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Advances in technology and new options for the introduction of technology into the classroom have forced school districts to look for solutions that allow teachers and students to bring their own devices into the classroom, provide school districts with information technology departments with the means to access data with or without internet access, handle higher demand for video, as well as control cloud and data storage challenges.
−Removed: Our design teams are able to quickly customize systems and configurations to serve the needs of clients so that existing hardware and software platforms can
−Removed: communicate with one another.
+Added: Our design teams are able to quickly customize systems and configurations to serve the needs of clients so that existing hardware and software platforms can communicate with one another.
Our goal is to become a single source solution to satisfy the needs of educators around the globe and provide a holistic approach to the modern classroom.
−Removed: Our Acquisition Strategy and Challenges
−Removed: Our growth strategy includes acquiring assets and technologies of companies that have products, technologies, industry specializations or geographic coverage that extend or complement our existing business.
−Removed: The process to undertake a potential acquisition is time-consuming and costly.
−Removed: Prior to completing any acquisition, we expect to expend significant resources to undertake business, financial and legal due diligence on our potential acquisition targets, as a result, and there is no guarantee that we will complete any acquisition that we pursue.
−Removed: We believe we can achieve significant cost-savings by merging the operations of the companies we acquire and after their acquisition leverage the opportunity to reduce costs through the following methods:
−Removed: • Staff reductions – consolidating resources, such as accounting, marketing and human resources.
−Removed: • Economies of scale – improved purchasing power with a greater ability to negotiate prices with suppliers.
−Removed: • Improved market reach and industry visibility – increase in customer base and entry into new markets.
−Removed: As a result, we believe that an analysis of the historical costs and expenses of our Target Sellers (a company that is the subject of an attempted acquisition) prior to their acquisition will not provide guidance as to the anticipated results after acquisition.
−Removed: We anticipate that we will be able to achieve significant reductions in our costs of revenue and selling and, general and administrative expenses from the levels currently incurred by the Target Sellers operating independently, thereby increasing our EBITDA and cash flows.
+Added: In late 2024, the Company announced a unified worldwide display brand as Clevertouch by Boxlight as part of our long-term growth strategy.
+Added: This strategic initiative is aimed at optimizing our operational efficiency and streamlining product development costs.
+Added: We are excited about the long-term outlook for the Industry and believe our recent initiatives to streamline our brands and unify our go-to-market message will position the Company for further success.
Components of our Results of Operations and Financial Condition
−Removed: The Company’s sales of interactive devices, including panels, whiteboards and other interactive devices generally include hardware maintenance services, a license to software, and the provision of related software maintenance.
+Added: The Company’s sales of interactive devices, including panels, whiteboards and other interactive devices generally include hardware maintenance services, a license to use software, and the provision of related software maintenance.
In most cases, interactive devices are sold with hardware maintenance services.
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changes in product costs related to the release of newer models;
−Removed: component, contract manufacturing and supplier pricing, foreign currency exchange and most recently, increased shipping costs due to the pandemic and global unrest.
+Added: component, contract manufacturing and supplier pricing, competitive industry pricing, foreign currency exchange and shipping costs.
As we primarily procure our product components and manufacture our products in Asia, our suppliers incur many costs, including labor costs, in other currencies.
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General and administrative.
−Removed: General and administrative expense consists of personnel related costs, which include salaries, as well as the costs of professional services, such as accounting and legal, facilities, information technology, depreciation and amortization and other administrative expenses.
+Added: General and administrative expense consists of personnel related costs, which include salaries and stock-based compensation, as well as the costs of professional services, such as accounting and legal, facilities, information technology, depreciation and amortization and other administrative expenses.
General and administrative expense may fluctuate as a percentage of revenue, notably in the second and third quarters of our fiscal year when we have historically experienced our highest levels of revenue.
Other income (expense), net
−Removed: Other income (expense), net primarily consists of interest expense associated with our debt financing arrangements, gains (losses) on the settlements of debt, and the effects of changes in the fair value of derivative liabilities.
