Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 18

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 16
Chunk 18
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 of December 31, 2024. No impairment losses were identified or recorded for the years ended December 31, 2024 and 2023.Definite Lived Intangible Assets and Long-lived AssetsPurchased intangible assets are recorded at fair value using an independent valuation at the date of acquisition and are amortized over the useful lives of the asset using the straight-line amortization method.

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The Company assesses potential impairment of its intangible assets and other long-lived assets when there is evidence that recent events or changes in circumstances have made recovery of an asset’s carrying value unlikely. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. No impairment losses were identified and recorded for the years ended December 31, 2024 and 2023, respectively.Accrued ExpensesThe following table presents the components of accrued expenses: As of(in thousands)December 31, 2024December 31, 2023Accrued payroll and benefits$8,142 $1,910 Accrued income taxes24,002 — Accrued other3,548 771 Total accrued expenses$35,692 $2,681 Financial InstrumentsFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.The Company’s current financial assets and liabilities approximate fair value due to their short-term nature and include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. Property and EquipmentThe following is a summary of property and equipment, net:As of(in thousands)December 31, 2024December 31, 2023Leasehold improvements$99 $166 Equipment, furniture, and fixtures4,