What changed in this filing

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Item 1. Financial Statements

2024-05-03 compared with 2024-02-06 · 163 added, 160 removed, 636 unchanged (34% of the section changed)

7 unchanged sentences

Restricted cash 4,751 61

Accounts receivable, net of allowance for doubtful accounts of $ 0 and $ 0 as of December 31, 2023 and June 30, 2023, respectively

Accounts receivable, net of allowance for doubtful accounts of $ 0 as of March 31, 2024 and June 30, 2023

76,843 40,139

3 unchanged sentences

Total current assets 250,645 149,233

Property and equipment, net of accumulated depreciation and amortization of $ 50,701 and $ 49,117 as of December 31, 2023 and June 30, 2023, respectively

Property and equipment, net of accumulated depreciation and amortization of $ 51,490 and $ 49,117 as of March 31, 2024 and June 30, 2023, respectively

29,062 30,501

33 unchanged sentences

Class A Common Stock, par value $ 0.01 , 120,000 shares authorized;

19,412 and 19,364 shares outstanding as of December 31, 2023 and June 30, 2023, respectively

19,416 and 19,364 shares outstanding as of March 31, 2024 and June 30, 2023, respectively

Class B Common Stock, par value $ 0.01 , 30,000 shares authorized;

4,530 shares outstanding as of December 31, 2023 and June 30, 2023

4,530 shares outstanding as of March 31, 2024 and June 30, 2023

Preferred stock, par value $ 0.01 , 15,000 shares authorized;

none outstanding as of December 31, 2023 and June 30, 2023

none outstanding as of March 31, 2024 and June 30, 2023

Additional paid-in capital 18,004 16,846

Treasury stock, at cost, 1,036 and 1,084 shares as of December 31, 2023 and June 30, 2023, respectively

Treasury stock, at cost, 1,031 and 1,084 shares as of March 31, 2024 and June 30, 2023, respectively

( 170,583 ) ( 179,410 )

7 unchanged sentences

(in thousands, except per share data)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

10 unchanged sentences

Interest expense ( 6,921 ) ( 7,004 ) ( 21,269 ) ( 16,395 )

Miscellaneous income (expense), net 2,991 385 ( 9,674 ) 219

Miscellaneous (expense) income, net ( 1,403 ) 19,324 ( 11,077 ) 19,543

( 7,847 ) 13,024 ( 30,797 ) 4,775

Income (loss) before income taxes 25,008 46,391 ( 8,957 ) 7,371

Income tax (expense) benefit ( 10,784 ) ( 24,555 ) 4,360 ( 4,062 )

Net income (loss) 14,224 21,836 ( 4,597 ) 3,309

Income before income taxes 71,895 94,775 62,938 102,146

Income tax expense ( 34,018 ) ( 42,962 ) ( 29,658 ) ( 47,024 )

Net income 37,877 51,813 33,280 55,122

Net loss attributable to nonredeemable noncontrolling interests — ( 566 ) — ( 1,928 )

Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 14,224 $ 22,491 $ ( 4,597 ) $ 4,671

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.85 $ ( 0.19 ) $ 0.11

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.84 $ ( 0.19 ) $ 0.11

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,877 $ 52,379 $ 33,280 $ 57,050

Basic earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.58 $ 2.19 $ 1.39 $ 2.28

Diluted earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.57 $ 2.18 $ 1.38 $ 2.27

Weighted-average number of common shares outstanding:

2 unchanged sentences

_________________

(a) Includes revenues from related parties of $ 77,658 and $ 74,950 for the three months ended December 31, 2023 and 2022, respectively, and $ 86,475 and $ 83,124 for the six months ended December 31, 2023 and 2022, respectively.

(b) Includes net charges from related parties of $ 35,683 and $ 45,485 for the three months ended December 31, 2023 and 2022, respectively, and $ 38,299 and $ 47,669 for the six months ended December 31, 2023 and 2022, respectively.

(c) Includes net charges from related parties of $ 16,630 and $ 17,433 for the three months ended December 31, 2023 and 2022, respectively, and $ 28,755 and $ 30,741 for the six months ended December 31, 2023 and 2022, respectively.

(a) Includes revenues from related parties of $ 86,944 and $ 84,024 for the three months ended March 31, 2024 and 2023, respectively, and $ 173,419 and $ 167,148 for the nine months ended March 31, 2024 and 2023, respectively.

(b) Includes net charges from related parties of $ 49,907 and $ 43,595 for the three months ended March 31, 2024 and 2023, respectively, and $ 88,206 and $ 91,264 for the nine months ended March 31, 2024 and 2023, respectively.

(c) Includes net charges from related parties of $ 18,707 and $ 18,875 for the three months ended March 31, 2024 and 2023, respectively, and $ 47,462 and $ 49,616 for the nine months ended March 31, 2024 and 2023, respectively.

See accompanying notes to consolidated financial statements.

