BOSTON OMAHA Corp

BOSTON OMAHA CORPORATION

For the Six Months Ended June 30, 2026 and 2025

**NOTE1. **ORGANIZATION AND BACKGROUND

Boston Omaha Corporation ("Boston Omaha," the "Company," "we," "us," and "our") was organized on* August 11, 2009with present management taking over operations in February 2015.*Our operations include (i) our outdoor advertising business with multiple billboards across Alabama, Arkansas, Florida, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, Nevada, Oklahoma, South Dakota, Tennessee, Virginia, West Virginia, and Wisconsin; (ii) our insurance business that specializes in surety bond underwriting and brokerage; (iii) our broadband business that provides high-speed broadband services to its customers; (iv) our asset management business; and (v) our minority investments primarily in real estate, real estate services, private aviation infrastructure, and banking. Our billboard operations are conducted through our subsidiary, Link Media Holdings, LLC, our insurance operations are conducted through our subsidiary, General Indemnity Group, LLC, our broadband operations are conducted through our subsidiary, Boston Omaha Broadband, LLC, and our asset management operations are conducted through our subsidiary, Boston Omaha Asset Management, LLC.

We completed an acquisition of an outdoor advertising business and entered the outdoor advertising industry on* June 19, 2015.From2015* through2025, we have completed more thantwenty additional acquisitions of outdoor advertising businesses.

In* September 2015,we established an insurance subsidiary, General Indemnity Group, LLC, which we refer to as “GIG.” On April 20, 2016,we completed an acquisition of a surety bond brokerage business. On December 7, 2016,we acquired a fidelity and surety bond insurance company. From2017* through2025, we completedfour additional acquisitions of surety brokerage businesses. On* May 18, 2026,Boston Omaha and CopperPoint Insurance Company, an Arizona insurance company (“CopperPoint”), entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”), pursuant to which, among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Securities Purchase Agreement, CopperPoint will acquire100%* of the equity interests in GIG. The transaction is structured as an all-cash transaction with a purchase price of approximately $84.3 million. Approximately 93% of the net sale proceeds will be distributed to Boston Omaha, with the remaining net sale proceeds payable to GIG’s senior management. The purchase price is payable at the closing of the transaction, less expenses of the transaction, including investment banking fees, professional fees, and other costs of the transaction. A portion of the purchase price will be held in escrow for a period oftwo years from the closing of the transaction in accordance with the terms of an escrow agreement to be signed at closing (the "Escrow Agreement"). CopperPoint's recourse against the sellers for post-closing indemnification claims is capped under the Securities Purchase Agreement at $5,250,000, subject to customary exceptions. There isno financing contingency.

On* March 10, 2020,we completed the acquisition of a rural broadband internet provider located in Arizona. On December 29, 2020,we completed the acquisition of asecond* broadband internet provider located in Utah. On* April 1, 2022,we completed the acquisition of ourthird* broadband internet provider located in Utah.

On* September 25, 2020,we filed a Registration Statement on Form S-1 with the Securities and Exchange Commission for a proposed initial public offering of units of a special purpose acquisition company, which we refer to as the “SPAC,” named Yellowstone Acquisition Company, which we refer to as “Yellowstone.” Yellowstone completed its initial public offering on October 26, 2020,and on January 25, 2022completed a business combination with Sky Harbour Group, and Yellowstone changed its name to Sky Harbour Group Corporation (see Note7* for further discussion).

**NOTE2. **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The information included in the foregoing interim condensed consolidated financial statements is unaudited. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods arenot necessarily indicative of the results to be expected for the entire year. These interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto included in the2025 Form10-K. Subsequent events, if any, are evaluated through the date on which the financial statements are issued.

Consolidation Policy

The financial statements of Boston Omaha Corporation include the accounts of the Company and our consolidated subsidiaries, which are comprised of voting interest entities in which we have a controlling financial interest and variable interest entities for which we have determined that we are the primary beneficiary. All intercompany profits, losses, transactions, and balances have been eliminated in consolidation.

Variable Interest Entities (VIEs)

We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. Our determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk basedfirst on a qualitative analysis, and then a quantitative analysis, if necessary.

We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in the VIE. Determining which reporting entity, if any, has a controlling financial interest in a VIE is primarily a qualitative approach focused on identifying which reporting entity has both: (i) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance; and (ii) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment.

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We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, butnot limited to, the ability to direct operating decisions and activities. In addition, we consider the rights of other investors to participate in those decisions. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion continually. We consolidate any VIE of which we are the primary beneficiary. Such VIEs consist of24th Street Fund I and24th Street Fund II, collectively “the24th Street Funds,” and Fund One Boston Omaha Build for Rent LP, which we refer to as "BFR".

Total assets of the consolidated VIEs included within our Condensed Consolidated Balance Sheets were approximately $20 million and $32 million as of* June 30, 2026* and* December 31, 2025,respectively. Total liabilities of the consolidated VIEs included within our Condensed Consolidated Balance Sheets were approximately $37 thousand and $2 thousand as of June 30, 2026* and* December 31, 2025,respectively. As of June 30, 2026* and* December 31, 2025,the aggregate fair value of the24th* Street Funds’ and BFR's investments in special purpose entities was approxim ately $19 million and $24.3 million, respectively. During thefirst two quarters of2026**, the24th Street Funds’ and BFR's investments in special purpose entities recognized other investment loss of approximately $1.2 million and made distributions to the funds of approximately $4.2 million. The assets of the consolidated VIEs* may*only be used to settle obligations of the same VIE.

