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)

6 Months Ended

Jun. 30, 2021

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

six-

month periods ended June 30, 2021 and 2020:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2021			2020			2021
	(Dollars in thousands)						(Dollars in thousands)
Stock option compensation expense included in unallocated corporate expenses	$	43		$	24		$	93		$	52
Stock option compensation expense included in broadcast operating expenses		37			33			74			61
Stock option compensation expense included in digital media operating expenses		16			27			31			49
Stock option compensation expense included in publishing operating expenses		—			—			1			—

Total stock-based compensation expense, pre-tax	$	96		$	84		$	199		$	162

Tax expense for stock-based compensation expense		(25	)		(22	)		(52	)		(42	)

Total stock-based compensation expense, net of tax	$	71		$	62		$	147		$	120

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

six-month

periods ended June 30, 2021 and 2020:


	Three Months Ended	Six Months Ended			Three Months Ended	Six Months Ended
	June 30, 2020	June 30, 2020			June 30, 2021	June 30, 2021
Expected volatility	n/a		53.96	%	n/a		74.83	%
Expected dividends	n/a		7.30	%	n/a		0.00	%
Expected term (in years)	n/a		7.6		n/a		7.7
Risk-free interest rate	n/a		1.14	%	n/a		0.96	%

Schedule of Stock Option Activity

Activity with respect to the company’s option awards during the

six-month

period ended June 30, 2021 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, 2021		2,291,020		$	3.23	$	1.52		4.3 years	$	—
Granted		210,000			2.01		1.44				—
Exercised		(185,782	)		2.11		0.97				188
Forfeited or expired		(157,446	)		6.73		4.74				—

Outstanding at June 30, 2021		2,157,792		$	2.95	$	1.33		4.5 years	$	996

Exercisable at June 30, 2021		1,210,417		$	3.84	$	1.75		2.8 years	$	167

Expected to Vest		899,533		$	2.98	$	1.34		4.5 years	$	786

Schedule of Information Regarding Restricted Stock Activity

Activity with respect to the company’s restricted stock awards during the

six-month

period ended June 30, 2021 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, 2021		107,990	$	1.85		1.67 years	$	112
Granted		—		—		—		—
Lapsed		—		—		—		—
Forfeited		—		—		—		—

Outstanding at June 30, 2021		107,990	$	1.85		0.6 years	$	275