MADISON SQUARE GARDEN SPORTS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

Net income (loss) $ 14,224 $ 21,836 $ ( 4,597 ) $ 3,309

Net income $ 37,877 $ 51,813 $ 33,280 $ 55,122

Other comprehensive income, before income taxes:

5 unchanged sentences

Other comprehensive income, net of income taxes 7 3 19 9

Comprehensive income (loss) 14,230 21,839 ( 4,585 ) 3,315

Comprehensive income 37,884 51,816 33,299 55,131

Comprehensive loss attributable to nonredeemable noncontrolling interests — ( 566 ) — ( 1,928 )

Comprehensive income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 14,230 $ 22,494 $ ( 4,585 ) $ 4,677

Comprehensive income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,884 $ 52,382 $ 33,299 $ 57,059

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

Net (loss) income $ ( 4,597 ) $ 3,309

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

Net income $ 33,280 $ 55,122

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization 2,372 2,703

Provision for deferred income taxes ( 4,495 ) 4,009

(Benefit from) provision for deferred income taxes ( 9,139 ) 27,590

Share-based compensation expense 18,069 22,059

Unrealized loss (gain) on equity investments with readily determinable fair value and warrants 8,397 ( 346 )

Unrealized loss (gain) on equity investments with readily determinable fair value, warrants, and forward contract 9,969 ( 19,738 )

Other non-cash adjustments 3,136 863

20 unchanged sentences

Repayment of revolving credit facilities ( 40,000 ) ( 85,000 )

Other financing activities — 1,705

Net cash provided by (used in) financing activities 26,234 ( 129,618 )

8 unchanged sentences

(in thousands)

Three Months Ended December 31, 2023

Three Months Ended March 31, 2024

Issued Additional

3 unchanged sentences

Loss Total Equity

Balance as of September 30, 2023 $ 249 $ 7,553 $ ( 172,605 ) $ ( 192,737 ) $ ( 1,003 ) $ ( 358,543 )

Balance as of December 31, 2023 $ 249 $ 11,471 $ ( 171,400 ) $ ( 178,512 ) $ ( 997 ) $ ( 339,189 )

Net income — — — 37,877 — 37,877

3 unchanged sentences

— 7,350 — — — 7,350

Tax withholding associated with shares issued for equity-based compensation

— ( 1,447 ) — — — ( 1,447 )

Common stock issued under stock incentive plans

— ( 817 ) 817 — — —

Dividends declared ($ 7.00 per share)

Balance as of December 31, 2023 $ 249 $ 11,471 $ ( 171,400 ) $ ( 178,512 ) $ ( 997 ) $ ( 339,189 )

Balance as of March 31, 2024 $ 249 $ 18,004 $ ( 170,583 ) $ ( 140,635 ) $ ( 990 ) $ ( 293,955 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended December 31, 2022

Three Months Ended March 31, 2023

Common Stock Issued Additional

5 unchanged sentences

Interests Total Equity

Balance as of September 30, 2022 $ 249 $ — $ ( 109,981 ) $ ( 62,447 ) $ ( 1,183 ) $ ( 173,362 ) $ 1,452 $ ( 171,910 )

Balance as of December 31, 2022 $ 249 $ — $ ( 169,772 ) $ ( 217,047 ) $ ( 1,180 ) $ ( 387,750 ) $ 1,338 $ ( 386,412 )

Net income (loss) — — — 52,379 — 52,379 ( 566 ) 51,813

7 unchanged sentences

— ( 1,844 ) 2,729 — — 885 — 885

Dividends declared ($ 7.00 per share)

— — — ( 172,749 ) — ( 172,749 ) — ( 172,749 )

Accelerated share repurchase — 12,307 ( 12,367 ) — — ( 60 ) — ( 60 )

Adjustments to noncontrolling interests — ( 541 ) — — — ( 541 ) 541 —

Balance as of December 31, 2022 $ 249 $ — $ ( 169,772 ) $ ( 217,047 ) $ ( 1,180 ) $ ( 387,750 ) $ 1,338 $ ( 386,412 )

Balance as of March 31, 2023 $ 249 $ 11,226 $ ( 179,410 ) $ ( 164,668 ) $ ( 1,177 ) $ ( 333,780 ) $ 772 $ ( 333,008 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31, 2023

Nine Months Ended March 31, 2024

Issued Additional

4 unchanged sentences

Balance as of June 30, 2023 $ 249 $ 16,846 $ ( 179,410 ) $ ( 173,910 ) $ ( 1,009 ) $ ( 337,234 )

Net loss — — — ( 4,597 ) — ( 4,597 )

Net income — — — 33,280 — 33,280

Other comprehensive income — — — — 19 19

Comprehensive loss

— — — — — ( 4,585 )

Comprehensive income — — — — — 33,299

Share-based compensation

6 unchanged sentences

— — — ( 5 ) — ( 5 )

Balance as of December 31, 2023 $ 249 $ 11,471 $ ( 171,400 ) $ ( 178,512 ) $ ( 997 ) $ ( 339,189 )

Balance as of March 31, 2024 $ 249 $ 18,004 $ ( 170,583 ) $ ( 140,635 ) $ ( 990 ) $ ( 293,955 )

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended December 31, 2022

Nine Months Ended March 31, 2023

Common Stock Issued Additional

19 unchanged sentences

Adjustments to noncontrolling interests — ( 988 ) — — — ( 988 ) 988 —

Balance as of December 31, 2022 $ 249 $ — $ ( 169,772 ) $ ( 217,047 ) $ ( 1,180 ) $ ( 387,750 ) $ 1,338 $ ( 386,412 )

Balance as of March 31, 2023 $ 249 $ 11,226 $ ( 179,410 ) $ ( 164,668 ) $ ( 1,177 ) $ ( 333,780 ) $ 772 $ ( 333,008 )

See accompanying notes to consolidated financial statements.

