Company: UONE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001041657-25-000042
Chunk: 82

Company: URBAN ONE, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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(in millions)Impairment Charge Recorded:Radio Market Reporting Units$3.9 Hypothetical Change for Radio Market Reporting Units:A 100-basis point decrease in radio industry terminal growth rates$1.0 A 100-basis point decrease in operating profit margin in the projection period1.0 A 100-basis point increase in the applicable discount rate1.5 A 5.0% reduction in the fair value of the Radio Markets3.3 A 10.0% reduction in the fair value of the Radio Markets6.7 

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Table of Contents

iOne Reporting Unit

The Company noted a continued decline in revenues in the iOne reporting unit, indicating that it was more likely than not that the iOne reporting unit was impaired. Therefore, the Company performed a quantitative impairment assessment for iOne reporting unit to determine whether it was impaired as of May 31, 2025. Based on these analyses, the Company recognized an impairment loss of approximately $4.9 million associated with the iOne reporting unit, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations during the three months ended June 30, 2025.

 Below are the key assumptions used in the income approach model for estimating the fair value of the iOne reporting unit in the most recent interim impairment assessment performed as of May 31, 2025.

Goodwill (iOne Reporting Unit)May 31,2025Discount rate9.5%Revenue growth rate range(34.5)% - 53.1%Operating profit margin range(4.9)% - 43.1%

The following table presents sensitivity analysis for the iOne reporting unit showing the impact of the most recent quantitative impairment assessment results from a 100 basis point increase or decrease in the terminal growth rate, operating profit margin, discount rate, 5.0% and 10.0% reduction in fair value of the iOne reporting unit which the Company has determined to be a significant assumption impacting the impairment:

Hypothetical Increase in theRecorded Impairment ChargeFor the Six Months EndedJune 30, 2025Goodwill(in millions)Impairment Charge Recorded:iOne Reporting Unit$4.9 Hypothetical Change for the iOne Reporting Unit:A 100-basis point decrease in digital industry terminal growth rates$0.4 A 100-basis point decrease in the applicable operating profit margin1.7