Company: UONE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001041657-25-000034
Chunk: 83

Company: URBAN ONE, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 which he is eligible to receive an award (the “Employment Agreement Award”) amount equal to approximately 4.0% of any proceeds from distributions or other liquidity events in excess of the return of the Company’s aggregate investment in TV One. The Company reviews the factors underlying this award at the end of each reporting period including the valuation of TV One (based on the estimated enterprise fair value of TV One as determined by the income approach using a discounted cash flow analysis and the market approach using comparable public company multiples). Significant inputs to the discounted cash flow analysis include revenue growth rates, future operating profit, and discount rate. Significant inputs to the market approach include publicly held peer companies and recurring EBITDA multiples. The terms of the new employment agreement were effective as of January 1, 2022.(b) The fair value is measured using a discounted cash flow methodology. Significant inputs to the discounted cash flow analysis include revenue growth rates, future operating profit margins, discount rate and terminal growth rate.(c) The Company measures and reports its cash equivalents that are invested in money market funds and valued based on quoted market prices which approximate cost due to their short-term maturities.

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There were no transfers within Level 1, 2, or 3 during the three months ended March 31, 2025 and 2024. The following table presents the changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended March 31, 2025 and 2024:EmploymentAgreementAwardRedeemableNon-controllingInterests(In thousands)Balance as of December 31, 2024$10,426$7,988Net income attributable to redeemable non-controlling interests—3Distributions—— Purchase of ownership interest in Reach Media—(3,232)Dividends paid to redeemable non-controlling interests—(936)Change in fair value(a)637 (105)Balance as of March 31, 2025$11,063$3,718EmploymentAgreementAwardRedeemableNon-controllingInterests(In thousands)Balance as of December 31, 2023$22,970$16,520Net income attributable to redeemable non-controlling interests—242Purchase of ownership interest in Reach Media—(7,603)Dividends paid to redeemable non-controlling interests—(1,799)Change in fair value(a)(23)1,004Balance as of March 31, 2024