Our consolidated subsidiaries at* June 30, 2026* include:

Link Media Holdings, LLC which we refer to as “LMH" and “Link”

Link Media Alabama, LLC which we refer to as “LMA”

Link Media Florida, LLC which we refer to as “LMF”

Link Media Wisconsin, LLC which we refer to as “LMW”

Link Media Georgia, LLC which we refer to as “LMG”

Link Media Midwest, LLC which we refer to as “LMM”

Link Media Omaha, LLC which we refer to as “LMO”

Link Media Properties, LLC which we refer to as “LMP”

Link Media Southeast, LLC which we refer to as “LMSE”

Link Media Services, LLC which we refer to as “LMS”

Link Billboards Oklahoma, LLC which we refer to as “LBO”

General Indemnity Group, LLC which we refer to as “GIG”

United Casualty and Surety Insurance Company which we refer to as “UCS”

BOSS Bonds Insurance Agency, LLC, which we refer to as "BOSS Bonds", formerly known as South Coast Surety Insurance Services, LLC, which we refer to as “SCS”

Boston Omaha Investments, LLC which we refer to as “BOIC”

Boston Omaha Asset Management, LLC which we refer to as “BOAM”

Fund One Boston Omaha Build for Rent LP which we refer to as “BFR”

BOAM BFR, LLC which we refer to as “BOAM BFR”

BOC Business Services, LLC which we refer to as “BBS”

BOC Yellowstone, LLC which we refer to as “BOC Yellowstone”

BOC Yellowstone II, LLC which we refer to as “BOC Yellowstone II”

24th Street Asset Management LLC which we refer to as*“24th* Street”

24th Street Fund I, LLC which we refer to as*“24th* Street Fund I”

24th Street Fund II, LLC which we refer to as*“24th* Street Fund II”

Boston Omaha Broadband, LLC which we refer to as “BOB”

FIF AireBeam, LLC which we refer to as “AireBeam”

Fiber Fast Homes, LLC which we refer to as “FFH”

FIF Utah, LLC which we refer to as “FIF Utah”

FIF St George, LLC which we refer to as “FIF St George” or "InfoWest"

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Discontinued Operations

During thesecond quarter of2026, the Company entered into a Securities Purchase Agreement to sell our insurance subsidiary, GIG, and met the requirements to report GIG as held for sale on the condensed consolidated balance sheets, and as discontinued operations on the condensed consolidated statements of operations. Accordingly, the consolidated financial statements for all periods presented reflect the results of the insurance operation as a discontinued operation. Upon classification as held for sale, the disposal group is measured at the lower of its carrying amount or fair value less cost to sell. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Unaudited Consolidated Financial Statements relate to the Company's continuing operations. Refer to Note14. Discontinued Operations for further details.

Revenues

The majority of our advertising revenues are derived from contracts for advertising space on billboard structures and broadband internet services and are accounted for under Financial Accounting Standards Board, which we refer to as the “FASB,” Accounting Standards Codification, which we refer to as “ASC,”606*,* Revenue from Contracts with Customers,and under ASC842, Leases.

Revenue Recognition

Billboard Rentals

We generate revenue from outdoor advertising through the leasing of advertising space on billboards. The terms of the contracts range from less thanone month tothree years and are generally billed monthly. Revenue for advertising space rental is recognized on a straight-line basis over the term of the contract. Advertising revenue is reported net of agency commissions. Agency commissions are calculated based on a stated percentage applied to gross billing revenue for operations. Payments received in advance of being earned are recorded as deferred revenue.

Another component of billboard rentals consists of production services which include creating and printing advertising copy. Contract revenues for production services are accounted for under ASC606, Revenue from Contracts with Customers. Revenues are recognized at a point in time upon satisfaction of the contract, which is typically less thanone week.

Practical expedients and exemptions: The Company is utilizing the following practical expedients and exemptions from ASC606. We generally expense sales commissions when incurred because the amortization period isone year or less. These costs are recorded within costs of billboard revenues exclusive of depreciation and amortization. We donot disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less thanone year. For contracts with customers which exceedone year, the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.

Deferred Revenues

We record deferred revenues when cash payments are received in advance of being earned or when we have an unconditional right to consideration before satisfying our performance obligation. The term between invoicing and when a payment is due isnot significant. For certain services we require payment before the product or services are delivered to the customer. The balance of deferred revenue is considered short-term and will be recognized in revenue withintwelve months.

Broadband Revenues

Broadband revenue is derived principally from internet services and is recognized on a straight-line basis over the term of the contract in the period the services are rendered. Revenue received or receivable in advance of the delivery of services is included in deferred revenue.

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Recently Issued Accounting Pronouncements

In* November 2024,the FASB issued ASU2024*-03, Disaggregation of Income Statement Expenses, which requires disclosures about specific types of expenses included in expense captions presented on the face of the Condensed Consolidated Statement of Operations. This guidance is effective for public entities for fiscal years beginning after* December 15, 2026.*We are currently reviewing this guidance and its impact on our condensed consolidated financial statements.

In* November 2025**,* the FASB issued ASU2025-11*,* Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies certain aspects of interim reporting guidance, including the application of existing recognition and disclosure requirements in interim periods. The amendments are intended to improve the consistency and clarity of interim reporting practices. The amendments in ASU2025-11 are effective for fiscal years beginning after* December 15, 2026**.* We are currently reviewing this guidance and its impact on our condensed consolidated financial statements.

In* December 2025**,* the FASB issued ASU2025-12*,* Codification Improvements, which amends various sections of the Accounting Standards Codification to correct errors, clarify guidance, and make other incremental improvements to GAAP. The amendments address a wide range of topics including earnings per share, beneficial interests, transfers of receivables, treasury stock accounting, and certain disclosure requirements. The amendments are effective for fiscal years beginning after* December 15, 2026**.* We are currently reviewing this guidance and its impact on our consolidated financial statements.

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**NOTE3. **CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

The following table sets forth a reconciliation of cash, cash equivalents, and restricted cash reported in the Condensed Consolidated Balance Sheets that agrees to the total of those amounts as presented in the Condensed Consolidated Statements of Cash Flows.

**NOTE4. **ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

**NOTE5. **PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

Depreciation expense for thesix months ended* June 30, 2026and2025* was $8.9 million and $8.1 million, respectively.

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**NOTE6. **INTANGIBLE ASSETS

Intangible assets consist of the following:

Future Amortization

The future amortization associated with the intangible assets is as follows:

Amortization expense for thesix months ended* June 30, 2026and2025* was $3.7 million and$3.8 million, respectively.

