Description of the business: (Tables)

3 Months Ended

Mar. 31, 2024

Description of the business:

Schedule of acquisition-date fair value of consideration to be received from the transaction

(In thousands)	May 1, 2023
Estimated working capital payments made to the Seller, net of severance reimbursements (a)	$	45,531
Estimated Purchase Agreement payment to be received from the Seller, net of discount of $8,392 (b)		19,723
Amounts due from the Seller – IP Transit Services Agreement, net of discount of $79,610 (c)		620,390
Total to be received from the Seller		640,113
Total net consideration to be received from the Seller (d)		594,582

(a)Includes $61.1 million paid to the Seller on the Closing Date and an accrual of $5.0 million due to the Seller that was paid in April 2024. Additionally, includes an offsetting $20.6 million in total severance reimbursement payments received from the Seller recorded as measurement period adjustments during the fourth quarter of 2023 ($16.2 million) and $4.3 million recorded as a measurement period adjustment during the first quarter of 2024.

(b)Under the Purchase Agreement, 50% of the assumed short-term operating lease liabilities totaling $28.1 million is to be paid to the Company from the Seller in four equal installments in months 55-58 from the Closing Date and is recorded at its present value resulting in a discount of $8.4 million. During the first quarter of 2024, the Working Capital Adjustment was adjusted by $17.0 million, net of discount of $7.2 million to reflect the conclusion of the determination of amounts due from the Seller from the Short - term Lease Payment.

(c)The IP Transit Services Agreement payments totaling $700.0 million are recorded at their present value resulting in a discount of $79.6 million. The $700.0 million is to be paid to the Company from the Seller in equal monthly payments of $29.2 million in months 1-12 and $8.3 million in months 13-54.

(d)Cash consideration was $1

Schedule of fair values for each major class of assets acquired and liabilities assumed at the closing date

	May 1, 2023
Assets
Current assets:
Cash and cash equivalents	$	47,074
Accounts receivable		39,948
Prepaid expenses and other current assets		22,777
Total current assets		109,799
Total property and equipment		965,715
Right-of-use leased assets		304,982
IPV4 intangible assets		458,000
Other intangible assets		16,000
Deposits and other assets		7,521
Total assets	$	1,862,017
Liabilities
Current liabilities:
Accounts payable	$	13,313
Accrued and other current liabilities		25,344
Current maturities, operating lease liabilities		74,562
Current maturities, finance lease liabilities		39,559
Total current liabilities		152,778
Operating lease liabilities, net of current maturities		251,573
Finance lease liabilities, net of current maturities		121,342
Deferred income tax liabilities		494,575
Other long-term liabilities		35,366
Total liabilities		1,055,634
Fair value of net assets acquired	$	806,383
Gain on bargain purchase
Fair value of net assets acquired	$	806,383
Total net consideration to be received from the Seller, net of discounts - see table above		594,582
Gain on bargain purchase		1,400,965

Schedule of proforma information

	Three Months
	Ended
(In thousands) (unaudited)	March 31, 2023
Service revenue	$	286,288
Operating loss from continuing operations		(119,922)
Net income		1,271,413

Schedule of allowance for credit losses

			Current-period
			Provision for		Write-offs
	Beginning		Expected Credit		Charged Against		Ending
Description	Balance		Losses		Allowance		Balance
Allowance for credit losses (deducted from accounts receivable) (in thousands)
Three months ended March 31, 2024	$	3,677	$	2,595	$	(684)	$	5,588
Three months ended March 31, 2023		2,303	$	1,548	$	(1,176)	$	2,675

Schedule of lease cost

	Three Months		Three Months
	Ended		Ended
(Amounts in thousands)	March 31, 2024		March 31, 2023
Finance lease cost
Amortization of right-of-use assets	$	11,564	$	8,968
Interest expense on finance lease liabilities		10,411		6,430
Operating lease cost		24,251		4,582
Total lease costs	$	46,226	$	19,980