+Added: Other income (expense), net primarily consists of interest expense associated with our debt financing arrangements and the effects of changes in the fair value of derivative liabilities.
Income tax expense
11 unchanged sentences
Total revenues for the year ended December 31, 2024 were $135.9 million as compared to $176.7 million for the year ended December 31, 2023, resulting in a 23.1% decrease.
−Removed: The decrease in revenues was primarily a result of softening world-wide demand for our products and solutions in both the U.S.
−Removed: and EMEA markets.
+Added: The decrease in revenues was due to lower sales volume across all markets resulting from lower global demand for interactive flat panel displays as well as competitive industry pricing.
Cost of Revenues.
Cost of revenues for the year ended December 31, 2024 was $89.0 million as compared to $113.4 million for the year ended December 31, 2023, resulting in a 21.6% decrease.
−Removed: The decrease in cost of revenues was primarily due to more favorable material and shipping cost and the decrease in revenues.
+Added: The decrease in cost of revenues was attributable to the decrease in units sold.
Gross Profit .
Gross profit for the year ended December 31, 2024 was $46.9 million as compared to $63.3 million for the year ended December 31, 2023.
−Removed: Gross profit margin improved to 35.8% for the year ended December 31, 2023 compared to 29.2% for the year ended December 31, 2022 due to audio products comprising a greater percentage of total sales, which carry higher margins, and decreases in manufacturing and shipping cost.
+Added: Gross profit margin declined to 34.5% for the year ended December 31, 2024 compared to 35.8% for the year ended December 31, 2023, primarily related recent increases in pricing pressure within the industry as well as a difference in product mix compared to the prior year.
General and Administrative Expense.
General and administrative expense for the year ended December 31, 2024 was $62.3 million and 45.8% of revenue as compared to $61.3 million and 34.7% of revenue for the year ended December 31, 2023 .
−Removed: The increase primarily relates to an increase in personnel related expenses to support the growth of the business in certain markets.
+Added: The increase was primarily related to the $12.3 million accelerated amortization expense resulting from an adjustment in the useful lives of certain intangible assets from the EMEA and Americas reporting segments offset by a decrease in personnel related expenses of approximately $4.3 million, a reduction in occupancy costs of approximately $1.5 million, a decrease in sales and marketing expenses of approximately $1.1 million, a reduction in stock compensation of $1.7 million, and a decrease in travel expenses of approximately $1 million.
Research and Development Expense.
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Research and development expense primarily consists of costs associated with development of proprietary technology.
−Removed: The increase in research and development expense was primarily driven by an increase in contract services related to software development.
+Added: The increase was attributable to the allocation of certain general and administrative expenses to new and ongoing research and development projects.
Impairment of Goodwill.
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Other expense for the year ended December 31, 2024 was $10.8 million as compared to $11.0 million for the year ended December 31, 2023.
−Removed: Other expense increased by $4.2 million, due to a $2.3 million decrease in fair value of derivative liabilities, $0.9 million increase in interest expense, and $0.9 million decrease from the settlement of liabilities in the prior year that did not recur in the current year.
+Added: Other expense consists primarily of interest expense on our term loan.
Net loss attributable to common shareholders was $29.6 million and $40.4 million for the years ended December 31, 2024 and 2023, respectively, after deducting fixed dividends to Series B preferred shareholders of $1.3 million in each year.
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EBITDA represents net loss before income tax expense, interest expense, net, and depreciation and amortization expense.
−Removed: Adjusted EBITDA represents EBITDA, adjusted for stock compensation expense and changes in fair value of derivative liabilities, purchase accounting impact for fair valuing inventory and deferred revenue, net gain on settlement of debt, and impairment of goodwill.
+Added: Adjusted EBITDA represents EBITDA, adjusted for stock compensation expense and changes in fair value of derivative liabilities, purchase accounting impact for fair valuing inventory and deferred revenue, impairment of goodwill, and severance charges.