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NOTE6. INTANGIBLE ASSETS (Continued)

As of* June 30, 2026*, the weighted average amortization period, in months, for intangible assets is as follows:

NOTE7. INVESTMENTS**, INCLUDING INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD**

Short-term Investments

Short-term investments consist of common stock warrants. Our common stock warrants of Sky Harbour Group Corporation are measured at fair value, with any unrealized holding gains and losses during the period included in "Other investment income (loss)" within our Condensed Consolidated Statements of Operations.

Our marketable equity securities are publicly traded stocks measured at fair value using quoted prices for identical assets in active markets and classified as Level1 within the fair value hierarchy. Marketable equity securities as of* June 30, 2026and December 31, 2025*are as follows:

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U.S. Treasury Trading Securities

We classify our investments in debt securities that are bought and held principally for the purpose of selling them in the near term as trading securities. Our debt securities classified as trading are carried at fair value in the Condensed Consolidated Balance Sheets, with the change in fair value during the period included in earnings. Interest income is recognized at the coupon rate.

Debt securities classified as trading as of* June 30, 2026* and* December 31, 2025* are as follows:

Long-term Investments

Long-term investments consist of investments in special purpose entities and equity investments intwo private companies.

24th Street Fund I &24th Street Fund II

On* May 1, 2023,our subsidiary, Boston Omaha Asset Management, LLC, acquired 100% of the membership interests in24th* Street Asset Management LLC, from the members of24th Street other than BOAM, for cash and BOC Class A common stock for a total purchase price of approximately $5 million in the aggregate. Prior to the transaction, BOAM indirectly owned 48% of the membership interests of24th Street. The consideration consisted of approximately $2.7 million in cash at closing, an additional $1.3 million in cash subject to holdback, and 45,644 shares of BOC Class A common stock.

Each of the24th Street Funds holds investments in special purpose entities whose primary assets are real estate property. We include the24th Street Funds’ investments in special purpose entities within long-term investments in our Condensed Consolidated Balance Sheets.

Equity Investments

During* May 2018,we invested approximately $19 million in voting common stock of CB&T Holding Corporation, which we refer to as “CB&T,” the privately held parent company of Crescent Bank & Trust, Inc. Our investment represents 15.6% of CB&T’s outstanding common stock. CB&T is a closely held corporation, whose majority ownership rests withone* family.

In* July 2023,we invested approximately $3 million in voting preferred stock of MyBundle.TV Inc., which we refer to as “MyBundle.” The preferred stock hasone* vote per share and is convertible into whole shares of common stock, determined according to the conversion formula contained in MyBundle’s amended and restated articles of incorporation.

We reviewed our investments as of* June 30, 2026* and* December 31, 2025and concluded thatno* impairment to the carrying value was required.

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Investment in Unconsolidated Affiliates

We have various investments in equity method affiliates, whose businesses are in real estate, real estate services, and private aviation infrastructure. One of the investments in affiliates, Logic Real Estate Companies, LLC, which we refer to as “Logic,” is managed by an entity controlled by a member of our board of directors.

Sky Harbour Group Corporation

In* October 2020,our subsidiary BOC Yellowstone, LLC, served as sponsor for the underwritten initial public offering of a special purpose acquisition company named Yellowstone Acquisition Company. Yellowstone sold in its public offering 13,598,898 units at a price of $10.00 per unit, each unit consisting ofone share of Class A common stock and a redeemable warrant to purchaseone-half of a share of Class A common stock at an exercise price of $11.50 per share. Between Augustand November 2020,we invested, through BOC Yellowstone, approximately $7.8 million through the purchase of 3,399,724 shares of Class B common stock and 7,719,779 non-redeemable private placement warrants (the "private placement warrants"), each warrant entitling us to purchaseone share of Class A common stock at $11.50 per share. BOC Yellowstone, as the sponsor of Yellowstone and under the terms of the public offering, owned approximately 20% of Yellowstone’s issued and outstanding common stock. The purpose of the offering was to pursue a business combination in an industry other than thethree* industries in which we owned and operated businesses at that time: outdoor advertising, surety insurance, and broadband services businesses.

On* August 1, 2021,Yellowstone entered into a business combination agreement with Sky Harbour LLC (“SHG”), a developer of private aviation infrastructure focused on building, leasing, and managing business aviation hangars. On September 14, 2021,*our subsidiary BOC YAC Funding LLC completed the previously announced investment of $55 million in Series B Preferred Units of SHG. In addition to our $55 million investment, we also agreed to provide SHG an additional $45 million through the purchase of additional shares of Yellowstone Class A common stock at a price of $10 per share through a private placement investment (“PIPE”).

On* January 25, 2022,*Yellowstone completed the previously announced proposed business combination with SHG following stockholder approval. As a result, SHG became a consolidated subsidiary of Yellowstone and Yellowstone was renamed Sky Harbour Group Corporation, which we refer to as “Sky Harbour.” In connection with the business combination, our Series B Preferred Units of SHG converted into 5,500,000 shares of Sky Harbour Group Class A common stock at a price of $10 per share. Also, in connection with the business combination, we entered into a subscription agreement with Sky Harbour, pursuant to which Sky Harbour sold to us 4,500,000 shares of Class A common stock at a price of $10 per share, for total cash consideration of $45 million.

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On* November 2, 2023,Sky Harbour entered into a securities purchase agreement with certain investors, pursuant to which Sky Harbour agreed to sell and issue to the Investors at an initial closing an aggregate of 6,586,154 shares of the Company’s Class A common stock, par value $0.0001 per share and accompanying warrants to purchase up to an aggregate of 1,141,600 shares of Class A Common Stock, for an aggregate purchase price of approximately $42.8 million. On November 29, 2023,Sky Harbour sold and issued to the Investors an aggregate of 2,307,692 PIPE shares of the Company's Class A common stock, par value $0.0001 per share and accompanying PIPE warrants to purchase an aggregate of 400,000 shares of Class A Common Stock for an aggregate purchase price of $15 million. Together with thefirst* closing on* November 2, 2023,the aggregate PIPE financing through the Purchase Agreement totaled $57.8 million. In connection with Sky Harbour's financing transactions occurring in November 2023,*we recorded a dilution loss of approximately $2.2 million within ‘Equity in income of unconsolidated affiliates’ to reflect the decrease in our ownership of Sky Harbour's net assets.

