Company: HCKT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030037
Chunk: 112

Company: HACKETT GROUP, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 112
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 projections of revenue, operating expenses, the customer attrition rate, and the discount rate involved a high degree of auditor judgment and increased audit effort, including the use of our valuation specialists, due to the impact these assumptions have on the estimates of fair value.

Our audit procedures related to the customer relationships acquired in the business combination included the following, among others:

•We obtained an understanding of the relevant controls related to the valuation of the customer relationships and tested such controls for design and operating effectiveness, including management’s estimation process over the assumptions noted above.

•We read the purchase and sale agreement to understand and evaluate the terms of the acquisition, including the assets acquired.

•We tested the underlying data used by management to estimate the fair value of customer relationships for completeness and accuracy.

•We tested the reasonableness of management’s projections of revenue, operating expenses and the customer attrition rate used in the valuation of the customer relationships by comparing them to publicly available market data. 

•We utilized our valuation specialists to assist in the following procedures, among others:

•Assessing the appropriateness of management’s valuation methodology based on the nature of the fair value estimate.

•Corroborating the market data used by management to estimate the fair value of the customer relationships by comparing such data to publicly available information.

/s/ RSM US LLP

We have served as the Company’s auditor since 2015.

Coral Gables, Florida

February 28, 2025 

33

THE HACKETT GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

    December 27,

    December 29,

    2024

    2023

    ASSETS

    Current assets:

    Cash
     
    $
    16,366

    $
    20,957

    Accounts receivable and contract assets, net of allowance of $2,377 and $1,072     at December 27, 2024 and December 29, 2023, respectively

    57,079

    52,113

    Prepaid expenses and other current assets

    2,901

    2,368

    Total current assets

    76,346

    75,438

    Property and equipment, net

    20,343

    20,044

    Other assets

    350

    285

    Intangible assets

    2,312

    —

    Goodwill