Company: BWMN
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023232
Chunk: 19

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 For tax purposes, depending on the transaction, the acquisitions were treated either as an asset acquisition, in which case the assets have been stepped up and recorded at their respective fair values, or a tax-free merger, in which case the assets have been recorded at their respective carrying values. Goodwill results from an assembled workforce, which does not qualify for separate recognition, as well as expected future synergies from combining operations. For asset acquisitions, all the goodwill recognized is expected to be deductible for tax purposes. For three of the acquisitions, the purchase agreement includes a contingent consideration feature, which affords the sellers the opportunity to earn additional consideration in the form of the Company's common stock, cash and non-negotiable promissory notes, based on certain financial performance thresholds. The final settlement amount will depend on ongoing operations of the 

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acquired company. The payout amounts range between $0 and $1.0 million. See Note 2 Fair Value Measurements for additional information regarding the fair value of contingent consideration.The following summarizes the preliminary calculations of the fair values of the other 2024 acquisition assets acquired and liabilities assumed as of the acquisition date (in thousands):(in thousands)2024Assets:Accounts receivable, net$5,685 Contract assets2,468 Prepaid and other current assets201 Property and equipment, net685 Operating lease, right-of-use assets2,681 Goodwill20,603 Other intangible assets13,531 Other assets 118 Total assets acquired:$45,972 Liabilities:Accounts payable and accrued liabilities, current portion$1,373 Contract liabilities2,705 Other non-current obligations9,859 Operating lease obligation, less current portion2,681 Deferred tax liability3,126 Total liabilities assumed:$19,744 Net assets acquired:$26,228 Cash flow reconciling items:Issuance of common stock as partial consideration$(17,780)Cash paid for acquisitions, net of cash acquired$8,448 For the three months ended March 31, 2025, the Company recorded measurement period adjustments of $0.1 million decrease to accounts receivable, net, and $0.1 million decrease in other non-current obligations. If the change in provisional amounts had been recorded at the acquisition date, it would not have resulted in a change in operating income in the prior periods.The condensed consolidated financial statements of the Company include the results of operations from any business acquired from their respective dates of acquisitions (excluding Sur