On* October 25, 2024,Sky Harbour entered into a securities purchase agreement with certain investors, pursuant to which Sky Harbour agreed to sell and issue to the Investors at an initial closing an aggregate of 3,955,790 PIPE shares of its Class A Common stock for an aggregate purchase price of approximately $37.6 million. On December 20, 2024,Sky Harbour issued an additional 3,955,790 PIPE shares of its Class A Common Stock in connection with the exercise of all the rights to purchase additional shares provided to PIPE investors who participated in the October 2024closing for net proceeds of approximately $37.6 million, at a sale price of $9.50 per share. Aggregate proceeds from both closings were approximately $75.2 million, representing the full capacity of the equity raise. In connection with Sky Harbour's financing transactions occurring during thefourth* quarter of fiscal2024**, we recorded a dilution gain of approximately $5.1 million within ‘Equity in income of unconsolidated affiliates’ to reflect the change in our ownership of Sky Harbour's net assets.

All the shares of Sky Harbour Class A common stock and Sky Harbour warrants to purchase Class A common stock that we hold have been registered under the Securities Act. However, our ability to resell any significant portion of these shares is limited by the large number of shares and warrants we hold relative to the average trading volume of these securities, which* mayprevent us from selling shares as we retain control over the election ofone* seat on Sky Harbour’s Board of Directors. The terms of the Sky Harbour business combination prohibited us from selling any of our securities in Sky Harbour prior to* January 25, 2023,and have since expired. The carrying value of our investment in Sky Harbour’s Class A common stock as of June 30, 2026* is approximately $69.9 million. If our investment in Sky Harbour’s Class A common stock was accounted for at fair value based on its quoted market price as of * June 30, 2026* and* December 31, 2025,*it would be valued at approximately $111.6 million and $105 million, respectively.

The following table is a reconciliation of our investments in equity affiliates as presented in investments in unconsolidated affiliates on our Condensed Consolidated Balance Sheets, together with combined summarized financial data related to the unconsolidated affiliates:

Combined summarized financial data for these affiliates is as follows:

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**NOTE8. **FAIR VALUE

The fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value intothree broad levels:

Level1** — Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities.

Level2** — Inputs other than quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that arenot active or other inputs that are observable or can be corroborated by observable market data.

Level3** — Unobservable inputs that are supported by little orno market data and require the reporting entity to develop its own assumptions.

At* June 30, 2026* and* December 31, 2025*, our financial instruments included cash, cash equivalents, receivables, marketable securities, investments, accounts payable, and long-term debt. The carrying value of cash, cash equivalents, receivables, and accounts payable approximates fair value due to the short-term nature of the instruments (Level1 in the fair value hierarchy). The carrying value of borrowings under our billboard revolving line of credit facility as well as our broadband term loan facility approximates fair value because of the variable market interest rate charged to us for these borrowings (Level1 in the fair value hierarchy). The fair value of borrowings under our billboard term loan facilities is estimated using quoted prices for similar debt (Level2 in the fair value hierarchy). At* June 30, 2026*, the estimated fair value of our billboard term loan borrowings included within long-term debt was $24.4 million, which is less than the approximate carrying amount of $25.2 million. At* December 31, 2025*, the estimated fair value of our billboard term loan borrowings included within long-term debt was $24.7 million, which was less than the approximate carrying amount of $25.7 million.

Warrants

Our private placement warrants related to Sky Harbour are considered Level2 and measured at fair value using observable inputs for similar assets in an active market. Our re-measurement of the private placement warrants from* January 1, 2026to June 30, 2026* and* January 1, 2025to June 30, 2025,*resulted in a loss of approximately $1.4 million and a loss of $9.4 million, respectively, which are included in "Other investment income (loss)" within our Condensed Consolidated Statements of Operations.

Fund I, Fund II and BFR Special Purpose Entities

We report fund investments on our Condensed Consolidated Balance Sheets at their estimated fair value, with gains (losses) resulting from changes in fair value reflected within "Other investment income (loss)" in the accompanying Condensed Consolidated Statements of Operations. Each of the24th Street Funds’ and BFR's investments in special purpose entities invested in real estate are categorized in Level3 of the fair value hierarchy. The primary asset held by each special purpose entity is real estate property, for whichthird-party appraisals are obtained annually. Appraisals on the investments in special purpose entities used an income capitalization and/or comparable sales approach to value the underlying real estate property. The income capitalization approach used capitalization rates ranging from 5.43% to 6.62%. The comparable sales approach used observable market transactions to value the underlying real estate property.

As of* June 30, 2026* and* December 31, 2025,the estimated aggregate fair value of the24th* Street Funds’ and BFR's investments in special purpose entities was approxim ately $19 million and $24.3 million, respectively.

Marketable Equity Securities

On an investment life-to-date basis, we have realized net gains on the sale of equity securities within the marketable equity portfolio held at Boston Omaha of approximately $84 million. These amounts exclude any realized gains on equity securities held within the marketable equity portfolio managed by UCS.

Sky Harbour Group Corporation Class A common stock

We account for our 14.8% equity interest in Sky Harbour, comprised of 11,339,994 shares of Class A common stock, under the equity method. If our investment in Sky Harbour’s Class A common stock was accounted for at fair value based on its quoted market price as of * June 30, 2026*, it would be valued at approximately $111.6 million. As of * December 31, 2025*, our equity interest in Sky Harbour was 15.3% and was comprised of 11,671,494 shares of Class A common stock. If our investment in Sky Harbour’s Class A common stock was accounted for at fair value based on its quoted market price as of* December 31, 2025*, it would be valued at approximately $105 million.

