Company: UONE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001041657-25-000042
Chunk: 153

Company: URBAN ONE, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 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 May 31, 2025. Based on these analyses, the Company recognized an impairment loss of approximately $4.9 million associated with the iOne reporting unit, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations during the three months ended June 30, 2025.

 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 May 31, 2025.

Goodwill (iOne Reporting Unit)May 31,2025Discount rate9.5%Revenue growth rate range(34.5)% - 53.1%Operating profit margin range(4.9)% - 43.1%

The following table presents sensitivity analysis for the iOne 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, 5.0% and 10.0% reduction in fair value of the iOne reporting unit which the Company has determined to be a significant assumption impacting the impairment:

Hypothetical Increase in theRecorded Impairment ChargeFor the Six Months EndedJune 30, 2025Goodwill(in millions)Impairment Charge Recorded:iOne Reporting Unit$4.9 Hypothetical Change for the iOne Reporting Unit:A 100-basis point decrease in digital industry terminal growth rates$0.4 A 100-basis point decrease in the applicable operating profit margin1.7 A 100-basis point increase in the applicable discount rate0.6 A 5.0% reduction in the fair value of iOne0.7 A 10.0% reduction in the fair value of iOne1.5 

Fair Value Measurements

The Company estimated the fair value of the Employment Agreement Award as of June 30, 2025 and December 31, 2024, at approximately $11.7 million and $10.4 million, respectively, and, accordingly, adjusted the liability to that amount. The fair value estimate incorporated a number of assumptions and estimates, including but not limited to revenue growth rates, future operating profit margins, discount rate