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

Operating and Finance Lease Right-of-Use Assets (Tables)

12 Months Ended

Dec. 31, 2022

Supplemental balance sheet information related to leases was

follows:


	December 31, 2022
	(Dollars in thousands)
Operating Leases	Related Party		Other		Total
Operating leases ROU assets	$	6,486	$	37,185	$	43,671
Operating lease liabilities (current)	$	702	$	7,603	$	8,305
Operating lease liabilities (non-current)		5,908		36,498		42,406

Total operating lease liabilities	$	6,610	$	44,101	$	50,711


Weighted Average Remaining Lease Term

Operating leases			7.6 years
Finance leases			2.5 years
Weighted Average Discount Rate
Operating leases			8.34%
Finance leases			6.55%

The components of lease expense were as follows:


	Twelve Months Ended December 31, 2022
	(Dollars in thousands)
Amortization of finance lease ROU Assets	$	60
Interest on finance lease liabilities		7

Finance lease expense		67
Operating lease expense		12,978
Variable lease expense		1,335
Short-term lease expense		559

Total lease expense	$	14,939

Supplemental cash flow information related to leases was as follows:


	Twelve Months Ended December 31, 2022
	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13,161
Operating cash flows from finance leases		4
Financing cash flows from finance leases		63
Leased assets obtained in exchange for new operating lease liabilities	$	9,675
Leased assets obtained in exchange for new finance lease liabilities		20

Future minimum lease payments under leases that had initial or remaining

non-cancelable

lease terms in excess of one year as of December 31, 2022, are as follows:


	Operating Leases
	Related Party			Other			Total			Finance Leases			Total
	(Dollars in thousands)
2023	$	1,392		$	11,910		$	13,302		$	45		$	13,347
2024		1,314			10,415			11,729			25			11,754
2025		1,341			9,108			10,449			13			10,462
2026		1,249			7,209			8,458			5			8,463
2027		862			4,338			5,200			1			5,201
Thereafter		3,770			20,159			23,929			—			23,929

Undiscounted Cash Flows	$	9,928		$	63,139		$	73,067		$	89		$	73,156

Less: imputed interest		(3,318	)		(19,038	)		(22,356	)		(7	)		(22,363	)

Total	$	6,610		$	44,101		$	50,711		$	82		$	50,793

Reconciliation to lease liabilities:
Lease liabilities – current	$	702		$	7,603		$	8,305		$	43		$	8,348
Lease liabilities – long-term		5,908			36,498			42,406			39			42,445

Total Lease Liabilities	$	6,610		$	44,101		$	50,711		$	82		$	50,793