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NOTE8. FAIR VALUE (Continued)

Marketable Equity Securities and U.S. Treasury Trading Securities

Marketable equity securities and U.S. Treasury trading securities are reported at fair values. Substantially all of the fair value is determined using observed prices of publicly traded securities, Level1 in the fair value hierarchy.

NOTE*9***.**ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations include the costs associated with the removal of structures, resurfacing of the land and retirement cost, if applicable, related to our outdoor advertising and broadband assets. The following table reflects information related to our asset retirement obligations:

NOTE10**.**CAPITAL STOCK

On* April 25, 2022,we filed a new shelf registration statement on Form S-3 (FileNo.* 333-264470) that was declared effective on* May 11, 2022,relating to the offering of Class A common stock, preferred stock, par value $0.001 per share, which we refer to as “preferred stock,” debt securities and warrants of the Company for up to $500 million (the"2022* Shelf Registration Statement"). Additionally, in the2022 Shelf Registration Statement, we registered for resale up to 8,297,039 shares of Class A common stock acquired in2018 or earlier in private placements in accordance with the terms of a2018 registration rights agreement. We willnot receive any proceeds from the sale of Class A common stock by the selling shareholders. The selling shareholders are the Massachusetts Institute of Technology, or “MIT,” as well as238 Plan Associates LLC, an MIT pension and benefit fund and a limited partnership holding our Class A common stock for the economic benefit of MIT. In* May 2022,we also registered 1,018,660 shares of Class A common stock held by Magnolia Group, LLC ("Magnolia") and Boulderado Partners, LLC ("Boulderado") and their affiliates. All of the shares held by Boulderado were repurchased by the Company in May 2024and, as a result, the remaining 522,231 shares of our Class A common stocknot* repurchased are available for resale under that registration statement. As of* June 30, 2026*, based upon filings by these shareholders with the SEC, and as it relates to shares held by Mr. Peterson, certain of our stockholders still hold 7,713,933 registered shares of our Class A common stock. This assumes that MIT continues to own all shares reflected in its Schedule13G/A filing with the SEC on* January 20, 2026.The2022* Shelf Registration Statement expired in* May 2025.*

On* July 23, 2024,the Board approved and authorized a share repurchase program (the“2024* Share Repurchase Program”), pursuant to which the Company could repurchase up to $20 million of its Class A common stock, from time to time, in the open market, privately negotiated transactions, or otherwise in compliance with Rule10b-18 under the Securities Exchange Act of1934. The Board also authorized the Company, in its discretion, to establish “Rule10b5-1 trading plans” for these share repurchases. The2024 Share Repurchase Program went into effect on or about* August 15, 2024,following the release of the quarterly report on Form10*-Q for the quarter ended* June 30, 2024and terminated on September 30, 2025.On November 14, 2025,the Board approved and authorized a share repurchase program (the“2025* Share Repurchase Program”), pursuant to which we announced our intention to repurchase up to $30 million of our Class A common stock, from time to time, in the open market, privately negotiated transactions, or otherwise in compliance with Rule10b-18 under the Securities Exchange Act of1934. The Board also authorized the Company, in its discretion, to establish “Rule10b5-1 trading plans” for these share repurchases. The2025 Share Repurchase Program went into effect on or about* November**18,* 2025 and will terminate on* December 31, 2026,unless earlier terminated in the discretion of the Board. The actual timing, number, and value of shares repurchased under the2025* Share Repurchase Program will depend on a number of factors, including constraints specified in applicable SEC regulations, price, general business and market conditions, and alternative investment opportunities. Pursuant to the2025 Share Repurchase Program, the Company isnot obligated to repurchase any specific number of shares of its Class A common stock and shallnot repurchase more than 25% of the average daily volume of its stock over the previous20 trading days. During2024, we repurchased 111,323 shares of our Class A common stock for a total cost of approximately $1.6 million under the2024 Share Repurchase Program. We didnot repurchase any shares in2025 under the2024 Share Repurchase Program due to numerous blackout periods during thefirst nine months of2025. During the year ended* December 31, 2025,we repurchased 444,753 shares of our Class A common stock for a total cost of approximately $5.8 million under the2025* Share Repurchase Program. During thesix months ended* June 30, 2026*, we repurchased 826,567 shares under the2025 Share Repurchase Program at a total cost of approximately $10.6 million.

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NOTE10**.CAPITAL STOCK (Continued)**

As of* March 31, 2025,there were 784 outstanding warrants for our Class A common stock. These warrants expired in Juneof2025.* As a result, there wereno outstanding warrants for our Class A common stock as of* June 30, 2026*.

On* January 10, 2025,Magnolia Capital Fund, LP ("MCF") exercised, in full, Class B warrants, issued in2015* and expiring in* June 2025,to purchase shares of our Class B common stock. Under the terms of the warrants, MCF purchased 52,778 shares of Class B common stock at an exercise price of approximately $525 thousand paid in cash. Following this transaction, there wereno* other warrants outstanding issued by BOC to purchase Class B common stock as of* March 31, 2025.*Each share of Class B common stock is identical to Class A common stock in liquidation, dividend and similar rights. The only differences between our Class B common stock and our Class A common stock are that each share of Class B common stock has 10 votes for each share held, while the Class A common stock has a single vote per share, and certain actions cannot be taken without the approval of the holders of the Class B common stock.

Separation Agreement with Alex Rozek

Separation and Benefits

On* May 9, 2024,the Company, Alex B. Rozek, and certain other parties set forth therein, entered into a Separation and Stock Repurchase Agreement (the “Separation Agreement”). Effective as of May 9, 2024,Mr. Rozek resigned as an officer and director of the Company and all its direct and indirect subsidiaries. Mr. Rozek continues to serve as a member of the board of directors of Sky Harbour. All amounts due and payable to Mr. Rozek were paid in2024* and2025 andno severance, expense reimbursement, or other sums are due to Mr. Rozek in2026 or beyond under the Separation Agreement.

Securities Repurchase

Pursuant to the Separation Agreement, the Company repurchased from Mr. Rozek and Boulderado Partners, LLC, an entity controlled by Mr. Rozek, in the aggregate,210,000 shares of Company Class A Common Stock,527,780 shares of Company Class B Common Stock, and 51,994 warrants to acquire 51,994 shares of Company Class B Common Stock.

