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)

3 Months Ended

Mar. 31, 2022

Disclosure of Compensation Related Costs, Share-based 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-month periods ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2021			2022
	(Dollars in thousands)
Stock option compensation expense included in corporate expenses	$	28		$	2
Restricted stock shares compensation expense included in corporate expenses		—			54
Stock option compensation expense included in broadcast operating expenses		28			30
Stock option compensation expense included in digital media operating expenses		22			20

Total stock-based compensation expense, pre-tax	$	78		$	106

Tax provision for stock-based compensation expense		(20	)		(28	)

Total stock-based compensation expense, net of tax	$	58		$	78

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-month periods ended March 31, 2022 and 2021:


	Three Months Ended March 31, 2021			Three Months Ended March 31, 2022
Expected volatility		74.83	%		84.69	%
Expected dividends		0.00	%		0.00	%
Expected term (in years)		7.7			9.5
Risk-free interest rate		0.96	%		1.61	%

Schedule of Stock Option Activity

Activity with respect to the company’s option awards during the three-month period ended March 31, 2022 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, 2022		1,900,417		$	3.01	$	1.37		4.4 years	$	1,310
Granted		100,000			3.26		2.66				—
Exercised		(40,913	)		2.31		1.16				50
Forfeited or expired		(161,664	)		6.09		3.48				—

Outstanding at March 31, 2022		1,797,840			2.76		1.25		4.8 years	$	1,640

Exercisable at March 31, 2022		963,590			3.38		1.38		3.1 years		523

Expected to Vest		792,120			2.78		1.26		4.7 years	$	1,584

Schedule of Information Regarding Restricted Stock Activity

Activity with respect to the company’s restricted stock awards during the three-month period ended March 31, 2022 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, 2022		—		—		—		—
Granted		14,854		3.66		—	$	54
Lapsed		—		—		—		—
Forfeited		—		—		—		—

Outstanding at March 31, 2022		14,854		3.66		1.9	$	50