Company: UONE
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001041657-25-000013
Chunk: 26

Company: URBAN ONE, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 26
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 of its indefinite-lived intangible assets was $257.8 million related to radio broadcasting licenses and $26.6 million related to the TV One Trade Name. As explained in Note 13 to the consolidated financial statements, indefinite-lived intangible assets are 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 $118.5 million and $13.1 million related to its radio broadcasting licenses and TV One Trade Name, respectively, during the year ended December 31, 2024.Auditing the Company's impairment assessments for indefinite-lived intangible assets is complex and highly judgmental due to the significant estimation required by management in determining the fair value of the radio broadcasting licenses and TV One Trade Name. For the radio broadcasting licenses, the Company utilized a discounted cash flow approach for estimating the fair value of these assets which involves significant assumptions, including projected financial information for revenue growth rates by market, mature market share, operating profit margins, and discount rates. For the TV One Trade Name, the quantitative estimate of fair value was determined using the relief from royalty method, which requires significant assumptions, including estimates related to revenue, revenue growth rates, royalty rate, and discount rate. All of the assumptions 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 broadcasting licenses and TV One Trade Name, 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. In addition, 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 radio broadcasting licenses and TV One Trade Name 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 radio broadcasting licenses and TV One Trade Name. 

/s/ Ernst & Young LLP 

We have served as the Company’s auditor since 2023.

Tysons, Virginia

March 27, 2025

F-3

URBAN ONE, INC. AND SUBSIDIARIES