Company: UONE
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001041657-25-000054
Chunk: 151

Company: URBAN ONE, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 associated with twelve radio markets within the Radio Broadcasting segment, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations during the three months ended June 30, 2025. During the nine months ended September 30, 2025, the Company recognized impairment loss of approximately $127.8 million within the Radio Broadcasting segment, included in impairment of goodwill and intangible assets, on the unaudited condensed consolidated statement of operations. Below are the key assumptions used in the income approach model for estimating the fair value of the broadcasting licenses for the twelve radio markets in the most recent interim impairment assessment performed as of May 31, 2025.Radio Broadcasting LicensesAs of May 31, 2025Discount rate9.5%Revenue growth rate range(3.2)% - 0.3%Market share range0.8% - 33.0%Operating profit margin range0.8% - 30.0%Due to industry and macro-economic conditions along with ongoing declines in national and local radio listenership, and forecasted cash flows for Radio Broadcasting, the Company reassessed the useful life for the broadcasting licenses. As a result of the reassessment, the Company concluded that the useful life should change from indefinite-lived to finite-lived intangible assets effective June 1, 2025. The Company has adopted an accelerated amortization method and will amortize the assets with a carrying value of approximately $130.0 million as of June 1, 2025 over a 9 to 18-year period This was considered a change in estimate, was accounted for prospectively, and resulted in amortization expense of approximately $3.8 million and $5.1 million included in depreciation and amortization, on the unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2025, respectively.The following table presents the changes in the Company’s radio broadcasting licenses carrying value during the nine months ended September 30, 2025.(In thousands)Balance as of January 1, 2025$257,759 Impairment charges(127,772)Amortization expense(5,128)Balance as of September 30, 2025$124,859 Future estimated amortization expense related to the broadcasting licenses for the years 2025 through 2030, and thereafter, is as follows:(In thousands)Remainder of 2025$3,845 202