GGB Estero, LLC
The Company leases office space for its radio stations in Fort Myers, FL from GGB Estero, LLC, which is held by a trust for the benefit of
Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other members of the Beasley family. The office space was transferred to Beasley Family Properties, LLC on September 30, 2021. Rental expense was $0.2 million for each of the years
ended December 31, 2020 and 2021.
GGB Las Vegas, LLC
The Company leases office space for its radio stations in Las Vegas, NV from GGB Las Vegas, LLC, which is controlled by members of the Beasley
family. The lease agreement expires on December 31, 2023. Rental expense was $0.2 million for each of the years ended December 31, 2020 and 2021.
Wintersrun Communications, LLC
The Company sold the tower for one radio station in Charlotte, NC to Wintersrun Communications, LLC, which is partially held by a trust for the
benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other members of the Beasley family and partially owned directly by Bruce G. Beasley and Brian E. Beasley, for $0.4 million then leased back the tower under an agreement which
expires on December 31, 2045. The lease met the criteria to be recorded as a finance lease, however, based on the terms of the lease agreement, the $0.3 million gain on sale was deferred and will be recognized as the finance lease right-of-use asset is depreciated. Rental expense was $0.1 million for each of the years ended December 31, 2020 and 2021.
The Company leases a tower for one radio station in Augusta, GA from Wintersrun. The lease agreement expires on October 16, 2025. Rental
expense was approximately $31,000 for each of the years ended December 31, 2020 and 2021.
Loan from George Beasley
In June 2020, George Beasley, the Companys former Chairman, provided a $5.0 million loan to the Company that accrued payment-in-kind interest at 6% per annum with no cash payments due until the loans maturity in December 2023. Mr. Beasley and GGB Family Limited Partnership also
each entered into standby letters of credit in combined aggregate face amount of $5.0 million in favor of U.S. Bank, National Association for the benefit of the Company as a source of backup liquidity that could have been drawn by U.S. Bank,
National Association in the event that the Company failed to maintain a minimum liquidity amount under the then-existing credit facility. The loan was repaid on February 2, 2021.
Employees
The
compensation of Caroline Beasley, Bruce G. Beasley and Brian E. Beasley is discussed above in Executive Compensation. Bradley C. Beasley, brother of Caroline Beasley, Bruce G. Beasley and Brian E. Beasley, is currently employed by the
Company and was paid $367,602 and $410,810 in 2020 and 2021, respectively. The amounts paid include a base salary and performance-based cash bonuses. Adam Lurie,
son-in-law of Bruce G. Beasley, is currently employed by the Company and was paid $321,207 and $278,500 in 2020 and 2021, respectively. The amounts paid include a base
salary, commissions and performance-based cash bonuses. Ryan Beasley, son of Bruce G. Beasley, is currently employed by the Company and was paid $106,688 and $137,414 in 2020 and 2021, respectively. The amounts paid include a base salary,
commissions and performance-based cash bonuses.
DELINQUENT SECTION 16(a) REPORTS
Section 16(a) of the Exchange Act requires the Companys officers and directors, and persons who own more than ten percent of a
registered class of the Companys stock, to file reports of ownership and changes in
23