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

9 Months Ended

Sep. 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 nine months ended September 30, 2024:

	*Distribution*		*Solutions*		*Consolidated*
Balance December 31, 2023	$	18,658	$	8,524	$	27,182
Goodwill acquired	$	1,398	$	—		1,398
Translation adjustments		609		439		1,048
Balance September 30, 2024	$	20,665	$	8,963	$	29,628

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

	*As of September 30, 2024*
	*Gross*				*Net*
	*Carrying*		*Accumulated*		*Carrying*
	*Amount*		*Amortization*		*Amount*
Customer and vendor relationships	$	52,770	$	7,109	$	45,661
Trade name		514		134		380
Total	$	53,284	$	7,243	$	46,041

	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 September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $1.1 million and $0.5 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized total amortization expense for other intangibles, net of $2.5 million and $1.5 million, respectively.

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

2024 (excluding the nine months ended September 30, 2024)	$	1,211
2025		4,845
2026		4,845
2027		4,845
2028		4,845
Thereafter		25,450
Total	$	46,041