BEASLEY BROADCAST GROUP INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2024

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 000-29253

BEASLEY BROADCAST GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	65-0960915
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

3033 Riviera Drive , Suite 200

Naples , Florida 34103

(Address of Principal Executive Offices and Zip Code)

( 239 ) 263-5000

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on which Registered
Class A Common Stock, par value $0.001 per share	BBGI	Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 	Accelerated filer 
Non-accelerated filer 	Smaller reporting company 
Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class A Common Stock, $0.001 par va lue, 13,796,612 Shares Outstanding as of August 7, 2024

Class B Common Stock, $0.001 par value, 16,662,743 Shares Outstanding as of August 7, 2024

INDEX

		Page No.
PART I FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements.
	Notes to Condensed Consolidated Financial Statements.	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	18
Item 4.	Controls and Procedures.	18
PART II OTHER INFORMATION
Item 1.	Legal Proceedings.	19
Item 1A.	Risk Factors.	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	20
Item 3.	Defaults Upon Senior Securities.	20
Item 4.	Mine Safety Disclosures.	20
Item 5.	Other Information.	20
Item 6.	Exhibits .	22
SIGNATURES		23

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	December 31, — 2023	2024
ASSETS
Current assets:
Cash and cash equivalents	$ 26,733,921	$	33,294,187
Accounts receivable, less allowance for credit losses of $ 1,752,058 in 2023 and $ 1,473,743 in 2024	53,424,196		47,175,316
Prepaid expenses	4,338,503		5,818,556
Other current assets	2,150,163		2,134,690
Total current assets	86,646,783		88,422,749
Property and equipment, net	51,474,754		49,919,069
Operating lease right-of-use assets	34,767,126		33,431,749
FCC licenses	393,006,900		393,006,900
Goodwill	922,000		922,000
Other intangibles, net	2,722,408		2,576,904
Other assets	4,727,967		4,888,812
Total assets	$ 574,267,938	$	573,168,183
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 14,299,048	$	13,737,563
Operating lease liabilities	8,082,981		8,283,652
Other current liabilities	25,913,827		27,900,560
Total current liabilities	48,295,856		49,921,775
Due to related parties	55,019		39,663
Long-term debt, net of unamortized debt issuance costs	264,203,010		264,874,288
Operating lease liabilities	33,440,246		31,621,104
Deferred tax liabilities	71,894,915		70,222,945
Other long-term liabilities	7,400,257		7,400,257
Total liabilities	425,289,303		424,080,032
Commitments and contingencies
Stockholders' equity:
Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; none issued	-		-
Class A common stock, $ 0.001 par value; 150,000,000 shares authorized; 17,391,382 issued and 13,653,941 outstanding in 2023; 17,586,632 issued and 13,796,612 outstanding in 2024	17,389		17,584
Class B common stock, $ 0.001 par value; 75,000,000 shares authorized; 16,662,743 issued and outstanding in 2023 and 2024	16,662		16,662
Additional paid-in capital	152,794,353		153,209,210
Treasury stock, Class A common stock; 3,737,441 shares in 2023; 3,790,020 shares in 2024	( 29,239,179	)	( 29,276,664	)
Retained earnings	25,042,926		24,774,875
Accumulated other comprehensive income	346,484		346,484
Total stockholders' equity	148,978,635		149,088,151
Total liabilities and stockholders' equity	$ 574,267,938	$	573,168,183

See accompanying notes to condensed consolidated financial statements

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS (UNAUDITED)

	Three Months Ended June 30, — 2023		2024
Net revenue	$ 63,461,723		$ 60,435,657
Operating expenses:
Operating expenses (including stock-based compensation of $ 39,416 in 2023 and $ 13,679 in 2024 and excluding depreciation and amortization shown separately below)	51,327,562		49,347,793
Corporate expenses (including stock-based compensation of $ 141,923 in 2023 and $ 248,012 in 2024)	4,405,031		3,879,771
Depreciation and amortization	2,195,985		1,832,894
Impairment loss	10,041,000		-
Total operating expenses	67,969,578		55,060,458
Operating income (loss)	( 4,507,855	)	5,375,199
Non-operating income (expense):
Interest expense	( 6,724,469	)	( 6,092,829	)
Other income, net	36,735		357,260
Loss before income taxes	( 11,195,589	)	( 360,370	)
Income tax benefit	( 821,836	)	( 75,986	)
Loss before equity in earnings of unconsolidated affiliates	( 10,373,753	)	( 284,384	)
Equity in earnings of unconsolidated affiliates, net of tax	( 56,876	)	8,363
Net loss	( 10,430,629	)	( 276,021	)
Net loss per Class A and Class B common share:
Basic and diluted	$ ( 0.35	)	$ ( 0.01	)
Weighted average shares outstanding:
Basic and diluted	29,853,144		30,354,222

See accompanying notes to condensed consolidated financial statements

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS (UNAUDITED)

	Six Months Ended June 30, — 2023		2024
Net revenue	$ 121,240,843		$ 114,816,003
Operating expenses:
Operating expenses (including stock-based compensation of $ 72,220 in 2023 and $ 35,917 in 2024 and excluding depreciation and amortization shown separately below)	101,981,217		98,588,791
Corporate expenses (including stock-based compensation of $ 283,387 in 2023 and $ 379,135 in 2024)	8,888,126		8,287,603
Depreciation and amortization	4,425,310		3,667,496
Impairment loss	10,041,000		-
Total operating expenses	125,335,653		110,543,890
Operating income (loss)	( 4,094,810	)	4,272,113
Non-operating income (expense):
Interest expense	( 13,318,321	)	( 11,680,137	)
Gain on sale of investment	-		6,026,776
Other income, net	577,250		627,265
Loss before income taxes	( 16,835,881	)	( 753,983	)
Income tax benefit	( 2,985,819	)	( 486,216	)
Loss before equity in earnings of unconsolidated affiliates	( 13,850,062	)	( 267,767	)
Equity in earnings of unconsolidated affiliates, net of tax	( 117,133	)	( 284	)
Net loss	( 13,967,195	)	( 268,051	)
Net loss per Class A and Class B common share:
Basic and diluted	$ ( 0.47	)	$ ( 0.01	)
Weighted average shares outstanding:
Basic and diluted	29,819,638		30,340,012

