Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 73

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 73
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1,400 The fair value of identifiable intangible assets was estimated using discounted cash flow models with Level 3 inputs. Customer relationships were valued using the multi-period excess earnings method, and the trade name was valued using the relief-from-royalty method. Goodwill recognized in the transaction reflects expected synergies, including enhanced manufacturing capabilities and the assembled workforce, and was allocated to the Company’s single reporting unit. Acquisition-related costs of approximately $0.3 million were expensed as incurred and recorded in selling, general and administrative expenses.

6.    INVENTORIES

Inventories are valued at the lower of cost or net realizable value with costs approximating those determined under the first-in, first-out method. Changes in the inventory reserve are included in cost of revenue. Inventories-net consist of the following:March 31,2025December 31,2024Finished goods$117,354 $108,786 Raw materials28,559 27,088 Less: inventory reserve(4,754)(4,709)Inventories-net$141,159 $131,165 

7.    PROPERTY, PLANT AND EQUIPMENT

The following table summarizes the Company's property, plant and equipment balances and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:Estimated UsefulLife in YearsMarch 31,2025December 31,2024Merchandising equipment - coolers3-7$43,441 $39,231 Vehicles512,237 12,237 Machinery and equipment7-1511,683 10,136 Leasehold improvements3-52,375 2,561 Office equipment 3-71,681 2,228 Less: accumulated depreciation(12,719)(10,791)Property, plant and equipment-net$58,698 $55,602 Depreciation expense amounted to approximately $2.4 million and $1.1 million for the three months ended March 31, 2025 and 2024, respectively, and is reflected in selling, general and administrative expenses.

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Celsius Holdings, Inc.Notes to the Condensed Consolidated Financial Statements (Unaudited)March 31, 2025(Tabular dollars in thousands, except per share amounts)

8.     GOODWILL AND INTANGIBLES

As of March 31, 2025 and December 31,