Company: QXO-PB
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001628280-25-009626
Chunk: 26

Company: QXO, Inc.
Filing Date: 2025-03-04
Form: 10-K
Item: Item 16
Chunk 26
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)(1,070)Weighted-average common shares184,949657Weighted average pre-funded warrants19,049-Total weighted-average common shares outstanding203,998657Basic and diluted loss per share$(0.11)$(1.63)The following table summarizes securities that, if exercised, would have an antidilutive effect on diluted loss per share attributable to the common shareholder.Year Ended December 31, (in thousands)20242023Stock options——Convertible Preferred Stock219,010—Warrants219,010—Stock-based awards21,890—Total potential dilutive securities not included in loss per share459,910—

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NOTE 5 – INTANGIBLE ASSETS

Intangible assets consist of proprietary developed software, intellectual property, and customer lists. Proprietary developed software is carried at cost less accumulated amortization; intellectual property, customer lists and acquired contracts are carried at acquisition date fair value less accumulated amortization.On November 13, 2023, SWK Technologies, Inc. acquired the customer list and prepaid time from clients of JCS Computer Resource Corporation (“JCS”) pursuant to an Asset Purchase Agreement for cash of $278,500, and a promissory note in the amount of $1.0 million (the JCS Note”) for a total of $1.3 million. The JCS Note balance was paid in full on July 24, 2024. The customer list was recognized as an intangible asset and will be amortized over its estimated useful life of seven years.The following table provides information about the Company’s identified intangible assets:As ofEstimated Useful Lives(in thousands)December 31, 2024December 31, 2023Proprietary developed software$390 $390 5 – 7Intellectual property, customer list, and acquired contracts9,049 9,069 5 – 15$9,439 $9,459 Less: accumulated amortization(5,415)(4,540)Total intangible assets$4,024 $4,919 Amortization expense related to the above intangible assets was $875,300 and $672,000, respectively, the years ended December 31, 2024 and 2023. There was no impairment of intangible assets for the years ended December 31, 2024 and 2023, respectively.The Company expects future amortization expense to be the following:(in thousands)Amortization2025$883 2026875 202