Salem Media Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

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

3 Months Ended

Mar. 31, 2023

Supplemental balance sheet information related to leases is as follows:


	March 31, 2023
	(Dollars in thousands)
Operating Leases	Related Party		Other		Total
Operating leases ROU assets	$	8,409	$	35,867	$	44,276
Operating lease liabilities (current)	$	996	$	7,442	$	8,438
Operating lease liabilities (non-current)		7,549		34,960		42,509

Total operating lease liabilities	$	8,545	$	42,402	$	50,947


Weighted Average Remaining Lease Term
Operating leases			7.4 years
Finance leases			2.5 years
Weighted Average Discount Rate
Operating leases			8.43%
Finance leases			6.97%

The components of lease expense were as follows:


	Three Months Ended March 31, 2023
	(Dollars in thousands)
Amortization of finance lease ROU Assets	$	11
Interest on finance lease liabilities		1

Finance lease expense		12
Operating lease expense		3,285
Variable lease expense		398
Short-term lease expense		136

Total lease expense	$	3,831

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31, 2023
	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,540
Operating cash flows from finance leases		1
Financing cash flows from finance leases		15
Leased assets obtained in exchange for new operating lease liabilities	$	3,125
Leased assets obtained in exchange for new finance lease liabilities		—

Future minimum lease payments under leases that had initial or remaining

non-cancelable

lease terms in excess of one year as of March 31, 2023, are as follows:


Future minimum lease payments required under leases that have initial or remaining non- cancelable lease terms in excess of one year as of March 31, 2020, are as follows:	Operating Leases
	Related Party			Other			Total			Finance Leases			Total

	(Dollars in thousands)
2023 (Apr-Dec)	$	1,700		$	11,011		$	12,711		$	40		$	12,751
2024		1,860			10,018			11,878			19			11,897
2025		1,895			8,864			10,759			11			10,770
2026		1,701			6,776			8,477			3			8,480
2027		1,223			3,858			5,081			1			5,082
Thereafter		1,082			23,207			24,289			—			24,289

Undiscounted Cash Flows	$	9,461		$	63,734		$	73,195		$	74		$	73,269

Less: imputed interest		(916	)		(21,332	)		(22,248	)		(6	)		(22,254	)

Total	$	8,545		$	42,402		$	50,947		$	68		$	51,015

Reconciliation to lease liabilities:
Lease liabilities – current	$	996		$	7,442		$	8,438		$	37		$	8,475
Lease liabilities – long-term		7,549			34,960			42,509			31			42,540

Total Lease Liabilities	$	8,545		$	42,402		$	50,947		$	68		$	51,015