COMMITMENTS AND CONTINGENCIES
Contractual Obligations
The Company has entered into certain off–balance sheet commitments that require the future purchase of goods or services (“unconditional purchase obligations”). The Company’s unconditional purchase obligations primarily consist of supplier arrangements. Future payments under unconditional purchase obligations with a remaining term in excess of one year as of December 31, 2025, are as follows:
| | | | | | | | |
| (Dollars in thousands) | | Unconditional Purchase Obligations |
| For the Year Ended December 31, | |
| | |
| 2026 | | $ | 1,316 | |
| 2027 | | 1,298 | |
| 2028 | | 190 | |
| 2029 | | — | |
| 2030 | | — | |
| Thereafter | | — | |
| Total | | $ | 2,804 | |
Other Commitments
We have various letters of credit ("LOCs") outstanding with multiple state agencies which are considered to be immaterial to the Consolidated Financial Statements. The LOCs typically have one to three-year contract requirements and contain automatic renewal terms.
Loss Contingencies
The Company evaluates contingencies on an ongoing basis and establishes loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. As part of this evaluation, no loss contingencies were identified for the years ended December 31, 2025, 2024 and 2023.
Legal Contingencies
We are involved, from time to time, in lawsuits arising in the normal course of business. We believe the potential outcomes from these lawsuits will not have a material adverse impact on our financial position or results of operations.
Operating Leases
We have operating leases for office and transmitter locations. Substantially all of these leases have lease terms ranging from one month to five years. We continue to review our office and transmitter locations, and intend to replace, reduce or consolidate leases, where possible.
Future minimum lease payments under non-cancelable operating leases at December 31, 2025, were as follows:
| | | | | | | | |
| (Dollars in thousands) | | Operating Leases |
| For the Year Ended December 31, | |
| | |
| 2026 | | $ | 2,676 | |
| 2027 | | 2,086 | |
| 2028 | | 1,464 | |
| 2029 | | 538 | |
| 2030 | | 410 | |
| Thereafter | | 580 | |
| Total | | $ | 7,754 | |
These leases typically include renewal options and escalation clauses. Where material, we recognize rent expense on a straight-line basis over the lease period.
Total rent expense under operating leases for the years ended December 31, 2025, 2024 and 2023 was approximately $10.7 million, $13.0 million and $13.8 million, respectively.