Company: UONE
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001041657-25-000013
Chunk: 105

Company: URBAN ONE, INC.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7
Chunk 105
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 incremental impairment was recorded in connection with the Company’s October 1 annual assessment.

Below are the key assumptions used in the relief from royalty approach model for estimating the fair value of the trade name for the TV One in the most recent interim impairment assessment performed as of December 31, 2024.

TV One Trade NameDecember 31,2024Discount rate11.5 %Revenue growth rate range(12.2)% - 1.9%Terminal growth rate(1.5)%Royalty payments avoided2.5 %Cumulative probability of continued use100 %

The following table presents sensitivity analysis for the TV One Trade Name showing the impact of the most recent quantitative impairment assessment results from a 100 basis point increase or decrease in the discount rate, royalty rate, terminal growth rate and revenue growth which the Company has determined to be a significant assumption impacting the impairment:

51

Hypothetical Increase in theRecorded Impairment ChargeFor the Year EndedDecember 31, 2024TV One Trade Name(in millions)Impairment Charge Recorded:TV One Trade Name$13.1 Hypothetical Change for TV One Trade NameA 100 basis point increase in the applicable discount rate2.0 A 100 basis point decrease in the applicable royalty rate11.0 A 100 basis point decrease in the applicable terminal growth rate1.0 A 100 basis point decrease in the applicable revenue growth rate2.0 

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

TV One Reporting Unit

The Company noted a continued decline in revenues in the TV One reporting unit, indicating that it was more likely than not that the TV One reporting unit was impaired. Therefore, the Company performed a quantitative impairment assessment for the TV One reporting unit to determine whether it was impaired as of September 30, 2024 and December 31, 2024. Based on these analyses, the Company recognized an impairment loss of approximately $20.2 million associated with the TV One reporting unit, included in impairment of goodwill and intangible assets, on the consolidated statement of operations during the year ended December 31, 2024. No impairment was recorded for the reporting unit during the three-months ended September 30, 2024 or in connection with the Company’s October 1 annual assessment.

Below are the key assumptions used in the income approach model for estimating the fair value of the TV One reporting unit in the most recent