BOSTON OMAHA Corp Segments Disclosure

NOTE 14.

INDUSTRY SEGMENTS

 

This summary presents our current segments, as described below. 

 

General Indemnity Group, LLC

 

GIG conducts our insurance operations through its subsidiaries, UCS and BOSS Bonds Insurance Agency, LLC, formerly known as South Coast Surety Insurance Services, LLC. Both BOSS Bonds and UCS clients are nationwide. Revenue consists of surety bond sales and insurance commissions. GIG’s corporate resources are used to support BOSS Bonds and UCS, and to make additional business acquisitions in the insurance industry. 

 

Link Media Holdings, LLC

 

LMH conducts our billboard rental operations. LMH billboards are located in Alabama, Arkansas, Florida, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, Nevada, Oklahoma, South Dakota, Tennessee, Virginia, West Virginia, and Wisconsin.

 

Boston Omaha Broadband, LLC

 

BOB conducts our broadband operations. BOB provides high-speed broadband services to its customers located mainly in Arizona, Florida, Nevada, and Utah. 

 

Boston Omaha Asset Management, LLC

 

BOAM conducts our asset management operations. BOAM’s primary objective is to achieve long-term returns while seeking to limit the risk of capital and purchasing power loss in our investments in other companies and our real estate activities.  We commenced reporting BOAM as a separate segment based on our acquisition of 24th Street Asset Management on May 1, 2023 and are in the process of winding down its operations.  

 

The accounting policies of the above segments are the same as those described within Footnote 2 “Summary of Significant Accounting Policies”.

 

Resources are allocated and performance is assessed by our CEO, whom we have determined to be our Chief Operating Decision Maker (CODM).  The CODM evaluates the performance of our segments and allocates resources to them based on segment operating income and segment adjusted EBITDA. We define adjusted EBITDA as net income (loss) before income tax expense (benefit), noncontrolling interest in subsidiary income (loss), interest expense, interest and dividend income, depreciation, amortization, accretion, gain or loss on disposition of assets, and other investment income (loss).

 

The cost and expense information provided below is based on the information regularly provided to the CODM. Given the diversity of our operating segments and the differences in revenue streams and cost structures, there are variances in the form, content, and levels of such expense information significant to the business. Expenses considered significant for one operating segment may not be significant in others.

 

 

The table below presents information about reported segments for the years ending December 31:

 

																						Total
Year Ended December 31, 2025		GIG				LMH				BOB				BOAM				Unallocated				Consolidated
Operating Revenues		$	27,236,435			$	45,851,335			$	41,194,668			$	93,910			$	-			$	114,376,348
Cost of Revenues			14,432,722				14,931,320				9,701,996				-				-				39,066,038
Gross Margin			12,803,713				30,920,015				31,492,672				93,910				-				75,310,310
Other Operating Expenses
Employee costs			9,265,087				8,621,513				14,546,120				-				1,851,856				34,284,576
Professional fees			1,116,729				290,820				507,448				706,417				1,496,508				4,117,922
General and administrative			3,098,548				4,042,182				6,904,287				165,035				1,672,560				15,882,612
Depreciation			180,380				5,311,586				11,417,378				-				110,913				17,020,257
Amortization			160,246				3,885,881				3,566,037				-				138,889				7,751,053
Accretion			-				204,101				13,775				-				-				217,876
(Gain) loss on disposition of assets			-				(76,985	)			41,146				-				-				(35,839	)
Total expenses			13,820,990				22,279,098				36,996,191				871,452				5,270,726				79,238,457
Segment (Loss) Income from Operations			(1,017,277	)			8,640,917				(5,503,519	)			(777,542	)			(5,270,726	)			(3,928,147	)
Interest expense			-				(1,662,174	)			(667,869	)			-				-				(2,330,043	)
Interest and dividend income			-				194,731				83,982				29,218				895,161				1,203,092
Equity in income of unconsolidated affiliates			1,853,386				-				-				-				4,691,285				6,544,671
Other investment income (loss)			301,915				-				-				(6,920,718	)			(13,255,466	)			(19,874,269	)
Noncontrolling interest in subsidiary (income) loss			-				-				(15,304	)			5,893,202				-				5,877,898
Income tax benefit			-				-				-				-				79,258				79,258
Net Income (Loss) Attributable to Common Stockholders		$	1,138,024			$	7,173,474			$	(6,102,710	)		$	(1,775,840	)		$	(12,860,488	)		$	(12,427,540	)
Segment adjusted EBITDA		$	(676,651	)		$	17,965,500			$	9,534,817			$	(777,542	)		$	(5,020,924	)		$	21,025,200
Capital expenditures		$	-			$	1,987,436			$	25,910,709			$	-			$	-			$	27,898,145

 

																						Total
Year Ended December 31, 2024		GIG				LMH				BOB				BOAM				Unallocated				Consolidated
Operating Revenues		$	23,851,450			$	45,153,076			$	39,098,228			$	172,147			$	-			$	108,274,901
Cost of Revenues			9,400,691				15,496,805				9,444,030				-				-				34,341,526
Gross Margin			14,450,759				29,656,271				29,654,198				172,147				-				73,933,375
Other Operating Expenses
Employee costs			8,499,669				7,812,497				15,541,832				766,064				5,526,131				38,146,193
Professional fees			487,447				223,165				850,528				754,253				2,582,751				4,898,144
General and administrative			2,647,495				4,033,121				7,418,184				562,824				1,576,030				16,237,654
Depreciation			154,897				5,151,286				9,078,651				-				110,913				14,495,747
Amortization			160,247				3,902,738				3,509,856				-				111,111				7,683,952
Accretion			-				204,659				13,813				-				-				218,472
Loss on disposition of assets			-				63,455				657,236				-				-				720,691
Total expenses			11,949,755				21,390,921				37,070,100				2,083,141				9,906,936				82,400,853
Segment Income (Loss) from Operations			2,501,004				8,265,350				(7,415,902	)			(1,910,994	)			(9,906,936	)			(8,467,478	)
Interest expense			-				(1,547,124	)			(51,124	)			-				-				(1,598,248	)
Interest and dividend income			-				136,908				19,105				536,524				693,347				1,385,884
Equity in loss of unconsolidated affiliates			-				-				-				-				(17,283,281	)			(17,283,281	)
Other investment income			218,015				-				-				7,815,912				21,025,790				29,059,717
Noncontrolling interest in subsidiary income			-				-				-				(4,599,100	)			(64,765	)			(4,663,865	)
Income tax benefit			-				-				-				-				274,821				274,821
Net Income (Loss) Attributable to Common Stockholders		$	2,719,019			$	6,855,134			$	(7,447,921	)		$	1,842,342			$	(5,261,024	)		$	(1,292,450	)
Segment adjusted EBITDA		$	2,816,148			$	17,587,488			$	5,843,654			$	(1,910,994	)		$	(9,684,912	)		$	14,651,384
Capital expenditures		$	28,951			$	2,462,001			$	29,460,239			$	-			$	250,000			$	32,201,191

 

 

																						Total
As of December 31, 2024		GIG				LMH				BOB				BOAM				Unallocated				Consolidated
Accounts receivable, net		$	7,224,005			$	4,132,055			$	893,476			$	184,051			$	-			$	12,433,587
Goodwill			11,325,138				130,903,950				39,614,422				536,626				-				182,380,136
Total assets			86,670,669				260,220,162				198,226,268				52,593,429				130,635,201				728,345,729