Salem Media Group, Inc. Annual report pursuant to Section 13 and 15(d)

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

The following table presents our revenues disaggregated by revenue source for each of our operating segments:


	Year Ended December 31, 2022
	Broadcast		Digital Media		Publishing			Consolidated
	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	53,535	$	—	$	—		$	53,535
Block Programming – Local		24,873		—		—			24,873

Broadcast Programming Revenue		78,408		—		—			78,408

Spot Advertising – National		15,359		—		—			15,359
Spot Advertising – Local		42,964		—		—			42,964
Network Advertising		21,593		—		—			21,593

Broadcast Advertising Revenue		79,916		—		—			79,916

Infomercials		735		—		—			735
Other Revenue		9,125		—		—			9,125

Other Broadcast Revenue		9,860		—		—			9,860

Digital Advertising		28,967		17,959		—			46,926
Digital Streaming		5,246		3,591		—			8,837
Digital Downloads		628		7,290		—			7,918
Digital Subscriptions		952		12,654		—			13,606
Other Digital Revenue		1,338		167		—			1,505

Digital Revenue		37,131		41,661		—			78,792

Book Sales		—		—		14,938			14,938
Estimated Sales Returns & Allowances		—		—		(3,988	)		(3,988	)

Net Book Sales		—		—		10,950			10,950

E-Book Sales		—		—		1,358			1,358
Self-Publishing Fees		—		—		6,717			6,717
Other Publishing Revenue		—		—		965			965

Publishing Revenue		—		—		19,990			19,990

	$	205,315	$	41,661	$	19,990		$	266,966

Timing of Revenue Recognition
Point in Time	$	203,062	$	41,661	$	19,990		$	264,713
Rental Income (1)		2,253		—		—			2,253

	$	205,315	$	41,661	$	19,990		$	266,966


	Year Ended December 31, 2021
	Broadcast		Digital Media		Publishing			Consolidated
	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	48,705	$	—	$	—		$	48,705
B lock Programming – Local		24,759		—		—			24,759

Broadcast Programming Revenue		73,464		—		—			73,464

Spot Advertising – National		14,294		—		—			14,294
Spot Advertising – Local		41,672		—		—			41,672
Network Advertising		19,789		—		—			19,789

Broadcast Advertising Revenue		75,755		—		—			75,755

Infomercials		878		—		—			878
Other Revenue		9,088		—		—			9,088

Other Broadcast Revenue		9,966		—		—			9,966

Digital Advertising		25,453		19,648		132			45,233
Digital Streaming		4,730		3,450		—			8,180
Digital Downloads		988		6,642		—			7,630
Digital Subscriptions		1,087		12,228		—			13,315
Other Digital Revenue		—		196		—			196

Digital Revenue		32,258		42,164		132			74,554

Book Sales		—		—		20,455			20,455
Estimated Sales Returns & Allowances		—		—		(5,348	)		(5,348	)

Net Book Sales		—		—		15,107			15,107

E-Book Sales		—		—		2,021			2,021
Self-Publishing Fees		—		—		6,081			6,081
Print Magazine Subscriptions		—		—		262			262
Other Publishing Revenue		—		—		1,037			1,037

Publishing Revenue		—		—		24,508			24,508

	$	191,443	$	42,164	$	24,640		$	258,247

Timing of Revenue Recognition
Point in Time	$	188,998	$	42,164	$	24,640		$	255,802
Rental Income (1)		2,445		—		—			2,445

	$	191,443	$	42,164	$	24,640		$	258,247

(1)	Rental income is not applicable to FASB ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Consolidated Financial Statements within this annual report.

Significant changes in our contract liabilities balances during the period are as

follows:


	Short Term			Long-Term
	(Dollars in thousands)
Balance, beginning of period January 1, 2022	$	12,294		$	2,222
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(9,475	)		—
Additional amounts recognized during the period		24,563			730
Revenue recognized during the period that was recorded during the period		(16,547	)		—
Transfers		1,066			(1,066	)

Balance, end of period December 31, 2022	$	11,901		$	1,886

Amount refundable at beginning of period	$	12,282		$	2,222
Amount refundable at end of period	$	11,901		$	1,886

We expect to satisfy these performance obligations

follows:

Trade and barter revenue and expenses were as follows:


	Year Ended
	December 31,
	2021			2022
Net broadcast barter revenue	$	2,567		$	3,031
Net broadcast barter expense	$	2,638		$	2,839
Net publishing barter expense		(5	)		—