Company: UONE
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001041657-25-000054
Chunk: 145

Company: URBAN ONE, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 145
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 the fair values of the Company’s financial assets and liabilities measured at fair value on a recurring basis are categorized as follows:TotalLevel 1Level 2Level 3(In thousands)As of September 30, 2025Liabilities subject to fair value measurement:    Employment Agreement Award(a)$9,302 $— $— $9,302 Mezzanine equity subject to fair value measurement:    Redeemable non-controlling interests(b)$2,586 $— $— $2,586 Assets subject to fair value measurement:    Cash equivalents - money market funds (c)$42,529 $42,529 $— $— As of December 31, 2024    Liabilities subject to fair value measurement:    Employment Agreement Award(a)$10,426 $— $— $10,426 Mezzanine equity subject to fair value measurement:    Redeemable non-controlling interests(b)$7,988 $— $— $7,988 Assets subject to fair value measurement:    Cash equivalents-money market funds(c)$102,258 $102,258 $— $— (a) On April 3, 2024, the Company entered into an employment agreement (“2024 Employment Agreement”) with Alfred C. Liggins, III, President and Chief Executive Officer (“CEO”) pursuant to which he is eligible to receive an award (the “Employment Agreement Award”) amount equal to approximately 4.2% of any proceeds from distributions or other liquidity events in excess of the return of the Company’s aggregate investment in TV One. The Company reviews the factors underlying this award at the end of each reporting period including the valuation of TV One (based on the estimated enterprise fair value of TV One as determined by the income approach using a discounted cash flow analysis and the market approach using comparable public company multiples). Significant inputs to the discounted cash flow analysis include revenue growth rates, future operating profit, and discount rate. Significant inputs to the market approach include publicly held peer companies and recurring EBITDA multiples. The terms of the 2024 Employment Agreement were effective as of January 1, 2022 and continued until December 31, 2024 (the “Initial Term”). After expiration of the Initial Term, the term of the 2024 Employment Agreement extends automatically for additional one (1) year periods, unless either party provides written notice of