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, 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- and nine-month periods ended September 30, 2022 and 2021:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2022			2021			2022
	(Dollars in thousands)
Stock option compensation expense included in unallocated corporate expenses	$	23		$	24		$	75		$	60
Restricted stock shares compensation expense included in corporate expenses		—			—			—			54
Stock option compensation expense included in broadcast operating expenses		31			18			92			67
Stock option compensation expense included in digital media operating expenses		24			12			73			47

Total stock-based compensation expense, pre-tax	$	78		$	54		$	240		$	228

Tax expense for stock-based compensation expense		(20	)		(14	)		(62	)		(59	)

Total stock-based compensation expense, net of tax	$	58		$	40		$	178		$	169

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, 2022 and 2021:


	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
	September 30, 2021			September 30, 2021			September 30, 2022			September 30, 2022
Expected volatility		79.99	%		75.98	%		85.94	%		84.90	%
Expected dividends		0.00	%		0.00	%		0.00	%		0.00	%
Expected term (in years)		8.0			7.8			7.5			9.2
Risk-free interest rate		1.27	%		1.03	%		3.10	%		1.86	%

Schedule of Stock Option Activity

Activity with respect to our option awards during the nine-month period ended September 30, 2022 is as follows:


Options	Shares			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2022		1,900,417		$	3.01	$	1.37		4.4 years	$	1,310
Granted		120,000			3.11		2.52				—
Exercised		(42,913	)		2.27		1.12				55
Forfeited or expired		(166,164	)		6.10		3.47				—

Outstanding at September 30, 2022		1,811,340			2.76		1.26		4.3 years	$	278

Exercisable at September 30, 2022		1,081,090			3.35		1.40		2.8 years		87

Expected to Vest		693,372			2.78		1.27		4.3 years	$	268

Schedule of Information Regarding Restricted Stock Activity

Activity with respect to our restricted stock awards during the nine-month period ended September 30, 2022 is as follows:


Restricted Stock Awards	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2022		—		—		—		—
Granted		14,854		3.66		—	$	54
Lapsed		—		—		—		—
Forfeited		—		—		—		—

Outstanding at September 30, 2022		14,854		3.66		1.7	$	26