabilities, net	171,224
Other liabilities	6,125
Total liabilities subject to compromise	$	1,044,026

Debtors' Balance Sheet

(Dollars in thousands, except for share data)


Dollars in thousands (except for share data)	June 30, 2026
Assets
Current assets:
Cash and cash equivalents (includes restricted cash of $4,218)	$	60,987

Accounts receivable, less allowance for doubtful accounts of $4,705 at June 30, 2026	113,121
Trade receivable	7,507

Prepaid expenses and other current assets	28,165
Total current assets	209,780
Property and equipment, net	121,357
Operating lease right-of-use assets	95,216


Other intangible assets, net	51,578

Other assets	9,079
Total assets	$	487,010
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable and accrued expenses	$	54,234
Current portion of operating lease liabilities	412
Trade payable	686
Current portion of debt	2,028
Total current liabilities not subject to compromise	57,360

Operating lease liabilities	1,051

Other liabilities	8,187
Deferred income tax liabilities	1,165
Total liabilities not subject to compromise	67,763
Liabilities subject to compromise	1,044,026
Total liabilities	1,111,789
Commitments and contingencies (Note 11)
Stockholders’ deficit:
Class A common stock, par value $0.0000001 per share; 100,000,000 shares authorized; 23,464,930 shares issued; 17,436,334 shares outstanding at June 30, 2026, respectively	—
Convertible Class B common stock, par value $0.0000001 per share; 100,000,000 shares authorized; 231,698 shares issued and outstanding at June 30, 2026	—
Treasury stock, at cost, 6,028,596 shares at June 30, 2026	(47,131)
Additional paid-in-capital	(46,217)
Accumulated deficit	(531,431)
Total stockholders’ deficit	(624,779)
Total liabilities and stockholders’ deficit	$	487,010


Debtors' Statement of Operations
(Dollars in thousands)
Dollars in thousands (except for share and per share data)	Three Months Ended June 30,		Six Months Ended June 30,
	2026		2026
Net revenue	$	167,907	$	332,354
Operating expenses:
Content costs	55,625		121,517
Selling, general and administrative expenses	85,856		170,260
Depreciation and amortization	12,305		24,582
Corporate expenses	11,876		40,548
Gain on sale or disposal of assets or stations	(82)		(458)


Total operating expenses	165,580		356,449
Operating income (loss)	2,327		(24,095)
Non-operating expense:
Reorganization items, net	(7,580)		14,432
Interest expense (excludes contractual interest of 14,098 and 18,324 for the second quarter and first half of 2026, respectively)	(3,044)		(15,088)
Interest income	—		184

Other expense, net	(32)		(84)
Total non-operating expense, net	(10,656)		(556)
Loss before income taxes	(8,329)		(24,651)
Income tax expense	(881)		(1,421)
Net loss	$	(9,210)	$	(26,072)


Debtors' Statement of Cash Flows (Dollars in thousands)
Dollars in thousands	Six Months Ended June 30,
	2026
Cash flows from operating activities:
Net loss	$	(26,072)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	24,582
Amortization of debt issuance costs	303
Amortization of debt discount	(1,099)
Provision for doubtful accounts	2,233
Gain on sale or disposal of assets or stations	(458)





Deferred income taxes	1,165
Stock-based compensation expense	472
Non-cash interest expense on financing liabilities	1,283
Non-cash imputed rental income	(2,481)
Non-cash reorganization items, net	(32,872)
Changes in assets and liabilities (excluding acquisitions and dispositions):
Accounts receivable	18,782
Trade receivable	(256)
Prepaid expenses and other current assets	(8,213)
Operating leases, net	(826)

Other assets	(3,039)
Accounts payable and accrued expenses	12,194
Trade payable	856
Other liabilities	380
Net cash used in operating activities	(13,066)
Cash flows from investing activities:
Proceeds from sale of assets or stations	661


Proceeds from insurance reimbursement	276
Capital expenditures	(7,093)
Net cash used in investing activities	(6,156)
Cash flows from financing activities:



Borrowings under the 2020 revolving credit facility	2,028





Adequate protection payments on 2020 revolving credit facility	(458)
Shares returned in lieu of tax payments	(24)


Repayments of financing liabilities	(3,324)
Repayments of finance lease obligations	(568)
Proceeds from tenant improvement reimbursement	576
Net cash used in financing activities	(1,770)
Decrease in cash, cash equivalents and restricted cash	(20,992)
Cash, cash equivalents and restricted cash at beginning of period	81,979
Cash, cash equivalents and restricted cash at end of period	$	60,987