See accompanying notes to condensed consolidated financial statements

BEASLEY BROADCAST GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six Months Ended June 30, — 2023		2024
Cash flows from operating activities:
Net loss	$ ( 13,967,195	)	$ ( 268,051	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation	355,607		415,052
Provision for credit losses	525,814		291,000
Depreciation and amortization	4,425,310		3,667,496
Impairment loss	10,041,000		-
Amortization of loan fees	734,253		671,278
Gain on sale of investment	-		( 6,026,776	)
Gain on repurchases of long-term debt	( 973,208	)	-
Deferred income taxes	( 3,144,387	)	( 1,671,970	)
Equity in earnings of unconsolidated affiliates	117,133		284
Change in operating assets and liabilities:
Accounts receivable	858,277		5,957,880
Prepaid expenses	( 3,591,131	)	( 1,480,053	)
Other assets	947,918		( 351,853	)
Accounts payable	726,744		( 561,485	)
Other liabilities	2,840,148		1,656,819
Other operating activities	127,428		256,205
Net cash provided by operating activities	23,711		2,555,826
Cash flows from investing activities:
Capital expenditures	( 2,016,185	)	( 1,984,851	)
Proceeds from sale of investment	-		6,026,776
Net cash provided by (used in) investing activities	( 2,016,185	)	4,041,925
Cash flows from financing activities:
Payments on debt	( 1,983,750	)	-
Purchase of treasury stock	( 67,767	)	( 37,485	)
Net cash used in financing activities	( 2,051,517	)	( 37,485	)
Net increase (decrease) in cash and cash equivalents	( 4,043,991	)	6,560,266
Cash and cash equivalents at beginning of period	39,534,653		26,733,921
Cash and cash equivalents at end of period	$ 35,490,662		$ 33,294,187
Cash paid for interest	$ 12,569,776		$ 11,514,380
Cash paid for income taxes	$ 1,246,263		$ 351,975

See accompanying notes to condensed consolidated financial statements

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLI DATED FINANCIAL STATEMENTS (UNAUDITED)

(1) Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of Beasley Broadcast Group, Inc. and its subsidiaries (the “Company”) included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the financial statements reflect all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented, and all such adjustments are of a normal and recurring nature. The Company’s results are subject to seasonal fluctuations; therefore the results shown on an interim basis are not necessarily indicative of results for the full year.

(2) Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance which requires additional disclosures primarily related to the Company's income tax rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively. The Company is currently in the process of reviewing the new guidance.

In November 2023, the FASB issued guidance which requires additional disclosures for the Company's reportable segments, primarily related to significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within the fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently in the process of reviewing the new guidance.

(3) Proceeds from BMI Sale

On March 8, 2024, the Company received $ 6.0 million related to the sale of an investment in Broadcast Music, Inc. ("BMI") and recorded a gain of $ 6.0 million. The gain on sale of investment is reported in the accompanying condensed consolidated statement of net loss for the six months ended June 30, 2024. After the sale, the Company no longer holds an investment in BMI.

(4) FCC Licenses

During the second quarter of 2023, due to the potential sale of substantially all of the assets used in the operations of WJBR-FM in Wilmington, DE, the Company recorded an impairment loss of $ 10.0 million related to the Federal Communications Commission ("FCC") license. The Company completed the sale of WJBR-FM on October 5, 2023.

(5) Long-Term Debt

Long-term debt is comprised of the following:

	December 31, — 2023	2024
Secured notes	$ 267,000,000	$	267,000,000
Less unamortized debt issuance costs	( 2,796,990	)	( 2,125,712	)
	$ 264,203,010	$	264,874,288

On February 2, 2021, the Company issued $ 300.0 million aggregate principal amount of 8.625 % senior secured notes due on February 1, 2026 (the “Notes”) under an indenture dated February 2, 2021 (the “Indenture”). Interest on the Notes accrues at the rate of 8.625 % per annum and is payable semiannually in arrears on February 1 and August 1 of each year. The Notes are secured on a first-lien priority basis by substantially all assets of the Company and its majority-owned subsidiaries and are guaranteed jointly and severally by the Company and its majority-owned subsidiaries. The Indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, guarantee indebtedness or issue disqualified stock or, in the case of such subsidiaries, preferred stock; pay dividends on, repurchase or make distributions in respect of our capital stock

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

or make other restricted payments; make certain investments or acquisitions; sell, transfer or otherwise convey certain assets; create liens; enter into agreements restricting certain subsidiaries’ ability to pay dividends or make other intercompany transfers; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; enter into transactions with affiliates; prepay certain kinds of indebtedness; and issue or sell stock of its subsidiaries. Prior to February 1, 2025, the Company will be subject to certain premiums, as defined in the Indenture, for optional or mandatory (upon certain contingent events) redemption of some or all of the Notes.

In the second quarter of 2023, the Company repurchased $ 3.0 million principal amount of the Notes for a price equal to 66 % of the principal amount and recorded a gain of $ 1.0 million as a result of the repurchase.

(6) Stockholders’ Equity

The changes in stockholders’ equity are as follows:

	Three months ended June 30, — 2023	2024		2023		2024
Beginning balance	$ 220,100,965	$	149,127,330	$	223,488,808	$	148,978,635
Stock-based compensation	181,339		261,691		355,607		415,052
Purchase of treasury stock	( 42,222	)	( 24,849	)	( 67,767	)	( 37,485	)
Net loss	( 10,430,629	)	( 276,021	)	( 13,967,195	)	( 268,051	)
Ending balance	$ 209,809,453	$	149,088,151	$	209,809,453	$	149,088,151

(7) Net Revenue

Net revenue is comprised of the following:

	Three months ended June 30, — 2023	2024	Six months ended June 30, — 2023	2024
Audio	$ 50,448,093	$ 47,430,080	$ 97,866,059	$ 90,858,207
Digital	12,301,269	13,005,577	22,278,054	23,957,796
Other	712,361	-	1,096,730	-
	$ 63,461,723	$ 60,435,657	$ 121,240,843	$ 114,816,003

The Company recognizes revenue when it satisfies a performance obligation under a contract with an advertiser. The transaction price is allocated to performance obligations based on executed contracts, which represent relative standalone selling prices. Payment is generally due within 30 days, although certain advertisers are required to pay in advance. Revenues are reported at the amount the Company expects to be entitled to receive under the contract. The Company has elected to use the practical expedient to expense sales commissions as incurred. Payments received from advertisers before the performance obligation is satisfied are recorded as deferred revenue in the balance sheets. Substantially all deferred revenue is recognized within 12 months of the payment date.

