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

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

9 Months Ended

Sep. 30, 2023

Supplemental balance sheet information related to leases is as follows:


	September 30, 2023
	(Dollars in thousands)
Operating Leases		Related Party		Other		Total
Operating leases ROU assets	$	8,167	$	36,939	$	45,106
Operating lease liabilities (current)	$	1,220	$	7,680	$	8,900
Operating lease liabilities (non-current)		7,214		35,594		42,808

Total operating lease liabilities	$	8,434	$	43,274	$	51,708


Weighted Average Remaining Lease Term
Operating leases	7.3 years
Finance leases	2.5 years
Weighted Average Discount Rate
Operating leases	8.62	%
Finance leases	8.29	%

The components of lease expense were as follows:


	Nine Months Ended September 30, 2023
	(Dollars in thousands)
Amortization of finance lease ROU Assets	$	32
Interest on finance lease liabilities		4

Finance lease expense		36
Operating lease expense		10,123
Variable lease expense		1,164
Short-term lease expense		350

Total lease expense	$	11,673

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended September 30, 2023
	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,711
Operating cash flows from finance leases		3
Financing cash flows from finance leases		43
Leased assets obtained in exchange for new operating lease liabilities	$	8,965
Leased assets obtained in exchange for new finance lease liabilities		41

Future minimum lease payments under leases that had initial or remaining

non-cancelable

lease terms in excess of one year as of September 30, 2023, are as follows:


Future minimum lease	Operating Leases
	Related Party			Other			Total			Finance Leases			Total

	(Dollars in thousands)
2024	$	1,453		$	9,546		$	10,999		$	38		$	11,037
2025		1,954			9,892			11,846			20			11,866
2026		1,959			8,651			10,610			19			10,629
2027		1,624			6,966			8,590			4			8,594
2028		1,201			5,184			6,385			1			6,386
Thereafter		3,584			21,919			25,503			—			25,503

Undiscounted Cash Flows	$	11,775		$	62,158		$	73,933		$	82		$	74,015

Less: imputed interest		(3,341	)		(18,884	)		(22,225	)		(8	)		(22,233	)

Total	$	8,434		$	43,274		$	51,708		$	74		$	51,782

Reconciliation to lease liabilities:
Lease liabilities – current	$	1,220		$	7,680		$	8,900		$	36		$	8,936
Lease liabilities – long-term		7,214			35,594			42,808			38			42,846

Total Lease Liabilities	$	8,434		$	43,274		$	51,708		$	74		$	51,782