The price of the Class A shares repurchased was based on the30-trading day volume-weighted average price of the Class A Common Stock for the30 trading days endingtwo trading days prior to the execution of the Separation Agreement. The price of the Class B shares repurchased was based on the30-trading day volume-weighted average price of the Class A Common Stock for the30 trading days endingtwo trading days prior to the execution of the Separation Agreement plus a blocking/control premium, for which management employed athird-party valuation expert.

The aggregate purchase price paid to Mr. Rozek was approximately $9.2 million, comprised of cash payments of $8.8 million and 36,705 shares of Class A Common Stock of Sky Harbour. The aggregate purchase price paid to Boulderado was approximately $10 million, comprised of cash payments of approximately $8 million and 194,738 shares of Class A Common Stock of Sky Harbour.

Separation and Benefits

Pursuant to the Separation Agreement, (a) in2024, we transferred to Mr. Rozek 200,000 shares of Class A Common Stock, par value $0.0001 of Sky Harbour, as consideration for his efforts in connection with the successful launch of Sky Harbour, (b) Mr. Rozek received severance of $960 thousand, which was paid in equal monthly installments for a period of18 months, and (c) Mr. Rozek received employee benefits of $75 thousand, which was paid in equal monthly installments for a period of18 months, each of which are included within "Employee costs" within our Consolidated Statements of Operations for the year ended* December 31, 2024.*

Mr. Rozek agreed to customary non-solicitation, non-competition, confidentiality, cooperation, and return of property covenants. As consideration for entering into a non-competition agreement, we paid Mr. Rozek $250 thousand.

In addition, Mr. Rozek and the named executive officers and board of directors of the Company agreed to a mutual non-disparagement covenant, and the Company agreed, subject to certain conditions, to retain Mr. Rozek as its representative on the board of directors of Sky Harbour until* December 31, 2026.*

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NOTE11. LONG-TERM DEBT

Link Credit Facility

On* August 12, 2019,Link entered into a Credit Agreement (the “Credit Agreement”) with First National Bank of Omaha (the “Lender”) under which Link could borrow up to $40 million (the “Credit Facility”). The Credit Agreement provided an initial term loan (“Term Loan1”), an incremental term loan (“Term Loan2”) and a revolving line of credit. Link initially borrowed approximately $18 million under Term Loan1* and $5.5 million under Term Loan2. These loans are secured by all assets of Link and its operating subsidiaries, including a pledge of equity interests of each of Link’s subsidiaries. In addition, each of Link’s subsidiaries has joined as a guarantor to the obligations under the Credit Agreement. These loans arenot guaranteed by BOC or any of BOC’s non-billboard businesses.

On* December 6, 2021,Link entered into a Fourth Amendment to the Credit Agreement with the Lender which modified the original Credit Agreement by merging all outstanding principal amounts under both Term Loan1* and Term Loan2 intoone term loan (the “Term Loan”) having a fixed interest rate of 4.00% per annum, and increasing the total Term Loan borrowing limit to $30 million.

On* May 31, 2022,Link entered into a Fifth Amendment to the Credit Agreement with the Lender which modified the Credit Agreement by extending the period of time under which Link mayissue to BOC a cash dividend from January 31, 2022to June 30, 2022*in the amount up to approximately $8.1 million in the aggregate.

On* April 6, 2023,Link entered into a Sixth Amendment to Credit Agreement (the “Sixth Amendment”) with the Lender. The Sixth Amendment modifies the Credit Agreement to provide additional flexibility for Link in making “Investment Capital Expenditures” byno* longer deducting expenditures which qualify as Investment Capital Expenditures from EBITDA in calculating the Consolidated Fixed Charge Coverage Ratio. As a result, only “Maintenance Capital Expenditures” shall be deducted from EBITDA in testing the Consolidated Fixed Charge Coverage Ratio. The amount of unfunded Investment Capital Expenditures (Investment Capital Expenditures other than expenditures funded by BOC) allowable during any test period shallnot exceed the Investment Capital Expenditure Available Amount during such test period.

On* September 22, 2023,*Link entered into a Seventh Amendment to the Credit Agreement with the Lender which modified the Credit Agreement by increasing the maximum availability under the revolving line of credit loan facility from $5 million to $10 million.

On* February 14, 2024,*Link entered into an Eighth Amendment to the Credit Agreement with the Lender which modified the Credit Agreement to provide additional flexibility for Link to issue dividends to BOC.

On* May 30, 2024,*Link entered into a Ninth Amendment to the Credit Agreement with the Lender which modified the Credit Agreement by increasing the maximum availability under the revolving line of credit loan facility from $10 million to $15 million.

On* October 20, 2025,Link entered into a Tenth Amendment to Credit Agreement, which modified the Credit Agreement by extending the revolving line of credit maturity date and updating the definition of the consolidated fixed charge coverage ratio. The revolving line of credit is now due and payable on August 12, 2029**.* In order to consolidate the various amendments to the Credit Agreement, the Tenth Amendment to Credit Agreement incorporated the previous amendments to the Credit Agreement into a Restated Credit Agreement.

As of* June 30, 2026*, Link has borrowed $30 million through the Term Loan under the Credit Facility. Principal amounts under the Term Loan are payable in monthly installments according to a25-year amortization schedule. Principal payments commenced on* July 1, 2020for amounts previously borrowed under Term Loan1* and* October 1, 2020for amounts previously borrowed under Term Loan2.* The Term Loan is payable in full on* December 6, 2028.*

The revolving line of credit loan facility has a $15 million maximum availability. Interest payments are based on the30-day U.S. Prime Rate minus an applicable margin ranging between 0.65% and 1.15% dependent on Link’s consolidated leverage ratio.

Long-term debt included within our Condensed Consolidated Balance Sheets as of* June 30, 2026* consists of Term Loan borrowings of approximately $25.2 million, of which approximately $0.9 million is classified as current. As of* June 30, 2026*, there was $9.1 million outstanding related to the revolving line of credit, which is included within long-term debt in our Condensed Consolidated Balance Sheets.

