Company: BWMN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001628280-25-012365
Chunk: 120

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1A
Chunk 120
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 projects or that cause them to exercise their right to terminate our contracts with little or no prior notice. In addition, any financial difficulties suffered by our sub-consultants or suppliers could increase our cost or adversely impact project schedules. These disruptions could materially impact our backlog and have a material adverse impact on our business, financial condition and results of operations. 

Our quarterly results may fluctuate significantly, which could have a material negative effect on the price of our common stock. 

Our quarterly operating results may fluctuate due to several factors, including:

•fluctuations in the spending patterns of our customers;

•the number and significance of projects executed during a quarter;

•unanticipated changes in contract performance, particularly with contracts that have funding limits;

•the timing of resolving change orders, requests for equitable adjustments and other contract adjustments;

•the timing of our meeting a project milestone that allows us to bill our customer and recognize revenue;

•project delays;

•changes in prices of commodities or other supplies;

•weather conditions that delay work at project sites;

•the timing of expenses incurred in connection with acquisitions or other corporate initiatives;

•natural disasters or other crises;

•staff levels and utilization rates; 

•changes in prices of services offered by our competitors; and

•general economic and political conditions.

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If our quarterly operating results fluctuate significantly, it could have a material negative affect on our financial condition and results of operations and could cause the price of our common stock to decrease, perhaps substantially and disproportionately to the actual effect on our business. 

An impairment charge on our goodwill could have a material adverse impact on our financial position and results of operations. 

Because we have grown in part through acquisitions, and expect to grow further through acquisitions, goodwill and intangible assets represent a substantial portion of our assets and will likely represent a more substantial portion in the future. As of December 31, 2024 and 2023, we had $134.7 million and $96.4 million of goodwill, representing 26.8% and 23.9%, respectively, of our total assets as of December 31, 2024 and 2023. Under U.S. GAAP, we are required to evaluate goodwill carried in our consolidated balance sheet for possible impairment on an annual basis using a fair value approach. We also are required to test goodwill for impairment between annual tests if events occur or circumstances change that would more likely than not reduce our enterprise fair value below our goodwill carrying value. These events or circumstances could include