Company: UONE
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001041657-25-000054
Chunk: 197

Company: URBAN ONE, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 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(34.5)% - 53.1%Operating profit margin range(4.9)% - 43.1%

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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 Chargeas of May 31, 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 September 30, 2025 and December 31, 2024, at approximately $9.3 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, peer companies, average recurring EBITDA multiples and weighting of the income and market approach. As the Company will measure changes in the fair value of this award at each reporting period as warranted by certain circumstances, different estimates or assumptions may result in a change to the fair value of the award amount previously recorded.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 2 – Summary of Significant Accounting Policies of our unaudited condensed consolidated financial statements for a summary of recent accounting pronouncements.

CAPITAL AND COMMERCIAL COMMITMENTS

Radio Broadcasting Licenses 

Each of the Company’s radio stations operates pursuant to one or more licenses issued by the Federal Communications Commission