	December 31,	June 30,
	2023	2024
Deferred revenue	$ 4,835,984	$ 4,832,273

Audio revenue includes revenue from the sale or trade of aired commercial spots to advertisers directly or through national, regional or local advertising agencies. Each commercial spot is considered a performance obligation. Revenue is recognized when the commercial spots have aired. Trade sales are recorded at the estimated fair value of the goods or services received. If commercial spots are aired before the goods or services are received, then a trade sales receivable is recorded. If goods or services are received before the commercial spots are aired, then a trade sales payable is recorded. Other revenue includes revenue from concerts, promotional events, talent fees and other miscellaneous items. Such revenue is generally recognized when the concert, promotional event, or talent services are completed.

	December 31,	June 30,
	2023	2024
Trade sales receivable	$ 1,417,692	$ 1,211,495
Trade sales payable	481,471	512,935

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	Three months ended June 30, — 2023	2024	Six months ended June 30, — 2023	2024
Trade sales revenue	$ 1,466,652	$ 1,211,615	$ 2,847,494	$ 2,476,078

Digital revenue includes revenue from the sale of streamed commercial spots, station-owned assets and third-party products. Each streamed commercial spot, station-owned asset and third-party product is considered a performance obligation. Revenue is recognized when the commercial spots have streamed. Station-owned assets are generally scheduled over a period of time and revenue is recognized over time as the digital items are used for advertising content, except for streamed commercial spots. Third-party products are generally scheduled over a period of time with an impression target each month. Revenue from the sale of third-party products is recognized over time as the digital items are used for advertising content and impression targets are met each month. The Company assesses each digital sales order to determine if the Company is operating as the principal or an agent. The Company currently operates as the principal for digital revenue.

(8) Stock-Based Compensation

The Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”) permits the Company to issue up to 7.5 million shares of Class A common stock. The 2007 Plan allows for eligible employees, directors and certain consultants of the Company to receive restricted stock units, shares of restricted stock, stock options or other stock-based awards. The restricted stock units that have been granted under the 2007 Plan generally vest over one to five years of service.

A summary of restricted stock unit activity is presented below:

Unvested as of April 1, 2024	726,084	$	1.50
Granted	390,661		0.66
Vested	( 153,000	)	1.82
Forfeited	( 15,000	)	0.95
Unvested as of June 30, 2024	948,745	$	1.07

As of June 30, 2024 , there was $ 0.6 million of total unrecognized compensation cost for restricted stock units granted under the 2007 Plan. That cost is expected to be recognized over a weighted-average period of 1.8 years.

(9) Income Taxes

The Company’s effective tax rate was ( 7 )% and ( 21 )% for the three months ended June 30, 2023 and 2024 , respectively, and ( 18 )% and ( 64 )% for the six months ended June 30, 2023 and 2024 , respectively. These rates differ from the federal statutory rate of 21 % due to the effect of state income taxes and certain expenses that are not deductible for tax purposes.

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(10) Earnings Per Share

Earnings per share calculation information is as follows:

	Three months ended June 30, — 2023		2024		Six months ended June 30, — 2023		2024
Net loss attributable to BBGI stockholders	$ ( 10,430,629	)	$ ( 276,021	)	$ ( 13,967,195	)	$ ( 268,051	)
Weighted-average shares outstanding:
Basic	29,853,144		30,354,222		29,819,638		30,340,012
Effect of dilutive restricted stock units	-		-		-		-
Diluted	29,853,144		30,354,222		29,819,638		30,340,012
Net loss attributable to BBGI stockholders per Class A and Class B common share – basic and diluted	$ ( 0.35	)	$ ( 0.01	)	$ ( 0.47	)	$ ( 0.01	)

The Company excluded the effect of restrictive stock units and restricted stock under the treasury stock method when reporting a net loss as the addition of shares was anti-dilutive. As a result, the C ompany excluded 58,490 shares and 240,282 shares for the three months ended June 30, 2023 and 2024 , respectively, and 57,775 shares and 282,042 shares for the six months ended June 30, 2023 and 2024 , respectively.

(11) Financial Instruments

The carrying amount of the Company’s financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximates fair value due to the short-term nature of these financial instruments.

The estimated fair value of the Notes, based on available market information, was $ 173.2 million and $ 163.9 million as of December 31, 2023 and June 30, 2024 , respectively. The Company used Level 2 measurements under the fair value measurement hierarchy to determine the estimated fair value of the Notes.

(12) Segment Information

The Company currently operates two operating and reportable segments (Audio and Digital). The Company also operated an esports segment until December 13, 2023. The identification of segments is consistent with how the segments report to and are managed by the Company’s Chief Executive Officer (the Company’s Chief Operating Decision Maker). The Audio segment generates revenue primarily from the sale of commercial advertising to customers of the Company’s stations in the following markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, and Tampa-Saint Petersburg, FL. The Digital segment generates revenue primarily from the sale of digital advertising to customers of the Company’s stations and other advertisers throughout the United States. Corporate expenses includes general and administrative expenses and certain other income and expense items not allocated to the operating segments. Non-operating corporate items, including interest expense and income taxes, are reported in the accompanying condensed consolidated statements of net loss.