Our management uses EBITDA and Adjusted EBITDA as financial measures to evaluate the profitability and efficiency of our business model.
10 unchanged sentences
Interest expense 10,252 10,840
−Removed: Income tax expense 1,866 49
+Added: Income tax (benefit) expense
+Added: (1,909) 1,866
EBITDA $ 537 $ (17,591)
3 unchanged sentences
Purchase accounting impact of fair valuing deferred revenue 939 1,649
−Removed: Net gain on settlement of debt — (856)
Impairment of Goodwill — 25,195
+Added: Severance charges 1,383 —
Adjusted EBITDA $ 4,268 $ 12,565
11 unchanged sentences
At December 31, 2023, we had $17.3 million of cash and cash equivalents, a working capital balance of $54.1 million, and a current ratio of 2.10.
−Removed: For the years ended December 31, 2023 and 2022, we had net cash provided by operating activities of $11.6 million and $1.2 million, respectively.
−Removed: Cash provided by operating activities increased year over year as a result of a change in working capital management.
+Added: For the years ended December 31, 2024 and 2023, we had net cash used in operating activities of $0.4 million and net cash provided by $11.6 million, respectively.
+Added: Cash used in operating activities increased year over year as a result of a change in working capital management.
We had net cash used in investing activities of $0.5 million and $1.3 million for the years ended December 31, 2024 and 2023, respectively.
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For the years ended December 31, 2024 and 2023, we had net cash used in financing activities of $7.1 million and $8.0 million, respectively.
−Removed: Cash used for financing activities for the year ended December 31, 2023 is primarily related to principal payments on debt of $6.8 million, and $1.3 million in payments of fixed dividends to our Series B preferred shareholders, and stock option exercise proceeds of $13 thousand.
−Removed: Cash used by financing activities for the year ended December 31, 2022 was primarily related to principal payments on debt, and payments of fixed dividends to our Series B preferred shareholders, partially offset by net proceeds of issuance of common stock, and proceeds from long-term debt and stock option exercises.
+Added: Cash used in financing activities for the year ended December 31, 2024 is primarily related to principal payments on debt of $9.9 million, and $1.3 million in payments of fixed dividends to our Series B preferred shareholders, partially offset by proceeds from short-term debt.
+Added: Cash used in financing activities for the year ended December 31, 2023 was primarily related to principal payments on debt, and payments of fixed dividends to our Series B preferred shareholders, partially offset by proceeds from short-term debt and stock option exercises.
Our liquidity needs are funded by operating cash flow and available cash.
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We have limited credit available from our major vendors and are required to prepay a percentage of our inventory purchases, which further constrains our cash liquidity.
−Removed: In addition, our industry is seasonal with many sales to educational customers occurring during the second and third quarters when schools make budget appropriations and classes are not in session
−Removed: limiting disruptions related to product installation.
+Added: In addition, our industry is seasonal with many sales to educational customers
+Added: occurring during the second and third quarters when schools make budget appropriations and classes are not in session limiting disruptions related to product installation.
This seasonality makes our needs for cash vary significantly from quarter to quarter.
−Removed: In addition to the cash flows generated by our ongoing operating activities we financed our operations during 2023 and 2022 with our Credit Facility with Whitehawk.
−Removed: Prior to April 24, 2023, we maintained a delayed draw term loan of which we had $7.5 million available.
−Removed: On April 24, 2023, we borrowed $3.0 million on our delayed draw term loan that was used for working capital purposes.
−Removed: The completion of the additional draw eliminates further draws under the term loan agreement.
−Removed: The $3.0 million was repaid during the third quarter of 2023.
+Added: On April 19, 2024, the Company entered into a sixth amendment to the Credit Agreement with the Collateral Agent and Lender (the “Sixth Amendment”).
+Added: The Sixth Amendment provided the Company with an additional $2 million working capital bridge loan in April 2024, and an additional $3 million working capital bridge loan in June 2024, of which $2 million was advanced to the Company.
