Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 6

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 6
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 Credit Losses — The Company is exposed to potential credit risks associated with its product sales and related accounts receivable, as it generally does not require collateral from its customers. The Company’s expected loss allowance for accounts receivable is determined using historical collection experience, current and expected future economic and market conditions, an assessment of the current status of customers’ trade accounts receivable, and where available, an evaluation of the financial condition and credit ratings of larger customers, including credit reports. Customers are pooled based on common risk factors, and the Company reassesses these customer pools on a periodic basis. The allowance for credit losses is based on aging of the accounts receivable balances and estimated credit loss percentages.Changes in the allowance for expected credit losses for the three months ended March 31, 2025 were as follows:Allowance for Expected Credit Losses Balance as of December 31, 2024$5,278 Current period change2,077 Balance as of March 31, 2025$7,355  Long-Lived Assets by Geographic Area — The following table consists of geographic long-lived asset information, which includes property, plant and equipment-net, right-of-use assets, and definite-lived intangibles-net and excludes goodwill and indefinite-lived intangibles, for individual countries that represent a significant portion of the total. All of the Company’s North American long-lived assets are located in the United States and Canada. Long-lived assets from Puerto Rico are included in the 'Other' category:March 31,2025December 31,2024North America$73,023 $72,115 Finland11,261 10,950 Sweden3,744 2,523 Ireland3,673 3,599 Other30 29 Long-lived assets related to foreign operations18,708 17,101 Long-lived assets-net$91,731 $89,216 

10

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

Advertising Costs — Advertising costs are expensed as incurred and charged to selling, general and administrative expenses. The Company mainly uses targeted marketing initiatives, such as sporting events, print, radio, and television advertising, alongside direct sponsorships and endorsements. The Company incurred advertising expenses of approximately $49.3 million and $46.5 million for the three months ended March 31, 2025 and 202