Salem Media Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock Incentive Plan (Tables)

Stock Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Stock-Based Compensation Expense Recognized

The following table reflects the components of stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2019 and 2018:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2019			2018			2019
	(Dollars in thousands)
Stock option compensation expense included in unallocated corporate expenses	$	120		$	43		$	220		$	229
Restricted stock shares compensation expense included in unallocated corporate expenses		—			100			—			523
Stock option compensation expense included in broadcast operating expenses		40			20			82			88
Restricted stock shares compensation expense included in broadcast operating expenses		—			—			—			383
Stock option compensation expense included in digital media operating expenses		27			12			50			58
Stock option compensation expense included in publishing operating expenses		4			2			11			8
Total stock-based compensation expense, pre-tax	$	191		$	177		$	363		$	1,289
Tax expense for stock-based compensation expense		(49	)		(46	)		(94	)		(335	)
Total stock-based compensation expense, net of tax	$	142		$	131		$	269		$	954

Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options and Restricted Stock Awards using Black-Scholes Option Valuation Model

The weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes valuation model were as follows for the three and nine month periods ended September 30, 2019 and 2018:

	Three Months Ended September 30, 2018	Nine Months Ended September 30, 2018	Three Months Ended September 30, 2019	Nine Months Ended September 30, 2019
Expected volatility	n/a	41.84%	50.45%	50.07%
Expected dividends	n/a	7.89%	15.75%	14.91%
Expected term (in years)	n/a	7.4	7.7	7.7
Risk-free interest rate	n/a	2.93%	1.71%	1.83%

Schedule of Stock Option Activity

Activity with respect to the Company’s option awards during the nine month period ended September 30, 2019 is as follows:

Options	Shares			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value)
Outstanding at January 1, 2019		1,980,972		$	4.63	$	2.61	4.1 years	$	—
Granted		38,750			1.80		0.30			—
Exercised		(200	)		2.38		2.05			—
Forfeited or expired		(185,050	)		5.81		4.14		$	2
Outstanding at September 30, 2019		1,834,472		$	4.47	$	2.42	3.8 years	$	—
Exercisable at September 30, 2019		1,264,344		$	4.93	$	2.79	2.5 years	$	—
Expected to Vest		541,337		$	4.49	$	2.43	3.7 years	$	—

Schedule of Information Regarding Restricted Stock Activity

Activity with respect to the Company’s restricted stock awards during the nine month period ended September 30, 2019 is as follows:

Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	(Dollars in thousands, except weighted average exercise price and weighted average grant date fair value)
Outstanding at January 1, 2019		—		$	—		—	$	—
Granted		430,384			2.11		—		906
Lapsed		(389,061	)		2.07		—		919
Forfeited		—			—		—		—
Outstanding at September 30, 2019		41,323		$	2.42		1.76	$	63