+Added: The Company was required to pay a fee equal to 6% of the aggregate amount of borrowings under the Sixth Amendment (i.e.
+Added: $4.0 million).
+Added: Both working capital bridge loans, including the related fee were paid in full by November 2024, and were not subject to prepayment penalties.
To the extent not previously converted into the Company’s Class A common stock, the outstanding shares of our Series B preferred stock became redeemable at the option of the holders at any time or from time to time commencing on January 1, 2024 upon, 30 days’ prior written notice to the Company, for a redemption price, payable in cash, equal to the sum of (a) ($10.00) multiplied by the number of shares of Series B preferred stock being redeemed (the “Redeemed Shares”), plus (b) all accrued and unpaid dividends, if any, on such Redeemed Shares.
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We are currently evaluating alternatives to refinance or restructure the Series B preferred shares including extending the maturity of the Series B preferred shares beyond the current optional conversion date.
−Removed: Given the uncertainty surrounding global supply chains, global markets, and general global uncertainty as a result of the ongoing conflict between Russia and Ukraine and Israel and Hamas and the continuing COVID-19 pandemic, the availability of debt and equity capital has been reduced and the cost of capital has increased.
+Added: On February 20, 2025, we filed with the Secretary of State of the State of Nevada (i) an Amendment to the Certificate of Designation of our Series B Preferred Stock (the “Series B Amendment”) and (ii) an Amendment to the Certificate of Designation of our Series C Preferred Stock (the “Series C Amendment” and, together with the Series B Amendment, the “Amendments”).
+Added: Each Amendment was approved by the holders of a majority of the outstanding shares of Series B Preferred Stock or Series C Preferred Stock, as applicable, in accordance with the applicable Certificate of Designation.
+Added: Pursuant to the Amendments, neither the Series B Preferred Stock nor the Series C Preferred Stock shall be convertible into Class A Common Stock until the earlier of (1) the effectiveness of an amendment to the articles of incorporation of the Company increasing the number of shares of authorized Class A Common Stock to at least 25,000,000 shares (subject to adjustments as set forth therein) and (2) August 19, 2025.
+Added: Given the uncertainty surrounding global supply chains, global markets, and general global uncertainty as a result of new U.S.
+Added: tariff policy, trade wars, and the ongoing conflicts between Russia and Ukraine and Israel and Hamas, the availability of debt and equity capital has been reduced and the cost of capital has increased.
Furthermore, recent adverse developments affecting the financial services industry including events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions may lead to market-wide liquidity problems.
1 unchanged sentence
Increasing our capital through equity issuance at this time could cause significant dilution to our existing stockholders.
−Removed: However, while there can be no guarantee we will be able to access capital when needed, we are confident that the Company will be able to manage through the current challenges in the equity and debt finance markets by managing payment terms with our customers and vendors.
+Added: However, there can be no guarantee we will be able to access capital when needed or be able to manage through the current challenges in the equity and debt finance markets by managing payment terms with our customers and vendors.
Cash and cash equivalents, along with anticipated cash flows from operations, may not provide sufficient liquidity for our working capital needs, debt service requirements or to maintain minimum liquidity requirements under our Credit Agreement, and we may need to raise capital to meet current working capital requirements including maintaining sufficient inventory levels to meet future sales demand.
The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business.
−Removed: The Company was not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement at September 30, 2023.
−Removed: The non-compliance was cured by the Company paying $4.3 million, inclusive of $0.3 million in prepayment penalties and interest in November 2023 in order to bring the Company into compliance with the Senior Leverage Ratio at September 30, 2023.
The Company was not in compliance with its financial covenant related to the Senior Leverage Ratio under the Credit Agreement at December 31, 2023.
