Related Party Transactions

12 Months Ended

Dec. 31, 2019

(18)	Related Party Transactions

Beasley Broadcasting Management, LLC

The Company leases its principal executive offices in Naples, FL from Beasley Broadcasting Management, LLC, which is held by a trust for the benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members of George G. Beasley. Rental expense was $

0.2

million for each of the years ended December 31, 2018 and 2019.

Beasley Family Towers, LLC

The Company leases towers for two radio stations in Tampa, FL from Beasley Family Towers, LLC (“BFT”), which is partially held by a trust for the benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members of George G. Beasley and partially owned directly by Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members. The lease agreements expire on various dates through

December 31, 2038

. Rental expense was $

0.1

million and $

0.2

million for the years ended December 31, 2018 and 2019, respectively.

The Company sold the tower for

one

radio station in Augusta, GA to BFT for $

1.3

million then leased back the tower. The lease met the criteria to be recorded as a finance lease, however based on the terms of the lease agreement

the $

0.8

million gain on sale was deferred and was recognized as the finance lease

right-of-use

asset was amortized. On October 25, 2019, the tower was sold to an unrelated party

and the unamortized deferred gain was recognized. Rental expense was approximately $

13,000

and $

11,000

for the years ended December 31, 2018 and 2019, respectively.

The Company leases several towers for

one

radio station in Boca Raton, FL from BFT. The lease agreement expires on

April 30, 2021

Rental expense was

0.1

million for each of the years ended December 31, 2018 and 2019. Lease payments are currently offset by the partial recognition of a deferred gain on sale from the sale of these towers to BFT in 2006, therefore no rental expense was reported for these towers for the years ended December 31, 2018 and 2019.

The Company leases towers for

radio stations in various markets from BFT. The lease agreements expire on various dates through

December 28, 2020

. Rental expense was $

0.4

million for each of the years ended December 31, 2018 and 2019.

GGB Augusta, LLC

The Company leases land for its radio stations in Augusta, GA from GGB Augusta, LLC which is held by a trust for the benefit of Caroline Beasley, Bruce G. Beasley, Brian E. Beasley and other family members of George G. Beasley. The lease agreement expires on

November 1, 2023

. Rental expense was approximately $

45,000

and $

44,000

for the years ended December 31, 2018 and 2019, respectively.

GGB Estero, LLC

The Company leases property 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 family members of George G. Beasley. The lease agreement expires on

August 31, 2024

. Rental expense was $

0.2

million for each of the years ended December 31, 2018 and 2019.

GGB Las Vegas, LLC

The Company leases property for its radio stations in Las Vegas, NV from GGB Las Vegas, LLC which is controlled by George G. Beasley. The lease agreement expires on

December 31, 2023

. Rental expense was $

0.2

million for each of the years ended December 31, 2018 and 2019.

LN2 DB, LLC

On March 25, 2011, the Company contributed $

250,000

to Digital PowerRadio, LLC (now LN2 DB, LLC) in exchange for

25,000

units or approximately

% of the outstanding units. The Company contributed an additional $62,500 on February 14, 2012, $

104,167

on July 31, 2012, $

104,167

on April 10, 2013, $104,167 on April 4, 2014, $

166,667

on April 3, 2015, and $

166,667

on May 3, 2016. On February 22, 2017, the Company contributed $

150,000

to LN2 DB, LLC in exchange for a note bearing interest at

% per annum. On June 18, 2018, the note receivable and accrued interest due from LN2 DB, LLC totaling $

187,618

was converted to additional equity in LN2 DB, LLC and the Company contributed an additional $

150,000

. The Company may be called upon to make additional pro rata cash contributions to LN2 DB, LLC in the future. LN2 DB, LLC is managed by Fowler Radio Group, LLC which is partially-owned by Mark S. Fowler, an independent director of the Company. In June 2018, George G. Beasley, Caroline Beasley, Bruce Beasley, Brian Beasley and other family members also invested in LN2 DB, LLC under a recapitalization plan. Subsequent to the transactions above, the Company continues to maintain its ownership interest at approximately

% of the outstanding units.

In January 2020, LN2 DB, LLC completed a study of its patents, which concluded that none of them had any significant remaining market value. Therefore, LN2 DB, LLC may decide to dissolve itself in the near future. The Company recorded an impairment loss of $1.3 million for the year ended December 31, 2019.

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 family members of George G. Beasley 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, 2025.

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, 2018 and 2019.

The Company leased 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, 2018 and 2019.