35 unchanged sentences

Reclassifications

Certain reclassifications have been made in order to conform to the current period’s presentation and relate to the separation of Investments and unrealized loss (gain) on equity investments with readily determinable fair value and warrants on the consolidated statements of cash flows for the six months ended December 31, 2022.

MADISON SQUARE GARDEN SPORTS CORP.

43 unchanged sentences

All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers.

For the three and six months ended December 31, 2023 and 2022, the Company did not have any material impairment losses on receivables or contract assets arising from contracts with customers.

For the three and nine months ended March 31, 2024 and 2023, the Company did not have any material impairment losses on receivables or contract assets arising from contracts with customers.

Disaggregation of Revenue

The following table disaggregates the Company’s revenues by type of goods or services in accordance with the required entity-wide disclosure requirements set forth in ASC Subtopic 280-10-50-38 to 40 and the disaggregation of revenue required disclosures in accordance with ASC Subtopic 606-10-50-5 for the three and six months ended December 31, 2023 and 2022:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

12 unchanged sentences

The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheet.

The following table provides information about contract balances from the Company’s contracts with customers as of December 31, 2023 and June 30, 2023.

December 31, June 30,

The following table provides information about contract balances from the Company’s contracts with customers as of March 31, 2024 and June 30, 2023.

March 31, June 30,

Receivables from contracts with customers, net (a)

6 unchanged sentences

(a) Receivables from contracts with customers, net, which are reported in Accounts receivable, net and Net related party receivables in the accompanying consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers.

As of December 31, 2023 and June 30, 2023, the Company’s receivables reported above incl uded $ 2,012 and $ 0 , respectively, related to contracts with customers who are related parties.

As of March 31, 2024 and June 30, 2023, the Company’s receivables reported above incl uded $ 1,970 and $ 0 , respectively, related to contracts with customers who are related parties.

See Note 16 for further details on related party arrangements.

Receivables from contracts with customers, net, excludes amounts recorded in Accounts receivable, net, associated with amounts due from the NBA and NHL related to escrow and player compensation recoveries and luxury tax payments.

As of December 31, 2023 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $ 2,197 and $ 1,544 , respectively, reco rded in Accounts receivable, net.

As of March 31, 2024 and June 30, 2023, the Company had receivable balances related to escrow and player compensation recoveries of $ 7,058 and $ 1,544 , respectively, reco rded in Accounts receivable, net.

(b) Contract assets, current, which are reported as Other current assets in the accompanying consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date.

Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional.

The Company had contract asset balances related to local media rights of $ 25,642 and $ 0 as of March 31, 2024 and June 30, 2023, respectively.

See Note 16 for further details on these related party arrangements.

(c) Deferred revenue, including non-current portion, primarily relates to the Company’s receipt of consideration from customers or billing customers in advance of the Company’s transfer of goods or services to those customers.

Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to a customer.

The Company’s deferred revenue related to local media rights was $ 10,013 and $ 0 as of December 31, 2023 and June 30, 2023, respectively.

The Company’s deferred revenue related to local media rights was $ 0 as of March 31, 2024 and June 30, 2023.

See Note 16 for further details on these related party arrangements.

(d) Revenue recognized for the six months ended December 31, 2023 relating to the deferred revenue balance as of June 30, 2023 was $ 77,945 .

(d) Revenue recognized for the nine months ended March 31, 2024 relating to the deferred revenue balance as of June 30, 2023 was $ 141,372 .

Transaction Price Allocated to the Remaining Performance Obligations

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023 and is based on current projections.

The following table depicts the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024 and is based on current projections.

In developing the estimated revenue, the Company applies the allowable practical expedient and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

8 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Computation of Earnings (Loss) per Common Share

The following table presents a reconciliation of earnings (loss) allocated to common shares and a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings (loss) per common share attributable to the Company’s stockholders (“EPS”) and the number of shares excluded from diluted earnings (loss) per common share, as they were anti-dilutive.

Three Months Ended Six Months Ended

December 31, December 31,

Computation of Earnings per Common Share

The following table presents a reconciliation of earnings allocated to common shares and a reconciliation of weighted-average shares used in the calculations of basic and diluted earnings per common share attributable to the Company’s stockholders (“EPS”) and the number of shares excluded from diluted earnings per common share, as they were anti-dilutive.

