Company: UONE
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001041657-25-000054
Chunk: 192

Company: URBAN ONE, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 192
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1, 2025, we determined the components of our Radio Broadcasting operating segment represent a single reporting unit.

Radio Broadcasting Licenses

As of May 31, 2025, projected gross market revenues and operating profit margin declined creating a triggering event indicating that the fair value of the Company’s radio broadcasting licenses were more likely than not to be less than its carrying value. 

To determine the fair value of the broadcasting licenses, the Company utilized the income approach which values a license by calculating the value of a hypothetical startup company that initially has no assets except the asset to be valued (the broadcasting license). The Company performed a discounted cash flow analysis for broadcasting licenses across relevant radio markets. The key assumptions used in the discounted cash flow analysis for broadcasting licenses include market revenue and projected revenue growth by market, market share, operating profit margin, and discount rate. 

Based on this analysis, the Company recognized an impairment loss of approximately $121.3 million associated with twelve radio markets within the Radio Broadcasting segment, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations during the three months ended June 30, 2025. During the nine months ended September 30, 2025 the Company recognized impairment loss of approximately $127.8 million within the Radio Broadcasting segment, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations. 

Below are the key assumptions used in the income approach model for estimating the fair value of the broadcasting licenses for the thirteen radio markets in the most recent interim impairment assessment performed as of May 31, 2025.

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Unit of Accounting (a)Carrying Value (in millions)Excess % FV over CVDiscount RateRevenue Growth Rate Market ShareOperating Profit Margin1$52.0Impaired9.5%(1.5)% - 0.1%2.5% - 15.0%5.0% - 30.0%23.1408.1%9.5%(2.1)% - (0.4)%3.2% - 19.0%5.0% - 30.0%48.2Impaired9.5%(1.3)% - 0.3%4.3% - 26.0%0.8% - 17.0%57.5Impaired9.5%(2.3)% - (0.5)%1.2% - 7.0