−Removed: Although on March 14, 2024, the Loan Parties entered into the Fifth Amendment with the Collateral Agent and the Lender mainly for the purpose of (1) amending and restating the Senior Leverage Ratio and Minimum Liquidity (as defined in the Fifth Amendment), and (2) waiving any Event of Default that may have arisen directly as a result of the Financial Covenant Default (as defined in the Fifth Amendment), there can be no assurance that the Lender will not declare an event of default and acceleration of all of our obligations under the Credit Agreement in the event we are unable to get into full compliance with these covenants in the future.
−Removed: Following the Fifth Amendment to the Credit Agreement, the Senior Leverage ratio increased to 6.00 at March 31, 2024, remained at 2.00 at June 30, 2024 and 1.75 thereafter.
−Removed: Because of the significant decreases in the required Senior Leverage Ratio within the next twelve months, the Company’s current forecast projects the Company may not be able to maintain compliance with this ratio.
+Added: On March 14, 2024, we entered into the Fifth Amendment with the Collateral Agent and the Lender to (1) amend and restate the Senior Leverage Ratio and Minimum Liquidity (as defined in the Fifth Amendment), and (2) waive any event of default that may rise directly as a result of the Financial Covenant Default (as defined in the Fifth Amendment) at December 31, 2023.
+Added: Under the Fifth Amendment, the Senior Leverage Ratio requirement at March 31, 2024 was amended from 2.00 to 6.00, at June 30, 2024 it remained at 2.00, and thereafter it remained at 1.75.
+Added: The Company was not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement at June 30, 2024.
+Added: On August 12, 2024, we entered into the Seventh Amendment with the Collateral Agent and the Lender to (1) reduce the intellectual property sublimit under the borrowing base from $15.0 million to $11.2 million, and (2) waive the event of default that may have arisen directly as a result of the Financial Covenant Default (as defined in the Seventh Amendment) at June 30, 2024.
+Added: The Company was also not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement at September 30, 2024.
+Added: Subsequent to the end of the third quarter of 2024, we were also not in compliance with our borrowing base covenant under the Credit Agreement for month ended October 31, 2024.
+Added: On November 14, 2024, we obtained a waiver for the Credit Agreement from the Collateral Agent and Lender (the “November 2024 Waiver”) to waive any events of default that may have arisen directly as a result of (i) the Financial Covenant Default (as defined in the November 2024 Waiver) at September 30, 2024 and (ii) the Borrowing Base Default (as defined in the November 2024 Waiver) for the month ended October 31, 2024.
+Added: In conjunction with obtaining the waiver, the Company paid down approximately $1.1 million under the Credit Agreement, inclusive of $60 thousand of prepayment penalties.
+Added: There can be no assurance that the Lender will not declare an event of default and acceleration of all of our obligations under the Credit Agreement in the event we are unable to maintain full compliance with these covenants in the future.
+Added: The Company was also not in compliance with its financial covenant related to the Senior Leverage Ratio under the Credit Agreement at December 31, 2024, and believes it will not be in compliance with this covenant at March 31, 2025.
+Added: In addition, the Company was also not in compliance with its borrowing base covenant under the Credit Agreement at December 31, 2024, January 31, 2024 and February 28, 2025.
+Added: On March 24, 2025, the Company entered into an eighth amendment to the Credit Agreement with the Collateral Agent and Lender (the “Eighth Amendment”) to (i) provide the Company with an additional $2.5 million working capital bridge loan and (ii) waive any events of default that may have arisen as a result of the Company’s failure to (A) maintain the required ratio of indebtedness to adjusted EBITDA (defined more specifically as the “Senior Leverage Ratio” in the Credit Agreement) for the periods ended December 31, 2024 and March 31, 2025 and (B) maintain a value of specified assets in excess of certain borrowings (defined more specifically as a “Borrowing Base” in the Credit Agreement) for the months ended December 31, 2024, January 31, 2025 and February 28, 2025.
+Added: In addition, no payments were required to be made by the Company to pay down the borrowing base defaults for December 2024, January 2025 and February 2025.
