Climb Global Solutions Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Goodwill and Other Intangible Assets

Note 7 - Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

7. Goodwill and Other Intangible Assets:

The following table summarizes the changes in the carrying amount of goodwill for the six months ended June 30, 2024:

	*Distribution*			*Solutions*			*Consolidated*
Balance December 31, 2023	$	18,658		$	8,524		$	27,182
Translation adjustments		(232	)		(57	)		(289	)
Balance June 30, 2024	$	18,426		$	8,467		$	26,893

Information related to the Company’s other intangibles, net is as follows:

	*As of June 30, 2024*
	*Gross*				*Net*
	*Carrying*		*Accumulated*		*Carrying*
	*Amount*		*Amortization*		*Amount*
Customer and vendor relationships	$	30,615	$	5,801	$	24,814
Trade name		486		118		368
Total	$	31,101	$	5,919	$	25,182

	As of December 31, 2023
	Gross				Net
	Carrying		Accumulated		Carrying
	Amount		Amortization		Amount
Customer and vendor relationships	$	30,968	$	4,424	$	26,544
Trade name		489		103		386
Total	$	31,457	$	4,527	$	26,930

Customer relationships are amortized over thirteen years. Vendor relationships are amortized between eight and fifteen years. Trade name is amortized over fifteen years.

During the three months ended June 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $0.7 million and $0.5 million, respectively. During the six months ended June 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $1.4 million and $1.0 million, respectively.

Estimated future amortization expense of the Company’s other intangibles, net as of June 30, 2024 is as follows:

2024 (excluding the six months ended June 30, 2024)	$	1,395
2025		2,790
2026		2,790
2027		2,790
2028		2,790
Thereafter		12,627
Total	$	25,182