Reportable segment information for the three months ended June 30, 2024 is as follows:

	Audio	Digital	Corporate		Total
Net revenue	$ 47,430,080	$ 13,005,577	$ -		$ 60,435,657
Operating expenses	39,468,898	9,878,895	-		49,347,793
Corporate expenses	-	-	3,879,771		3,879,771
Depreciation and amortization	1,594,673	52,440	185,781		1,832,894
Operating income (loss)	$ 6,366,509	$ 3,074,242	$ ( 4,065,552	)	$ 5,375,199

	Audio	Digital	Corporate	Total
Capital expenditures	$ 841,355	$ 8,925	$ 186,847	$ 1,037,127

BEASLEY BROADCAST GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reportable segment information for the three months ended June 30, 2023 is as follows:

Net revenue	Audio — $ 50,448,093		Digital — $ 12,301,269	Other — $ 712,361		Corporate — $ -		Total — $ 63,461,723
Operating expenses	39,369,033		10,786,584	1,171,945		-		51,327,562
Corporate expenses	-		-	-		4,405,031		4,405,031
Depreciation and amortization	1,737,441		47,201	199,290		212,053		2,195,985
Impairment losses	10,041,000		-	-		-		10,041,000
Operating income (loss)	$ ( 699,381	)	$ 1,467,484	$ ( 658,874	)	$ ( 4,617,084	)	$ ( 4,507,855	)

	Audio	Digital	Other	Corporate	Total
Capital expenditures	$ 811,663	$ 8,777	$ 5,412	$ 21,053	$ 846,905

Reportable segment information for the six months ended June 30, 2024 is as follows:

	Audio	Digital	Corporate		Total
Net revenue	$ 90,858,207	$ 23,957,796	$ -		$ 114,816,003
Operating expenses	77,901,810	20,686,981	-		98,588,791
Corporate expenses	-	-	8,287,603		8,287,603
Depreciation and amortization	3,190,926	104,879	371,691		3,667,496
Operating income (loss)	$ 9,765,471	$ 3,165,936	$ ( 8,659,294	)	$ 4,272,113

	Audio	Digital	Corporate	Total
Capital expenditures	$ 1,663,090	$ 8,925	$ 312,836	$ 1,984,851

Reportable segment information for the six months ended June 30, 2023 is as follows:

Net revenue	Audio — $ 97,866,059	Digital — $ 22,278,054	Other — $ 1,096,730		Corporate — $ -		Total — $ 121,240,843
Operating expenses	79,268,627	20,694,181	2,018,409		-		101,981,217
Corporate expenses	-	-	-		8,888,126		8,888,126
Depreciation and amortization	3,512,205	93,967	395,767		423,371		4,425,310
Impairment loss	10,041,000	-	-		-		10,041,000
Operating income (loss)	$ 5,044,227	$ 1,489,906	$ ( 1,317,446	)	$ ( 9,311,497	)	$ ( 4,094,810	)

	Audio	Digital	Other	Corporate	Total
Capital expenditures	$ 1,949,777	$ 11,590	$ 25,534	$ 29,284	$ 2,016,185

Reportable segment information as of June 30, 2024 is as follows:

	Audio	Digital	Corporate	Total
Property and equipment, net	$ 46,844,784	$ 152,088	$ 2,922,197	$ 49,919,069
FCC licenses	393,006,900	-	-	393,006,900
Goodwill	-	922,000	-	922,000
Other intangibles, net	1,641,363	755,878	179,663	2,576,904

Reportable segment information as of December 31, 2023 is as follows:

	Audio	Digital	Other	Corporate	Total
Property and equipment, net	$ 48,324,618	$ 95,003	$ 74,081	$ 2,981,052	$ 51,474,754
FCC licenses	393,006,900	-	-	-	393,006,900
Goodwill	-	922,000	-	-	922,000
Other intangibles, net	1,707,909	834,836	-	179,663	2,722,408

ITEM 2. MANAGEMENT’S DISCUSSI ON AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

General

We are a multi-platform media company whose primary business is operating radio stations throughout the United States. We offer local and national advertisers integrated marketing solutions across audio, digital and event platforms. We own and operate stations in the following markets: Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers- Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, and Tampa-Saint Petersburg, FL. We refer to each group of stations in each market as a market cluster. Unless the context otherwise requires, all references in this report to the “Company,” “we,” “us” or “our” are to Beasley Broadcast Group, Inc. and its subsidiaries.

Cautionary Note Regarding Forward-Looking Statements

This report contains “forward-looking statements” about the Company within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future, not past, events. All statements other than statements of historical fact included in this document are forward-looking statements. These forward-looking statements are based on the current beliefs and expectations of the Company’s management and are subject to known and unknown risks and uncertainties. Forward-looking statements, which address the Company’s expected business and financial performance and financial condition, among other matters, contain words such as: “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “may,” “will,” “plans,” “projects,” “could,” “should,” “would,” “seek,” “forecast,” or other similar expressions.

Forward-looking statements, by their nature, address matters that are, to different degrees, uncertain. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements.

Forward-looking statements involve a number of risks and uncertainties, and actual results or events may differ materially from those projected or implied in those statements. Factors that could cause actual results or events to differ materially from these forward-looking statements include, but are not limited to:

• the Company's ability to comply with the continued listing standards of the Nasdaq Capital Market;

• risks from social and natural catastrophic events;

• external economic forces and conditions that could have a material adverse impact on the Company’s advertising revenues and results of operations;

• the ability of the Company’s stations to compete effectively in their respective markets for advertising revenues;

• the ability of the Company to develop compelling and differentiated digital content, products and services;

• audience acceptance of the Company’s content, particularly its audio programs;

• the ability of the Company to respond to changes in technology, standards and services that affect the audio industry;

• the Company’s dependence on federally issued licenses subject to extensive federal regulation;

• actions by the FCC or new legislation affecting the audio industry;

• increases to royalties the Company pays to copyright owners or the adoption of legislation requiring royalties to be paid to record labels and recording artists;

• the Company’s dependence on selected market clusters of stations for a material portion of its net revenue;

• credit risk on the Company’s accounts receivable;

• the risk that the Company’s FCC licenses and/or goodwill could become impaired;

• the Company’s substantial debt levels and the potential effect of restrictive debt covenants on the Company’s operational flexibility and ability to pay dividends;

• the potential effects of hurricanes on the Company’s corporate offices and stations;

• the failure or destruction of the internet, satellite systems and transmitter facilities that the Company depends upon to distribute its programming;

• disruptions or security breaches of the Company’s information technology infrastructure and information systems;

• the loss of key personnel;

• the Company’s ability to integrate acquired businesses and achieve fully the strategic and financial objectives related thereto and their impact on the Company’s financial condition and results of operations;

• the fact that the Company is controlled by the Beasley family, which creates difficulties for any attempt to gain control of the Company; and

• other economic, business, competitive, and regulatory factors affecting the businesses of the Company, including those set forth in the Company’s filings with the Securities and Exchange Commission.