+Added: The Company is required to pay a fee equal to 6% of the working capital bridge loan under the Eighth Amendment.
+Added: The bridge loan, including the related fee, is due and payable in full on August 31, 2025, and is not subject to prepayment penalties.
+Added: There can be no assurance that the Lender will not declare an event of default and acceleration of all of our obligations under the Credit Agreement in the event we are unable to maintain full compliance with these covenants in the future.
+Added: In conjunction with obtaining the waiver, the Company must also comply with additional covenants, including meeting target completion milestones related to the Company’s recapitalization process, most notably achieving an expected completion of the recapitalization and/or repayment of its term loan by June 16, 2025.
+Added: In addition, the Company is required to provide budgets to the lender with variance analysis in excess of specified thresholds resulting in an event of default at the discretion of the lender.
+Added: The amendment also prohibits the Company from paying dividends or distributions to its preferred stockholders and reduces the value assigned to its intellectual property under its borrowing base calculation.
+Added: Because of the significant decreases in the required Senior Leverage Ratio that have occurred within the past fifteen months, our current forecast projects that we may not be able to maintain compliance with this ratio.
These conditions raise substantial doubt about the ability of the Company to continue as a going concern within one year after the date that the financial statements are issued.
−Removed: In view of this matter, continuation as a going concern is dependent upon the Company’s ability to continue to achieve positive cash flow from operations, obtain waivers or other relief under the Credit Agreement for any future non-
−Removed: compliance with the Senior Leverage Ratio, or refinance its Credit Agreement with a different lender on a basis with more favorable terms.
−Removed: The Company is actively working to refinance its debt with new lenders on terms more favorable to the Company.
−Removed: While the Company is confident in its ability to refinance its existing debt, it does not have written or executed agreements as of the issuance of this Form 10-K.
−Removed: The Company’s ability to refinance its existing debt is based upon credit markets and economic forces that are outside of its control.
−Removed: We believe we have a good working capital relationship with our current lender.
−Removed: However, there can be no assurance that the Company will be successful in refinancing its debt, or on terms acceptable to the Company.
+Added: In view of this matter, continuation as a going concern is dependent upon our ability to continue to achieve positive cash flow from operations, obtain waivers or other relief under the Credit Agreement for any future non-compliance with the Senior Leverage Ratio, the borrowing base covenant, or any other financial covenants, or refinance our Credit Agreement with a different lender on a basis with more favorable terms.
+Added: As part of our ongoing efforts to strengthen our financial position, the Company has initiated plans to recapitalize its balance sheet and refinance our current Credit Agreement.
+Added: This initiative is part of our broader strategy to improve financial flexibility, reduce our cost of capital, and position the Company for sustainable growth in the long term.
+Added: We are actively working to refinance our debt with new lenders.
+Added: While we have currently engaged financial advisors and are actively working to refinance our existing debt, we do not have written or executed agreements as of the issuance of this Form 10-K.
+Added: Our ability to refinance our existing debt is based upon credit markets and economic forces that are outside of our control.
+Added: We have a good working relationship with our current banking partner, however, there can be no assurance that we will be successful in refinancing our debt, or on terms acceptable to us.
Recent Financing
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The Company’s sales of interactive devices, including panels, whiteboards, audio and communication equipment and other interactive devices generally include hardware maintenance services, a license to software, and the provision of related software maintenance.
−Removed: Interactive devices are generally sold with hardware maintenance services with terms
−Removed: ranging from 36-60 months.
+Added: Interactive devices are generally sold with hardware maintenance services with terms ranging from 36-60 months.
Software maintenance includes technical support, product updates on a when and if available basis, and error correction services.
29 unchanged sentences
However, if the fair value were to be less than carrying value, we would then determine the amount of the impairment charge, if any, which would be the amount that the carrying value of the goodwill exceeded its implied value.
−Removed: Intangible assets are amortized using the straight-line method over their estimated period of benefit.