During the term of the Credit Facility, Link is required to comply with the following financial covenants: A consolidated leverage ratio for any test period ending on the last day of any fiscal quarter of Link (a) beginning with the fiscal quarter ended* June 30, 2024ofnot* greater than 3.50 to1.00, (b) beginning with the fiscal quarter ending* December 31, 2026ofnot* greater than 3.25 to1.00 and (c) beginning with the fiscal quarter ending* December 31, 2027and thereafter ofnot* greater than 3.00 to1.00, and a minimum consolidated fixed charge coverage ratio ofnot less than 1.15 to1.00 measured quarterly, based on rollingfour quarters. Link was in compliance with these covenants as of* June 30, 2026*.

The Credit Agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default, the Lender* may*accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default, the loans will automatically accelerate.

The aggregate minimum principal payments required under the term loan as of* June 30, 2026were as follows: $905 thousand in2026**,* $939 thousand in2027**, and $23.4 million in2028**.

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NOTE11. LONG-TERM DEBT (Continued)

Boston Omaha Broadband Credit Facility

On* September 17, 2024,three operating subsidiaries of BOB entered into a Credit Agreement (the “BOB Credit Agreement”) with First National Bank of Omaha (the “Lender”) under which certain subsidiaries of BOB can borrow up to $20 million in the aggregate in term loans (the “BOB Credit Facility”). Thethree operating subsidiaries which are the borrowers under the BOB Credit Agreement are FIF AireBeam, LLC, FIF St George, LLC, and FIF Utah, LLC (collectively, the “Borrowers”). The loan is guaranteed by BOB but isnot* guaranteed by BOC or any other businesses owned by BOC and its other subsidiaries. The loans under the BOB Credit Facility are secured by all assets of each of the Borrowers. Funds available under the BOB Credit Facility are to be used for capital expenditures associated with capital acquisition and leasing of capital equipment for expansion of the Borrowers’ businesses and had to be drawn by* December 31, 2025.*The BOB Credit Agreement was subsequently split into separate credit agreements with each of the Borrowers in order to allow certain borrowers to apply for federal loan funding, hereinafter referred to as the "BOB Credit Agreements." All material terms of the original BOB Credit Agreement remain unchanged in the Amended and Restated Credit Agreement for FIF AireBeam, LLC and FIF St George, LLC and the Credit Agreement for FIF Utah, LLC.

The BOB Credit Agreements provided for incremental drawdowns of the term loan in minimum increments of $1 million. Each term loan is duefive years following the borrowing date of such term loan. Principal under each term loan is amortized in equal monthly payments over a 10-year period from the date of each term loan. Interest under each term loan accrues at the “Applicable Margin,” which is set at (a)2.75% per annum with respect to any SOFR Loan, and (b)1.75% per annum with respect to any Base Rate Loan. There was a fee during thefirst year of the BOB Credit Facility equal to 0.25% of any unused portion of the $20 million loan commitment. As of* June 30, 2026*, the outstanding term loan end dates range from* October 1, 2029to November 18, 2030.*

Pursuant to the BOB Credit Agreements, BOB is required to comply with the following financial covenants: A consolidated leverage ratio for any test period ending on the last day of any fiscal quarter of BOB ofnot greater than 3.50 to1.00, a minimum consolidated fixed charge coverage ratio ofnot less than 1.15 to1.00 measured quarterly, based on rollingfour quarters, and maximum capital expendituresnot exceeding Consolidated Adjusted EBITDA less dividends and distributions paid to BOB, the cash portion of taxes, unfinanced maintenance capital expenditures, principal amortization payments or redemptions on indebtedness to be paid in cash, cash payments made with respect to capital lease obligations during the period, and cash interest expense for the period.

The BOB Credit Agreements include representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants, and events of default customary for financings of this type. Upon the occurrence of an event of default, the Lender* mayaccelerate the loan. Upon the occurrence of certain insolvency and bankruptcy events of default, the loan will automatically accelerate. All assets of the Borrowers, their Subsidiaries and BOB are secured by the grant of a security interest in substantially all their assets to the Lender. BOB was in compliance with these covenants as of June 30, 2026*.

As of* June 30, 2026*, there was approximately $13.2 million outstanding under the BOB Credit Agreements, of which approximately $1.5 million is classified as current. The aggregate minimum principal payments required under the BOB Credit Agreements as of* June 30, 2026* were as follows: $1.5 million in2026**, $1.5 million in2027**, $1.5 million in2028, $1.5 million in2029, and approximately $7.2 million thereafter*.*

As previously announced on a Form8-K filed by the Company with the SEC on* June 15, 2026,on June 9, 2026,FIF Utah, a wholly owned subsidiary of BOB, received final funding approval from the United States Department of Agriculture of a grant and loan award under the Rural Utilities Service ReConnect Program (the "ReConnect Program"). The loan and grant are each for approximately $11.5 million. Award funds may*be used to pay for the following costs: (i) to fund the construction or improvement of facilities required to provide fixed terrestrial broadband service; (ii) to fund reasonable pre-application expenses; and (iii) to fund the acquisition and improvement of an existing system that is currently providing insufficient broadband service.

