Company: BWMN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001628280-25-012365
Chunk: 24

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 15
Chunk 24
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) revenue projections of the business, including cost of revenue and EBITDA, (ii) attrition rates and (iii) the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Other personal property assets, such as property and equipment, are valued using the cost approach, which is based on replacement or reproduction costs of the asset less depreciation. The fair value of the contingent consideration is estimated using published treasury rates in the Wall St. Journal and discounting the present value along with other significant assumptions which include projections of revenue, and probabilities of meeting those projections, as well as Monte Carlo simulation techniques.

F-14

Table of Content

The following is a summary of change in contingent consideration:For the Year EndedFor the Year Ended(in thousands)December 31, 2024December 31, 2023Balance at beginning of period$10,567 $487 Fair value of contingent consideration issuances2,030 10,379 Change in fair value of contingent consideration(1,559)(299)Settlement of contingent consideration(4,386)– Balance at end of period$6,652 $10,567 The change in fair value consideration is included in Other Expense in the Consolidated Income Statement.Advertising ExpenseThe Company expenses the cost of advertising as incurred. Advertising expense was $0.3 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively.Income Taxes The Company recognizes deferred income tax assets or liabilities for expected future tax consequences of events recognized in the consolidated financial statements or tax returns. Under this method, deferred income tax assets or liabilities are determined based upon the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates expected to apply when the differences settle or become realized. Valuation allowances are provided when it is more likely than not that a deferred tax asset is not realizable or recoverable in the future. The Company recognizes the effect of a change in tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company’s effective tax rate for the years ended December 31, 2024 and 2023 was 133.9% and (2.7)%.The Company assesses uncertain tax positions to determine whether the position will more likely than not be sustained upon examination by the Internal Revenue Service (IRS) or other taxing authorities. If the Company cannot reach a more-likely-than-not determination, no benefit is