Although we believe the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. We do not intend, and undertake no obligation, to update any forward-looking statement.

Financial Statement Presentation

The following discussion provides a brief description of certain key items that appear in our financial statements and general factors that impact these items.

Net Revenue. Our net revenue is primarily derived from the sale of commercial spots to advertisers directly or through national, regional or local advertising agencies. Revenues are reported at the amount we expect to be entitled to receive under the contract. Local revenue generally consists of commercial advertising sales, digital advertising sales and other sales to advertisers in a station’s local market, either directly to the advertiser or through the advertiser’s agency. National revenue generally consists of commercial advertising sales through advertiser agencies. National advertiser agencies generally purchase advertising for multiple markets. National sales are generally facilitated by our national representation firm, which serves as our agent in these transactions.

Our net revenue is generally determined by the advertising rates that we are able to charge and the number of advertisements that we can broadcast without jeopardizing listener levels. Advertising rates are primarily based on the following factors:

• a station’s audience share in the demographic groups targeted by advertisers as measured principally by periodic reports issued by Nielsen Audio;

• the number of stations, as well as other forms of media, in the market competing for the attention of the same demographic groups;

• the supply of, and demand for, radio advertising time; and

• the size of the market.

Our net revenue is affected by general economic conditions, competition and our ability to improve operations at our radio market clusters. Seasonal revenue fluctuations are also common in the radio broadcasting industry and are primarily due to variations in advertising expenditures by local and national advertisers. Our revenues typically are lowest in the first calendar quarter of the year. In addition, our revenues tend to fluctuate between years, consistent with, among other things, increased advertising expenditures in even-numbered years by political candidates, political parties and special interest groups. This political spending typically is heaviest during the fourth quarter of such years.

We use trade sales agreements to reduce cash paid for operating costs and expenses by exchanging advertising airtime for goods or services; however, we endeavor to minimize trade revenue in order to maximize cash revenue from our available airtime.

We also continue to invest in digital support services to develop and promote our station websites, applications, and other distribution platforms. We derive revenue from our websites through the sale of advertiser promotions and advertising on our websites and the sale of advertising airtime during audio streaming of our stations over the internet. We also generate revenue from selling third-party digital products and services.

Operating Expenses. Our operating expenses consist primarily of programming, engineering, sales, advertising and promotion, and general and administrative expenses incurred at our stations. We strive to control our operating expenses by centralizing certain functions at our corporate offices and consolidating certain functions in each of our market clusters.

Critical Accounting Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. We consider an accounting estimate to be critical if:

• it involves a significant level of estimation uncertainty; and

• changes in the estimate or different estimates that could have been selected have had or are reasonably likely to have a material impact on our results of operations or financial condition.

Our critical accounting estimates are described in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no additional material changes to our critical accounting estimates during the six months ended June 30, 2024.

Recent Accounting Pronouncements

Recent accounting pronouncements are described in Note 2 to the accompanying condensed consolidated financial statements.

Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023

The following summary table presents a comparison of our results of operations for the three months ended June 30, 2023 and 2024, with respect to certain of our key financial measures. The changes illustrated in the table are discussed in greater detail below. This section should be read in conjunction with the condensed consolidated financial statements and notes to condensed consolidated financial statements included in Part I, Item 1 of this report.

Results of Operations - Consolidated

	Three Months Ended June 30, — 2023	2024	Change — $	%
Net revenue	$ 63,461,723	$ 60,435,657	$ (3,026,066	)	(4.8	)%
Operating expenses	51,327,562	49,347,793	(1,979,769	)	(3.9	)%
Corporate expenses	4,405,031	3,879,771	(525,260	)	(11.9	)%
Impairment loss	10,041,000	-	(10,041,000	)	(100.0	)%
Interest expense	6,724,469	6,092,829	(631,640	)	(9.4	)%
Income tax benefit	821,836	75,986	(745,850	)	(90.8	)%
Net loss	10,430,629	276,021	(10,154,608	)	(97.4	)%

Results of Operations - Segments

	Three Months Ended June 30, — 2023	2024	Change — $	%
Net revenue
Audio	$ 50,448,093	$ 47,430,080	$ (3,018,013	)	(6.0	)%
Digital	12,301,269	13,005,577	704,308		5.7	%
Other	712,361	-	(712,361	)	(100.0	)%
	$ 63,461,723	$ 60,435,657	$ (3,026,066	)	(4.8	)%
Operating expenses
Audio	$ 39,369,033	$ 39,468,898	$ 99,865		0.3	%
Digital	10,786,584	9,878,895	(907,689	)	(8.4	)%
Other	1,171,945	-	(1,171,945	)	(100.0	)%
	$ 51,327,562	$ 49,347,793	$ (1,979,769	)	(3.9	)%

Net Revenue. Net revenue decreased $3.0 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. Audio revenue decreased $3.0 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to a decrease in local agency and direct revenue and the disposition of WJBR-FM in Wilmington, DE in October 2023. Digital revenue increased $0.7 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to continued growth in the digital segment. Other revenue decreased $0.7 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, due to the termination of our esports operations in December 2023.

Operating Expenses. Operating expenses decreased $2.0 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. Audio operating expenses increased $0.1 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to an increase in compensation expense related to workforce reductions, partially offset by the disposition of WJBR-FM in Wilmington, DE in October 2023. Digital operating expenses decreased $0.9 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to expense management in the digital segment. Other operating expenses decreased $1.2 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, due to the termination of our esports operations in December 2023.