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

Net earnings (loss) allocable to common shares, basic and diluted (numerator):

Net income (loss) attributable to Madison Square Garden Sports Corp.’s stockholders $ 14,224 $ 22,491 $ ( 4,597 ) $ 4,671

Net earnings allocable to common shares, basic and diluted (numerator):

Net income attributable to Madison Square Garden Sports Corp.’s stockholders $ 37,877 $ 52,379 $ 33,280 $ 57,050

Dividends to other-than-common stockholders (a)

( 1 ) 2,056 5 2,056

Net earnings (loss) allocable to common shares, basic and diluted (numerator):

Net earnings allocable to common shares, basic and diluted (numerator):

$ 37,877 $ 52,379 $ 33,275 $ 54,994

4 unchanged sentences

Weighted-average shares excluded from diluted EPS — — — —

Basic earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.85 $ ( 0.19 ) $ 0.11

Diluted earnings (loss) per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 0.59 $ 0.84 $ ( 0.19 ) $ 0.11

Basic earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.58 $ 2.19 $ 1.39 $ 2.28

Diluted earnings per common share attributable to Madison Square Garden Sports Corp.’s stockholders $ 1.57 $ 2.18 $ 1.38 $ 2.27

_________________

(a) Dividends to other-than-common stockholders consists of forfeitable rights to dividends declared and payable to holders of the Company’s unvested restricted stock units and performance restricted stock units.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Team Personnel Transactions

Direct operating and selling, general and administrative expenses in the accompanying consolidated statements of operations include a net provision or credit for transactions relating to the Company’s teams for waiver/contract termination costs, player trades and season-ending injuries (“Team personnel transactions”).

There were no Team personnel transactions for the three and six months ended December 31, 2023.

Team personnel transactions were a net provision of $ 29 for the three months ended December 31, 2022 and net credit of $ 300 for the six months ended December 31, 2022.

Team personnel transactions were a net provision of $ 2,170 and $ 81 for the three months ended March 31, 2024 and 2023, respectively, and a net provision of $ 2,170 and a net credit of $ 219 for the nine months ended March 31, 2024 and 2023, respectively.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Cash, Cash Equivalents and Restricted Cash

1 unchanged sentence

2024 June 30,

2023 December 31,

2023 March 31,

2023 June 30,

6 unchanged sentences

_________________

(a) Restricted cash as of December 31, 2023, June 30, 2023 and December 31, 2022 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information).

As of December 31, 2023, the Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) and a lease agreement for an aircraft.

(a) Restricted cash as of March 31, 2024, June 30, 2023 and March 31, 2023 included cash deposited in an escrow account (see Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information).

As of March 31, 2024, the Company’s leases primarily consist of the lease of the Company’s principal executive offices under the Sublease Agreement with MSG Entertainment (the “Sublease Agreement”) and a lease agreement for an aircraft.

Prior to the MSGE Distribution Date, the Sublease Agreement was between the Company and Sphere Entertainment.

1 unchanged sentence

See Note 7 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s accounting policies associated with its leases.

As of December 31, 2023, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 10 months to 32 years.

As of March 31, 2024, the Company’s exis ting operating leases, which are recorded in the accompanying financial statements, have remaining lease terms ranging from 7 months to 31 years.

In certain ins tances, leases include options to renew, with varying option terms.

1 unchanged sentence

The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of December 31, 2023 and June 30, 2023:

Line Item in the Company’s Consolidated Balance Sheet December 31,

The following table summarizes the right-of-use assets and lease liabilities recorded in the accompanying consolidated balance sheets as of March 31, 2024 and June 30, 2023:

Line Item in the Company’s Consolidated Balance Sheet March 31,

2024 June 30,

9 unchanged sentences

_________________

(a) As of December 31, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 44,104 and $ 704,361 , r espectively, that are payable to MSG Entertainment.

(a) As of March 31, 2024, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances o f $ 43,798 and $ 721,320 , r espectively, that are payable to MSG Entertainment.

As of June 30, 2023, Operating lease liabilities, current and Operating lease liabilities, noncurrent included balances of $ 43,700 and $ 707,124 , respectively, that are payable to MSG Entertainment.

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022:

Line Item in the Company’s Consolidated Statement of Operations Three Months Ended December 31, Six Months Ended December 31,

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the activity recorded within the accompanying consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023:

Line Item in the Company’s Consolidated Statement of Operations Three Months Ended March 31, Nine Months Ended March 31,

2024 2023 2024 2023

5 unchanged sentences

Supplemental Information

For the six months ended December 31, 2023 and 2022, cash paid for amounts included in the measurement of lease liabilities was $ 26,095 and $ 22,526 , respectively.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of December 31, 2023 was 30.2 years.

The weighted average discount rate was 7.1 % as of December 31, 2023 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified.

Maturities of operating lease liabilities as of December 31, 2023 are as follows:

For the nine months ended March 31, 2024 and 2023, cash paid for amounts included in the measurement of lease liabilities was $ 39,119 and $ 33,791 , respectively.

The weighted average remaining lease term for operating leases recorded in the accompanying consolidated balance sheet as of March 31, 2024 was 30.0 years.

The weighted average discount rate was 7.1 % as of March 31, 2024 and represented the Company’s estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of either (i) adoption of the standard or (ii) the period in which the lease term expectation commenced or was modified.

Maturities of operating lease liabilities as of March 31, 2024 are as follows:

Fiscal Year 2024 (remainder) $ 13,023

7 unchanged sentences

Total lease liabilities $ 807,247

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Goodwill and Intangible Assets

During the first quarter of fiscal year 2024, the Company performed its annual impairment test of goodwill and determined that there were no impairments identified as of the impairment test date.

The carrying amount of goodwill as of December 31, 2023 and June 30, 2023 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of December 31, 2023 and June 30, 2023 are as follows:

The carrying amount of goodwill as of March 31, 2024 and June 30, 2023 was $ 226,523 .

