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

Broadcast Licenses (Tables)

Broadcast Licenses (Tables)

9 Months Ended

Sep. 30, 2023

Indefinite-lived Intangible Assets [Line Items]

Schedule of Changes in Broadcasting Licenses

The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators.


Broadcast Licenses	Twelve Months Ended December 31, 2022			Nine Months Ended September 30, 2023

	(Dollars in thousands)
Balance before cumulative loss on impairment, beginning of period	$	434,444		$	429,890
Accumulated loss on impairment, beginning of period		(114,436	)		(126,116	)

Balance after cumulative loss on impairment, beginning of period		320,008			303,774

Acquisitions of radio station and FM Translators		514			3,542
Capital projects to improve broadcast signal and strength		—			200
Disposition of radio stations and FM translators		(2,763	)		(234	)
Assets held for sale		—			(8,713	)
Loss on impairment		(13,985	)		(38,376	)

Balance, end of period after cumulative loss on impairment	$	303,774		$	260,193

Balance, end of period before cumulative loss on impairment	$	429,890		$	419,456
Accumulated loss on impairment, end of period		(126,116	)		(159,263	)

Balance, end of period after cumulative loss on impairment	$	303,774		$	260,193

Schedule of Estimates and Assumptions Used in the Start - Up Income Valuation for Broadcast Licenses

The assumptions used reflect those of a hypothetical market participant and not necessarily the actual or projected results of Salem. The key estimates and assumptions used in the

start-up

income valuation for our broadcast licenses were as follows:


Broadcast Licenses	December 31, 2022	June 30, 2023	September 30, 2023
Risk-adjusted discount rate	9.5%	9.5%	10.0%
Operating profit margin ranges	3.9% - 30.4%	3.9% - 30.4%	3.9% - 30.4%
Long-term revenue growth rates	0.4% - 0.8%	0.4% - 0.8%	0.0%

Schedule of Interim Impairment Testing Under Start-Up Income Approach

The table below presents the results of our interim impairment testing under the

start-up

income approach at September 30, 2023:


Market Cluster		Excess Fair Value September 30, 2023
Boston, MA		14.0%
Chicago, IL		21.5%
Cleveland, OH		21.1%
Colorado Springs, CO		16.0%
Columbus, OH		11.8%
Dallas, TX		8.2%
Detroit, MI		3.2%
Greenville, SC		9.2%
Honolulu, HI		0.0%
Little Rock, AR		23.0%
Los Angeles, CA		0.0%
Miami, FL		36.6%
New York NY		9.5%
Orlando FL		10.4%
Philadelphia, PA		19.8%
Phoenix, AZ		0.9%
Portland, OR		23.6%
Sacramento, CA		26.2%
San Diego, CA		61.0%
San Francisco, CA		25.9%
Tampa, FL		17.4%