Corporate Expenses. Corporate expenses decreased $0.5 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023, primarily due to an increase in digital expenses allocated to operating expenses.

Impairment Loss. During the second quarter of 2023, due to the potential sale of substantially all of the assets used in the operations of WJBR-FM in Wilmington, DE, we recorded an impairment loss of $10.0 million related to the FCC license.

Interest Expense. Interest expense decreased $0.6 million during the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 due to repurchases of the Notes throughout 2023.

Income Tax Benefit. Our effective tax rate was approximately (7)% and (21)% for the three months ended June 30, 2023 and 2024, respectively. These rates differ from the federal statutory rate of 21% due to the effect of state income taxes and certain expenses that are not deductible for tax purposes.

Net Loss. Net loss for the three months ended June 30, 2024 was $0.3 million compared to a net loss of $10.4 million for the three months ended June 30, 2023, as a result of the factors described above.

Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023

The following summary table presents a comparison of our results of operations for the six months ended June 30, 2023 and 2024, with respect to certain of our key financial measures. The changes illustrated in the table are discussed in greater detail below. This section should be read in conjunction with the condensed consolidated financial statements and notes to condensed consolidated financial statements included in Item 1 of this report.

Results of Operations - Consolidated

	Six Months Ended June 30, — 2023	2024	Change — $	%
Net revenue	$ 121,240,843	$ 114,816,003	$ (6,424,840	)	(5.3	)%
Operating expenses	101,981,217	98,588,791	(3,392,426	)	(3.3	)%
Corporate expenses	8,888,126	8,287,603	(600,523	)	(6.8	)%
Impairment loss	10,041,000	-	(10,041,000	)	(100.0	)%
Interest expense	13,318,321	11,680,137	(1,638,184	)	(12.3	)%
Gain on sale of investment	—	6,026,776	6,026,776		—
Income tax benefit	2,985,819	486,216	(2,499,603	)	(83.7	)%
Net loss	13,967,195	268,051	(13,699,144	)	(98.1	)%

Results of Operations - Segments

	Six Months Ended June 30, — 2023	2024	Change — $	%
Net revenue
Audio	$ 97,866,059	$ 90,858,207	$ (7,007,852	)	(7.2	)%
Digital	22,278,054	23,957,796	1,679,742		7.5	%
Other	1,096,730	-	(1,096,730	)	(100.0	)%
	$ 121,240,843	$ 114,816,003	$ (6,424,840	)	(5.3	)%
Operating expenses
Audio	$ 79,268,627	$ 77,901,810	$ (1,366,817	)	(1.7	)%
Digital	20,694,181	20,686,981	(7,200	)	(0.0	)%
Other	2,018,409	-	(2,018,409	)	(100.0	)%
	$ 101,981,217	$ 98,588,791	$ (3,392,426	)	(3.3	)%

Net Revenue. Net revenue decreased $6.4 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. Audio revenue decreased $7.0 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to a decrease in local agency and direct revenue and the disposition of WJBR-FM in Wilmington, DE in October 2023. Digital revenue increased $1.7 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to continued growth in the digital segment. Other revenue decreased $1.1 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, due to the termination of our esports operations in December 2023.

Operating Expenses. Operating expenses decreased $3.4 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023. Audio operating expenses decreased $1.4 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to the disposition of WJBR-FM in Wilmington, DE in October 2023, partially offset by an increase in compensation expense related to workforce reductions. Digital operating expenses during the six months ended June 30, 2024 were comparable to the six months ended June 30, 2023. Other operating expenses decreased $2.0 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, due to the termination of our esports operations in December 2023.

Corporate Expenses. Corporate expenses decreased $0.6 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, primarily due to an increase in digital expenses allocated to operating expenses.

Interest Expense. Interest expense decreased $1.6 million during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 due to repurchases of the Notes throughout 2023.

Gain on Sale of Investment. On March 8, 2024, we received $6.0 million related to the sale of an investment in Broadcast Music, Inc. and recorded a gain of $6.0 million.

Income Tax Benefit. Our effective tax rate was approximately (18)% and (64)% for the six months ended June 30, 2023 and 2024, respectively. These rates differ from the federal statutory rate of 21% due to the effect of state income taxes and certain expenses that are not deductible for tax purposes.

Net Loss. Net loss for the six months ended June 30, 2024 was $0.3 million compared to a net loss of $14.0 million for the six months ended June 30, 2023, as a result of the factors described above.

Liquidity and Capital Resources

Overview. Our primary sources of liquidity are internally generated cash flow and cash on hand. Our primary liquidity needs have been, and for the next 12 months and thereafter are expected to continue to be, for working capital, debt service, and other general corporate purposes, including capital expenditures and station acquisitions. Historically, our capital expenditures have not been significant. In addition to property and equipment associated with station acquisitions, our capital expenditures have generally been, and are expected to continue to be, related to the maintenance of our office and studio space, the maintenance of our towers and equipment, and digital products and information technology. We have also purchased or constructed office and studio space in some of our markets to facilitate the consolidation of our operations.

Our board of directors has suspended future quarterly dividend payments until it is determined that resumption of dividend payments is in the best interest of the Company’s stockholders. In addition, as discussed in “Secured Notes” below, the Indenture governing our Notes limits our ability to pay dividends.

Secured Notes. On February 2, 2021, we issued $300.0 million aggregate principal amount of 8.625% senior secured notes due on February 1, 2026 (the “Notes”) under an indenture dated February 2, 2021 (the “Indenture”). Interest on the Notes accrues at the rate of 8.625% per annum and is payable semiannually in arrears on February 1 and August 1 of each year. The Notes are secured on a first-lien priority basis by substantially all assets of the Company and its majority-owned subsidiaries and are guaranteed jointly and severally by the Company and its majority-owned subsidiaries. The Indenture contains restrictive covenants that limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, guarantee indebtedness or issue disqualified stock or, in the case of such subsidiaries, preferred stock; pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted payments; make certain investments or acquisitions; sell, transfer or otherwise convey certain assets; create liens; enter into agreements restricting certain subsidiaries’ ability to pay dividends or make other intercompany transfers; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; enter into transactions with affiliates; prepay certain kinds of indebtedness; and issue or sell stock of our subsidiaries.

