GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table presents the changes in the Company's goodwill carrying values for its four reportable segments during 2025:


	Radio Broadcasting		Reach Media		iOne (1)		TV One (1)		Total
	(in thousands)
As of December 31, 2024
Gross goodwill	$	154,967	$	30,468	$	27,567	$	165,044	$	378,046
Accumulated impairment losses	(124,988)		(16,114)		(20,345)		(20,174)		(181,621)
Net goodwill at December 31, 2024	$	29,979	$	14,354	$	7,222	$	144,870	$	196,425



Intersegment transfers (out) in (1)	—		—		(655)		655		—

As of March 31, 2025
Gross goodwill	$	154,967	$	30,468	$	26,912	$	165,699	$	378,046
Accumulated impairment losses	(124,988)		(16,114)		(20,345)		(20,174)		(181,621)
Net goodwill at March 31, 2025	$	29,979	$	14,354	$	6,567	$	145,525	$	196,425

(1) Includes the allocation of goodwill relating to the reclassification of the portion of the Company's CTV offering previously within the iONE reportable segment to our TV One reportable segment. See Note 13 - Segment Information for information on this segment reclassification.

As of March 31, 2025 the Company performed a qualitative assessment for all of the radio broadcasting reporting units that contain goodwill. Based on the qualitative impairment assessment performed, no goodwill impairment losses were recognized for the three months ended March 31, 2025.

Radio Broadcasting Licenses

As of March 31, 2025, projected gross market revenues and operating profit margin declined in the Radio Broadcasting segment creating a triggering event indicating that the fair value of certain of the Company’s radio broadcasting licenses were more likely than not to be less than its carrying value.

To determine the fair value of the broadcasting licenses, the Company utilized the income approach which values a license by calculating the value of a hypothetical startup company that initially has no assets except the asset to be valued (the broadcasting license). The Company performed a discounted cash flow analysis for broadcasting licenses across relevant radio markets. The key assumptions used in the discounted 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.

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 Licenses			March 31, 2025
Discount rate			9.5% - 10.0%
Revenue growth rate range			(1.9)% - 1.0%
Terminal growth rate			(0.5)%
Mature market share range			0.8% - 30.0%
Operating profit margin range			2.8% - 30.0%

TV One Trade Name

Due 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
2026	2,407
2027	2,280
2028	2,153
2029	2,027
2030	1,900
Thereafter	13,300