Company: UONE
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001041657-25-000054
Chunk: 120

Company: URBAN ONE, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 120
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 point increase in the discount rate; and (iv) both a 5.0% and 10.0% reduction in the fair values of the reporting units.

Hypothetical Increase in theRecorded Impairment Chargeas of May 31, 2025Goodwill(in millions)Impairment Charge Recorded:Radio Market Reporting Units$3.9 Hypothetical Change for Radio Market Reporting Units:A 100-basis point decrease in radio industry terminal growth rates$1.0 A 100-basis point decrease in operating profit margin in the projection period1.0 A 100-basis point increase in the applicable discount rate1.5 A 5.0% reduction in the fair value of the Radio Markets3.3 A 10.0% reduction in the fair value of the Radio Markets6.7 

On July 1, 2025, we determined the components of our Radio Broadcasting operating segment represent a single reporting unit. The change was primarily driven by the continued integration of the individual markets under a centralized leadership structure resulting in interdependent processes across Radio Broadcasting. The Company utilized a quantitative impairment assessment immediately before the change and performed a qualitative assessment immediately thereafter.

 As of September 30, 2025, the Company evaluated various factors, events or circumstances, including macroeconomic conditions, industry and market considerations, overall financial performance and other relevant reporting unit specific events. Based on our review, the Company did not identify any triggering events during the three months ended September 30, 2025.

iOne Reporting Unit

The Company noted a continued decline in revenues in the 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 the 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 nine months ended September 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)As of May 31, 2025Discount rate9.5%Revenue growth rate range(34