Company: UONE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001041657-25-000034
Chunk: 122

Company: URBAN ONE, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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, given limited differences between assessed fair values of each radio broadcasting license and their current carrying value in the quarter ended March 31, 2025, continued declining market share, revenues, growth rates, or changes in the discount rate in applicable radio markets may lead to subsequent impairment. 

The following table presents sensitivity analyses for radio broadcasting licenses and goodwill of reporting units within the Radio Broadcasting segment showing the impact on our most recent quantitative impairment assessment resulting from: (i) a 100 basis point decrease in industry or reporting unit terminal growth rates; (ii) a 100 basis point decrease in operating profit margins; (iii) a 100 basis point increase in the discount rate; and (iv) both a 5.0% and 10.0% reduction in the fair values of broadcasting licenses.

Hypothetical Increase in theRecorded Impairment ChargeFor the Three Months EndedMarch 31, 2025BroadcastingLicenses(in millions)Impairment Charge Recorded:Radio Market Reporting Units$6.4 Hypothetical Change for Radio Market Reporting Units:A 100-basis point decrease in radio industry terminal growth rates$3.4 A 100-basis point decrease in operating profit margin in the projection period4.7 A 100-basis point increase in the applicable discount rate11.8 A 5.0% reduction in the fair value of broadcasting licenses3.0 A 10.0% reduction in the fair value of broadcasting licenses 9.1 

See Note 9 – Goodwill and Other Intangible Assets of our condensed consolidated financial statements for further discussion.

TV One Trade Name

Due to industry and macro-economic conditions along with ongoing subscriber churn, and forecasted cash flows for TV One, the Company reassessed the useful life for the TV One Trade Name. As a result of the reassessment, the Company concluded the useful life should change from indefinite-lived to a definite-lived intangible asset effective January 1, 2025, and the Company has adopted an accelerated amortization method and will amortize this asset with a carrying value of $26.6 million over a 20-year period. This was considered a change in estimate, was accounted for prospectively, and resulted in amortization expense of $0.6 million included in depreciation and amortization, on the condensed consolidated statement of operations for the three months ended March 31, 2025.

Goodwill

As of March 31, 2025 the Company performed a