Company: UONE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001041657-25-000034
Chunk: 121

Company: URBAN ONE, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 121
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 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, mature market share, operating profit margin, terminal growth rate, and discount rate. 

Based on this analysis, the Company recognized an impairment loss of approximately $6.4 million associated with five radio markets within the Radio Broadcasting segment, included in impairment of intangible assets, on the condensed consolidated statement of operations during the three months ended March 31, 2025. 

Below are the key assumptions used in the income approach model for estimating the fair value of the broadcasting licenses for the five largest radio markets in the most recent interim impairment assessment performed as of March 31, 2025. The aggregate impairment recorded for the remaining markets was less than $1.0 million and the key assumptions are not presented for those markets.

MarketDiscount RateRevenue Growth RateTerminal Growth RateMature Market ShareOperating Profit Margin19.5%(1.5)%- 0.1%(0.5)%2.5% - 15.0%5.0% - 30.0%29.5%(1.6)% - 0.0%(0.5)%0.8% - 5.0%3.0% - 18.0%39.5%(1.8)% - (0.1)%(0.5)%3.7% - 22.0%5.0% - 30.0%49.5%(1.9)% - (0.4)%(0.5)%5.0% - 30.0%2.8% - 17.0%59.5%(1.9)% - (0.2)%(0.5)%2.3% - 14.0%3.3% - 20.0%

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To the extent that there is a potential recession that further disrupts the economic environment impacting the financial performance, market share, or changes in interest rates, these events could negatively affect the key assumptions and result in significantly lower fair value of the broadcasting licenses. Additionally