Company: UONE
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001041657-25-000013
Chunk: 25

Company: URBAN ONE, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 25
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 Radio Market, iOne, and TV One Goodwill

Description of the MatterAt December 31, 2024, the Company's goodwill balance attributable to its Radio Market reporting units, iOne reporting unit, and TV One reporting unit was $30.0 million, $7.2 million, and $144.9 million, respectively. As explained in Note 13 to the consolidated financial statements, goodwill is subject to annual impairment assessments, or more frequently if events or circumstances indicate an impairment may exist. The Company performed quantitative annual and interim assessments and recorded impairments of $20.2 million related to its TV One reporting unit during the year ended December 31, 2024. No impairment related to its Radio Market or iOne goodwill were recorded during the year ended December 31, 2024.Auditing the Company's impairment assessments for the Radio Market, iOne, and TV One goodwill is complex and highly judgmental due to the significant estimation required by management in determining the fair value of the reporting units. The Company utilized a discounted cash flow approach to estimate the fair value of the Radio Market, iOne, and TV One reporting units which involves assumptions, including projected financial information for revenue, revenue growth rates, operating profit margins, terminal growth rates, and discount rates that are sensitive to and affected by economic, industry, and company-specific qualitative factors. How We Addressed the Matter in Our AuditTo test the estimated fair value of the Company’s Radio Market, iOne, and TV One reporting units, we performed audit procedures that included, among others, assessing the valuation methodologies, and testing the significant assumptions described above used in the Company’s analyses, as well as testing the completeness and accuracy of the underlying data used by the Company in its analyses. We compared the significant assumptions to current industry and market trends, and to the Company's historical results. We assessed the historical accuracy of management’s forecasts and performed sensitivity analyses of the significant assumptions to evaluate the potential change in the fair values of the reporting units resulting from hypothetical changes in underlying assumptions. We involved our valuation specialist to assist in our evaluation of the methodologies used and the most judgmental assumptions used by the Company to determine the estimated fair value of the reporting units. In addition, we tested management’s reconciliation of the aggregate fair value of its reporting units to the market capitalization of the Company.

F-2

Impairment of Indefinite-lived Intangible Assets

Description of the MatterAt December 31, 2024, the Company's balance related to certain