The Company’s indefinite-lived intangible assets as of March 31, 2024 and June 30, 2023 are as follows:

Sports franchises $ 102,564

1 unchanged sentence

During the first quarter of fiscal year 2024, the Company performed its annual impairment test of identifiable indefinite-lived intangible assets and determined that there were no impairments identified as of the impairment test date.

For the three and six months ended December 31, 2022, amortization expense o f intangible assets was $ 30 and $ 138 , respectively.

There was no amortization expense for the three and six months ended December 31, 2023 as a result of the disposal of CLG in April 2023.

The Company’s investments in nonconsolidated affiliates which are accounted for under the equity method of accounting, equity investments with readily determinable fair values, equity investments without readily determinable fair values, and derivative instruments, which are reported within Investments in the accompanying consolidated balance sheets, consisted of the following:

For the three and nine months ended March 31, 2023, amortization expense o f intangible assets was $ 29 and $ 167 , respectively.

There was no amortization expense for the three and nine months ended March 31, 2024 as a result of the disposal of CLG in April 2023.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s Investments reported in the accompanying consolidated balance sheets, consisted of the following:

2024 June 30,

11 unchanged sentences

_________________

(a) For the three and six months ended December 31, 2023 and 2022, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

(a) For the three and nine months ended March 31, 2024 and 2023, the Company did not record any impairment charges or changes in carrying value of its equity securities without readily determinable fair values in the accompanying consolidated statements of operations.

Equity Method Investments

The Company determined that it has the ability to exert significant influence over the investee and therefore accounts for this investment under the equity method of accounting.

In April 2023, the Company sold its controlling interest in CLG to NRG, a professional gaming and entertainment company, in exchange for a noncontrolling equity interest in the combined NRG/CLG company.

1 unchanged sentence

The Company deconsolidated the CLG business and recorded the investment in NRG at fair value as an equity method investment in the fourth quarter of fiscal year 2023.

During the three and six months ended December 31, 2023, the Company recognized its net share of losses of $ 442 and $ 857 , respectively, in Miscellaneous income (expense), net within the Company’s consolidated statement of operations.

As of December 31, 2023 and June 30, 2023, the Company’s ownership in NRG was approximately 25 %.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the three and nine months ended March 31, 2024, the Company recognized its net share of income of $ 140 and losses of $ 718 , respectively, in Miscellaneous (expense) income, net within the Company’s consolidated statement of operations.

As of March 31, 2024 and June 30, 2023, the Company’s ownership in NRG was approximately 25 %.

Equity Investments with Readily Determinable Fair Values

6 unchanged sentences

The fair value of the Company’s investments in common stock of Xtract One and other investments held in trust are determined based on quoted market prices in active markets, which are classified within Level I of the fair value hierarchy.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The cost basis and carrying value of equity investments with readily determinable fair values are as follows:

December 31, 2023 June 30, 2023

March 31, 2024 June 30, 2023

Cost Basis Carrying Value/Fair Value Cost Basis Carrying Value/Fair Value

2 unchanged sentences

$ 22,767 $ 34,880 $ 20,555 $ 36,814

The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous income (expense), net within the Company’s consolidated statement of operations, for the three and six months ended December 31, 2023 and 2022.

Three Months Ended December 31, Six Months Ended December 31,

The following table summarizes the realized and unrealized gains (losses) on equity investments with readily determinable fair values, recorded within Miscellaneous (expense) income, net within the Company’s consolidated statement of operations, for the three and nine months ended March 31, 2024 and 2023.

Three Months Ended March 31, Nine Months Ended March 31,

2024 2023 2024 2023

Unrealized gain (loss) - Xtract One common stock $ 1,761 $ — $ ( 4,792 ) $ —

Unrealized (loss) gain - Xtract One common stock $ ( 853 ) $ 7,337 $ ( 5,645 ) $ 7,337

Unrealized gain - other equity investments with readily determinable fair values 809 372 1,501 718

Realized gain - other equity investments with readily determinable fair values 18 — 44 —

Realized gain (loss) - other equity investments with readily determinable fair values 12 ( 4 ) 55 ( 4 )

$ ( 32 ) $ 7,705 $ ( 4,089 ) $ 8,051

1 unchanged sentence

The following table presents the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents:

Fair Value Hierarchy December 31,

Fair Value Hierarchy March 31,

2024 June 30,

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Refer to Note 9 for further details regarding equity investments.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Level III Inputs

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The Company’s warrants are included within Investments in the accompanying consolidated balance sheets.

Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous income (expense), net in the accompanying consolidated statements of operations.

The fair value of the Company’s warrants in Xtract One were determined using the Black-Scholes option pricing model.

The following are key assumptions used to calculate the fair value of the warrants as of December 31, 2023 and June 30, 2023:

Changes in the fair value of derivative instruments are measured at each reporting date and are recorded within Miscellaneous (expense) income, net in the accompanying consolidated statements of operations.

The fair value of the Company’s warrants in Xtract One were

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

determined using the Black-Scholes option pricing model.

