Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Economic volatility and fluctuations in the US and global economies impacting advertising revenue.
• Impact of the COVID-19 pandemic causing significant disruption to business operations, reduced advertising spending, and postponement of events.
• High degree of leverage and potential inability to finance strategic transactions.
• Fluctuations in demand for advertising across various media.
• Increased competition for advertising revenues from other media outlets, including digital platforms.
• Structural changes in the US economy affecting advertising spending in key sectors.
• Rapid changes in technology, content offerings, and distribution platforms.
• Loss of key personnel, including on-air talent.
• Potential for asset impairment charges against broadcasting licenses and goodwill.
• Maintaining FCC licenses and complying with regulations.
• Disruptions or security breaches of information technology infrastructure.

Mitigation Strategies

• Diversification of revenue streams through acquisitions and investments in other media properties.
• Cost-cutting measures including furloughs, layoffs, salary reductions, and reduced marketing spend in response to COVID-19.
• Drawing on the ABL Facility to improve cash on hand.
• Centralizing certain functions to control expenses.
• Negotiating favorable rates with vendors.
• Developing and enhancing content offerings and distribution platforms.
• Annual impairment testing of goodwill and intangible assets.
• Implementing technology security initiatives and disaster recovery plans.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Diversity and Inclusion
• Corporate Citizenship

Environmental Achievements

• Building efficiency measures, use of environmentally friendly supplies, office recycling programs, and sustainable business practices at consumer-facing events.

Social Achievements

• 74% of employees were racially diverse, and 46% of our employees were women.
• Various initiatives to ensure that our Company remains inclusive and supportive for all, including workplace training, leveraging a diverse slate of candidates for all job vacancies, and developing content that elevates the voice of minority communities.

Governance Achievements

• Diverse Board of Directors with four of six directors being minorities.
• Adoption of a code of ethics that applies to all directors, officers, and employees.

Climate Goals & Targets

Environmental Challenges

• Material weaknesses in internal control over financial reporting.
• Restatement of previously issued financial statements.
• Impact of public health crises (e.g., COVID-19).
• Economic volatility and fluctuations.
• High degree of leverage.
• Competition in the media industry.
• Rapid technological changes.
• Risks related to the restatement of financial statements (potential litigation, additional errors).

Mitigation Strategies

• Actively engaged in remediation efforts to address material weaknesses.
• Implemented additional processes to improve internal controls.
• Continued efforts to diversify revenue streams.
• Monitoring and limiting exposure to credit risk.
• Adapting to new media technologies and distribution platforms.
• Efforts to attract and retain highly skilled employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Diversity and Inclusion
• Community Investment

Environmental Achievements

• Building efficiency measures, use of environmentally friendly supplies, office recycling programs, and sustainable business practices at consumer-facing events.

Social Achievements

• 74% of employees were racially diverse, and 46% of our employees were women.
• Various initiatives to ensure that our Company remains inclusive and supportive for all, including workplace training, leveraging a diverse slate of candidates for all job vacancies, and developing content that elevates the voice of minority communities.

Governance Achievements

• Diverse Board of Directors with four of six directors being minorities; Founder and Chairperson is an African-American woman.

Climate Goals & Targets

Environmental Challenges

• Material weaknesses identified in internal control over financial reporting.
• Revision of previously issued financial statements.
• Competition in the media industry.
• Economic downturns affecting advertising spending.
• Inflation increasing costs.
• Risks related to the revision of previously issued financial statements.
• Risks related to the nature and operations of our business.
• Risks related to the revision of our previously issued consolidated financial statements.
• Risks related to the delayed filings of our 2022 and 2023 annual reports and our first quarter 2024 quarterly report.
• Risks related to the nature and operations of our business.
• Risks related to the loss of key personnel.
• Risks related to the digital segment's content and services.
• Risks related to intellectual property infringement claims.
• Risks related to asset impairment.
• Risks related to maintaining FCC licenses.
• Risks related to cybersecurity breaches.
• Risks related to natural disasters and catastrophic events.
• Risks related to entry into new lines of business.
• Risks related to FCC media ownership rules.
• Risks related to FCC indecency rules.
• Risks related to changes in federal regulations.
• Risks related to the loss of affiliation agreements (cable television segment).
• Risks related to changes in consumer behavior.
• Risks related to the President and CEO's interest in TV One.
• Risks related to majority voting interest held by two common stockholders.
• Risks related to being a smaller reporting company.
• Risks related to potential delisting from NASDAQ.

Mitigation Strategies

• Actively engaged in remediation efforts to address material weaknesses.
• Implemented additional processes and added resources to address the revision of financial statements.
• Diversification strategy to grow and diversify revenue.
• Closely manage the use of trade and barter agreements to maximize cash revenue.
• Measures to mitigate the impact of inflation.
• Ongoing remediation of material weaknesses.
• Implementing additional processes utilizing existing resources and adding new resources as needed.
• Developing and enhancing content offerings and distribution platforms.
• Robust framework for cybersecurity risk management.
• Developing systems and processes to protect data and prevent data loss.

Supply Chain Management

Climate-Related Risks & Opportunities