Company: UONE
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001041657-25-000034
Chunk: 88

Company: URBAN ONE, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 cash flow analysis for broadcasting licenses include market revenue and projected revenue growth by market, mature market share, operating profit margin, terminal growth rate, and discount rate. Based on this analysis, the Company recognized an impairment loss of approximately $6.4 million associated with five radio markets within the Radio Broadcasting segment, included in impairment of intangible assets, on the condensed consolidated statement of operations during the three months ended March 31, 2025. 

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The following table presents the changes in the Company’s radio broadcasting licenses carrying value during the three months ended March 31, 2025.(In thousands)Balance as of January 1, 2025$257,759 Impairment charges(6,443)Balance as of March 31, 2025$251,316 Below are the key assumptions used in the income approach model for estimating the fair value of the broadcasting licenses for the five radio markets in the most recent interim impairment assessment performed as of March 31, 2025.Radio Broadcasting LicensesMarch 31,2025Discount rate9.5% - 10.0%Revenue growth rate range(1.9)% - 1.0%Terminal growth rate(0.5)%Mature market share range0.8% - 30.0%Operating profit margin range2.8% - 30.0%TV One Trade NameDue to industry and macro-economic conditions along with ongoing subscriber churn, and forecasted cash flows for TV One, the Company reassessed the useful life for the trade name TV One ( the “TV One Trade Name”). As a result of the reassessment, the Company concluded the useful life should change from indefinite-lived to a finite-lived intangible asset effective January 1, 2025. The Company has adopted an accelerated amortization method and will amortize this asset with a carrying value of $26.6 million over a 20-year period. This was considered a change in estimate, was accounted for prospectively, and resulted in amortization expense of $0.6 million included in depreciation and amortization, on the condensed consolidated statement of operations for the three months ended March 31, 2025.Future estimated amortization expense related to the TV One Trade Name for the years 2025 through 2030 and thereafter is as follows:(In thousands)Remainder of 2025$1,900 20262,407 20272,280 20282,153 20292,027 203