The following are key assumptions used to calculate the fair value of the warrants as of March 31, 2024 and June 30, 2023:

2024 June 30,

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The following table presents additional information about our assets for which we utilize Level III inputs to determine fair value:

Three Months Ended Six Months Ended

December 31, 2023 December 31, 2023

Three Months Ended March 31, Nine Months Ended March 31,

2024 2023 2024 2023

Balance at beginning of period $ 8,802 $ — $ 13,098 $ —

Unrealized gain (loss) on warrants 1,122 ( 4,296 )

Purchase of warrants — 1,959 — 1,959

Unrealized (loss) gain on warrants ( 1,529 ) 4,543 ( 5,825 ) 4,543

Unrealized gain on forward contract (a)

— 7,140 — 7,140

Balance at end of period $ 7,273 $ 13,642 $ 7,273 $ 13,642

_________________

(a) During the three months ended March 31, 2023, the Company recorded an unrealized gain on a forward contract to acquire additional common stock and warrants of Xtract One.

The Company’s forward contract was included within Other current assets in the accompanying consolidated balance sheets.

The fair value of the Company’s forward contract was determined using the number of additional common shares and warrants in the forward contract, the contractual price of the forward contract, the quoted prices of Xtract One, and the fair value of the Xtract One warrants as of March 31, 2023.

The carrying value and fair value of the Company’s debt reported in the accompanying consolidated balance sheets are as follows:

December 31, 2023 June 30, 2023

March 31, 2024 June 30, 2023

Value Carrying

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Knicks LLC is required to pay a commitment fee ranging from 0.250 % to 0.300 % per annum in respect of the average daily unused commitments under the Knicks Revolving Credit Facility.

During the six months ended December 31, 2023, the Company borrowed an additional $ 40,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 275,000 as of December 31, 2023, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of December 31, 2023 was 6.71 % .

During the six months ended December 31, 2023 the Company made interest payments of $ 9,073 in respect of the Knicks Revolving Credit Facility.

During the nine months ended March 31, 2024, the Company borrowed an additional $ 40,000 under the Knicks Revolving Credit Facility.

The outstanding balance under the Knicks Revolving Credit Facility was $ 275,000 as of March 31, 2024, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Knicks Revolving Credit Facility as of March 31, 2024 was 6.68 % .

During the nine months ended March 31, 2024 the Company made interest payments of $ 13,778 in respect of the Knicks Revolving Credit Facility.

All obligations under the Knicks Revolving Credit Facility are secured by a first lien security interest in certain of Knicks LLC’s assets, including, but not limited to, (i) the Knicks LLC’s membership rights in the NBA, (ii) revenues to be paid to Knicks LLC by the NBA pursuant to certain U.S.

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The Knicks Revolving Credit Facility requires Knicks LLC to comply with a debt service ratio of at least 1.5 :1.0 over a trailing four quarter period.

As of December 31, 2023, Knicks LLC was in compliance with this financial covenant.

As of March 31, 2024, Knicks LLC was in compliance with this financial covenant.

MADISON SQUARE GARDEN SPORTS CORP.

11 unchanged sentences

Rangers LLC is required to pay a commitment fee ranging from 0.375 % to 0.625 % per annum in respect of the average daily unused commitments under the Rangers Revolving Credit Facility.

During the six months ended December 31, 2023, the Company borrowed an additional $ 35,000 and made principal repayments of $ 40,000 under the Rangers Revolving Credit Facility.

The outstanding balance under the Rangers Revolving Credit Facility wa s $ 55,000 as of December 31, 2023, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Rangers Revolving Credit Facility as of December 31, 2023 wa s 7.21 % .

During the six months ended December 31, 2023 the Company made interest payments of $ 2,815 in respect of the Rangers Revolving Credit Facility.

During the nine months ended March 31, 2024, the Company borrowed an additional $ 35,000 and made principal repayments of $ 40,000 under the Rangers Revolving Credit Facility.

The outstanding balance under the Rangers Revolving Credit Facility wa s $ 55,000 as of March 31, 2024, which was recorded as Long-term debt in the accompanying consolidated balance sheet.

The interest rate on the Rangers Revolving Credit Facility as of March 31, 2024 wa s 7.18 % .

During the nine months ended March 31, 2024 the Company made interest payments of $ 3,804 in respect of the Rangers Revolving Credit Facility.

In addition, on April 22, 2024, the Company made an additional principal repayment of $ 40,000 under the Rangers Revolving Credit Facility.

All obligations under the Rangers Revolving Credit Facility are, subject to the Rangers NHL Advance Agreement (as defined below), secured by a first lien security interest in certain of Rangers LLC’s assets, including, but not limited to, (i) Rangers LLC’s membership rights in the NHL, (ii) revenues to be paid to Rangers LLC by the NHL pursuant to certain U.S.

11 unchanged sentences

The Rangers Revolving Credit Facility requires Rangers LLC to comply with a debt service ratio of at least 1.5 :1.0 over a trailing four quarter period.

As of December 31, 2023, Rangers LLC was in compliance with this financial covenant.

As of March 31, 2024, Rangers LLC was in compliance with this financial covenant .

Rangers NHL Advance Agreement

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All obligations under the Rangers NHL Advance Agreement are senior to and shall have priority over all secured and other indebtedness of Rangers LLC, Rangers Holdings, LLC and MSG NYR Holdings LLC.

All borrowings under the Rangers NHL Advance Agreement were made on a non-revolving basis and bear interest at 3.00 % per annum, ending on the date any such advances are fully repaid.

