Company: UONE
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001041657-25-000013
Chunk: 106

Company: URBAN ONE, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 106
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 interim impairment assessment performed as of December 31, 2024.

December 31,2024Discount rate11.5 %Operating profit margin range27.0% - 34.4%Revenue growth rate range(4.2)% - 1.9%Average recurring EBITDA multiple4.5x

The following table presents sensitivity analysis for the TV One 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% and 10% reduction in fair value of the TV One reporting unit which the Company has determined to be a significant assumption impacting the impairment:

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Hypothetical Increase in theRecorded Impairment ChargeFor the Year EndedDecember 31, 2024TV One Reporting Unit(in millions)Impairment Charge Recorded:TV One Reporting Unit$20.2 Hypothetical Change for TV One Reporting UnitA 100 basis point decrease in the cable television industry terminal growth rates$5.0 A 100 basis point decrease in the applicable operating profit margin10.0 A 100 basis point decrease in the applicable discount rate20.0 A 5.0% reduction in the fair value of TV One15.0 A 10.0% reduction in the fair value of TV One30.0 

See Note 13 – Goodwill And Other Intangible Assets, of our consolidated financial statements for further discussion.

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 September 30, 2024 and December 31, 2024. Based on these analyses, no goodwill impairment losses were recognized associated with the iOne reporting unit, included in impairment of goodwill and intangible assets, on the consolidated statement of operations during the year ended December 31, 2024.

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 December 31, 2024.

December 31,2024Discount rate16.0 %Revenue growth rate range2.5% - 7.5%Operating profit margin range(5.7)% - 11.