	Three months			Three months
	Ended			Ended
	March 31, 2024			March 31, 2023
Other lease information (amounts in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	(10,419)		$	(5,136)
Operating cash flows from operating leases		(24,729)			(4,957)
Financing cash flows from finance leases		(23,235)			(9,450)
Right-of-use assets obtained in exchange for new finance lease liabilities		54,423			25,871
Right-of-use assets obtained in exchange for new operating lease liabilities		5,151			363
Weighted-average remaining lease term — finance leases (in years)		14.2			13.4
Weighted-average remaining lease term — operating leases (in years)		12.3			16.1
Weighted-average discount rate — finance leases		7.7	%		8.8	%
Weighted-average discount rate — operating leases		8.1	%		5.4	%

Schedule of diluted weighted average shares

	Three Months	Three Months
	Ended	Ended
	March 31, 2024	March 31, 2023
Weighted-average common shares - basic	47,416,268	47,037,091
Dilutive effect of stock options	—	16,299
Dilutive effect of restricted stock	—	327,836
Weighted-average common shares - diluted	47,416,268	47,381,226

Schedule of details unvested shares of restricted common stock as well as the anti-dilutive effects of stock options and restricted stock awards outstanding

	Three Months	Three Months
	Ended	Ended
	March 31, 2024	March 31, 2023
Unvested shares of restricted common stock	1,602,845	1,261,342
Anti-dilutive options for common stock	194,990	100,777
Anti-dilutive shares of restricted common stock	115,341	137,892

Schedule of stockholders' (deficit) equity

The following details the changes in stockholders’ (deficit) equity for the three and three months ended March 31, 2024 and March 31, 2023, respectively (in thousands except share data):

						Accumulated
				Additional		Other				Total
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Deficit
Balance at December 31, 2022	48,013,330	$	48	$	575,064	$	(19,156)	$	(1,074,588)	$	(518,632)
Forfeitures of shares granted to employees	(6,509)		—		—		—		—		—
Equity-based compensation	—		—		7,315		—		—		7,315
Foreign currency translation	—		—		—		1,788		—		1,788
Issuances of common stock	286,762		—		—		—		—		—
Exercises of options	3,299		—		145		—		—		145
Dividends paid	—		—		—		—		(45,311)		(45,311)
Net income	—		—		—		—		6,148		6,148
Balance at March 31, 2023	48,296,882	$	48	$	582,524	$	(17,368)	$	(1,113,751)	$	(548,547)

						Accumulated
				Additional		Other				Total
	Common Stock			Paid-in		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Capital		Income (Loss)		Equity (Deficit)		Equity
Balance at December 31, 2023	48,608,569	$	49	$	606,755	$	(14,385)	$	17,137	$	609,556
Forfeitures of shares granted to employees	(37,379)		—		—		—		—		—
Equity-based compensation	—		—		7,616		—		—		7,616
Foreign currency translation	—		—		—		(5,034)		—		(5,034)
Issuances of common stock	439,090		—		—		—		—		—
Exercises of options	3,207		—		164		—		—		164
Dividends paid	—		—		—		—		(46,351)		(46,351)
Net loss	—		—		—		—		(65,307)		(65,307)
Balance at March 31, 2024	49,013,487	$	49	$	614,535	$	(19,419)	$	(94,521)	$	500,644

Schedule of revenue for termination fees

	Three Months		Three Months
	Ended		Ended
(in thousands)	March 31, 2024		March 31, 2023
Service revenue recognized from balance at beginning of period	$	3,085	$	1,805
Amortization expense for contract costs		4,733		4,823

Schedule of future minimum payments under operating lease and finance lease agreements

The future minimum payments under these operating lease and finance lease agreements are as follows (in thousands):

	Operating		Finance
For the Twelve Months Ending March 31,	Leases		Leases
2025	$	76,442	$	102,776
2026		60,457		95,730
2027		56,365		81,476
2028		50,945		43,628
2029		47,567		41,953
Thereafter		318,997		503,234
Total minimum lease obligations		610,773		868,797
Less—amounts representing interest		(223,322)		(351,281)
Present value of minimum lease obligations		387,451		517,516
Current maturities		(66,553)		(64,043)
Lease obligations, net of current maturities	$	320,898	$	453,473

Schedule of fair value of accounts receivable at the acquisition date

	Three Months		Three Months
	Ended		Ended
(in thousands)	March 31, 2024		March 31, 2023
Net bad debt expense	$	2,595	$	1,215
Bad debt recoveries		296		334