Advances received under the Rangers NHL Advance Agreement are payable upon demand by the

All borrowings under the Rangers NHL

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Advance Agreement were made on a non-revolving basis and bear interest at 3.00 % per annum, ending on the date any such advances are fully repaid.

Advances received under the Rangers NHL Advance Agreement are payable upon demand by the NHL.

It is expected that the advanced amount will be set off against funds that would otherwise be paid, distributed or transferred by the NHL to Rangers LLC.

The outstanding balance under the Rangers NHL Advance Agreement was $ 30,000 as of December 31, 2023 and was recorded as Debt in the accompanying consolidated balance sheet.

During the six months ended December 31, 2023 the Company made interest p ayments of $ 675 .

The outstanding balance under the Rangers NHL Advance Agreement was $ 30,000 as of March 31, 2024 and was recorded as Debt in the accompanying consolidated balance sheet.

During the nine months ended March 31, 2024 the Company made interest p ayments of $ 900 .

Deferred Financing Costs

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Existing account balances under the Excess Cash Balance Plan are credited with monthly interest in accordance with the terms of the plan.

The following table presents components of net periodic benefit cost for the Pension Plans included in the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022.

Components of net periodic benefit cost are reported in Miscellaneous income (expense), net.

Three Months Ended Six Months Ended

December 31, December 31,

Components of net periodic benefit cost are reported in Miscellaneous (expense) income, net.

Three Months Ended Nine Months Ended

March 31, March 31,

2024 2023 2024 2023

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In addition, the Company sponsors the MSG Sports LLC, Excess Savings Plan (the “Excess Savings Plan”), which provides non-qualified retirement benefits to eligible MSG Sports employees.

Expense related to the 401(k) Plan and Excess Savings Plan for the three and six months ended December 31, 2023 was $ 1,314 and $ 2,608 , respectively, and $ 1,072 and $ 2,137 for the three and six months ended December 31, 2022, respectively .

Expense related to the 401(k) Plan and Excess Savings Plan for the three and nine months ended March 31, 2024 was $ 1,261 and $ 3,869 , respectively, and $ 1,465 and $ 3,602 for the three and nine months ended March 31, 2023, respectively .

MADISON SQUARE GARDEN SPORTS CORP.

2 unchanged sentences

See Note 14 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023 for more information regarding the Company’s E xecutive Deferred Compensation Plan (the “Deferred Compensation Plan”).

The Company recorded compensation expense of $ 839 and $ 735 for the three and six months ended December 31, 2023 , respectively, and $ 449 and $ 346 for the three and six months ended December 31, 2022, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains of $ 839 and $ 735 for the three and six months ended December 31, 2023 , respectively, and $ 449 and $ 346 for the three and six months ended December 31, 2022, respectively, within Miscellaneous income (expense), net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

The Company recorded compensation expense of $ 821 and $ 1,556 for the three and nine months ended March 31, 2024 , respectively, and $ 368 and $ 714 for the three and nine months ended March 31, 2023, respectively, within Selling, general and administrative expenses to reflect the remeasurement of the Deferred Compensation Plan liability.

In addition, the Company recorded gains of $ 821 and $ 1,556 for the three and nine months ended March 31, 2024 , respectively, and $ 368 and $ 714 for the three and nine months ended March 31, 2023, respectively, within Miscellaneous (expense) income, net to reflect t he remeasurement of the fair value of assets under the Deferred Compensation Plan.

The following table summarizes amounts recognized related to the Deferred Compensation Plan in the consolidated balance sheets:

6 unchanged sentences

Share-based compensation expense is recognized in the consolidated statements of operations as a component of Selling, general and administrative expenses.

Share-based compensation expense was $ 6,570 and $ 10,719 for the three and six months ended December 31, 2023, respectively and $ 11,619 and $ 18,839 for the three and six months ended December 31, 2022, respectively.

There were no costs related to share-based compensation that were capitalized for the three and six months ended December 31, 2023 and 2022, respectively.

Share-based compensation expense was $ 7,350 and $ 18,069 for the three and nine months ended March 31, 2024, respectively and $ 3,220 and $ 22,059 for the three and nine months ended March 31, 2023, respectively.

There were no costs related to share-based compensation that were capitalized for the three and nine months ended March 31, 2024 and 2023, respectively.

Restricted Stock Units Award Activity

The following table summarizes activity related to the Company’s restricted stock units and performance restricted stock units, collectively referred to as “RSUs,” held by current and former employees of the Company and non-employee directors, for the six months ended December 31, 2023:

Number of Weighted-Average

8 unchanged sentences

Forfeited / Cancelled ( 3 ) ( 3 ) $ 176.52

Unvested award balance, December 31, 2023 127 153 $ 172.64

Unvested award balance, March 31, 2024 127 145 $ 170.68

_____________________

(a) Weighted-average fair value per share at date of grant does not reflect any adjustments to awards granted prior to the Sphere Distribution.

The fair value of RSUs that vested during the six months ended December 31, 2023 was $ 19,195 .

The fair value of RSUs that vested during the nine months ended March 31, 2024 was $ 21,192 .

Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations.

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 46 of these RSUs, with an aggregate value of $ 8,084 , inclusive of $ 4 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the six months ended December 31, 2023.