In the second quarter of 2023, we repurchased $3.0 million principal amount of the Notes for a price equal to 66% of the principal amount and recorded a gain of $1.0 million as a result of the repurchase.

From time to time, we repurchase sufficient shares of our Class A common stock to fund withholding taxes in connection with the vesting of restricted stock units. We paid approximately $37,000 to repurchase 52,579 shares during the six months ended June 30, 2024. From time to time, we may seek to repurchase, redeem or otherwise retire our Notes through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, tender offers or otherwise. Such repurchases, redemptions or other transactions, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors. The amounts involved may be material.

We expect to provide for future liquidity needs through one or a combination of the following sources of liquidity:

• internally generated cash flow;

• additional borrowings or notes offerings, to the extent permitted under the Indenture governing our Notes; and

• additional equity offerings.

We believe we will have sufficient liquidity and capital resources to permit us to provide for our liquidity requirements and meet our financial obligations for the next 12 months and thereafter. However, poor financial results or unanticipated expenses could give rise to default under the Notes, additional debt servicing requirements or other additional financing or liquidity requirements sooner than we expect, and we may not secure financing when needed or on acceptable terms.

Off-Balance Sheet Arrangements. We did not have any off-balance sheet arrangements as of June 30, 2024.

Cash Flows . The following summary table presents a comparison of our cash flows for the six months ended June 30, 2023 and 2024 with respect to certain of our key measures affecting our liquidity. The changes set forth in the table are discussed in greater detail below. This section should be read in conjunction with the condensed consolidated financial statements and notes to condensed consolidated financial statements included in Part I, Item 1 of this report.

	Six Months Ended June 30, — 2023		2024
Net cash provided by operating activities	$ 23,711		$ 2,555,826
Net cash provided by (used in) investing activities	(2,016,185	)	4,041,925
Net cash used in financing activities	(2,051,517	)	(37,485	)
Net increase (decrease) in cash and cash equivalents	$ (4,043,991	)	$ 6,560,266

Net Cash Provided By Operating Activities. Net cash provided by operating activities was $2.6 million during the six months ended June 30, 2024, as compared to net cash provided by operating activities of approximately $24,000 during the six months ended June 30, 2023. The $2.5 million increase in net cash provided by operating activities was primarily due to a $1.1 million decrease in interest payments, a $1.0 million increase in other income, net, a $0.9 million decrease in income tax payments, and a $0.7 million decrease in cash paid for corporate expenses, partially offset by a $1.0 decrease in cash receipts from revenue.

Net Cash Provided By (Used In) Investing Activities. Net cash provided by investing activities during the six months ended June 30, 2024 included proceeds of $6.0 million from the sale of an investment, partially offset by payments of $2.0 million for capital expenditures. Net cash used in investing activities for the same period in 2023 included payments of $2.0 million for capital expenditures.

Net Cash Used In Financing Activities. Net cash used in financing activities during the six months ended June 30, 2023 included Notes repurchases of $2.0 million.

ITEM 3. QUANTITATIVE AND QUAL ITATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for smaller reporting companies.

ITEM 4. CONTROLS AND PRO CEDURES.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective as of the end of the period covered by this report.

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER IN FORMATION

ITEM 1. LEGAL PROCEEDINGS.

We currently and from time to time are involved in ordinary routine litigation and are the subject of threats of litigation that are incidental to the conduct of our business. These include indecency claims and related proceedings at the FCC, as well as claims and threatened claims by private third parties. However, we are not a party to any lawsuit or other proceedings, or the subject of any threatened lawsuit or other proceedings, which, in the opinion of management, is likely to have a material adverse effect on our financial condition or results of operations.

ITEM 1A. RIS K FACTORS.

Except for the risk factor discussed below, there have been no material changes to the risks affecting our Company as previously disclosed in Part I, Item 1A, “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2023.

There can be no assurance that we will be able to comply with the continued listing standards of the Nasdaq Capital Market.

Our Class A common stock, par value $0.001 per share (the “Common Stock”) is currently listed for trading on the Nasdaq Capital Market, and we must satisfy certain continued listing requirements to maintain the listing. On April 27, 2023, we received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying us that, for the last 30 consecutive business days, the bid price for the Common Stock had closed below the $1.00 per share minimum bid price requirement for continued inclusion on the Nasdaq Global Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). On May 19, 2023, we received a notice from Nasdaq notifying us that we had regained compliance with the Minimum Bid Price Requirement and that the matter was closed.

On October 13, 2023, we received a written notice from the Listing Qualifications Department of Nasdaq notifying us that, for the last 30 consecutive business days, the bid price for the Common Stock had closed below the Minimum Bid Price Requirement. In accordance with Nasdaq rules, we were provided with a period of 180 calendar days, or until April 10, 2024, to regain compliance.

On April 16, 2024, we received approval from Nasdaq to transfer the listing of the Common Stock from the Nasdaq Global Market to the Nasdaq Capital Market (the “Approval”). The Common Stock was transferred to the Nasdaq Capital Market at the opening of business on April 18, 2024, and continues to trade under the symbol “BBGI.” As a result of the Approval, we were granted an additional 180-day compliance period, or until October 7, 2024, to regain compliance with the Minimum Bid Price Requirement. To regain compliance with the Minimum Bid Price Requirement and qualify for continued listing on the Nasdaq Capital Market, the minimum bid price per share of the Company’s Common Stock must be at least $1.00 for at least ten consecutive business days during the additional 180-day compliance period.

We intend to actively monitor the closing bid price of the Common Stock and will consider all reasonable available options to regain compliance with the Minimum Bid Price Requirement, which may include seeking stockholder approval to effect a reverse stock split. There can be no assurance that we will regain compliance with the Minimum Bid Price Requirement by October 7, 2024, maintain compliance with the other Nasdaq listing requirements or be successful in appealing any delisting determination.

If we are delisted from Nasdaq but obtain a substitute listing for the Common Stock, it will likely be on a market with less liquidity, and therefore experience potentially more price volatility than experienced on Nasdaq. Stockholders may not be able to sell their shares of the Common Stock on any such substitute market in the quantities, at the times, or at the prices that could potentially be available on a more liquid trading market. As a result of these factors, if the Common Stock is delisted from Nasdaq, the value and liquidity of the Common Stock would likely be significantly adversely affected.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Repurchases of Equity Securities

The following table presents information with respect to purchases we made of our Common Stock during the three months ended June 30, 2024.

Period — April 1 – 30, 2024	-	Average Price Paid per Share — $ -	-	-
May 1 – 31, 2024	7,416	$ 0.67	-	-
June 1 – 30, 2024	30,505	$ 0.65	-	-
Total	37,921

On March 27, 2007, our board of directors approved the Beasley Broadcast Group, Inc. 2007 Equity Incentive Award Plan (the “2007 Plan”). The original 10-year term of the 2007 Plan ended on March 27, 2017. Our stockholders approved an amendment to the 2007 Plan at the Annual Meeting of Stockholders on June 8, 2017 to, among other things, extend the term of the 2007 Plan until March 27, 2027. The 2007 Plan permits us to purchase sufficient shares to fund withholding taxes in connection with the vesting of restricted stock units. All shares purchased during the three months ended June 30, 2024 were purchased to fund withholding taxes in connection with the vesting of restricted stock units.

ITEM 3. DEFAULTS UP ON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFE TY DISCLOSURES.

Not applicable.

ITEM 5. OTHE R INFORMATION.

During the three months ended June 30, 2024 , no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Employment Agreement of Bruce G. Beasley

On August 14, 2024, Bruce G. Beasley was appointed as Vice Chair of the Board of Directors (the “Board”) of the Company. Mr. Bruce Beasley will continue in his role as President of the Company.

In connection with his appointment as Vice Chair, the Company entered into an amended and restated employment agreement with Mr. Bruce Beasley, effective as of August 14, 2024 (the “Employment Agreement”), which amends and restates his prior employment agreement with the Company, dated as of September 20, 2021, with the following changes:

• Revises the term of the Employment Agreement to an initial term that expires on July 1, 2027, subject to renewal for successive one-year periods upon mutual agreement of the Company and Mr. Bruce Beasley in writing;

• Provides for an annual base salary of $400,000, effective as of August 1, 2024, and eligibility to earn a discretionary annual bonus in an amount, if any, determined by the Compensation Committee of the Board;

• Removes his entitlement to a monthly car allowance; and

• Revises a portion of the cash severance payable upon a termination due to his death or disability, by the Company without cause or due to his resignation for good reason (a “Qualifying Termination”) that occurs in connection with or within two years following a change in control to match two times his base rate of pay in effect prior to the amendment and restatement, subject to the terms of the Employment Agreement.

The foregoing summary of the Employment Agreement does not purport to be complete and is qualified by reference to the full text of the Employment Agreement, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.

Employment Agreements of Caroline Beasley and Brian E. Beasley

On August 14, 2024, each of Caroline Beasley, the Company’s Chief Executive Officer, and Brian E. Beasley, the Company’s Chief Operating Officer, entered into a letter agreement with the Company (each, a “Letter Agreement”) pursuant to which each agreed to extend the term of her or his respective employment agreement with the Company for an additional three-year term expiring on July 1, 2027. In connection with such extension, a portion of the cash severance payable under the applicable employment agreement was revised such that, upon a Qualifying Termination, each of Ms. Caroline Beasley and Mr. Brian Beasley will be entitled to receive, in addition to any other amounts provided under their respective employment agreements, her or his annual base salary (as such term is defined in the applicable employment agreement) until July 1, 2027 or for one year, whichever is greater.

The foregoing summary of the Letter Agreements does not purport to be complete and is qualified by reference to the full text of the Letter Agreements, which are filed as Exhibit 10.2 and Exhibit 10.3 hereto and incorporated herein by reference.

Restricted Stock Unit Grants

In connection with entering into the Employment Agreement and the Letter Agreements, on August 14, 2024, Mr. Bruce Beasley, Ms. Caroline Beasley and Mr. Brian Beasley were each granted restricted stock units under the Company’s 2007 Equity Incentive Award Plan in the following amounts: Mr. Bruce Beasley (162,500), Ms. Caroline Beasley (450,000) and Mr. Brian Beasley (380,000). A portion of each award of restricted stock units was vested on the grant date, and the remainder will vest in equal installments on each of June 30, 2025, 2026 and 2027, subject to the executive’s continued service with the Company through each such vesting date and accelerated vesting of a pro-rata portion of the restricted stock units in the event of the executive’s termination due to death or disability.

ITEM 6. EX HIBITS.

Exhibit Number	Description
10.1*	Amended and Restated Executive Employment Agreement by and between Beasley Broadcast Group, Inc. and Bruce G. Beasley, dated as of August 14, 2024.
10.2*	Letter Agreement by and between Beasley Broadcast Group, Inc. and Caroline Beasley, dated as of August 14, 2024.
10.3*	Letter Agreement by and between Beasley Broadcast Group, Inc. and Brian E, Beasley, dated as of August 14, 2024 .
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)).
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) (17 CFR 240.15d-14(a)).
32.1**	Certification of Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350.
32.2**	Certification of Chief Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) (17 CFR 240.15d-14(b)) and 18 U.S.C. Section 1350.
101.INS	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema With Embedded Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

Indicates a management contract or compensatory plan or arrangement required to be filed as an exhibit to this report.

** This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

SIGN ATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BEASLEY BROADCAST GROUP, INC.
Dated: August 14, 2024	/s/ Caroline Beasley
	Name: Caroline Beasley
	Title: Chief Executive Officer (principal executive officer)
Dated: August 14, 2024	/s/ Marie Tedesco
	Name: Marie Tedesco
	Title: Chief Financial Officer (principal financial and accounting officer)

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