−Removed: We evaluate the recoverability of intangible assets periodically and take into account events or circumstances that warrant revised
−Removed: estimates of useful lives or that indicate that impairment exists.
−Removed: No material impairments of intangible assets have been identified during any of the periods presented.
−Removed: Intangible assets are tested for impairment on an annual basis, and between annual tests if indicators of potential impairment exist using an undiscounted cash-flow approach.
The Company's annual impairment testing date normally occurs as of October 1, which facilitates the overall coordination and timing of our annual financial statement close cycle and the preparation of our annual report.
3 unchanged sentences
As a result of these changes, we determined the Company had two reporting units for purposes of testing based upon entities that comprise the Americas and EMEA reporting segments.
−Removed: For purposes of impairment testing, we allocated goodwill to the reporting units based upon a relative fair value allocation approach and assigned approximately $22.4 million and $2.8 million of goodwill to the Americas and EMEA reporting units, respectively.
+Added: For purposes of impairment testing, we allocated goodwill to the reporting units based
+Added: upon a relative fair value allocation approach and assigned approximately $22.4 million and $2.8 million of goodwill to the Americas and EMEA reporting units, respectively.
As of June 30, 2023, we performed an interim goodwill impairment test as a result of the triggering events identified.
13 unchanged sentences
For the year ended December 31, 2023, the Company recorded goodwill impairment charges of $22.4 million and $2.8 million in the Americas and EMEA reporting units, respectively, which also represents total accumulated goodwill impairment charges for each reporting unit.
+Added: Intangible assets are amortized using the straight-line method over their estimated period of benefit.
+Added: We evaluate the recoverability of intangible assets periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists.
+Added: Intangible assets are assessed for impairment if indicators of potential impairment exist using an undiscounted cash-flow approach.
+Added: During the year ended December 31, 2024, due to triggering events, the Company performed intangible testing as of September 30, and December 31, 2024.
+Added: As of September 30, 2024, the Company determined that a triggering event had occurred as a result of a decline in the Company’s revenues resulting from lower sales volume primarily resulting from lower global demand for interactive flat panel displays.
+Added: As a result, the Company performed an interim impairment test on its finite-lived intangible assets using undiscounted cash flows.
+Added: Based on the results of our interim test as of September 30, 2024, we concluded that the estimated undiscounted cash flows exceeded the respective carrying value and, as such, we concluded that the intangible assets assigned to each reporting unit, as of September 30, 2024, were not impaired.
+Added: As of December 31, 2024, the Company performed intangible impairment testing as a result of another triggering event identified due to further declines in the Company's revenues.
+Added: The Company’s methodology for estimating the total value of undiscounted cash flows was consistent with the approach used for the intangible asset recoverability test as of September 30, 2024.
+Added: Certain estimates and assumptions, including the Company’s operating forecast for 2025 and future periods, were further revised based on current industry and Company trends.
+Added: Based on the quantitative test performed, no impairment was deemed necessary.
+Added: However, due to forecasted industry changes in the interactive flat panel display market as well as the Company's operational strategy, the useful lives of certain intangible assets have been revised to reflect the current expected economic useful lives.
+Added: The modification in useful lives resulted in accelerated amortization of approximately $12.3 million for both the Americas and EMEA reporting segments during the year ended December 31, 2024.
SHARE-BASED COMPENSATION
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Total expense related to the award is reduced by the fair value of the options that are forfeited by the employees that leave the Company prior to vesting as they occur.
+Added: The Company estimates the fair value of the long-term incentive plan by using a Model Monte Carlo Simulation model.
+Added: The amount of each award earned will depend on the performance of the Company relative to certain performance targets related to share price appreciation of the Company’s Class A common stock during the respective performance cycles.
+Added: As amounts earned for the awards are based on changes in the Company's stock price, the Company will recognize a liability for compensation cost each reporting period based on the fair value as of each reporting date proportionally with the elapsed time at each reporting period.
DERIVATIVE WARRANT LIABILITIES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.