To fulfill the Company’s current and former employees’ required statutory tax withholding obligations for the applicable income and other employment taxes, 50 of these RSUs, with an aggregate value of $ 8,084 , inclusive of $ 4 related to the Company’s former employees (who vested in the Company’s RSUs), were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the nine months ended March 31, 2024.

MADISON SQUARE GARDEN SPORTS CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The fair value of RSUs that vested during the six months ended December 31, 2022 was $ 34,233 .

The weighted-average fair value per share at grant date of RSUs granted during the six months ended December 31, 2022 was $ 161.41 .

The fair value of RSUs that vested during the nine months ended March 31, 2023 was $ 40,795 .

The weighted-average fair value per share at grant date of RSUs granted during the nine months ended March 31, 2023 was $ 161.70 .

Stock Options Award Activity

The following table summarizes activity related to the Company’s stock options for the six months ended December 31, 2023:

The following table summarizes activity related to the Company’s stock options for the nine months ended March 31, 2024:

Time Vesting Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value

2 unchanged sentences

Cancelled — $ —

Balance as of December 31, 2023 94 $ 138.78 3.96 $ 4,039

Exercisable as of December 31, 2023 94 $ 138.78 3.96 $ 4,039

Balance as of March 31, 2024 94 $ 138.78 3.71 $ 4,292

Exercisable as of March 31, 2024 94 $ 138.78 3.71 $ 4,292

Stock Repurchase Program

11 unchanged sentences

The Company has treated the initial and final shares of Class A Common Stock delivered as treasury shares as of the date the shares were physically delivered in computing the weighted average shares of outstanding Class A Common Stock for both basic and diluted earnings per share.

During the six months ended December 31, 2023 , the Company did not make any share repurchases under its share repurchase program.

As of December 31, 2023, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

During the nine months ended March 31, 2024 , the Company did not make any share repurchases under its share repurchase program.

As of March 31, 2024, the Company had $ 184,639 of availability remaining under its stock repurchase authorization .

Related Party Transactions

As of December 31, 2023, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, members of the Dolan family, including trusts for members of the Dolan family (collectively, the “Dolan Family Group”), collectively beneficially own 100 % of the Company’s outstanding Class B Common Stock and own approximately 3.3 % of the Company’s outstanding Class A Common Stock.

As of March 31, 2024, certain members of the Dolan family, including certain trusts for members of the Dolan family (collectively, the “Dolan Family Group”), for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, collectively beneficially own 100 % of the Company’s outstanding Class B Common Stock and own approximately 3.0 % of the Company’s outstanding Class A Common Stock.

Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 70.9 % of the aggregate voting power of the Company’s outstanding common stock.

1 unchanged sentence

(“AMC Networks”).

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of December 31, 2023:

The Company was party to the following agreements and/or arrangements with MSG Entertainment as of March 31, 2024:

• Arena license agreements, entered into in April 2020 (the “Arena License Agreements”), pursuant to which MSG Entertainment (i) provides the right to use The Garden for games of the Knicks and the Rangers for a 35-year term in exchange for arena license fees, (ii) shares revenues collected for suite and club licenses, (iii) operates and manages

11 unchanged sentences

• Other agreements with MSG Entertainment entered into in connection with the Sphere Distribution, including a trademark license agreement and certain other arrangements.

The Company is also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of December 31, 2023 :

The Company is also party to the following agreements and/or arrangements with Sphere Entertainment (including through its subsidiary MSG Networks) as of March 31, 2024 :

• Media rights agreements between the Company and MSG Networks, entered into in July 2015, with stated terms of 20 years providing MSG Networks with local telecast rights for Knicks and Rangers games in exchange for media rights fees;

13 unchanged sentences

The following table summarizes the composition and amounts of the transactions with the Company’s affiliates.

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three and six months ended December 31, 2023 and 2022:

Three Months Ended December 31, Six Months Ended December 31,

These amounts are reflected in revenues and operating expenses in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2024 and 2023:

Three Months Ended March 31, Nine Months Ended March 31,

2024 2023 2024 2023

12 unchanged sentences

The estimated annual effective tax rate is revised on a quarterly basis.

Income tax expense for the three months ended December 31, 2023 of $ 10,784 reflects an effective tax rate of 43 %.

Income tax benefit for the six months ended December 31, 2023 of $ 4,360 reflects an effective tax rate of 49 %.

Income tax expense for the three and six months ended December 31, 2022 of $ 24,555 and $ 4,062 , respectively, reflects an effective tax rate of 53 % and 55 %, respectively.

Income tax expense for the three and nine months ended March 31, 2024 of $ 34,018 and $ 29,658 , respectively, reflects an effective tax rate of 47 % for both periods.

Income tax expense for the three and nine months ended March 31, 2023 of $ 42,962 and $ 47,024 , respectively, reflects an effective tax rate of 45 % and 46 %, respectively.

The Company was notified in April 2020 that the City of New York was commencing an audit of the local income tax returns for the fiscal years ended June 30, 2016 and 2017.

The audit was finalized in January 2024 and resulted in no material changes.

During the six months ended December 31, 2023, the Company made income tax payments, net of refunds, of $ 14,259 .

During the nine months ended March 31, 2024, the Company made income tax payments, net of refunds, of $ 14,319 .

The Company had $ 35,115 and $ 10,633 of accrued federal and state income tax, recorded within other accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2024 and June 30, 2023, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements