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)

9 Months Ended

Sep. 30, 2023

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 nine-month periods ended September 30, 2023 and 2022:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2023			2022			2023

	(Dollars in thousands)						(Dollars in thousands)
Stock option compensation expense included in unallocated corporate expenses	$	24		$	83		$	60		$	201
Restricted stock shares compensation expense included in corporate expenses		—			—			54			—
Stock option compensation expense included in broadcast operating expenses		18			34			67			95
Stock option compensation expense included in digital media operating expenses		12			10			47			39
Stock option compensation expense included in publishing operating expenses		—			2			—			5

Total stock-based compensation expense, pre-tax	$	54		$	129		$	228		$	340

Tax expense for stock-based compensation expense		(14	)		(33	)		(59	)		(88	)

Total stock-based compensation expense, net of tax	$	40		$	96		$	169		$	252

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 nine-month periods ended September 30, 2023 and 2022:


	Three Months Ended September 30, 2022	Nine Months Ended September 30, 2022	Three Months Ended September 30, 2023	Nine Months Ended September 30, 2023
Expected volatility	85.94%	84.90%	n/a	87.94%
Expected dividends	0.00%	0.00%	n/a	0.00%
Expected term (in years)	7.5	9.2	n/a	8.4
Risk-free interest rate	3.10%	1.86%	n/a	3.69%

Schedule of Stock Option Activity

Activity with respect to our option awards during the nine-month period ended September 30, 2023 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, 2023		1,706,340		$	2.68	$	1.23		4.2 years	$	—
Granted		1,249,500			1.06		0.87				—
Exercised		—			—		—				—
Forfeited or expired		(153,997	)		4.90		1.43				—

Outstanding at September 30, 2023		2,801,843			1.89		1.07		5.5 years	$	—

Exercisable at September 30, 2023		1,101,843			2.75		1.20		2.7 years		—

Expected to Vest		1,614,150			1.91		1.07		5.5 years	$	—

Schedule of Information Regarding Restricted Stock Activity

Activity with respect to our restricted stock awards during the nine-month period ended September 30, 2023 is as follows:


Restricted Stock Awards	Shares		Weighted Average Grant Date Fair		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, 2023		14,854		3.66		1.20	$	16
Granted		—		—		—		—
Lapsed		—		—		—		—
Forfeited		—		—		—		—

Outstanding at September 30, 2023		14,854		3.66		0.5	$	9