Under the terms of the Loan and Grant Agreement, the loan (the "ReConnect Loan") will be in the form of long-term debt available as requested by BOB in multiple drawdowns over a periodnot to exceedfive years from the date of the award, with plans to use such funds to deploy fiber to approximately3,000 locations within FIF Utah's surrounding qualifying markets. The loan portion is a22-year term loan (the "Promissory Note") secured by certain collateral of FIF Utah under the applicable U.S. Treasury rate then in effect at the time of drawdown and subject to customary events of default and remedies. Interest and principal payments are deferred for a period ofthree years from the specific drawdown with accrued interest amortized over the remaining terms of the loan. The Company, as the ultimate parent of FIF Utah, has unconditionally guaranteed any sums due under the ReConnect Loan and the ReConnect Program (the "ReConnect Guarantee"). Each of the Loan and Grant Agreement and the ReConnect Guarantee contain customary representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings under the ReConnect Program. Upon the occurrence of an event of default, the lender* mayaccelerate all sums due under the ReConnect Loan. Upon the occurrence of certain insolvency and bankruptcy events of default, the ReConnect Loan will automatically accelerate. The foregoing summary of each of the Loan and Grant Agreement, the ReConnect Promissory Note and the Guarantee Agreement and the transactions contemplated thereby doesnot* purport to be a complete description and is qualified in its entirety by reference to the terms and conditions as set forth in the Loan and Grant Agreement attached as Exhibit10.1 to this Form10-Q, the Promissory Note attached hereto as Exhibit10.2 to this Form10-Q, and the Guarantee Agreement attached as Exhibit10.3 to this Form10-Q. As of* June 30, 2026*, FIF Utah hadnot borrowed any sums due under the ReConnect Loan.

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NOTE*12***.**LEASES

We enter into operating lease contracts primarily for land and office space. Agreements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases include land lease contracts and contracts for the use of office space.

Right of use assets, which we refer to as “ROU assets,” represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term.

Certain of our operating lease agreements include rental payments based on a percentage of revenue and others include rental payments adjusted periodically for inflationary changes. Percentage rent contracts, in which lease expense is calculated as a percentage of advertising revenue, and payments due to changes in inflationary adjustments are included within variable rent expense, which is accounted for separately from periodic straight-line lease expense.

Many of our leases entered into in connection with land provide options to extend the terms of the agreements. Generally, renewal periods are included in minimum lease payments when calculating the lease liabilities as, for most leases, we consider exercise of such options to be reasonably certain. As a result, optional terms and payments are included within the lease liability. Our lease agreements donot contain any material residual value guarantees or material restrictive covenants.

The implicit rate within our lease agreements is generallynot determinable. As such, we use the incremental borrowing rate, which we refer to as “IBR,” to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC842, is “the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.”

Operating Lease Cost

Operating lease cost is as follows:

Supplemental cash flow information related to operating leases is as follows:

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NOTE*12***.**** LEASES (Continued)**

Operating Lease Assets and Liabilities

Maturity of Operating Lease Liabilities

As of* June 30, 2026*, our operating leases have a weighted-average remaining lease term of 15.71 years and a weighted-average discount rate of 5.46%.

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NOTE13**.IN****DUSTRY SEGMENTS**

This summary presents our current segments, as described below.

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 of24th 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 Note2 “Summary of Significant Accounting Policies” of the2025 Form10-K.

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, equity in income (loss) of unconsolidated affiliates, 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 forone operating segment* may**not* be significant for others.

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NOTE14. DISCONTINUED OPERATIONS

On* May 18, 2026,the Company entered into a Securities Purchase Agreement with CopperPoint Insurance Company under which CopperPoint will acquire100%* of the equity interests in GIG for approximately $84.3 million. The transaction has received approval from the board of directors of both Boston Omaha and CopperPoint and is expected to close in thesecond half of2026 following receipt of all regulatory and other approvals required under the Securities Purchase Agreement. The Company classified the results of operations and cash flows of GIG as discontinued operations in its Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows for all periods presented. The Company classified the assets and liabilities of GIG as held for sale in the Condensed Consolidated Balance Sheet. Additionally, beginning* June 30, 2026,*the Company ceased recording depreciation and amortization for GIG's property and equipment, finite-lived intangible assets, and operating lease ROU assets.

The following table represents the major classes of assets and liabilities of discontinued operations as of* June 30, 2026and December 31, 2025:*

Assets held for sale include short-term investments of $22.6 million. Short-term investments consist of U.S. Treasury securities held by UCS, which are classified as held to maturity, mature in less thantwelve months, and are reported at amortized cost which approximates fair value.

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NOTE14. DISCONTINUED OPERATIONS (Continued)

The following table presents the major components of discontinued operations in the Company's Consolidated Statements of Operations:

We recorded expenses related to the sale of GIG of approximately $280 thousand for thesix months ended* June 30, 2026,and $678 thousand during the year ended December 31, 2025.During2026* and2025, these charges were recorded in professional fees, and consisted primarily of legal and professional fees.

Premiums ceded of approximately $2.5 million and $2.4 million for thesix months ended* June 30, 2026and2025,* respectively, are included within “Premiums earned” in the table of major components of discontinued operations.

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NOTE14. DISCONTINUED OPERATIONS (Continued)

The following table provides a reconciliation of the beginning and ending reserve balances at UCS for losses and loss adjustment expenses (“LAE”) for thesix months ended* June 30, 2026* and2025.

For the six months ended* June 30, 2026*, there was an unfavorable prior year loss development. For the six months ended* June 30, 2025*, there was a favorable prior year loss development. Favorable and unfavorable prior year loss developments are the result of a re-estimation of amounts ultimately to be paid on prior year losses and loss adjustment expense. Original estimates are increased or decreased as additional information becomes known regarding individual claims.

NOTE*15***.**CUSTODIAL RISK

As of* June 30, 2026*, our continuing operations had approximately $12.2 million in excess of federally insured limits on deposit with financial institutions. Our discontinued operations had approximately $24.1 million in excess of federally insured limits on deposit with financial institutions.

**NOTE16. **SUBSEQUENT EVENTS

Subsequent to* June 30, 2026,*we repurchased 88,231 shares of our Class A common stock for a total cost of approximately $1.3 million.

On* August 10, 2026,we sold 360,000 shares of its Sky Harbour Class A common stock to a group offive* investors for an aggregate purchase price of $3.6 million. As part of a simultaneous primary offering of securities by Sky Harbour, we, along with the officers, directors, and principal shareholders of Sky Harbour, entered into a customary lockup agreement which prohibits the sale of Sky Harbour common stock and derivative securities for a period ending on* November 10, 2026.*Following this sale, we own 10,979,994 shares of Sky Harbour Class A common stock. We also continue to own warrants to purchase 7,719,779 shares of Sky Harbour Class A common stock.

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